General Motors has a complex distribution network to efficiently deliver vehicles to customers. It uses a combination of exclusive, selective, and intensive distribution strategies depending on the vehicle type. For popular mass market vehicles, GM utilizes an intensive distribution strategy through a large number of dealerships. However, for luxury or specialized vehicles that require more expertise to sell, GM uses a selective or exclusive strategy by only partnering with select, specialized dealers. Overall, GM's distribution policies aim to balance effective control and coordination within its distribution channels with broad market coverage to serve both mass and niche customer segments.
Original Description:
Proiect la limba Engleza despre politica de distributie
General Motors has a complex distribution network to efficiently deliver vehicles to customers. It uses a combination of exclusive, selective, and intensive distribution strategies depending on the vehicle type. For popular mass market vehicles, GM utilizes an intensive distribution strategy through a large number of dealerships. However, for luxury or specialized vehicles that require more expertise to sell, GM uses a selective or exclusive strategy by only partnering with select, specialized dealers. Overall, GM's distribution policies aim to balance effective control and coordination within its distribution channels with broad market coverage to serve both mass and niche customer segments.
General Motors has a complex distribution network to efficiently deliver vehicles to customers. It uses a combination of exclusive, selective, and intensive distribution strategies depending on the vehicle type. For popular mass market vehicles, GM utilizes an intensive distribution strategy through a large number of dealerships. However, for luxury or specialized vehicles that require more expertise to sell, GM uses a selective or exclusive strategy by only partnering with select, specialized dealers. Overall, GM's distribution policies aim to balance effective control and coordination within its distribution channels with broad market coverage to serve both mass and niche customer segments.
I chose this topic, namely distribution policy because I believe in a company, this policy is a very important and decisive for the activity of that company. Policy distribution represents all economic and technical decisions that lead to efficient conduct of the activities required and the relationships established between operators for release of goods to the users physical, and distribution refers to the physical and economic circuit of goods, the system of relations that occur between agents on the market for large masses and different units of multiple economic sectors. Maine Source: Danciu, Victor, Marketing strategic competitive , Editura Economica, Bucureti, 2003
Chapter I Distribution policy 1. Concept of distribution Distribution concept refers primarily to 'route' that you go through the goods market, to reach consumers: producers, entrepreneurs and consumers. Participation in successive movement of goods along this route up what in marketing terminology is called 'distribution channel'. Analyzed concept refers Secondly, in all the operations (selling, buying, leasing, etc..) by which the transfer of property rights on goods from one market to another agent until their final entry in the sphere of consumption . It also include "Chain operative processes to goods in their route to the consumer, ie the physical distribution of goods." The concept distribution means, the third, the technical device - network facilities, equipment, personnel - also performing processes and operations. Through distribution policy aims to create all conditions to easier for users to find products needed in accessible at the appropriate time in sufficient quantity and of appropriate quality."The distribution must meet the appropriate product realization conditions under which enterprises operate in the market, taking into account the nature of products, consumption structure, existing in areas of consumption habits, the specific situation of the development production and marketing in certain periods. " 2. The content and distribution role Leading commodity, their physical movement is preceded, accompanied or followed by other streams linking the participants in the distribution assembly. The main function of the distribution of the process are: a. change of ownership of the product through the sale and purchase; b. moving product and the transportation, storage, conditioning, handling, packaging, etc.. c. selection and use of distribution channels. Activity distribution occurs with the production of goods, has grown through since the Industrial Revolution, becoming today one of the most dynamic activities. Distribution fulfills an important economic role. Through distribution, economic activity is completed firms and end the cycle of products. Distribution fulfills an important economic role. Through distribution, economic activity is completed firms and end the cycle of products. Producing enterprise/commercial recovers in cash resources invested in the production/marketing of products, together with a profit for the activity and the consumer/user is in possession of the goods required. Distribution has become one of the keys to developing effective marketing mix: the consistency of decisions regarding price, product, communication, promotion, service, selection and formula distribution channel is one of the key aspects of trade policy. Distribution process: Prospecting-> Offers-> Design and tender-> Sales Order-> Billing in advance-> Order suppliers-> Front goods and reserves the command client-> Assembly/Composition/Production-> Reversing advance and Billing final-> Delivery goods-> ancillary Services.
Chapter II Distribution channel The distribution channel is an organized network of agencies and institutions conducting activities designed to make the connection between producers and consumers or in other words, traveling the product from the place of production to the place of consume. 1. Objectives distribution channel Distribution policy aims to orient both by the final beneficiary and as associated businesses. These should be divided into three areas: a. objectives of distribution oriented economic: quantity of sale; turnovers; contributions cover; market share; fixing the price level and distribution costs. b. objective of distribution oriented to supply : the degree distribution (number, weighted); advice attitude of trade(the stock avaible); delivery time; Delivery availability and reliability of delivery. c. psychologically oriented distribution objectives: image distribution channel; counseling qualifications; availability of trade cooperation. Distribution objectives listed here can have both strategic importance (ex: image distribution channel) and operational importance (ex: short-term growth in turnover). Distribution channel is synonymous with marketing channel, thanks to complexity of the role of the distribution channel, which is not only the movement of goods from producer to consumer, this engaging intermediates to create value that a buyer looking for. Intermediaries perform multiple functions related to the distribution: transactional functions (purchase, sale, assuming the risks of ownership of assets), logistic functions (concentration goods from various sources in one place, storage, sorting, transport), functions to facilitate the sale - purchase (financial facilities, classifying various qualities of products, market research, etc.). Marketing channel can be characterized by three dimensions: length, width and depth: a. Channel length is given by the completion of a product between the producer and the final consumer. Depending on the number of these waypoints, distribution channels include: direct channels without intermediaries; short channel single intermediary; long channels with two or more intermediaries. The effectiveness of a marketing channel does not depend on its length but how its duties and the quality of services provided by intermediaries. b. Channel width is defined by the number of intermediaries that provide services of the same nature, which can provide distribution of travel within each phase of the product to the consumer. c. Channel depth expresses the closeness of the last places distributor of actual consumption or use of a product or service.
2. Types of distribution channels Distribution channels can be organized in several complex distribution systems (marketing systems): a. Vertical distribution system, which is controlled by the manufacturer, wholesaler or retailer who wants to avoid conflicts within the distribution channel through central planning. b. Horizontal marketing system requires that two or more enterprises in different industries to meet the material, financial and human resources to capitalize on market opportunity or to cover more than one market segment. c. The multi-channel marketing that brings producers three advantages: better market coverage; lower distribution costs; "personalization" higher sales process. Regardless of the chosen method of distribution, and efforts to design an effective marketing channel conflicts always occur between channel members, often because their goals do not coincide: the vertical channels - contradictions arise between the different rings of the channel; for horizontal channels - conflicts between the links of the same type thereof; the multi-channel distribution system - conflicts are caused by competition that occurs between the channels trying to meet the same consumer segment;
The easiest way to maintain control of the conflict is to try to harmonize different targets members of a distribution channel.
Chapter III Distribution strategies In general, there are three policy options: 1. Intensive distribution involves distributing products and services through a large number of retail units. It is the best way of distribution for consumer goods, consumer services (banking, transportation, life insurance) and some industrial goods; 2. Selective distribution is used by businesses that produce goods for the buyers prefer to spend more time to acquire them even in specialized retail units (bicycles, equipment). This strategy enables manufacturers to achieve better control and lower costs of distribution and work only with certain intermediaries selected for this purpose; 3. Exclusive distribution- used by producers who wish to retain control over the distribution of their products, following a good picture of these products and high commercial additions. It is common in passenger cars class electronics, clothing brand. Distribution strategies represent an option, a set of options. Distribution strategies cover a wide range, which concerns the choice of channels, choice of forms of distribution, participation in the distribution of the firm, the degree of control the distribution, the degree of elasticity of the apparatus of distribution activities, goods logistics.
Chapter IV Case study of General Motors 1. General presentation General Motors was founded in 1908 by WC Durant, who along with Henry Ford founded the automotive industry in America and beyond. The car has provided one of the greatest opportunities of our time in Indutrial and General Motors had the chance to be the basis of this foundation. Oraganizare mode is characterized by perfect coordination GM policies and government decentralization. 2. Theoretical elements International distribution represents the activities taking place and the relationships established between partners in different markets conditions for release of goods to consumers or foreign users. International distribution intermediaries is limited by the fact that due to their interposition between producers and foreign consumers may be problems related to the negotiation and conclusion of transactions and efficiency of information transmission manufacturer market, which could affect its ability to adapt to the demands of international markets . Intermediaries involved in indirect international distribution can be divided into the following categories: international members channel (international middlemen) and distribution channel members Independence from external markets (local). International distribution channel is the 'route' on moving goods from producer to consumers or users in international markets. Exclusive distribution involves using a single intermediary specialized for a particular market. This option is used mainly for marketing products with high unit value, well individualized and considered the brand as automobiles, tractors, crystals, jewelry. Franchising provides presence in international markets by giving know-how in the field of distribution operators in local markets. Multinational strategy consists in opening branches abroad, where distribution formula is adapted to local conditions. Multinational companies combine standardization concept differentiation as it considers subsidiaries as having differentiated, tailored to the local markets. 3. Distribution Policy General Motors used primarily as distributors, dealers. For this company a stable distribution system consists of dealers is a necessary condition for progress and stability. Dealer of General Motors (GM) is a franchisee. So GM uses as development strategy franchise. Franchising is essentially a contractual arrangement whereby a company (franchisor company) GM granted to other companies (francizt beneficiary) dealer, business permission to use intellectual property rights and materials belonging to the transferor in exchange for payments as taxes, royalties, etc... Dealer undertakes to provide capital for business space, an adequate number of sales agents, mechanical service, have in stock and sell parts, and so on. Instead, the manufacturer sells almost entirely through franchised dealer. As GM market coverage strategy uses exclusive distribution and the geographical strategy, multinational strategy. To penetrate the market more efficiently divided cities with a population greater than 1 million areas to determine potential consumers, especially in the United States. Policy in the distribution system of GM, which has pioneered when it was introduced, remember setting up a special division, Motors Holding Division, which has the function to provide capital to dealers through this acted as a shareholder. It is also a funding body by financial problems saves dealers from bankruptcy. Another policy, less common at the time it was enacted, the dealer gave him the opportunity to have a grievance or complaint filed to address directly the top management, executives. If the dealer is not effective, it is removed from the distribution system. In this policy applies which includes the following arrangements: the corporation will take back from the dealer, the price at which he has purchased all new cars he owns; also parts; signs and advertising media company. In fact he is able to sell the goods but not the franchise. All these policies have ensured GM implantation efficient distribution system, which provided marketing its products to high standards. Conclusions Modern distribution developed at the expense of traditional trade, producing a concentration of industry in all countries and major groups capturing considerable market share, basically assisting the internationalization of distribution companies. Very few manufacturers distribute directly to end customers, generally resorting to specialized distributors. Through distribution, economic activity is completed firms and end the cycle of products. In the modern economy, production and consumption are not practicable without the presence of distribution. In the achievement link between producer and consumer, intermediaries contribution is not limited to a passive role. References : 1. Danciu, Victor , Marketing strategic competitiv , Editura Economica, Bucureti, 2003