Once you have developed your product/service, you then need to determine how to make it available to the end user. Using your textbook and the articles from the Databases in the AIU Library, develop a distribution system for the product/service you chose in Unit 1.
Click here for the research requirements and guide for this assignment.
W3 Research.
•An overview of distribution channels:
◦Channel Levels: Direct versus Indirect Distribution
◦Channel Organizations: Conventional, Vertical, Horizontal and Multichannel Marketing Systems
•Analyze your target market's needs. Explain what you know about your target market and what they want from a channel of distribution.
•Determine which channel members you will use and explain why (Indirect: retailer, wholesaler, dealer, manufacturer's rep, etc. Direct: catalog, telephone, sales force, etc.)
•Discuss how many channel members you will use and explain why (intensive distribution, exclusive distribution or selective distribution)
•Recommend a channel organization and explain why (conventional, vertical, horizontal or multichannel marketing system)
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i need help with understanding the different channels of distribution such as, conventional, vertical, horizonta and multichannel distriubtion
To develop a distribution system for your product/service, you can follow these steps:
1. Research distribution channels: Start by understanding the different types of distribution channels. This research will help you determine the most suitable channel for your business. Look for information about channel levels, such as direct versus indirect distribution, as well as different channel organizations like conventional, vertical, horizontal, and multichannel marketing systems. Refer to your textbook and articles from the Databases in the AIU Library to gather relevant insights.
2. Analyze target market needs: It is crucial to understand the needs and preferences of your target market when designing a distribution system. Consider factors such as convenience, accessibility, pricing, and customer expectations. This analysis will help you identify what your target market wants from a distribution channel.
3. Determine channel members: Based on your target market analysis, decide which channel members will be a part of your distribution system. Indirect channel members may include retailers, wholesalers, dealers, or manufacturer's representatives. Direct channel members may include catalog sales, telephone-based sales, or a dedicated sales force. Choose the channel members that align with your target market needs and allow you to effectively reach your customers.
4. Decide on the number of channel members: Consider whether you want to adopt intensive distribution, exclusive distribution, or selective distribution. Intensive distribution involves placing products in as many outlets as possible. Exclusive distribution limits the number of outlets that sell the product, creating a sense of exclusivity. Selective distribution falls between these two approaches, where products are distributed through a limited number of authorized retailers. Select the number of channel members based on your product/service, customer preferences, and business strategy.
5. Recommend a channel organization: Finally, recommend a channel organization based on your chosen channel members and distribution strategy. Conventional channel organizations involve independent channel members working separately. Vertical channel organizations involve different stages of the distribution chain being owned by a single entity. Horizontal channel organizations involve combining resources and capabilities of similar channel members to achieve economies of scale. Multichannel marketing systems involve using multiple distribution channels simultaneously. Select the channel organization that best suits your product/service, target market, and distribution objectives.
By following these steps and conducting thorough research, you can develop an effective distribution system for your product/service. Remember to consider your target market's needs, choose suitable channel members, determine the number of channel members, and recommend an appropriate channel organization.