Marketing Assignment Example | Topics and Well Written Essays - 500 words - 6

Marketing - Assignment Example Business goods can be distributed in the following manner: producer to consumer; producer to agent to consumer; producer to distributor to consumer; producer to agent to distributor to consumer. Finally, services, because of its nature can only be distributed either directly to consumers or through an agent. Decisions as to which path to take must take into account, among others, the resources available, the market itself whether local or foreign, the price of the goods, and geographical feasibility. Avon and Tupperware, for example, sells its products directly to consumers whilst Procter and Gamble sells through retailers like supermarkets. Insurance and travel industries sell through agents. Producers must also take into account factors such as the most effective distribution channel, the most appropriate level of distribution intensity and degree of channel integration. In the first, considerations such as buyers’ expectations, geographical location and clustering of target consumers, producers’ resources, nature of the goods, and the channels that are being used by competitors are taken into consideration. The second consideration involves the number of channels to be used per area, which may be intensive, selective or exclusive, and should be dependent on the resources of the producer, the image it wants to project and its main priorities. Tyrell Potato Chips, for example, sells only to specialist retailers that gives it an upmarket image and allows it to gain a 35% profit margins not duplicated by its competitors. Finally, the third consideration will depend on how much the producer wants to get involved in the distribution and sales of the goods. It c an opt to choose the conventional methods, franchising such as the practice of McDonald’s, Starbucks, Body Shop and Benetton, or to go all the way by buying all channels involved to