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Business will need to choose the most efficient channel of distribution for its products: one that will allow them to make their products available to consumers quickly, when they want them, and at minimum cost. Factors to consider will include the following:
How big is the market? Large markets spread over a wide area will usually require intermediaries. International sales may require agents with knowledge of overseas markets and trade regulations.
How large is the producer? Large firms may have the finance and personnel necessary to run their own distribution network of vehicle fleets, warehouses, and even retail outlets.
Who are the consumers? Consumers of low-value, mass-produced goods normally expect to obtain them quickly and easily at retail outlets. Industrial consumers will often require technical details and will deal directly with a manufacturer or agent. They may be willing to wait some time for their order to be fulfilled.
What is the product? Highly specialized or personalized goods and services will require direct contact between producer and consumer. Perishable goods will need to be sold quickly, so speed will be a key factor. Low-value goods sold in bulk are likely to be distributed through intermediaries, thus relieving the producer of the need for, and cost of, storage. New products may meet with some resistance from retailers and may require alternative means of distribution.
What is the product image? Sometimes a firm may wish to restrict the sale of its products to certain shops and stores in order to preserve an exclusive product image.
Promotion
Promotion involves providing information to consumers about products through a variety of media, and attempting to influence buying decisions by stressing certain features. Influence may become ‘persuasion’ when firms attempt to stress product features which may be more imaginary than real.
Most forms of promotion seek to create an image to go with the product. Brand imaging is an important part of a firm’s marketing strategy. Underlying all successful branding is the principle that people not only buy products, they also buy images. For example, Volkswagen advertised the typical VW driver as an affluent, carefree, attractive, professional type of person. The advertising slogan spoke of ‘VW people’. The campaign was successful as a large market segment identified with or wanted to be like the kind of people portrayed as ‘VW people’. Sales of the cars rose accordingly.
If branding can make consumers believe that the branded product is better than others, they will be willing to pay a higher price for it. As many rival products are virtually identical, the only way in which a particular one can be made to stand out is often through aggressive branding. This is usually achieved through the use of a brand name, catch phrase, distinctive packaging, and, in the case of soap powders, a scented or coloured powder.
A firm can choose a separate brand name for each of its products or use one name for the whole range. For example, brand names like McDonalds, Sainsbury, and St Michael cover a range of products. Marketing using these brand names means that promoting one product helps the others in the range. However, if one product in the range is not up to standard, this can badly affect the image of the others.
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