Wednesday, December 12, 2012

Distribution


Armstrong and Kolter writes “ companies often pay too little attention to their distribution channels, sometimes with damaging results.  (Marketing: An Introduction p.312) Distribution of products take place by means of channels. It involves making the product available for customers. It is always important to avoid channel conflict because it can interfere with the company’s main objective. The Phileas Fogg snack company plans on using intensive distribution means to deliver its products. Using this strategy, will guarantee the products to be stocked in all the grocery stores, gas stations, bars and casinos. Magazines, soft drinks, and snack foods rely tremendously on this method because it really gets the products distributed fast and in large quantities.
     The authors also states “ how adding a distributor reduces the number of channel transactions.” (Marketing: An Introduction p. 313) This method keeps cost down and allows the company to be more efficient. 

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