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Free «Development of Distribution» Essay Sample

In distributing goods and services to the market, an organization may either choose to use direct or indirect channels. A direct channel involves a situation where a company decides to sell their products directly to the customer. On the other hand, indirect channels involve a situation where an organization uses other agencies to sell their goods and services to the customers (Dent, 2011). Indirect channels are mostly used during the early stages of the production of a certain commodity while direct channels mostly apply when the company has already established itself. There are various marketing systems that an organization may decide to use; these include the use of either vertical, conventional, horizontal, or multichannel marketing system (Capon & Hulbert, 2007).

The best channel of distribution to use includes direct distribution channel since it saves the expenses of the company. In terms of the marketing system to adopt, the best marketing system is the horizontal marketing system and multichannel distribution system. The horizontal marketing system used together with direct distribution channel will ensure that the organization covers a wide market. Moreover, there will be reduced costs with the use of multichannel marketing system and enhancement of economies of scale through horizontal marketing systems (Rolnicki, 1997).


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The best channel members to use are members of the direct channel, most of whom include sales force. This is economical as it will lower the costs associated with the use of external marketers who may demand a lot of pay from the organization. The channel members to be used will be thirty. This is because the strategy to be used will be intensive distribution in which the product will be placed in numerous markets. This will ensure that the goods can be accessed by many customers who may be willing to purchase the goods. The various outlets that can be used to distribute the goods include supermarkets and chain stores (Cant, 2006).


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