Saturday, March 9, 2013

Distribution

"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." (Pg. 312)

Distributing to the public, I want my restaurant to be a direct distributor. Like, HP or Ford I want all my products to be my own. I want to be able to change my advertising, prices, and promotions to what I want them to be because I'm not getting help from another channel or retailer. The advantage of direct distributing is that it gives me (the manufacturer) complete control over my own product.
So whether I'm needing to spice up some old recipes or change the menu overall, I'll be able to do so in my own restaurant. Efficient and effective distribution is important if the organization is to meet its overall marketing objectives. If an organization underestimates demand and customers cannot purchase and be satisfied with the products being given to them, profitability will be affected.


"Distribution channel decisions often involve long-term commitments to other firms. For example, companies such as Ford, HP, or McDonald's can easily change their advertising, pricing, or promotion programs. They can scrap old products and introduce new ones as market tastes demand. But when they set up distribution channels through contracts with franchisees, independent dealers, or large retailers, they cannot readily replace these channels with company-owned stores or Web sites if conditions change." (Pg. 312)

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