Distribution and Marketing Plan, Research Paper Example

Introduction

Any business investment requires a well planned marketing and distribution plan so as to deliver its products to the users in the market. There are various costs that are associated with the distribution of products for a company. Our Music consulting company exclusively deals with only one channel of distribution for our clients products. This channel is not dictated by the company itself but the size of music products that will help sell. In addition, our company is not new to the market hence we do not sell directly to other businesses.

This research paper will critically examine wholesaling as our channel of distribution in our Music consulting company. This discussion will include the processes involved, advantages and some of the drawbacks that we experience in the process of business.

Wholesaling as our distribution channel

We tend to work with the manufacturers who provide us with large quantities of goods that we facilitate distribute to the other retail outlets. We are interested with volume sales therefore this means that we do not sell low quantity products. It is therefore evident that we handle all the logistics that are associated in the process of getting the merchandise to the users; this also includes all the billings involved. (David G. 2008)

Information on small and large business consulting firm www.smallbusinessconsulting.com Retrieved on 16^th Sept 2009

As wholesalers, we sell our products at a lower cost but in large quantities to the retailers and other outlets. We resorted to being the wholesalers due to the fact that we rely on the distributors to provide us with information from the customers on ways of improving the products hence it becomes of relegation to inform the manufacturer. This builds a good relationship with our outlets which extends to the customers.

It is important to realize that reducing expenditures or rather cutting costs in any business is the foremost and solid procedure ever to be done. Therefore it is fundamental to note that the cost of the goods, services and process increase in each layer in the channels of distribution. Being a wholesaler means that we have avoided the extra high costs that are accrued at other channels such as the retailers in the market. Hence, reducing the overhead costs and increasing the quantities of goods in the warehouses gets us growing.

Our Music consulting wholesaling company researches and evaluates the highs and lows of this form of distribution channel in the market. Most of our money is basically obtained from wholesaling of our products to the retail outlets. On the other hand, we have invested in advertisement through the radio, Television channels, the internet and trade shows so as to sell our products to many other outlets worldwide. We therefore have deeply invested on good adverts on the websites through use of images and addresses of our company that encourages the retail distributors to buy from our company.

We enjoy the flow of cash that flows in the company every day since we sell music products, CD’s, DVD’s MP3 and 4’s in large quantities. We do also spare the problems involved in packing products but sell them in the same condition that we purchase from the music producers. Discounts rates are also obtained from the producer since our high distribution rates has opened up markets world wide making us liable for the same. (David G. 2008)

Conclusion

Wholesaling is the best channel of distribution possible for the consulting company to distribute our products because we sell our products at large quantities. It is cheaper, easy to handle bulky goods in the warehouse, enjoy discount rates but on the other side risk in terms of returning of goods from the outlets which have been distorted or wrongly produced. Our success can therefore be attributed to good marketing distribution strategies practiced.

Reference

David G. (2008) “Marketing distribution channels” Sage: NY. Information on small and large business consulting firm www.smallbusinessconsulting.com retrieved on 16^th Sept 2009.