Country of Origin Effects on Marketing
February 12, 2025
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Various marketing intermediaries are used in transferring the products from the hands of producers to the final consumers or industrial users. These marketing intermediaries carry alternate names such as wholesalers, distributors, retailers, franchised dealers, jobbers, authorised dealers and agents. Such marketing intermediaries compromise the distribution channel. These distribution channels minimize the gap between point of production and point of consumption, and thereby create place, time and possession utilities.
Dristribution Channels perform a crucial role in the successful distribution and marketing of all products. They have various contacts, expertise and wider knowledge of the products. The rapidly growing markets and increasing complexities of distribution have increased the demand and requirement of the distribution channels.
The role of distribution channels can be summarised as follows:
For instance, there are four producers who are targeting to sell their products to four customers. If there is no distribution channel involved, then there will be sixteen transactions involved. But if the producers use distribution channels, then the number of transactions involved will be reduced to eight( four from producer to intermediary and four from intermediary to customer), and thereby the transportation costs and efforts will also be reduced.
Due to the presence of distribution channels(wholesalers and retailers), it is possible for a consumer to buy the required products at right time from a store conveniently located(geographically closer) rather than ordering from a far located factory. Thus, these intermediaries break the bulk and meet the less quantity demand of the customers.
When a customer goes to a retail shop, he/she may be fascinated by the attractive display of some new product, may get curious about that new product, and may switch over to that new product leaving his/her regular product. Thus merchandising activities of the intermediaries serve as a quiet seller at a retail store.
Thus, the distribution channels are a vital constituent of a firm’s comprehensive marketing strategy. They assist in expanding product reach and availability, as well in increasing revenue.
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