Channel of Distribution, Research Paper Example

Channels of distribution satisfy place utility of products and/or services. In the brief discussion that follows, I explore three examples indicating how health care organizations determine the best channel of distribution for their product or service.

Cost considerations stand out as a major determinant of the choice of a channel of distribution. This could be as far as distribution of insurance services or medicine is concerned. According to the reform brief published by health plan services (2010), it was suggested that health care organization should consider investing in the establishment of alternative distribution models, that offer reduced overhead as well as increase profitability. Some of the suggested alternatives included Direct to Consumer (DC2), Direct-to-Company (D2Company), Remote Sales, Sales Enablement, and Affinity Groups.

Secondly, the nature of product and/or service to be distributed may also be considered. For instance, when it comes to the distribution of curative drugs that demand highly skilled professional prescription, considerable long distribution channels are avoided. This is to imply that such drugs cannot be permitted be sold by the road side vendors,  who in most cases have little, if any, knowledge concerning the prescription of the drug or service to be offered.

Lastly, the best distribution channel is determined by the nature of ailments and people to be attended. People around the world, especially in developing countries, are dying from diseases that can be well cured such as tuberculosis, malaria, and dysentery. Epstein, a medical professional, point an accusing finger to the manner in which lifesaving medicine, technologies and care are delivered. In his suggestion, he calls for the business professionals to step in and make a difference. He goes further to assert that they are the only one who know how to disseminate products and services (Rice University, 2011, August 1).

Reference

Rice University (2011, August 1). New health care distribution model could save lives in developing countries. ScienceDaily. Retrieved from: http://www.sciencedaily.com/releases/2011/08/110801105651.htm

Health Plan Services (2010). Reform Brief. Retrieved from:  http://www.healthplan.com/user-docs/008309_Distribution_Brief.pdf

Kotler, P., et al. (2011). Strategic Marketing for Health Care Organizations: Building A Customer-Driven Health System. New York, NY: John Wiley & Sons, 2011