Distribution Strategy:
Distribution plays an important role in the success of a business because it ensures that a firm can deliver products and/or services to customers efficiently and at effective costs. Generally, the members of a firm's distribution channel offer a significant marketing resource that enables the company to increase market share and expand to new markets based on the established business relationships and local knowledge. Notably, distribution provides various opportunities for the marketer that could normally be linked with the other elements of the marketing mix. Nonetheless, the same distribution strategy is unlikely to be effective for every company because of the need for markets to be balanced. Therefore, companies are required to make decisions regarding the most effective and appropriate distribution strategy. The main focus of distribution decisions is to establish a system that basically permits customers to gain access and buy a marketer's product.
Distribution Strategy for Automobiles:
The basic element of a marketer's distribution strategy and system is that it must be both effective and efficient. The effectiveness is for ensuring that products and services are delivered to the right place, in the right condition, and right quantity while efficiency is to ensure that the products and services are provided at the right time and at the appropriate cost (Christ, 2011). For automobiles, there is an increased need to adopt an effective distribution strategy because the business of selling cars is changing rapidly and resulting in the adoption of new competitive rules. Furthermore, the automobile industry has for long been characterized by high costs, poor service, and tremendously unpleasant selling process. During this period, auto manufacturers have competed intensely in attempts to drive out costs and meet customer needs for improved and cheaper cars and trucks.
As part of measures to cope with the numerous changes in the automotive industry, car manufacturers are becoming serious about marketing and dealing with the weaknesses entrenched in the conventional franchised-dealer channels of distribution. Traditionally, automobiles have been marketed through dealer networks distribution channels that were developed as reasonable expansions...
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