Discussing Alternative Distribution Channels
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You and your team have decided to investigate the use of alternative distribution channels. Use the Library and internet to provide one other alternative channel management technique that could help a company sell its products or services. What conclusions, both positive and negative, can you draw about alternative channel management techniques? How can this knowledge help you make better applied marketing management decisions?
Seeing as I have an unclear footing on this topic - would licensing, joint venture, partnership marketing, or channel intermediaries be areas that could be utilized for this task? As they all I would think could provide alternative means of distribution channels and assist in marketing/selling the products/services of the organization dependent upon the market. (domestic or international).
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Solution Summary
This solutions helps in clarifying what a distribution channel is and how providing alternative channels helps in marketing a product. This response is about 800 words.
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A distribution channel is essentially the way that an organization gets their product to their clients. It starts at the factory, and ends up in the store.
The product is produced and then must be shipped to the wholesaler. The transportation of this product could be done by plane, truck, train, boat depending on the distance that the product must travel and the budget. The wholesaler will then sell the product to retailers. This is seen as the traditional channel. In essence, the product that the clients then buys has passed through many different hands, and has undergone various degrees of price increase from manufacturer to wholesaler to retailer.
There are many issues surrounding this channel. Some questions that must be thought of are:
- Should the product be sold through a retailer or be distributed through a wholesaler?
- Should multi-level marketing channels be used?
- Where should the product or service be available?
- When should the product or service be available?
- Who should control the channel (referred to as the channel captain)?
- Should electronic methods of distribution be used?
Now a ...
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