Business Studies

Review the “Types of Distribution Channels” study material. Explain why the selection of distribution channels is essential to a successful marketing strategy. Provide an example of a well-known company’s distribution channels and defend their choices. In replies to peers, agree or disagree with their assessment and justify your response.

ANSWER

Distribution Channels

Most successful major organizations largely depend on reliable distribution channels to link their services and products with prospective consumers. Distribution channels are the paths that products and services take while moving from the producer to the consumer (Bourlakis, 2015). The kind of distribution channel that a company uses will determine its level of success. Distribution channels are an essential element within the business and play various functions. For instance, distribution channels are important as they promote customer satisfaction. A business’s main aim is to impress its customers. Therefore, good distribution channels ensure that consumers receive their products promptly with minimal interference along the way. The choice of distribution channels also provides information about the market (Bourlakis, 2015). Through these channels, information like the price and demand of goods acquired. Company’s use this information as an opportunity of being ahead of their competition by understanding what the market needs in terms of products and services.

Amazon uses various means of distribution channels to ensure that its products and services reach its customers. Being a leading online shopping platform, it majorly relies on distribution across the world. Amazon uses marketing distribution channel 3, a more direct contact with the consumer. Channels 3 marketing distribution eliminates the middle man and promotes direct contact between producers and consumers (Bourlakis, 2015). When people order goods online from Amazon, they can communicate directly with them and ask any necessary questions about the item. Once the good is bought, Amazon uses its own distribution services to ensure that it reaches its doorstep. Using this channel of distribution, Amazon can obtain reliable and direct feedback from consumers. This feedback is used to better their services and increase their level of effectiveness.

References

Bourlakis, M. (2015). Channels of Distribution. Wiley Encyclopedia of Management, 1-2.