Comprehensive Analysis: Distribution Strategy and Marketing Mix

This essay provides a comprehensive analysis of distribution strategies, examining direct and retail channels and their advantages. It discusses the factors influencing the choice of distribution channels, such as product, market, and producer characteristics, using the Baby Cry Translator (TBCT) as an example. The essay also evaluates distribution intensity levels for various products like M$M chocolate, Godiva chocolate, iPhone 7, and Royce cars, relating them to product type and market demand. Furthermore, it touches on pricing strategies, citing Dell's competitive pricing tactics, and explores appropriate promotional mix elements for different products, emphasizing the importance of effective communication in marketing through digital advertising and word-of-mouth strategies. The document concludes by highlighting the significance of aligning the message received with the sender's original intent for successful marketing outcomes. Desklib offers a variety of resources and solved assignments for students.

Running Head: Distribution Strategy 1
Distribution Strategy
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Distribution Strategy 2
The various steps between producers and consumers that the goods or services go
through can be defined as a Distribution Channel. Direct distribution channel in type where the
producer sells directly to the consumers foregoing the assistance of intermediaries such as the
wholesaler or retailer. This strategy does prove advantageous for the consumers in certain cases,
when compared to the straightforward distribution process. Firstly, Consumers can avail better
value of the product if there are lesser steps in the distribution channel; this is because the
additional price markup at each step can be eliminated. Secondly, reduction of steps in the
distribution channel would also mean reduction in logistics required for movement of goods
from the manufacturers to the consumer through the distribution chain which will improve
efficiency and provide quicker shipment of the products to the consumer, thereby enhancing
customer satisfaction.
Retailer Channel Distribution would be the best method for a product like The Baby Cry
Translator (TBCT). The reasons behind choosing the retailer channel are-
 Product factors- TBCT has a high manufacturing price and might require customization
according to the needs of the customers, hence a short distribution channel like that of a
retailer channel would be ideal.
 Market factors- Firstly, the market includes a large number of buyers. Secondly, general
buyers are more in number in comparison to industrial buyers. Thirdly, the product is not
bought by consumers in large quantities. Fourthly, the market area for this product is
fairly scattered. These market factors suggest retail channeling as the best distribution
strategy.

Distribution Strategy 3
 Producer factors- The product demands huge investments and the manufacturers would
not have the adequate resources to promote this product directly to the consumers,
therefore using a retailer channel would be ideal.
Level of distribution intensity for Selling M$M chocolate and Godiva chocolate would be
one, which is, Intensive. This is because the products are targeted to be placed in every outlet,
the level of client service required to sell goods are low and any form of distribution can be used
for the product to reach the consumers. The distribution intensity required for products like
IPhone7 would be two, that is, selective, because the goods are distributed to dealers of a few
selective areas. These are specialty items and not every consumer can have the monetary strength
to be able to access such products. Finally, for products like Royce cars, the third or exclusive
level of distribution intensity is appropriate because these are luxury items and only one dealer at
a certain area might be able to distribute such products1.
Convenient and unsought items that are found in all stores and markets require intensive
level of distribution intensity as there are many channels and volume of such products is also
high. Specialty items would require selective or exclusive level of distribution channel owing to
lower number of channels and lesser volume of products. Items that consumers shop for at a
regular basis require intensive distribution intensity as well, because of high demand, high
volume of product and numerous channels.
The Dell story suggests that the major factor that affected the pricing strategy was
Competition. Dell, according to the story slashed prices of their products in order to be able to
take away more market shares from its competitor H.P. They reduced the prices of their PCs a
week after H.P had decided to raise prices for improving profitability.
1 Charles Lamb, Foe Hair and Carl McDaniel, Marketing( USA: Cengange Learning, 2012)12, 460-63.

Distribution Strategy 4
Royce cars are recognized worldwide as luxury cars and are of interest only to the
consumer group with enormous wealth. This is why Conventional Advertising, would not be of
much use, however, Public Relations and Direct marketing to the target consumers would be the
ideal elements for promotional mix. M$M and Godiva brands can be included in the comfort
product section. These companies are known worldwide but face enormous competition from
other firms. Competition is an essential factor that influences the pricing of products and
therefore requires extensive advertisements and sales promotions to increase the user awareness
about the brands. Laptops for large companies would require direct marketing and personal
selling in order to focus specifically on the target buyers2.
The communication process model essentially states that the receiver of a message must
be able to decode a message as closely as possible to the original message sent by the sender.
Therefore, word of the mouth strategy creates a direct link between the manufacturers and the
consumers, due to which noise is eliminated and communication is improved. Digital
advertisements have an added advantage in comparison to the traditional advertising methods.
This is because, the present advancement of internet makes it possible to reach a huge consumer
group worldwide, in a single go, consumers have to freedom to choose the ways they want to
receive messages from the producers and most importantly, social media has made it possible for
producers and consumers to interact effectively.
2 Charles Lamb, Foe Hair and Carl McDaniel, Marketing( USA: Cengange Learning, 2012)12, 592-98.

Distribution Strategy 5
Bibliography
Lamb, Charles W, Foe F Hair, and Carl McDaniel. Marketing. 12. USA: Cengange Learning,
2012.