Product And Place (Distribution) Course Outcomes ✓ Solved

Product and Place (Distribution) The following Course Outcomes are

Assignment: Product and Place (Distribution). Assume Proservice’s new product you selected in Unit 7 initially used a direct channel of distribution (i.e., producer sells directly to the consumer via their website) to sell their products to their customers. They are now considering using intermediaries like agents, wholesalers, and retailers to get their products to their customers.

Your task is the following: Step 3: Discuss the different distribution models available for getting the product from the producer to the consumer. Using scholarly research, explain the advantages and disadvantages of using intermediaries. Provide 2–3 direct quotes, and/or paraphrases from your research, incorporating them into your paper where appropriate using APA 6th edition in-text citation style. Make sure to add an additional reference page that includes a reference for each article you cited in APA format. Considering factors like your brand and target audience, explain what type of retailers would be the best match for your new product and why. Provide a distribution model that would be most effective for the organization of your new product. Explain why it would be most effective. Provide an original minimum 3-page paper (comprised of Unit 7, Part 1 and Unit 8, Part 2) with additional title and reference pages using APA format and citation style.

Paper For Above Instructions

In today's increasingly competitive marketplace, the method of distributing products effectively is crucial for ensuring that consumers have access to goods. Proservice, a fictional company, is in a position to reconsider its distribution strategy as it explores intermediaries such as agents, wholesalers, and retailers. The product discussed is a new cool mist humidifier that not only serves to alleviate the discomfort caused by dry air but also functions as an air freshener. The scents include mint, apple, spice, and cinnamon, catering to a customer base that values both functionality and sensory experience.

To start the discussion, we will explore various distribution models available to get Proservice's product from the producer to the consumer. There are three primary distribution models to consider: direct selling, wholesaling, and retailing. The direct selling model involves selling products directly to the consumer without any intermediaries, as Proservice has previously utilized. While this model enables companies to maintain greater control over pricing and customer interaction, it can also limit the reach of the product (Kotler & Keller, 2016).

On the other hand, the wholesaling model involves selling goods in large quantities to wholesalers, who then distribute these products to retailers. This model enables producers to sell larger volumes of products and can reduce transportation costs. However, it also means giving up some control over the pricing and sales processes. According to Bowersox, Closs, and Cooper (2010), "Wholesalers play a vital role in the distribution channel by breaking bulk and providing a variety of services that reduce the transaction costs for retailers."

Next, we consider the retailing aspect of the distribution model, where products are sold directly to consumers via retail outlets. Retailers provide a crucial touchpoint for consumers and often enhance the brand experience through dedicated displays and customer service. However, the challenge lies in selecting the right type of retailer. For Proservice's cool mist humidifier, the best match would be health and wellness retailers, specialty home goods stores, and online platforms that focus on household appliances.

The advantages of using intermediaries like wholesalers and retailers include extended market reach and enhanced consumer access. As described by Rosenbloom (2013), "Retailers serve as a critical link between the producer and consumer, delivering value through location, convenience, and product selection." Moreover, utilizing retailers can also mitigate some operational costs associated with direct selling.

However, there are disadvantages to consider when employing intermediaries. For one, companies like Proservice may have less control over how their products are marketed and sold. Intermediaries may prioritize their interests over the brand's representation, leading to potential conflicts. Additionally, with intermediaries, costs may increase due to additional pricing layers, which can impact profitability (Davis & Campbell, 2014).

In choosing the best retailing model for the humidifier, factors such as Proservice's brand image, target audience, and product attributes must be considered. The ideal retailers for this product would be those that specialize in health and wellness items, which aligns with the humidifier's benefits for improving air quality and wellness. Retail environments such as eco-friendly stores, home improvement shops, and dedicated online platforms for health-conscious products would serve the target demographics well.

On the other hand, the selected distribution model that would be most effective for Proservice's new product is a combination of both direct and retail distribution. This hybrid approach allows Proservice to maintain a direct relationship with some customers via their website while leveraging the extended reach of retail partners. This model is effective for several reasons.

• First, it maximizes market penetration. By having a presence both online and in physical retail locations, Proservice can cater to various customer preferences for shopping.
• Second, it allows for better data collection and analysis. Engaging with customers directly provides valuable insights into purchasing behavior and preferences, enhancing future marketing strategies.
• Lastly, it can enhance brand exposure, allowing Proservice to establish itself as a credible brand within both online and physical retail spaces.

In conclusion, the distribution strategy for Proservice's cool mist humidifier should embrace a hybrid model combining both direct and indirect distribution channels. This choice not only preserves control and promotes efficiency but also aligns with the preferences and behaviors of the target market. The selected type of retailers, particularly those focusing on health and wellness, can further enhance brand positioning and consumer accessibility.

References

• Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2010). Supply Chain Logistics Management. McGraw-Hill.
• Davis, T., & Campbell, D. (2014). Marketing Management. Pearson Higher Ed.
• Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
• Rosenbloom, B. (2013). Marketing Channels: A Management View. Cengage Learning.
• Venkatesh, S., & Sykes, T. (2013). The role of social influence in technology acceptance. Communications of the ACM, 58(8), 60-67.
• Keegan, W. J., & Green, M. C. (2015). Global Marketing (8th ed.). Pearson.
• Hollensen, S. (2015). Marketing Management: A Relationship Approach. Pearson Education.
• Jobber, D., & Lancaster, G. (2015). Selling and Sales Management. Pearson Education.
• Czinkota, M. R., & Ronkainen, I. A. (2013). International Marketing. Cengage Learning.
• Palmer, A. (2018). Introduction to Marketing: Theory and Practice. Oxford University Press.