MBA-Marketing Essay Example | Topics and Well Written Essays - 2500 words

MBA-Marketing - Essay Example Mainly marketing is a process which is concerned in making the organization successful by affectively selling its product. Distribution is one of the four and most integral parts of marketing. A distributor is also middle, an intermediary between manufacturers and retailers, after the production of a good it may be stored or passed down to the next level of the supply chain. Many times there may be a chain of middlemen passing a particular product down the chain or an organization, before eventually reaching the consumer. This process is commonly known as the distribution chain or the channel of distribution. Each component of this chain has their own requirements, which producers must take into account by producers. (Brassington & Pettitt, 2003, pp.21-98) It is important to note that distribution cannels may not include physical products only. It might be equally important to transport a service from the manufacturer to the consumer, for which both direct and indirect modes may be used. For example hotels may sell their services through travel agents or a centralized reservation policy. The channels of distributions have experienced many innovations in the service industry. Examples f this may be a steady increase in franchising and renting services. The renting services may include televisions through cars. There has also been an increase in the integration of services like travel and tourism. In this age links between airlines, hotels tourist guides and car rentals exist. Many services now include many service outlets like consultancies and estate agencies in competition with many grocery stores. Distributions channels are divided in quite a few levels, some gurus have defined that a level with no intermediaries can be considered a s zero level. The next obvious level, level one consists of one intermediary in consumer goods being a retailer and distributor for industrial goods. In a smaller economy where markets are small distribution can be achieved at zero or one-level channels. On the other hand in larger countries where markets are substantial, the use of a wholesaler is used to extend distribution to smaller retailers throughout a country. In countries like Japan the channel is quite complex and many levels are used even for the simplest consumer goods; whereas, in a country like Bangladesh, telecommunication operators use second level distribution for consumer goods to. In the field of information technology levels are termed as tiers. In a one tier channel publishers work directly with dealerships. In the case of a one/two tier channel means that the vendors will work with dealers and the distributors who will eventually sell the product or service. In this case the distributor and wholesaler play the most important role. (Ross, 2004, pp.101-155) Many of the theoretical principles that are applied to the external customers of an organization can be successfully applied to every internal customer of the same. In designated parts of an organization this rule may be formalized, as when a good is transfer at a particular price between different departments of an organization. Except of the usual economic price mechanism this procedure must definitely be viewed as a normal