Wednesday, November 30, 2011

Marketing Mix: Distribution

When it comes to delivery, being creative has proven success for many businesses.  "Companies often pay too little attention to their distribution channels, sometimes with damaging results. In contrast, many companies have used imaginative distribution systems to gain a competitive advantage."  Marketing: An Introduction for Education Management Corporation, 10th Edition (Ch 10 Pg 5)

A conventional distribution channel is "a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, even at the expense of profits for the system as a whole."  Marketing: An Introduction for Education Management Corporation, 10th Edition (Ch 10 Pg 12)  A corporate vertical marketing system is what Pure Perfection will use as opposed to a conventional distribution channel.  It "integrates successive stages of production and distribution under single ownership. Coordination and conflict management are attained through regular organizational channels."  Marketing: An Introduction for Education Management Corporation, 10th Edition (Ch 10 Pg 13)  Effective corporate vertical marketing can make a company flexible and efficient, even more so than they already were.  It can take a new line from production to distribution all over the world in stores in less than a month, rather than the average 9 months for other companies using different marketing systems.  It's fast, it's effective, I don't see why our company would use any other method.  It will give our company much competitive advantage.

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