Distribution Channells.

Essay by dom5858University, Bachelor's September 2005

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It's fairly easy to change many of your marketing tactics and strategies on a periodic basis; pricing, packaging, and product mix are among these flexible choices. However, distribution and sales decisions, once made, are much more difficult to change. And distribution affects the selection and utilization of all other marketing tools.

There is a wide variety of possible distribution channels for AAA new service, including:

Sales Force compensated by salary, commission, or both

Telemarketing on your own or through a contract firm

Cyber Marketing, surfing the newest frontier

TV and Cable direct marketing and home shopping channels.

Steps for selecting distribution and sales force representation include:

Identify how competitors' services are sold.

Analyze strengths, weaknesses, opportunities, and threats for your business.

Examine costs of channels and sales force options.

Determine which distribution options match your overall marketing strategy.

Prioritize your distribution choices.

Identify how competitors' services are sold.

There are three primary distribution channels for services and estimated costs for each one:

Media sales: This channel is composed of competitors who advertise in local city and county magazines, newspapers, and real-estate flyers.

Contractors and developers: This distribution channel is composed of referrals from contractors and developers who receive a commission from home owners and buyers. The contractors and developers are the "sales" personnel, who expect a commission and entertainment.

Intermediaries: These are independent organizations that will carry out a number of activities. Merchants, which include wholesalers and retailers, take title to and resell the firm's goods, whereas brokers and agents do not buy or carry the producer's products, but help to sell these to customers by negotiating prices and sales terms and conditions on the supplier's behalf.

Determining which Distribution Options Match your Overall Marketing Strategy.

Channel No 1: Brokers and agents

Because AAA acts like an insurance company...