The distribution process plays an essential role in the marketing mix. The marketing mix has four main features known as the 4 Ps, which include product, place price, and promotion. These features are essential in the marketing process because they help manufacturers to reach targeted customers. Distribution falls under the place feature of the marketing mix. Distribution to the process of moving goods and services from the manufacturers to wholesalers or retailers and finally to consumers.
Importance of Distribution in the Marketing Mix
The distribution process involves availing finished products to potential consumers at the right place and time. Therefore, this process is vital in an organization because it enables a company to market its products effectively and more efficiently (Hill, O'Sullivan, & O'Sullivan, 2012). Secondly, the distribution of goods is available for customers to meet their needs when necessary. As a result, it creates a good relationship between manufacturers, wholesalers, retailers, and consumers due to proper coordination (Lancaster & Withey, 2013). For example, in launching V-Fusion, a channel of distribution will help in ensuring that consumers of this product get the right qualities and quantities at the right time.
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Value of Distribution in the Marketing Mix
According to Lamb et al. (2013), place utility in the distribution process is considered as a value. Value refers to benefits accrued by both manufacturers and consumers of a product as a result of an effective and efficient channel of distribution. An effective and efficient distribution process ensures that the right products from manufacturers reach final consumers at the right time and in good qualities and quantities. Since some products are perishable goods, a proper channel of distribution helps in ensuring that a product reaches final consumers before expiring. Intrinsically, an appropriate chain of distribution adds value in the marketing process by creating a better relationship between manufacturers and final consumers of a product.
Distributing Strategies
Intensive distribution is one of the most common distribution strategies that are used by large corporations (Lancaster & Withey, 2013). The intensive distribution strategy aims at serving a large number of customers within a specific geographical region. This strategy is only suitable for products that can stay for more extended periods before reaching the final consumers. Pepsi and other soft drinks are examples of products that require intensive distribution strategy because they can stay for an extended period before its expiry data elapse. An intensive distribution strategy is used when manufacturers or wholesalers sell a high volume of products due to a large scale of distribution.
Usually, the level of distribution chosen when using this strategy depends on various factors such as the production capacity, pricing methods, the size of the targeted market and production promotion policies of the manufacturer (Lancaster & Withey, 2013).
How Intensive Distribution Strategy is applicable to V-Fusion Product
V-fusion is a consumable product that can last long before reaching its expiry date. Just as it is the case with other soft drinks like Pepsi, V8 fusion can stay for an extended period before going bad. Besides, the V-fusion product is a seasonal product that is highly consumed during peak seasons. As such, an intensive distribution strategy can be used to distribute the product to meet its high demand in the market (Lancaster & Withey, 2013).
Furthermore, since the V8 fusion drink is a new product in the market, an intensive distribution strategy can comfortably accommodate. The product needs awareness to reach targeted consumers. For example, most soft drink manufacturers use intensive distribution strategy to reach many consumers from all parts of the world to increase sales volume.
A Real-Life Example of Channel Conflict
Channel conflict refers to when the sales channels of the same product compete with one another in an unproductive manner. These actions lead to cases such as customer satisfaction issues and loss of sales of a product, which directly affect the performance of the organization. Although some channel conflicts were won by the companies involved, there were those that did not have a happy ending like that of Dell Company. The conflict included the AGJ System and Dell. Dell's former employee secured a job in the city needed to place an order on hardware. The former employee opted to contact the former employer for sale. Additionally, AGJ noticed that the deal was worth $250,000 from Dell's website, which would have attracted a good commission for the company. When AGJ contacted Dell representative, they were told to register the deal online despite being in the list of approved vendors. AGJ ended up losing the deal because someone else in the inside was working on the same deal with the former employers denying having contacted Dell directly. This circumvented the partners, thus allowing Dell to provide customers with the product at a lower price.
Conclusion
In summary, distribution plays a vital role in the marketing mix. It helps in ensuring that consumers of a product receive quality products at the right time and place. As well, it assists companies to maximize their sales through mass distribution strategies. Companies should be keen when choosing a distribution channel to avoid cases of conflicts that may ruin the entities.
References
Hill, E., O'Sullivan, T., & O'Sullivan, C. (2012). Creative arts marketing. Routledge.
Lamb, C. W., Hair, J. F., & McDaniel, C. (2013). Marketing. Mason, OH: South-Western/Cengage Learning.
Lancaster, G., & Withey, F. (2013). CIM Coursebook 03/04 Marketing Fundamentals. Routledge.
