2020-10-10
196
Distribution and the Internet
When a manufacturer (use) more than one distribution channel simultaneously (reach) the end user, he (say) to (use) the dual distribution strategy. They may (open) their own showrooms (sell) the product directly while at the same time (use) Internet marketplaces and other retailers (attract) more customers. A perfect example of goods (sell) through dual distribution (be) smartphones.
The Internet (revolutionize) the way manufacturers (deliver) goods. Other than the traditional direct and indirect channels, manufacturers now (use) marketplaces like Amazon. Amazon also (provide) warehouse services for manufacturers’ products and other intermediaries, like aggregators (Uber, Delivery Club, etc.), (deliver) the goods and services. The Internet also (result) in the removal of unnecessary middlemen for products, like software, which (distribute) directly over the Internet.
Ex. 2.11. Describe the following diagram.
(From: https://www.toppr.com/guides/business-studies/marketing/distribution/)
Ex. 2.12. Do you drink Coca-Cola? Do you like it? Ask your partner the same question. Study the diagram of Coca-Cola’s distribution channels. Discuss with your partner the success of the company in supplying Coca-Cola products to different intermediaries and to final customers.
(From: Pelton, L.E., Strutton, D., Lumpkin, J.R. (2016). Marketing Channels. Edinburgh: Heriot-Watt University. P.1/8)
Ex. 2.13. Give examples of companies you know and their distribution channels. What channel is more common for the sale of services? Do you have any experience of working in any channel of distribution? If not, which channel would you prefer? Give your reasons. At first, prove your choice as a customer. Then consider the question as a (future) professional trader.
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Ex. 2.14. Role-play the following situation. Work in pairs. You are senior managers who have to decide on the best distribution channel for the manufacturer. Hold the meeting and discuss the most optimal channel taking into account the following factors.
§ What is the type of your product or service?
§ Is the market geographically spread? Do you intend to sell abroad?
· Which distribution channels are used by your competitors?
· What is the size of your business?
· Does it have an established distribution network?
· What are the marketing objectives?
· How much control over distribution would you like?
Ex. 2.15. The distribution channels have changed during the business history. What do you think the reasons of these changes are? Compare your ideas with the video (https://youtu.be/qHlq9DcqKdU). According to it, what are (four) different historical periods in the development of distribution channels?
