Jefferson b.

bsba 1-b
ms. Postre
Importance of Distribution Channels
As noted, distribution channels often require the assistance of others in order
for the marketer to reach its target market. But why exactly does a company need
others to help with the distribution of their product? Wouldn’t a company that
handles its own distribution functions be in a better position to exercise control over
product sales and potentially earn higher profits? Also, doesn’t the Internet make it
much easier to distribute products thus lessening the need for others to be
involved in selling a company’s product?
While on the surface it may seem to make sense for a company to operate its
own distribution channel ( i.e handling all aspects of distribution ) there are many
factors preventing companies from doing so. While companies can do without the
assistance of certain channel members, for many marketers some level of channel
partnership is needed. For example, marketers who are successful without utilizing
resellers to sell their product (e.g., Dell Computers sells mostly through the Internet
and not in retail stores) may still need assistance with certain parts of the
distribution process (e.g., Dell uses parcel post shippers such as FedEx and UPS). In
Dell’s case creating their own transportation system makes little sense given how
large such a system would need to be in order to service Dell’s customer base.
Thus, by using shipping companies Dell is taking advantage of the benefits these
service offer to Dell and to Dell’s customers.
Four Function of Marketing Logistics
Marketing logistics involve planning, delivering, and controlling the flow of
physical goods, materials and information from the producer to a market as
necessary to meet customer demands while still making a satisfactory profit.
Maintaining an organization’s competitive edge means understanding and
implementing an effective marketing logistics strategy regarding product, price,
place and promotion. These four functions of marketing logistics help the
organization to reach the target customers and deliver the products or services sold
by the organization to these customers.
Product Delivery
One function of logistics marketing is finding out who your customer is and
how to get the product or service to the customer. Each customer can have
individualized needs so the logistical services provided may vary from customer to
customer. Regardless of these differences, the customers expects 100 percent
conformance and assured reliability at all times with every transaction. The goals of
this aspect of marketing logistics include filling the order, on-time delivery, precise
invoicing and zero damage.

never expose the backroom processes involved with logistics delivery to the customer. weight and distance the organization will ship the item. the organization must coordinate the logistics of the various marketing materials. Related Reading :How to Control Implementation of Retail Strategy Marketing and Planning Promotion Promotion is another important aspect of an organization’s marketing logistics process. The organization must execute logistics in such a way that the customer is not aware of the complexities involved in the logistics process. However. consistency and IMC strategy is to create a seamless experience for consumers across different aspects of the marketing mix. Marketing logistics must recognize price drivers. Also the location of the factory. Additional factors driving price include the shipping costs based on the size. For example. For example. quantities and quality of the materials used in the manufacturing process can affect price. The should. Marketing logistics can help to ensure that all of these entities work together and produce the marketing materials needed to sell the product. When bringing a product to market. the art department might design the artwork for the product’s box and an outside supplier might manufacture the boxes with the artwork. Further. labor costs and the types. These changes are not typically controlled by marketing logistics. to provide clarity. The profile of the customer. However. The American association of advertising agencies defines IMC as “a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines therefore. . at the same time locating the factory in Mexico might increase the shipping costs and negate any cost savings. marketing logistics must react to these factors and understand how the factors affect customers decisions. Integrated Marketing Communications Integrated marketing communications (IMC) is approach used by organizations to brand and coordinate their communications efforts. the product and the type of order are factors that drive the price. locating a factory in Mexico might reduce the labor costs associated with a product. Discounts for quantities and the related logistical cost structure can impact the price the customer will ultimately pay for the product or service. the brand’s core image and messaging are reinforced as each marketing communication channel works together as parts of a unified whole rather than in isolation. Place The function of place in marketing logistics allows the organization to simplify the transactions between a logistics provider and the customer. warehouse and customer can greatly impact the marketing logistics process by increasing or reducing costs. the size of the manufacturing run.An organization bases pricing decisions on both internal and external factors.

It is one of the most expensive forms of promotion. telemarketing. Examples: Direct mail. a company engages in a one way communication to the prospect of customer. point of purchase displays 5. and public relations. Two forms of direct marketing are printed by mail. television. product samples. It generates direct contact with prospects and customers. Advertising Advertising is a form of non personal promotion. special promotions bulletins. Examples: Personal meetings. Sales promotion are used to stimulate purchasing and sales and the objectives are to increase sales. e-mails and correspondence. The goals of direct marketing are to generate sale or leads for sales representatives to pursue. It is when companies pay to promote ideas.Personal selling Basically personal selling is one of to one communication between seller and prospective purchase. Examples: Coupons. or direct by e-mail. Sales promotion Sales promotion basically represents all marketing activities other than personal selling. e-mail 4. 2. customer inquires. 3. Direct marketing allows a business to engage in one way communication with is customers about product announcements. etc. It can be found everywhere. and create a positive business or corporate image. advertising. websites.Promotion and promotional mix 1. or services in a variety of media outlets. newspapers. Direct Marketing Direct Marketing is a type of advertising directed to a targeted group of prospects and customers rather than to a mass audience. inform potential customers about new products. Public Relations . and order confirmations. goods. city buses. With advertising. Examples: Magazines.