Question

Marketing question:

a. How do distribution channels add value to a company's overall marketing efforts?

b. What functions do they fulfill?

c. How do modern distribution centers operate? How do people and technology interact to make these centers efficient? (i.e. what roles do people and tech play in modern distribution centers?).

Answer 1

Distribution channels in marketing are termed as set of independent marketing institutions that participate in marketing efforts involved in moving the primary product or service from primary producer to consumer. Some of the value it add to company's overall marketing efforts are

• They are major source of information on like, dislike or on how marketing efforts being perceived by end consumer
• Marketing campaigns are run with the help of distribution channels
• They provide key inputs on key actions to be taken for marketing efforts.
• They also play the role of distribution of product and helps in forecasting the demands
• They can also help in segmentation and pricing of products also

b. Function performed by distribution channels are

• Sorting out : Sorting is done to put correct product at correct place
• Accumulation : Accumulation is done to make sure that product is available without loss of service
• Allocation : Products are allocated to retailers as per demand requirement
• Assorting : Grouping of retailers or wholesalers are done as per demand and capacity

c. Modern distribution has become the part of supply chain network of organization because of interaction of people and technology . With the help of modern technology visibility and information flow has became so fast and vast that distribution channel has become an integral part of organization supply chain. Vendor Managed Inventory (VMI) technology is helping the organization to let vendor to manage the inventory at different level of supply chain. With technology and its usage by people , touch point in the supply chain network has increased that is making it more efficient and effective. Decision making has became more fast and accurate.