Distribution Channels (Place), Essay Example

A distribution channel is a set of interdependent organization involved in a process of making a product or service available for use or consumption. A channel of distribution therefore moves goods and services from producers to consumers. It overcomes the major time, place and possession gaps that separate goods and services from those who would use them. the main functions of this channel is to gather important information required, being a point of communicate, promotion, packaging, negotiation, physical distribution, financing and risk taker.

Intermediaries are mostly used to improve efficiency in making goods available to the target market. A layer of intermediaries define a channel level which is later used to determine a distribution channel. These levels are: direct level marketing channel and indirect marketing channel. In direct level, there are no intermediaries while indirect incorporates one or more intermediaries. Marketing managers would best fall into the indirect marketing channel because it is connected by several types of flow like the promotion flow, payment flow or even the flow of the product.

While developing the place element of a marketing strategy, the marketing managers should consider matters concerning competition, type of location, availability of customers, level of product distribution, nature of the product, the best available channels of distribution to supply the products, accessibility of the product or service to the customers because the place element does not necessarily mean that the place has to be physical because it could also be online. The sales force should also be analyzed to determine the best marketing strategies to use. Among other factors, competition is quite vital in the sense that the company in question should manage to be unique in terms of how it offers its goods and services so that it can gain a competitive advantage. All the above factors are considered so as to design the best marketing strategy.