Distribution channels are organizational networks that represent pathways facilitating the flow of a product from the manufacture to the consumer (Anđelković et al., 2018). An organizational distribution network consists of a set-up of partners that act as intermediaries between producers and consumers. Some of the notable intermediary actors in a distribution system include wholesalers and retailers since they facilitate the movement of goods from manufacturers to final users. The function of a distribution channel is to fill the gap that exists between a production cycle and consumption by establishing time, place, and possession efficacies (Paiva & Teixeira, 2015). Therefore, distributional channels consist of inter-reliant units that perform several activities, processes, and tasks with the responsibility of providing sufficient products and services to the market. The paper discusses a reliable distribution channel for the COVID-19 temperature app from its establishment to the consumer.
Channel Structure
The preferable distribution channel for selling the COVID-19 app would be a non-store retailing structure that encompasses a direct link between the producer and the consumer. COVID-19 app is an online platform that requires that both the retailer and producer have the internet and electronic gadgets like the phone or computer. The app is expected to provide feedback when relevant data is entered into the system to determine whether the client is hot or cold. The makers of the app will have access to two types of channels that comprise commercial online channels and users across a global web. Through the commercial online channels, the responsible firms shall establish an online information and marketing services which will be accessible and signed up by users at a fee.
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Promotional Strategies
To promote the product to reach the ultimate consumer, marketers shall play a vital role in passing information. The strategic role that the channel members will use in promoting the product includes the use of email, newsgroups, online ads, electronic stores, and social media pages. Advancement of technology has led to diversified channels of retailing in the contemporary world (Anđelković et al., 2018). The majority of companies and businesses have established their websites with the majority of them serving as electronic storefronts. Individuals can order items directly from the company like Amazon and Dalton. For the COVID-19 app, the contracted channels will be responsible for placing online ads on commercial online services using the following three approaches. First, ads shall be listed as classified while placed as per their arrival time; implying that the latest ads head the list while the old ones go down the pecking order. Secondly, the ads are incorporated in commercial newsgroups that are established as marketing agencies. The third is the use of online billboards where ads pop up while subscribers engage the service irrespective of whether they requested them or not.
The COVID-19 app shall be established based on the needs of the end-users. Personalized information that shall be used in making the app will be collected from channel members that comprise the local dealers and resellers. Since the projections are that the buyers shall prefer an online platform, an e-commerce website will be created and enabled to sell directly to the consumer. Additionally, retailers and distributors shall display the product in their online stores. Dedicated sales teams shall be assigned the responsibility of dealing directly with clients. The channel members in the distribution network including wholesalers, marketers, and retailers possess established resources and relationships that will facilitate faster delivery of the product to the consumer (Corniani, 2008). Overall, the product shall be designed to meet the needs of customers while the company delivers strong marketing programs including social media, online ads, and branding that will essentially benefit all the channel members in the distribution channel.
Responsibility of Manufacturer to Channel Members
Emerging technological advancement and customer market dynamics are challenging contemporary companies to strengthen distribution channels with greater emphasis on technology-related products (Guan, 2010). From the distribution network, the channel members expect an integrated management system that facilitates the improvement of service delivery at the point of distribution. According to Mahmoud et al. (2011), manufacturing companies must develop mechanisms of transferring knowledge about their products to channel members since it influences positive outcomes in the supply chain. Understanding distributors is vital to the manufacturer since it aids them understand and gather new information about the market and distribution partners. As a result, the transferred knowledge is helpful to distribution partners in guiding clients in making purchasing decisions. Consequently, channel members in the distribution framework expect continuous knowledge sharing from the manufacture to assist in customer enlightenment. Markets who are mean in sharing information encounter difficulties in meeting customer expectations.
As a manufacturer, the capacity to engage in channel management is vital in the distribution process (Paiva & Teixeira, 2015). It is the expectation of the channel members that motivation management is undertaken in three perspectives. First, organizing forums that enable channel members to list their needs and problems encountered. Second, the manufacture has to provide leadership of the entire distribution process. Lastly, channel members expect the producers to establish programs that support the needs and expectations of channel members. Essential elements of support programs that are expected of the manufacture include cooperative agreements, partnerships and strategic pacts, and distribution networks. Leadership guidance must be progressive and incorporated in motivation programs for efficiency and viability.
Structure of the Organization
The organization needs to have an elaborate structure with a competitive advantage that is designed to save cost, enhance efficiency, manage transactions, reach a large customer base, and allow business organizations to focus on important organizational processes. The firm shall implement a functional structure where various departments will be assigned varied roles across the firm. The main functional areas shall include the marketing, production, human resources, customer service, and informational technology departments. The functional structure has various benefits for the organization. First, every individual in the organization is assigned duties and functions that are related to their expertise. For instance, the channel members in the marketing and distribution section will have a big opportunity to become experts in that field hence establishing highly skilled personnel. Secondly, creating departments and groupings that march individual expertise since it increases coordination level thereby enhancing efficiency and lowering operational costs.
Channel members play a vital role in the distribution process from manufacturing to delivery of products to the consumer. The preferred distribution channel for the COVID-19 app was non-store retailing that offered a direct link between the manufacturer and the consumer. Channel members shall use email, newsgroups, online ads, electronic stores, and social media pages. The manufacturer shall play a vital role in channel management through motivation and the establishment of multiple support programs to aid in the distribution process. To aid in the success of distribution, the business shall implement a functional structure to enhance efficiency and service delivery
References
Anđelković, A., Barac, N., & Radosavljević, M. (2018). Analysis of distribution channels’ successfulness –The case of the retail chains in the Republic of Serbia. Economic Themes , 55 (4), 501–519.
Corniani, M. (2008). Push and pull policy in market-driven management. Symphonya. Emerging Issues in Management , 1 , 2–15.
Guan, W. (2010). Developments in distribution channels - A case study of a timber product distribution channel. In Linköping Studies in Science (Issue 1458).
Mahmoud, M. A., Hinson, R. E., & Anning-dorson, T. (2011). Channel structure and conflict management among multinational corporations (MNCs in Ghana. International Management Review , 7 (2), 35–45.
Paiva, E. L., & Teixeira, R. (2015). The relationship between manufacturer and distributors : Knowledge transfer and performance. Brazilian Administration Review , 12 (4), 421–441.
