Saturday, September 10, 2011

Distribution

As I explained in my Product segment I don't plan on using a lot of distribution from other companies. Distribution is a big hassle and spreads the profits to a thin stretch. I don't consider exclusive distributing, for according to Marketing: An Introduction "some producers purposely limit the number of intermediaries handling their products. The extreme form of this practice is exclusive distribution, in which the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories."

Another good reason why I plan to deal with the consumer myself is the possibilities of Channel conflicts. According to Markting: An Introduction,  "Channel Conflicts is disagreement among marketing channel members on goals, roles, and rewards—who should do what and for what rewards." If any dispute wil be made, I prefer it to be a Horizontal Conflict. "Horizontal conflict occurs among firms at the same level of the channel." (Marketing: An Introduction pg. 315) Though they also say that some conflict and competition can be healthy, personally I'm a pacifist, the less conflict and arguments the better. 

For the most part most of the distribution will be on my part, for the truck itself will sell bars and ice cream novelties of different origin. Depending on what sellls most and what sells well will determine whether I will continue to act as distributer for these products. As far as distributing the truck I plan to spread it across countries, starting in Vegas and than working out state, so eventually I will be needing to seek further distribution.
Figure 10.2 Pg.315

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