Distribution Channel Design

Distribution Channel Design Distribution Channel Design Channel design facilitates the flow of goods from the manufacturer to the end-user. Hutt and Speh (2007) defined that, the link between the manufacturer and the customer is the distribution channel. The purpose of the distribution channel is to distribute the product from manufacturer to the end user to the right time to the right place (Klein and Frazier1990). The channel of distribution is the marketing managers bridge to the market. Channel design creates a competitive advantage that separates market winners from market losers. Stern Weitz (1997) , says the efficient distribution channel design and administration can offer opportunities to develop sustainable competitive advantage in the long term. The channel should achieve all tasks which are necessary to affect a sale and deliver products to the end user. The Tyre Company who is trying to enter into US market is a manufacturer of safety systems for vehicle tyres whose products allow the vehicle to continue to be driven even if the tires burst or are shot out. The main customers for the systems are police forces, security companies, emergency services like ambulance and fire service, armies, trucking companies (Original Equipment Manufacturers ‘OEMs), and even the general public. The organization cannot serve all types of customers through a single distribution channel, so depending on the size of the market, value and the level of usage, the market for safety systems can be divided into three segments. Ø Government Organizations (Ambulance, fire services, armies), Ø Private sector (Original equipment manufacturers like Trucking companies vehicle manufactures), Ø General public For the safety systems manufacturer there are many options to design a distribution channel. In the above figure, channel 1 comes under direct distribution channel where the organizations directly deal with the customers. This distribution channel does not have any intermediaries like distributors, wholesalers, retailers etc. Hutt and Speh (2007) says in, direct distribution channel the manufacturers own sales force deals directly with the customer segments, and the manufacturer has the complete responsibility for performing all the required channel tasks. Channel 2, channel 3 and channel 4 come under indirect distribution channels. Indirect channel distribution uses one or more intermediaries like distributors, retailers, sales representatives etc. Channel distribution for Government sectors customers: The safety systems manufacturer is entering into the U.S market for the first time, so the organization cannot contact the government organizations for selling their products. As the government uses the safety systems for emergency services, they cannot rely on the manufacturers words. So, the manufacturer should approach distributors and collaborate with them for doing business. These distributors can approach the government organizations and explain the products features and advantages. So, the best way to serve government sector customers is to design an indirect distribution channel which consists of distributors as Intermediaries. Corey et al. (1989) says indirect channel distribution is generally found where the markets are fragmented and widely dispersed, low transaction amount prevails and buyers typically purchase a number of items in one transaction. The government sector segment is widely dispersed and the buyers in the segment purchase a number of items in one transaction, indirect approach is recommended for dealing with this segment. The below figure shows the distribution channel design for government sector customers In private sector, the customers (original equipment manufacturers) for safety tyres are few. So, the company can directly approach the original equipment manufacturers that use the safety systems and can directly tie up with the vehicle manufacturers or OEMs. This increases the sales of the safety systems manufacturer. Hutt and Speh (2007), says the direct sales approach is feasible when the customers are large and well defined, the customers insist on direct sales, sales involve extensive negotiations with upper management. Here in this report the manufacturer has to negotiate extensively with the upper management of the OEMs to make them agree to fit the safety systems as the original equipment. Therefore direct distribution channel design is suitable for private sector customers. Distribution channel for general public: General public customers will maximum order 1-4 units per orders and its not so easy for the manufacturer to deal with every individual customer separately. So, the manufacturer should make tie ups with dealers or wholesalers. These dealers or wholesalers create awareness about the product and encourage the general public to buy the safety systems. These distributors or wholesalers intern make tie up with the vehicle repairing sheds and retailers. These vehicle repairing sheds play a vital role in increasing the sales of the safety systems. Therefore indirect channel is recommended for dealing with general public customers. The below figure indicates the distribution channel for dealing with general public. COMMUNICATION PROCESS: Kennaugh (2009), says the primary objective of marketing communications is to create awareness of a business, its products, and its position through customer-facing materials such as brochures, press releases, Web sites, and trade show presentations. Communication helps to spread awareness about products or services that are of some use to consumer and potential buyers. A good marketing communications plan requires an in-depth understanding of target audiences and the processes involved in buying, selling, and communicating. As the safety systems manufacturer has customers in different sectors, it should use different modes of communication for taking the product to the customers. Hutt and Speh (2007), says due to the technical complexity of the business products, the relatively small number of potential buyers, and the extensive negotiation process, the primary communication vehicle in Business to Business marketing is the sales person. As the Companys product in this report is a technical product, the primary communication for this company should through personal ­ selling. Personal selling is the most effective tool for building buyers preferences, convictions, and actions. Apart from personal selling the company can also communicate through sales promotion, advertising, public relations, Bouchers, E-Marketing, workshops, Direct Marketing etc. Advertising is also a most powerful tool of communication. Most of people believe the Media and attract to the media advertising. But media covers mostly general customers and some business customers. So, this can be used only as one of the communication tools for taking the safety systems into market. Aaker (1992), says Brochures are useful for the communication and this is the very cheapest way for communicating to the customers. Communication helps to keep the consumers informed about the new models of products or services that are available in the organisation. To communicate effectively, marketers need to need to understand how communication works .Communication involves the eight elements which are shown in the below figure. 1) Sender: The party sending the message to another party -in this case it is the Tyres Company. 2) Encoding: The process of putting the intended message into symbolic form that will differentiate us from other companies into an advertisement that will convey the intended message (Kotler et al 2008). 3) Message: This set of words, pictures or symbols that the sender transmits in the advertisements. 4) Decoding: The process by which the receiver assigns meaning to the symbols encoding by the sender -a consumer reads the ad and interprets the words and illustrations it contains. 5) Receiver: The party receiving the message sent by the company; the customer or the company that reads the tyres advertising. 6) Response: The reactions of the receiver after being exposed to the message -any of thousands of possible responses, such as the customer is more aware of the attributes of our tyres products. 7) Feedback: The part of the receivers response communicated back to the sender -tyres Company research shows that consumer like and remember the ad or consumers write or call the company praising or criticising the ad or its products. 8) Noise: The unplanned static or distortion during the communication process which result in the receiver getting a different message from the company. This is diagram shows that how message would pass to customers and how they would have respond by taking response and feed back like questionnaire, by filling feedback form, interviews and so forth. Scope for Conflict: Cannel conflict occurs when members of two channels fight for same goal. Organisational growth is badly affected by conflicts. Generally organisation doing business depends upon their Agents, Wholesalers, and Retailers. As long as the organization maintains a good relation with all its channel members the organisation gets good results, if the organisation does not maintain a healthy relations to all its channel members then the organisation sales growth decreases, and conflicts occur (Kogut, 1988). For instance, a premier distributor may be expected to share market analysis data, have an outside force and create account plans maintain specific inventory, and provide a complete service and repair function- in exchange for preferred pricing and product availability. An authorized distributor may be expected to share market analysis data, have a telemarketing operation, and maintain specific inventory. An affiliate distributor may have access to the manufacturers products without being given any special pricing or compensation. When there are too many distributors in a given area, or when one distributor â€Å"cherry-picks† accounts in another distributors territory, there can be price competition and conflict (Erramilli, 1991). Pricing related conflicts are most common in channel conflicts. It is very essential that the manufacturer creates the base for a pricing structure where each member is able to make a profit from the value they bring to the marketing channel process. Each members price must reflect his or her role within the channel (Aaker, 1992). For example, if a retailer is able to purchase directly from the manufacturer at a cost that is equal or less than the cost that their distributor gives them, then the distributor losses his business from the retailer. This is one of the reasons for channel conflict. The other reason for channel conflict is, if the organisation supply tyres to the end customer with help of the wholesaler/distributor and retailers in particular area, and also maintaining good relations with wholesalers and retailers as well. But, that area is very small or there is no need of retailers in that area. Then organisation distributes the tyres directly from wholesaler/distributor to end-user. In this regards retailers lose their business. So conflict may occur in between retailers and organisation or in between retailer to distributor. Based on this conflict Retailer may merges with the competitor which in turn effects the organization. Other sources of channel conflict may result from goal incompatibility, poorly defined roles and rights, perceptual differences, and interdependent relationships. All of these factors must be taken into consideration, addressed when necessary, and managed whenever possible (Nygaard, 1994). Relationship Marketing: Relationship marketing is a term introduced by Berry (1983) that puts forward that marketers should move away from transactional marketing and build longer term relationships with their customers, focusing on building trust between buyer and seller so that loyalty develops. Morgan and Hunt, (1994), say Relationship marketing refers to all marketing activities directed toward establishing, developing and maintaining successful relational exchanges. The idea of relationship marketing was developed by Gronroos (1994) whose opinion was that relationship marketing was all about identifying, establishing maintaining, enhancing and, occasionally, terminating relationships with customers. The objective of such relationships, he suggested, is to give mutual benefit through the exchange and fulfilment of promises as well as communication. Relationship Marketing involves organisations gathering information about their customers and then deciding with whom they can develop a dialogue; it allows buyers and sellers to work together in joint problem solving, easing the pressures on the buyer. Rather than employing market share as a measure of marketing success, this approach uses customer retention (Gummesson, 1994). The effectiveness of Business to Business marketing is largely determined by long-term relationships between buyers and sellers (Dion et al., 1995). According to Webster (1992), buyer-seller or customer-supplier interdependence is an integral part of business to business marketing. Over the past 10 or so years, there has been clear evidence to suggest that, in business to business marketing, the nature of buyer-seller interactions has changed from adversarial to relationship building, and, consequently, emphasis has moved away from discrete transactions and towards relational exchanges (Weitz and Jap, 1995). P ressures to meet the demands of global competition, reliance on single-source suppliers, the development and adoption of just-in-time systems, outsourcing and development of ‘partnerships have been cited as some of the main driving forces behind such developments (Metcalf et al, 1992). Over the last 20 years, relationship marketing has been espoused by many in the services and industrial arenas, where it is, perhaps, easier to developer longer term relationships. The acquisition, retention and nurturing of customer relationships is fundamental to an organisation engaging in relationship marketing. Nurturing the customer is a step along the path to invoking loyalty on the part of the customer. Loyalty is one of the objectives of relationship marketing because a loyal customer may be of strategic advantage our Company. In this case, as the manufacturer newly entering into the US market, he has to build the relationship with the channel partners. By building relationship, he can understand the market well. By building relationship all the channel members can work for the common goal and they can solve any problem effectively. References Aaker, D.A., (1992), â€Å"The value of brand equity†, Journal of Business Strategy, Vol.13, pp.27-32. Berry, L.L. (1983), â€Å"Relationship marketing†, in Berry, L.L., Shostack, G.L. and Upah, G.D. (Eds),Emerging Perspectives on Services Marketing, American Marketing Association, Chicago,IL. Corey, E.R., Cespedes, F.V., and Rangan, V.K., (1989). Going to Market: Distribution System for Industrial Products, Harvard University Press, Boston. Dion, P., Easterling, D., and Miller, S.J., (1995). What is really necessary in successful buyer/seller relationships, Industrial Marketing Management, Vol.24. Erramilli, M.K. (1991), â€Å"The experience in foreign market entry behavior of service firms, Journal of International Business Studies, Vol. 21 No.Fall, pp.479-501. Gronroos, C., (1994), â€Å"Quo Vadis marketing? Towards a relationship marketing paradigm†, Journal of Marketing Management, Vol. 10 No. 5. Gummesson, E., (1994). Making relationship marketing operational, International Journal of Service Industry Management, Vol. 5 No.5. Hutt, M.D., and Speh, T.W., (2007). Business Marketing Management: B2B, Thomson, USA. Kogut, B. (1988), Joint ventures: theoretical and empirical perspectives, Strategic Management Journal, Vol. 9 No.4, pp.319-32. Koltler.P, Armstrong.G, Wong.V and Saunder.J., (2008), 5TH Edition, Principles of Marketing. Prentice Hall. Klein, S., and Frazier, G.L., (1990), A transaction cost analysis model of channel integration in international markets, Journal of Marketing Research, Vol. 27 No.2. Metcalf, L.E., Frear, C.R., Krishnan, R., (1992). Buyer seller relationships: an application of the IMP model, European Journal of Marketing, Vol.26, No.2. Morgan, R.M., Hunt, S.D., (1994). The commitment trust theory of relationship marketing, Journal of Marketing, Vol. 58 No.3. Nygaard, A. (1994), The falsification perspective on theories in channel research, Journal of Marketing Channels, Vol. 3 No.4. Stern, L. W. Weitz, B. A.; 1997. The Revolution in distribution: Challenges and Opportunities. Long Range Planning . V. 30. pp. 823 829. Webster, F.E., (1992). Industrial marketing strategy. 3rd ed., Wiley, New York. Weitz, B.A., and Jap, S.D., (1995). Relationship marketing and distribution channels, Journal of the Academy of Marketing Science, Vol.23, No.4.

Music and Memory in D. H. Lawrence’s Piano Essay -- Literature

D. H. Lawrence’s poetry is said to often be of â€Å"great biographical interest† (Encyclopedia Britannica), and his poem â€Å"Piano,† written in 1918, eight years after the death of his mother, illustrates his attachment to his mother through the device of an unwilling memory evoked when he hears a woman singing. Though Lawrence’s relationship with his mother is said to have been â€Å"an intensely—often labeled abnormally—close relationship† (Pearson and Watson), it is also said that it was she who encouraged him to obtain an education and to write. His mother was a teacher, and according to Norton, it is her â€Å"delicacy and refinement† that he â€Å"allied† himself with rather than his less educated, coarse coal miner father (2248). It is she whom he sided with in the conflict-ridden relationship he witnessed between his parents. According to Wart, â€Å"Piano† expresses Lawrence’s personal response when a â€Å"song stirs memories of childhood and his mother,† involuntary as these memories may be. However, though it may be true that we should never assume that the speaker of a poem is, indeed, the poet, according to Semansky, â€Å"Lawrence's work invites us to, as he has always woven autobiographical material into his writing.† Lawrence’s â€Å"Piano† may thus be considered to be the recounting of unwanted and involuntary emotional memory brought about as a response to music. â€Å"Piano† begins by describing a setting conducive to reflection and remembrance, â€Å"Softly, in the dusk, a woman is singing to me† (Line 1). Intimacy is implied in the setting: â€Å"the dusk,† the singing being â€Å"soft† and seemingly personally directed to one individual all lend themselves to an aura of intimacy. This encounter draws Lawrence back through the â€Å"vista of years† (Line 2). In fact,... ..., 1900 to Present. New York: Facts On File, Inc., 2009. Bloom's Literary Reference Online. Facts On File, Inc. http://www.fofweb.com/activelink2.asp?ItemID=WE54&SID=5&iPin= CBPNP235&SingleRecord=True (accessed April 4, 2012). Rexroth, Kenneth. "Introduction." D.H. Lawrence: Selected Poems. New Directions, 1947. 1-23. Rpt. in Literature Resource Center. Detroit: Gale, 2012. Literature Resource Center. Web. 2 Apr. 2012. Saunders, Clifford. "Critical Essay on 'Piano'." Poetry for Students. Vol. 6. Detroit: Gale Group, 1999. Literature Resource Center. Web. 2 Apr. 2012. Semansky, Chris. "Critical Essay on 'Piano'." Poetry for Students. Vol. 6. Detroit: Gale Group, 1999. Literature Resource Center. Web. 2 Apr. 2012. Wart, Alice Van. "Critical Essay on 'Piano'." Poetry for Students. Vol. 6. Detroit: Gale Group, 1999. Literature Resource Center. Web. 2 Apr. 2012.

Environmental scanning Essay

â€Å"How can you govern a country which has 245 varieties of cheese? † Charles de Gaulle. This is a term that Francis Aguilar a professor at the University of Harvard came up with in the mid 1960’s to explain the actions of collecting information and watching and monitoring competitor companies and analyzing the external markets. According to Mafrica and Mason (2004), an environmental scan is part of strategic analysis process that has components of both external and internal elements. It is also good to note that all these components and elements interrelate. Basically organizations and companies use environmental scans to project on the future directions, objectives, and both long term and short term trends that will influence the organizations performance. Environmental scans are usually used in product development, market research and competition analysis as a company is planning, expanding or thinking of diversifying its operations portfolio. The below diagram shows the interrelation of the environmental scan to the SWOT analysis of an organization. b. What elements comprise an environmental scan? The elements of an environmental scan include both internal analysis and external analysis which culminate in a SWOT analysis of the organization. Both internal and external analysis are interrelated. In most of the situations organizations take environmental scans to only involve the external analysis (Albright, 2004). But for it to be comprehensive and conclusive enough it has to involve both internal and external analysis. Internal analysis includes an analysis of the internal structures of the company, its policies and operations, employees and abilities while External analysis includes concepts such as the macro economic environment of the area in which the company operates. This includes the government, legislation policies, technology, socio-cultural trends, and shareholders. c. What are eight (8) current socio – cultural trends in the United States that are transforming North America and the rest of the world today? The eight socio-cultural trends in the United states that are transforming North America and the rest of the world today include the following:- Religious affiliations and militant religious movements Consumerism, Environmentalism, Diet and nutrition Housing Social movements, roles of government, family, and collectivism. Materialism Demographics like population size, ethnic origins, education levels, income levels. d. What four (4) questions should the scan answer? The scan should be able to answer trends or projection towards changes in consumerism, which will help an organization in diversifying its products and get to know spending habits of the target market and population (Wheelen & Hunger, 2008). Environmentalism which will help the organization to formulate its public relations policy more so as regards corporate social responsibility, social movements and roles of government, family and collectivism which influences public opinion and public habits, and Demographics that help establish incomes and disposable incomes of the populations, projected population growth, education levels and backgrounds of the target area of expansion or of operation that will help an organization to redefine its operations and strategies. Bibliography Albright. K. (2004, May/June). Environmental scanning: Radar for success. Information Management Journal, 3(38), 38-44. Mafrica. L. & Mason. M. (2003, January). From scan to plan. Association Management, article 14 of 270. Wheelen. T. L. & Hunger. J. D. (2008). Strategic management and business policy (11th Ed. ). Upper Saddle River, NJ: Prentice Hall.

Factors Affecting Patients With Chronic Idiopathic Neck Pain

1. Title: â€Å"Does the number of visits of mobilizations influence the MCID* on pain improvement in patients with chronic idiopathic neck pain- A cross-sectional study?† *MCID= Minimum clinically important difference 2. The specific aim of this cross-sectional study is to reduce cost and improve pain outcome in patients with chronic idiopathic neck pain (CINP). To do this, the study will examine whether the number of visits of mobilization (hypothesis) affect the MCID on pain reduction for patients to begin exercising. In addition, the study will also identify which patients are likely to respond or not to mobilization based on their conditioned pain modulation (CPM) profile? (research questions). These findings could potentially cut costs†¦show more content†¦- Providing 1 session of joint mobilization has been shown to immediately improve the impaired CPM in those with knee osteoarthritis (Courtney et al., 2016) compared to placebo. - Some patients with chronic pain related to knee osteoarthritis have impaired CPM while others do not (Courtney et al 2016) - However, because Courtney et al did not apply joint mobilization to those whose CPM is not impaired, it is unclear if joint mobilization is or is not effective in changing pain in those with normal functioning CPM - More importantly, it is not clear whether the positive results Courtney et al 2016 achieved in chronic pain related to knee osteoarthritis carries over to patients with CINP. 4. Scope of the problem - The high cost of CINP may be related to the fact that these patients typically seek on average 5 providers over 21 visits every year and receive largely ineffective treatments (Carlesso et al., 2014). - Heat, NSAID, exercise, cold and spinal manipulation/mobilization are the most common treatments received (Goode et al., 2010). - Only exercise and spinal manipulation/mobilization, however, have good evidence for effectiveness based on multiple systematic reviews and meta-analyses. - In fact, current practice guidelines suggest combining exercise and spinal mobilization for better pain and functional outcomes than mobilization or exercise alone. - To prevent long term disabilityShow MoreRelatedSymptoms And Treatment Of Neuropathic Pain3655 Words   |  15 PagesPain is a complex, unpleasant, and disruptive sensation. 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