Monday, February 27, 2012

Final Project: Distribution

“Distribution channels are more than simple collections of firms tied together by various flows. They are complex behavioral systems in which people and companies interact to accomplish individual, company, and channel goals. Some channel systems consist only of informal interactions among loosely organized firms. Others consist of formal interactions guided by strong organizational structures. Moreover, channel systems do not stand still—new types of intermediaries emerge and whole new channel systems evolve. Here we look at channel behavior and at how members organize to do the work of the channel. “(Marketing: An Introduction, 10th Ed Page 314) The best way to distribute Cocoa Cough would be through specialty store, such as Trader Joe’s and Whole Foods, where the average customer has a more refined palette for finer things. Specialty stores attract a clientele that generally has the higher income to purchase better quality and tasting goods, such as Cocoa Cough. The packaging and bottle being made from recycled goods will also help Cocoa Cough identify with the environmentally conscience shopper as well. Another avenue to get Cocoa Cough to the public will be through online sales from the Cocoa Cough Corporation itself. “Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward disintermediation—a big term with a clear message and important consequences. Disintermediation occurs when product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones.” (Marketing: An Introduction, 10th Ed Page 320)

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