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.
