Distribution Levels
Rolex watches are goods of ostentation. They are expensive and target a specific customer segment in the market. The manufacturer has already determined the target market and the specific outlets where such products are to be sold. Although there is the desire to sell goods to a large market, the characteristics of this product limit distribution channels. Such items require selective distribution. Selective distribution involves choosing specific distributers in the market who will receive the products directly from the manufacture and sell them directly to consumers or to a few trusted retailers. This is important because these products may need some explanations before disposing them to customers. The diagram below describes this distribution channel.
The product comes from the manufacturer to a specific distributer in a given market, who then delivers the product directly to the customer.
Coach purses require mass distribution. It is used by many individuals and has no specific target market. Coach purse is an item that can be bought by anyone regardless of geographical distribution or the status in the society. The price of this item is also relatively low. The product does not require a lot of explanation as far as its usage is concerned and therefore anyone can sell it. The diagram below is a representation of its distribution channel. The manufacturer will deliver the products to the wholesaler in bulk, who will then deliver the products to retailers. The retailers will then reach customers.
The product moves from the manufacturer to the wholesaler for mass distribution, then retailers take it from manufactures for final distribution to customers.
Land Rover sports utility vehicle is a high-end product. It is very expensive and the decision to buy it is very involving. Customers need technical explanation when making purchasing such a product (Armstrong, Harker, Kotler, & Brannan, 2009). The producer is also keen to ensure that any post purchase dissonance is reduced. This will call for the shortest distribution channel possible, which would allow the company to keep a close track of the customer. This would allow the manufacturer to address any issue that may arise after the sale of the product. For this reason, exclusive distribution will be the best approach in selling this product. The diagram below shows the channel that best suits this product.
M&M’s are produced in large scale and is distributed to a large market. When produced, chances of having defective items are minimal. Moreover, the detection of defects when the product is in the market may not have serious consequences. The focus in this case is to ensure that products reach as large market as possible. For this reason, it would be appropriate to use intensive distribution. This is illustrated in the diagram below.
Special edition baby dolls will appeal to a large number of parents. They do not need any special explanation about how it is used. It can be stocked by anyone and it does not require any special skill for its delivery. It would therefore require mass distribution as discussed above. The diagram below is a representation of this.
Crest toothpaste is a basic product.. It may not be necessary to offer customers a detailed explanation on its usage because it is a common product in the market. Like M&M’s, this product requires mass production because several people use it. Its distribution channel can be as shown below.
Sephora- Supply Chain Management
It is very important that Sephora keep detailed information about its inventor. This is because customers would need a consistent supply of products in the market without any disruptions. Lack of proper tracking system may lead to poor distribution, which may further lead to product unavailability in the market (Blackwell, Miniard, & Engel, 2006).
To ensure accuracy in inventory numbers, Sephora should keep a record of its inventories at every stage. This analysis will help in understanding the flow of the inventory. This analysis will also help determine the stage that would need improvement.
Sephora has developed an advanced electronic distribution to manage its supply chain. This is important because the world has experienced radical changes brought about by technology. Technology has brought so many changes in the way current firms are conducting business. Giddens (2009) notes that technology has made it easier to monitor the progress of business. It has further enhanced transactions between customers and suppliers. Moreover, it has increased product awareness in the market.
It is important to determine suppliers to be included in the supply chain of a given business. This ensures that only credible suppliers are incorporated into the system. Therefore, information about supplier’s size, consistency, and pricing would be considered when determining suppliers to be incorporated into the supply chain.
Ethics
Ethics is very important when conducting business. Ethics has various dimensions. One aspect of ethics is charging the right price for the product brought to the market. Low-cost retailers should be allowed to locate their businesses near low-income customers. There are a number of reasons for this. Low-income customers have limited purchasing power (Gorchels, Marien, & West, 2004). They are restricted financially from accessing some products in the market. Denying them access to low-cost products is like curving them out of that market completely. This would mean that the market segment would be lost. This will be a loss to business units, which are able to conduct viable businesses in this segment. In order to increase market share, low-cost firms should consider locating their firms near low-cost customers as this would allow them capture this market segment.
The city council should appreciate the role played by low-cost business units. These retailers may play a major role in the development of the city. The council would tax these retailers. The revenue from this taxation can be channeled to other development projects within the city council. Their presence within the city will also attract other major businesses. This would further increase revenue. When such retailers locate their businesses near low-income customers, it would be easier for them to develop into major businesses, which would in turn increase revenues for the firm.
Marketing Communication
Viral marketing involves a chain of individuals passing a piece of information from one individual to another by word of mouth. The information would be about a given product. This type of communication carries more weight than other conventional methods of communication. This is because of the trust that exists between the person passing the message and the recipient. It is easier to believe a friend or a family member recommending a product than an advert in the mass or social media (Kurtz, 2008). Unlike conventional marketing that heavily relies on mass media to reach the targeted populace, this marketing approach depends on trust developed between the firm and the carriers of the message.
Understanding the target market is a crucial aspect of communication process. This is because it will help an individual in determining how messages are coded. A message targeted at young children will be different from that of the teenagers. The adults will also have their own technique.
Promotional mix is heavily affected by the AIDA concept. It is very important to determine the level of consumer involvement before determining the promotional mix. The attention that an individual gives to a product will help determine his or her interest in it. This interest will develop into a desire and it is the desire that will bring action. For a marketer therefore, there should be a way of attracting the attention of customers. The attention should be turned into interest by making the product as appealing as possible. This interest will turn into desire, which will in turn arouse action among customers.
Integrated marketing communication is very important to any firm that hopes to match market communication. This involves incorporating various communication channels in order to reach customers. The world is changing very fast, which has brought about several changes in communication. Social media is becoming a new form of communication. Face book, Tweeter and YouTube are some of the current social networks that have become relevant communication channels used by many organizations to communicate with customers. Kigata Clothing Company is one of the major firms that have not considered the use of social media as a means of reaching their customers.
Vans- Advertising and Public Relation
Customers of this firm are other business units that are interested in advertising their products in a specific location. To reach this market, this company may decide to make direct contacts and request for a business relationship. This may be done by sending representatives who would negotiate on behalf of the company. Alternatively, they can send written requests in form of letters or send a document showing their pricing strategy. Another way through which this company reaches its customers is by use of social media or the mass media.
The market is very competitive. Over the recent past, there has been an increase in the number of advertising firms operating in the same market. Although the size of the market has also received almost an equal growth, other advertising firms are very keen to ensure that they capture a large market share. It is therefore important that Vans choose appropriate marketing strategy in order to remain relevant in the market. It should consider the use of social media as one of its strategies to enter the market. Vans should ensure that it uses popular newspapers in order to make their advertisements relevant. Internet plays a very important role in Vans’ communication strategy. The social media such as Face book, Tweeter and YouTube are some the sites that are currently popular with advertisers (Klein, 2009). Furthermore, they are the most visited sites. The medium can be utilized effectively to capture the youths.
References
Armstrong, G., Harker, M., Kotler, P., & Brannan, R. (2009). Marketing: An introduction. New Jersey: Prentice Hall.
Blackwell, D., Miniard, W., & Engel, F. (2006). Consumer Behavior. Thompsons: South Western.
Giddens, A. (2009). The consequences of modernity. Malden: Blackwell Publishers.
Gorchels, L., Marien, E., & West, C. (2004). The Manager’s Guide to Distribution Channels. New York: McGraw-Hill.
Klein, H. (2009). Customer Engagement Strategies, the three keys to engaging C-suite executives. New York: Cengage Learning
Kurtz, D. (2008). Contemporary Marketing: Designing Customer Oriented marketing Strategy. New York: Cengage Learning.