The paper "Segmentation for Marketing Channel Design" is a good example of marketing coursework. A woman in an emerging-market country of Southeast Asia wishes to buy some cosmetics for herself. She has never done so before and is not entirely sure of the occasions on which she will wear the cosmetics. She does not live near a big city. She is too poor to own a car but has a bit of extra money for a small luxury. In consideration to above scenario of a woman in Southeast Asia who wants to purchase some cosmetics in a rural area, the channel of distribution should, therefore, involve the different people who will be used to reach the woman conveniently.
The manufacturer gets the products ready in the industry with a variety of cosmetics that vary in price and specifications. The distributor purchases the cosmetics in bulk and sells them to the wholesaler in large quantities. The retailer purchases the product in smaller quantities and according to the demand of the cosmetics in the area that he or she is retailing from. For the case of the rural cosmetic shop, the retailer purchases the fast-moving cosmetics and also fewer newly introduced cosmetics.
The woman will go to the cosmetics retail shop (Hooley, et al, 2008). The retailer will be able to give advice on the various cosmetics in-store and the occasions that can fit them. The service output demand, in this case, is that the customer needs convenience and also information in regard to cosmetics. The retailer should consider the delivery of the product within the reach of the consumer who might visit the shop in need of the cosmetics.
The retailer should also gather helpful information to educate the consumer who might not be having ample information like for the occasions in which she should use the cosmetics. The following diagram is used to describe the best path. A manufacturer uses a particular industrial chemical in one of its large-scale production processes and needs to buy more of this chemical. The rest of the raw materials for its plant operations are delivered in a just-in-time fashion. What really matters for industrial manufacturers is to produce what the customer needs in time, consider the quality to maintain the commodity in the market and also be cost-efficient on the side of the consumer (Hooley, et al, 2008).
These considerations may affect the channel of distribution that is involved in acquiring raw materials used in chemical production. In this scenario for the manufacturing company there are things to consider like; Quality – where the chemical must be of good quality to ensure that the end product is of good quality. Cost- the chemical must be cost-effective not to cause an extreme rise in the cost of the end products. Time – the chemical must be delivered in time to ensure that the products are also delivered in time and the consumer is satisfied at the right time. The rest of the materials are delivered in a just in time fashion meaning that they are only delivered when needed.
The chemical which is in use severally in the industry has to be delivered regularly and in order to cut down the cost and time, the industry may use a direct channel from the manufacturer. The direct channel in this case offer cost and time effectiveness.
The figure below represents the channel of chemical distribution that the industry needs to follow.
Lamb, C, W, Hair, J.F. & McDaniel, C, 2011, Essentials of marketing, Cengage learning; New York.
Rosenbloom, B, 2011, Marketing channels, Cengage learning; New York.
Scott, D, 2010, The New Rules of Marketing and PR: How to Use Social Media, Blogs, News Releases, Online Video, and Viral Marketing to Reach Buyers Directly New Rules of Marketing & PR: How to Use Social Media, Blogs. Edition2. John Wiley & Sons, 2010
Hooley, G et al, 2008, Marketing Strategy and Competitive Positioning. Edition4, Prentice Hall