Jefferson b.

maristela
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? Wouldnt 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, doesnt the Internet make it
much easier to distribute products thus lessening the need for others to be
involved in selling a companys 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
Dells case creating their own transportation system makes little sense given how
large such a system would need to be in order to service Dells customer base.
Thus, by using shipping companies Dell is taking advantage of the benefits these
service offer to Dell and to Dells 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 organizations 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.
Price

An organization bases pricing decisions on both internal and external factors.

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

Promotion and promotional mix

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