Geographical location matters in different ways when it comes to
distribution. When you think of the different functions and what's
best for the company, we have to take different things into
consideration. For Transactional Functions, you would want to be in
a city area, places with businesses and residences so that you can
promote and sell products. For this function you would like to
be in an area with people not spread apart. Logistical Function
you will want to be near highways or ports simply to assist
with product distribution. This function is more to deal with products
rather than customers. Here you would like somewhere that has a
lot of land. And final is facilitating function, this one is more
of the middle. Dealing with giving products to product and being
available to other businesses.
With my company having to grow within health care, they decided
to have their own operation facility and distribution centre to help
centralize equipment and products for the hospital. This helps get
rid of the middleman an operate directly with suppliers and
customers. Geographical location can affect your business' distribution
channels in a number of different ways. One way is that your
geographic location will determine what suppliers you use. In terms
of logistics, the goal is to find the most cost effective and
secure delivery method for the materials you source for the
production of your product. It is generally the suppliers who are
local to the production facility that win the job of supplying
materials. Geography is also important because you want to strategically
locate your business nearest to your market. If your market is
quick and fast loans for people who are desperate, you are not
going to want to locate in a rich, affluent neighborhood. If your
market is farmers who will want to purchase your farm gear,
you're not going to want to locate yourself in a mega-city.
Lastly, you will normally always want your channel partners to be
located in your market. If you use distribution, and you are selling
in Chicago, you want your distributors to be located in the
Chicago-land area.
Your geographical location can affect how you select your channel
for distribution. For example if there is a place located by a
river or ocean, distribution would likely be by ship. One has to
think well regarding the location of the area they will be using
to produce merchandise. The easiest way to distribute it would be
the best way to go. If your location would be by the mountains
than by air or land would be the best way to distribute the
merachndise. So your geographical location really does matter where
your lacation is. Also one has to check where there would be
more traffic. You would want to be located where people will
know where you place is and that could be a part of marketing.
Your geographical location can affect your selection of distribution
channels in a multitude of ways. One good example of this is
a company that specializes in bringing product via container from
overseas. If their business is heavily reliant on import; being closer
to a port or major rail hub should be highly desirable. The
longer it takes to get from the port, to the rail, and then
halfway across the country is just added time and expense on the
final transportation cost. This also can result in more delays when
the supply chain is extremely busy with large numbers of product
being imported as well as potential rail strikes affecting the supply
chain.
Logistics is a vital but often overlooked part of operations. In
the manufacturing industry the product to make the end product
must be brought in and then the final product must be shipped
out when completed. A strong logistics department can make a
company that much better while a weak unsuccessful one can
drastically effect the bottom line of the company. If a company
doesn't meet customer deadlines it could eventually lead to the loss
of that customer/revenue!. Geographical location of a business can
affect how various distribution channels are selected. When a business
is located far away from the market, the choice of distribution
channel should be one that ensures that the products or services
reach the market within the stipulated time frame. when the business
or production take place near the market, there is no need for
a distribution channel since the company may sell the products and
services directly to the customers.
Geographical location can also affect the selection of distribution
channel since it determines the time take for the products and
services to reach the market for instance manufacturer need to
transfer product and services to a market for sell but it may
be to far this may cost the manufacturer and the market to
transfer good and receive but not as difficult for a company that
is in the same location as the manufacturers.
These are examples of distribution channels . Direct and indirect
channels.
There are numerous factors that affect the selection of a distribution
system. Many companies decide channel split by looking at the
customer demographics, particularly age. Context: in an emergency
where we need a fast answer, the company would answer the
phone, 'irrespective of our demographic group, personality and the
type of business are all factors. The unit value of the product,
perishability, technical nature, standardized or customized product, number
of buyers, types of buyers, buying habits, and also the buying
quantity. All of these can affect the choice of channels of
distribution by the manufacturer. I live in Arizona, which rarely has
any weather that causes distribution issues. However, I have learned
that when ordering things from other states I need to keep in
mind their geographical location and the season. I have a daughter
who is on medication that only comes from certain specialty
pharmacies and needs to be shipped in monthly. In the winter
months, I need to be on top of it and order her medications
taking into account the possible weather. One year we ended up
having to use the hospital's supply bc there was a massive
snowstorm in the midwest and her medications got stuck on the
truck for days.
There aren't any middlemen in this scenario, they get packed at
the pharmacy and shipped directly to me.
Last Christmas, I was working at Walmart as part of the
stocking team which we called Cap 2. It snowed really bad
the night before and I would always help unload the truck
every time I would get there (unless they didn’t need my
help). I get to work and my boss tells me that there is no
truck that day because the roads were so bad the night before
that it was too dangerous for the truck to get there to
deliver our stuff. This is one of the ways geographical location
can have an effect the distribution channel with the roads not
being safe to drive. On the other hand, if it were summer
time the weather also tends to be unpredictable. If we were to
get enough rain to the point where the roads were too flooded
that would also be a huge impact on the geographical location.
Thankfully I don’t work at Walmart anymore so I don’t have
to deal with stuff like that. Distribution channels are paths that
a product or service takes on its route to the market. The
path is from the manufacturer to the consumer. Geographical
location can affect the selection of distribution channels to
determine product sales.
An example of geographical location affecting the selection of
distribution channels would have to be the online market. Prior
to the internet being so easily accessible, distribution channels were
heavily affected by cultural changes within the environment or
cultural aspects of an environment. There are still some online
distribution channels are third party channels and directly associate
with both the manufacturer as well as the consumer.
Expanding methods of distribution helps an organization grow faster.
Online shopping is convenient for most everyone especially during
holidays. My favorite aspect of online shopping the variety of
products and manufacturers I can access right at the tip of my
fingers. It allows me to be in control of when I start and
stop shopping. This is also the same with online schooling. It
is a service that is provided through an online distribution
channel.
Distribution channel are means or ways that a producer sells its
products either directly to its buyers or by distributor like in
wholesale or retail. In this new times of technology where almost
everyone shops online, distributors could also mean virtual stores
and sellers.
Geographical location is an important part in marketing. This will
help determine how the product will sell out to potential
consumers and how fast or slow it will take for the products
to reach the market. An example I could think of is online
shopping. I am guilty of shopping online especially at this time
where Christmas is almost here. One factor that affects my
decision to place an order would be the location where my
item is coming from and how fast it will get here.
Geographical location comes into play in this scenario. Obviously, I
could purchase an item from overseas for a lesser price than
buying locally. But because I want my items to get here
before Christmas, I would purchase a seller who offers faster
shipping and delivery even though the price is higher than
others. Another example would be my dad's former business which
were piggery and poultry. There were a lot of the same
businesses in our town in the Philippines but my dad marketed
and distributed his products to meat shops and small stores that
were near his business location. I remembered going with him
when I was young to shops when he would personally deliver
the orders. The meat shop owners preferred to do business with
him as his farm (where his piggery and poultry where located)
was minutes away from these shops, and if they need to buy
more, it would be easier to transport the products rather than
buying from someone else that was located miles away. I
remembered being young and curious, I would ask questions like,
"why do you sell the pigs at this shop? why not sell them
at the bigger market in town?". My dad would often give me
lesson about business. He would remind me that always market
where the demand is big for your product, or that transporting
products are part of business expense, so start with marketing
your products to places nearby where there is a demand for it.
We have four seasons, each season can last 90 day or more.
If you are not careful the weather can trick you into believing
that you have transitioned into the next. Considering that seasons
can range from below zero to 95 degrees Fahrenheit, distribution
channels need to be well constructed. Consumer benefits need to
be considered, for instance, boots in the winter season: form and
place utility would be important. Knowing where to buy boots
and which boots to purchase is a consumer benefit. Having the
boots available during the winter months would support the time
utility of a distribution channel. Although products and services for
seasons may differ, the distribution of the products and services
can be spread across seasons using channels that currently focus
on one season but house items for other seasons. Having
marketing channels that allow the direct consumer or even indirect
consumer contact allows retailers to communicate with distributors the
need at a particular time which eliminates the waste of resources
and time because the focus is in alignment with geographical
need. "A distribution channel is a chain of intermediaries or
entities through which goods and services pass through before
getting to the final buyer. A distribution channel is comprised of
wholesalers, retailers as well as distributors. Distribution channels can
be direct selling, use of intermediaries, dual distribution, or reverse
logistics channels. The shortest distribution channel is when a
customer buys directly from the wholesaler or producer." (2022)
"Geographical location can be strategic for access to goods and
services. Similarly, nearness to the target market makes it easier
to distribute goods and services to the buyers. For example,
when a farmer is near the market, they will take a shorter
distribution channel than when the target market is located in a
different geographical area." (2022)
A practical example is the case of Walmart, which opens up a
chain of stores in different geographical areas to each out to
more customers in other states. By opening more stores in
different locations, the distribution channel is from the wholesaler
directly to the consumer." (2022). Living in a small town has
some perks. There is less crime. Class sizes are smaller in the
schools. It seems there are no strangers. Like on Cheers,
“everybody knows your name.” But there are some definite
downfalls to living in a small town. One of the biggest is
being able to find specialty products locally. For example, I am
a guitar player. I am not the greatest by any stretch, but I
enjoy playing. In southern Illinois, there are very few music
shops that sell high-quality instruments. Most guitar shops sell
cheaper guitars. Every now and then, a guitar shop may have
a used guitar that is a gem but not too often. Why is this?
With the distribution channel needed to get quality instruments to
my area, the prices would be outrageous. There would be too
many hands wanting a piece of the action between the producer
of the guitar, the agents for the producer, the wholesaler, and
finally the retailer. The customer just could not afford it.
Shopping on the internet makes it easier to buy a quality
instrument. It is also cheaper, because there are less middlemen.
However, buying off the internet also has a downfall. When
buying a guitar locally, one can play it in the store to see
if he or she likes it. The musician may like the look of
the guitar but hate the action, how it feels. Different woods
can change a sound dramatically. While the guitar may look
great, it may not sound the way one would hope. Demo videos
can help, but they are not always a true representation of the
instrument.I have brought quality new instruments off the internet
and used ones locally. I wonder if my used, local buy was
one bought by a dissatisfied internet shopper. Who knows? It
very well could be. The distribution of a business product is
an important marketing activity that links to the Place P of the
extended marketing mix. How the product gets from the producer
to the end consumer is a critical factor that can impact how
many sales a business makes and how profitable those sales are.
Therefore, products must be available for consumers to purchase in
locations that are convenient for them. Like Macy's clothing store,
products are available at the right time, place, and quantities.
Businesses have several options when deciding where customers can
buy their products from; these are known as distribution channels
and include
direct selling, retailing, and wholesale.
Direct selling: There are no middlemen, so the business does not
have to share a percentage of its revenue; the sale is only
between the manufacturer and the customer.
The good thing about direct selling is that there are no third-
party dealings, and the business has more control and flexibility
over distributing its products and services through the internet,
advertisement through direct mail, or door-to-door sales.
Retailing Distribution Channels
is when a manufacturer produces and sells products to retailers
in bulk, allowing consumers to purchase products from a more
extensive range of locations. A mall would have a variety of
stores within them. Nike stores, Lids, Macy's, and Dillard, for
example.
Wholesaling Distribution Channels
wholesalers who buy large quantities of products from manufacturers
aiming to sell to retailers, i.e., Alibaba.com. Most wholesalers are
overseas, and it takes a long time for a manufacturer to
receive their products. When considering geographical location and
how it affects distribution channels, I think of near-shore and off
-shore distributors. Most shoppers don't care where their product
comes from as long as they receive it on time, but for the
ones that do location matters. For example, online shoppers vs.
brick-and-mortar shoppers, an online shopper doesn't mind their items
shipping from China, but brick-and-mortar shoppers would prefer that
their items, if the need to order them be near-shore.
Off-shore distribution channels have multiple layers of logistics,
shipping from the warehouse to the docks for waterway
transportation, to trains for airway transport, and once they arrive
in the US they have to be transported by truck, train, or
plane to reach the final destination and still have to be placed
in an Amazon, FedEx, or UPS vehicle to be delivered to your
doorstep.
Near-shore distribution can go from the warehouse to truck, train,
or plane, but domestic distribution is different and does not
require customs clearance to get in or out of the country. Most
domestic distribution you can have in 5-7 days or less, but not
off-shore 14-21 days at best. Market positioning and product sales
are significantly influenced by geography. Regardless of a company's
market share or product success rate, market research is crucial
before releasing new products/services or better or more advanced
features. The selection of a distribution channel is influenced by
the size of the market geographically, the number of possible
customers, and the type of competition. When there are fewer
purchasers in industrial markets, a shorter channel of distribution
can be used. These customers typically buy from producers
directly. McDonald's splits their market according to geography, such
as different nations, states, regions, and cities. McDonald's serves
hamburgers, focuses on regional markets, and offers specialized
menus. Let's imagine that due to religious restrictions, McDonald's
burgers are prepared with chicken in India rather of beef.
Products that cater to the various requirements and desires of
residents of rural and urban areas use rural and urban
segmentation to reach prospective clients. For instance, a detergent
business will advertise its inexpensive detergent product in rural
areas where there is little purchasing power. Products with both a
high quality and affordable price point tend to attract more
interest from consumers. Geographical location can be strategic for
access to goods and services. It can affect the selection of the
distribution channel since it determines the time taken for the
products and services to reach the market. When the products are
durable then the geographical location of the company cannot have
an impact on the choice of distribution. A distribution channel is
is a chain of businesses or intermediaries through which a good
or service passes until it reaches the final buyer or the end
of consumer. An example of how geographical location can affect
your selection of distribution channels is when a farmer is near
the market, they will take a shorter distribution channel than
when the target market is located in a different geographical
area. Distribution affects the place or path through which
consumers can buy and receive the product. A distribution channel
can be an on site store, a virtual store, a retailer, a
wholesaler, an agent, a telemarketer, or a direct email. Depending
on the product depends on the type of consumers you will
attract. Companies will decide on channels by looking at the
customer demographics. Age can be a big determination. Research
has shown that Gen Y looks to telephone communication such as
social media and real-time messaging such as text and chat. But
baby boomers, most prefer talking on the phone vs automated
services such as chat, email, or social media. They feel that in
an emergency where we need a fast answer, we pick up the
phone to speak with an agent to handle purchasing issues or
quick medical decisions. Gen X may be happy using phone and
email and may not be comfortable with real-time messaging. But
if they need a quick resolution and are told that they will be
on hold for longer than 15 minutes, but that chat is available,
they will most likely hang up and switch to the chat.
Depending on the type of business you are in, it is possible
to build a picture of the sort of customers you’ll attract. So,
the personality of customers might drive a company’s preferences
for customer service channels. A customer that is an extrovert
may be happier with a phone conversation with a customer
service agent because of their outgoing personality. They will enjoy
chitchatting and making a point with confidence. But an introverted
personality may prefer a non-verbal/real-time channel such as chat
or email with a customer service agent. This way they would
not need to speak with someone, and they can avoid the need
to think on their feet when on the phone with an agent and
can avoid being put on the spot. There are a lot of factors
that go into geographical location of distribution channels. Two
examples that stick out to me are that different geographical
locations have different prices for the same item(s) as well as
provide different products available from region to region.
The company I work for has many locations in the same city
and across the nation. In the city where I work, eggs at my
store cots $3.29 but at another location in the same city, they
cost $2.79! When determining which location, I will buy my
groceries at, I pay for convenience since I work at the location
with the more expensive eggs, I will, and do, buy my eggs
there. I would not drive fifteen minutes out of the way to
‘save’ fifty cents. I would use more gas driving fifteen minutes
out of the way and then go home, which is another thirty
minutes out of the way.
I know of locations of the chain I work for that sell regional
items in Florida and Louisiana that I have not seen in Virginia
or Pennsylvania.
Market related factors since the channels of distribution operate in
the market. The market related factors are very important. There
are several forces in the market which dictate the choice of
channels of distribution. Customers the ultimate purpose of any
channel of distribution is to distribute the goods to the
customers. Therefore, the requirements and the nature of the
customers should be considered while deciding the channel of
distribution. If the customers are widely scattered the channels must
be able to reach them out effectively. This requires appropriate
channels but if the customers are not widely scattered smaller
channels would be sufficient. If the customers are very large in
number such as individuals, very wide channels of distribution will
be necessary, but if the customers are small and purchase in
large quantities such as the industrial purchasers, small channels or
even direct distribution will be sufficient. Competition one must
consider the channels of distribution arranged by the competitors.
This choice represents the wisdom and experience of the
competitors. It also means that the competitors have been
successful in using such channels over the long run. A company
can adopt such channels of distribution if found suitable to itself.
Unless there are compelling reasons, a company should not try to
change the pattern of distribution as compared with that of the
competition. Existing channels of distribution one must make study
of the existing channels of distribution. The functions performed by
these channels, their strengths and weaknesses, their suitability and
such other factors affect the choice of channels. Their relative
advantages must also be studied. Product factors since it is the
product, which is to be distributed, the product characteristics also
must be analyzed while choosing a channel of distribution.
Different products are different in nature and this nature of the
products requires different types of channels. Perishability if the
products are highly perishable, the channel must be short or even
direct marketing would be suitable. This is because long channels
of distribution with many intermediaries delay the distribution of
goods. Products like milk, flowers etc. require very fast
distribution. Consumer goods are purchased by a larger number of
people, in smaller quantities and more frequently. Therefore, such
goods require longer channels of distribution which have a wide
range. The presence of retailers is a must. Industrial goods on
the other hand are purchased in larger quantities by a smaller
number of purchasers and less frequently. Moreover, the industrial
goods purchaser is well informed, knowledgeable and rational. Such
goods require shorter channels of distribution. Business operations
contribute to the fate of any organization and the choice of
partners must be strategic for the goals to be realized. Relevant
stakeholders should be keen on making informed decisions especially
when dealing with distribution. Various factors play significant roles
in enhancing the performance levels of an institution. Location is
critical as it defines the services offered to clients when
distributing products to different destinations. A company requires to
conduct a feasibility study to establish the suitability of any
target area. It is through the distribution channels that producers
engage with clients to facilitate efficient transactions that determine
the outcomes. A good example is how established organizations
like Coca-Cola have set strategic distribution channels that help in
reaching to their target market with ease.
Geographic location has a direct impact on the selection of
distribution channels because it determines the efficiency of
interacting with clients. The element will affect my choice of
distribution location options because the setup must be in a
strategic position to ensure all customers are served. Choosing a
location requires the consideration of the number of clients that
can be reached through the distribution channel hence making the
geographic dimension a crucial factor to embrace when determining
picking an ideal location. Also, the transportation networks in the
area should be reliable to ensure the timely delivery of goods
to customers since delays will have a detrimental impact on the
performance of the company. The prices in different regions differ
based on the economic status of a country hence playing a
role in shaping the effectiveness of distribution channels from
different geographical locations. Operational policies are designed to
control the level of engagement in the business sector, and it
influences the choice of distribution channels in various geographic
contexts whereby individuals need to evaluate the underlying measures.
Geographical location can be strategic for access to goods and
services. Similarly, nearness to the target market makes it easier
to distribute goods and services to the buyers. For example,
when a farmer is near the market, they will take a shorter
distribution channel than when the target market is located in a
different geographical area. Any middleman in the distribution chain
is removed with a direct sales business strategy, leaving the
brand to offer its products directly to customers. This implies
that there isn't a merchant or other independent outlet to stock
inventory and advertise goods. Apple is arguably the company that
uses a direct sales strategy the best. Customers frequently must
purchase software, equipment, and other goods directly from the
brand. Where it prefers to sell its products, Apple runs its own
physical stores and online marketplaces. Although it does have a
presence in independent brick and mortar stores, the company
works to draw clients to its own branded locations. A company
that manufactures products and goods on-site and sells to customers
would be a more rigorous type of direct sales. For instance,
bakers follow a rigid direct sales business strategy and presume
that customers can only purchase their products from their
storefronts. Intensive Distribution This type of retail distribution, in
which goods are distributed to as many locations as possible, is
perhaps the one that consumers are most familiar with. It gives
brands the greatest visibility possible, enabling them to connect
with more prospective customers in various markets. Distribution
channels are paths that a product or service takes on its route
to the market. The path is from the manufacturer to the
consumer. Geographical location can affect the selection of
distribution channels to determine product sales.
An example of geographical location affecting the selection of
distribution channels would have to be the online market. Prior
to the internet being so easily accessible, distribution channels were
heavily affected by cultural changes within the environment or
cultural aspects of an environment. There are still some online
distribution channels are third party channels and directly associate
with both the manufacturer as well as the consumer.
Expanding methods of distribution helps an organization grow faster.
Online shopping is convenient for most everyone especially during
holidays. My favorite aspect of online shopping the variety of
products and manufacturers I can access right at the tip of my
fingers. It allows me to be in control of when I start and
stop shopping. This is also the same with online schooling. It
is a service that is provided through an online distribution
channel.
Distribution channel are means or ways that a producer sells its
products either directly to its buyers or by distributor like in
wholesale or retail. In this new times of technology where almost
everyone shops online, distributors could also mean virtual stores
and sellers.
Geographical location is an important part in marketing. This will
help determine how the product will sell out to potential
consumers and how fast or slow it will take for the products
to reach the market. An example I could think of is online
shopping. I am guilty of shopping online especially at this time
where Christmas is almost here. One factor that affects my
decision to place an order would be the location where my
item is coming from and how fast it will get here.
Geographical location comes into play in this scenario. Obviously, I
could purchase an item from overseas for a lesser price than
buying locally. But because I want my items to get here
before Christmas, I would purchase a seller who offers faster
shipping and delivery even though the price is higher than
others. Another example would be my dad's former business which
were piggery and poultry. There were a lot of the same
businesses in our town in the Philippines but my dad marketed
and distributed his products to meat shops and small stores that
were near his business location. I remembered going with him
when I was young to shops when he would personally deliver
the orders. The meat shop owners preferred to do business with
him as his farm (where his piggery and poultry where located)
was minutes away from these shops, and if they need to buy
more, it would be easier to transport the products rather than
buying from someone else that was located miles away. I
remembered being young and curious, I would ask <