Significant things I have learned from the readings on Distribution
This paper summarized the most significant thing I learned from the readings on distribution (text and articles). The most significant thing that I’ve learned is that the coverage of distribution can be viewed ranging from intensive to selective to exclusive distribution. Other learning is also covered in this paper.
Intensive distribution is where manufacturer gain exposure through as many retailers and wholesalers as possible. Based on the product characteristics and the expectations of the buyer need most convenience goods required intensive distribution (Donnelly & Peter, 2009).
Selective distribution is believed to be the ones that are best available in a geographic area. This maybe based on the reputation of the intermediary, sales and the service organization available. Clothing, home furnishings and appliances are selectively distributed. The intermediary reputation for better clothing and home furnishings would be an important consideration, while appliances intermediary service organization could be a key factor (Donnelly & Peter, 2009).
Exclusive distribution is where distribution is limited by the manufacturers. The product characteristics are a figure factor. This is where the product requires investment in large inventories and this arrangement is usually selected. Examples of this distribution arrangement are retail paint store (Donnelly & Peter, 2009).
I have learned about degree of control desired, total distribution cost, and the channel of flexibility. According to Donnelly & Peter (2009) sellers must make decisions about the degree of control desired over the marketing of the firms’ products when selecting channels of distribution. Most manufacturers like to keep control over their products.
Total Distribution Cost suggests that a channel of distribution should be to optimize total system performance; it should be viewed as a total system composed of interdependent subsystems, and that the total system should be designed to decrease cost and not being equal to (Donnelly & Peter, 2009). Transportation and order processing is major distribution costs to be minimized.
The channel flexibility is a last consideration that relates to the ability of the...