Marketing Distribution Channels for Transcend, Essay Example

Abstract

This labor examines the marketing distribution channels for Transcend external hard drives-direct versus indirect distribution.  In addition, this work will analyze the needs of the target market and explain the target markets requirements for the channel of distribution.  Subsequently, this document will establish which channel members should be used.  Finally, this paper will discuss the quantity and recommend a channel organization.

Marketing Distribution Channels for Transcend External Hard Drive

Introduction

Distribution channels, or marketing channels, are responsible for transporting services and goods from the company to another company or directly to the consumer.  Moreover, distribution channels make services and products accessible for consumption or use.  These distribution channels can consist of, retailers, sales agents, are wholesalers, for example.  A distribution channel can merely be straight from the seller to the consumer or could comprise of numerous interrelated, normally autonomous although codependent, intermediaries (“Distribution channels,” 2010).

Many standardized functions of business are reported in the work of Kumar (2004) entitled “Marketing as Strategy” to have recently undergone “radical transformations” and this is true of marketing as it is not surprising according to Kumar that “new voices have been calling for the reinvention of marketing.” (p.vii) According to Kumar organizations must be more effective in their management of marketing assets. Many of these assets are intangible assets and include such as brand equity, relationships with customers, vendors, distributors, dealers and employees.

The challenges faced by today’s marketers include consumers with less time and who possess more information than did consumers of the past. As well today’s consumers hold expectations for better quality, more value, and lower prices. The traditional distribution channels are undergoing consolidation and new channels are expanding rapidly.

The Distribution Network

The inter-reliant channels of distribution that exist between the producer of the goods or services and the final users are known by the term ‘distribution network’.  A fundamental distribution network consists of two parts according to Mark E. Gershon and Howard J Weiss.  The first element is each location must be interconnected by a set of routes, e.g. land, air, sea, cable, satellite, or cable.  The second element is the locations must ship, store, or receive material, e.g. retail outlets, warehouses, factories (“Distribution channels,” 2010).

Direct and Indirect Marketing Strategies

Direct marketing channels have no intermediary levels and involve the manufacturer to sell directly to its customers.  In consumer markets, the intermediary is traditionally a retailer, and another channel level is one containing both a wholesaler and a retailer.  This type of distribution channel is characterized by the wholesaler purchasing in bulk from the manufacturer and breaking bulk deliveries in order to supply retailers with smaller quantities (“Distribution – introduction,” 2010).

Functions of the Entities Forming the Distribution Channel

The organizations that serve to form any distribution channel has the responsibility for the functions as follows: (1) accrual and dispensation of market research as well as intellect (2) publicity (3) link with anticipated consumers (4) corresponding the proposal to match the demands of the consumers (5) deliberation of price and terms; (5) physical distribution; (6) financing that covers the cost of distribution of the product; (7) and risk taking which involves an assumption of some commercial risks by operating the channel (“Distribution – introduction,” 2010).

Marketing Distribution Strategies

Marketing distribution strategies include those of intensive distribution commonly used for distribution of low priced or impulse purchase products as well as exclusive distribution which involves the limitation of distribution to a single outlet and is generally the higher priced products requiring the intermediary for its sale.  Finally, selective distribution is the distribution strategy chosen when a small number of retail outlets are chosen as distributors of the product.

Marketing of the product at focus in this particular study must as whether direct or indirect marketing should be used for the marketing plan. This decision is based upon such as the capability to employ intermediaries and the merchandise style, marketplace dynamics, charge for the product, buyer necessities in addition to the capacity to control resellers (“Marketing mix: Place,” 2008).

Marketing Strategy for Transcend External Hard Drive

The Transcend website states that Transcend is “among an elite group of Hi-Tech firms capable of serving the global needs of a constantly expanding technology industry (“Company profile – sales & marketing,” 2010).”  Transcend is highly branded throughout the world.  Transcend reports the use of a “comprehensive marketing strategy” in the maximization of recognition of the Transcend brand as well as driving the efficiency of Transcends marketing promotions (“Company profile – sales & marketing,” 2010).  This will be accomplished specifically through the establishment of marketing coops with Transcends chief clientele.

A marketing co-op is stated to be an arrangement “with Transcends customers to “…feature the products in marketing material and advertising campaigns.”  Consequently, this is an indirect marketing channel through which intermediaries on behalf of Transcend package, advertise, and sell Transcends external hard drive (“Marketing mix: Place,” 2008).

The reason that the indirect marketing channel has been chosen are the customers of Transcend drives who serve, as intermediaries truly comprehend what their customers prefer.  Consequently, this makes this form of distribution channel the channel that will most effectively market Transcends external hard drive.  There is yet another channel that would be posited ffor use in marketing the Transcend external hard drive and that is online Internet sales to individuals, which already know that they want to purchase the Transcend external hard drive.  This marketing strategy is one that utilizes direct contact with individual consumers via Transcends homepage.  In addition, for an effective marketing of the Transcend external hard drives is the use of intermediaries such as online distributors who are characterized by membership requirements, which enable the singular user or business to make such purchases via the Internet (Vitez, 2010).

Conclusion

This work has examined the marketing distribution channels for Transcend external hard drives-direct versus indirect distribution. This work has additionally analyzed the needs of the target market and has explained the target market requirements for the channel of distribution. Since the products of Transcend are properly branded the result is that the potential for marketing effectiveness is optimal and of the nature that should enable Transcend to make use of a marketing mix that utilizes selection marketing of its products and specifically for the purpose of this study the Transcend external hard drive.

References

Channel marketing. (2004). Retrieved from http://www.chanimal.com: http://www.chanimal.com/html/channel_marketing.html

Company profile – sales & marketing. (2010). In Transcend. Retrieved from http://www.transcendusa.com: http://www.transcendusa.com/About/Profile.asp?Profile=6&LangNo=0&Func1No=5&Func2No=43&Func3No=18

Distribution – introduction. (2010, September 1). Retrieved from http://tutor2u.net: http://tutor2u.net/business/marketing/distribution_introduction.asp

Distribution channels. (2010). Retrieved from http://www.referenceforbusiness.com: http://www.referenceforbusiness.com/small/Di-Eq/Distribution-Channels.html

Kumar, Nirmalya (2004) Marketing as Strategy. Harvard Business Press 2004. Retrieved from: http://books.google.com/books?id=UJExAsXM2REC&dq=Transcend+external+hard+drive+marketing+distribution+channels:+direct+and+indirect&lr=&source=gbs_navlinks_s

Marketing mix: Place. (2008). Retrieved from http://www.learnmarketing.net: http://www.learnmarketing.net/Place.htm

Vitez, O. (2010, May 10). Types of distribution channels. In Operating a business. Retrieved from http://www.ehow.com: http://www.ehow.com/facts_5242558_types-distribution-channels.html