Product and Place with Nutritional Supplements Assignment

Product and Place with Nutritional Supplements - Assignment Example Product and Place with Nutritional Supplements Introduction Product, place (distribution), promotion and price are the four most important marketing considerations. According to Nevin, the nature of a product and how it appeals to customers determine its marketability. The distribution of the product in the market can be done selectively, exclusively or over a large area depending on the choice of the producer. The sale of the product is also influenced by its price and consumers probably go in for cheaper products. Moreover, customers tend to be attracted by marketers who give them appropriate promotions (Nevin, 2002). 1.) An Overview of Distribution Channels A distribution channel can be defined as a pathway through which goods and services move from the producer to the consumer (Frazier & Summers, 2000). It involves all the institutions through which goods and services must pass from the point of their production to the point of their consumption (Kerin, Hartley & Rudelius, 2011). Lyndon and Sally argue that any meaningful definition of a distribution channel should include the flow of payments (generated from the sale of goods and products) from the consumer to the producer (Lyndon & Sally, 1998). Thus as Nevin notes, a distribution channel is an element of marketing mix that is effected through two directions: from the producer to the consumer and from the consumer to the producer (Nevin, 2002). 1. A) Channel Levels: Direct versus Indirect Distribution A distribution channel is effected at two levels: the direct and indirect distribution channels (Frazier & Summers, 2000). In a direct distribution channel, the producer delivers goods and services to the consumer without using intermediaries or middlemen (Nevin, 2002). Thus the producer sells goods and services directly to the consumer. On the other hand, in an indirect distribution channel, the producer delivers goods and services to the consumer through the assistance of intermediaries (Nevin, 2002). Thus in this case, producers use a third party in selling their products in the market. Examples of intermediaries include wholesalers, agents and retailers among others (Kerin, Hartley & Rudelius, 2011). Using intermediaries normally results in greater sales than selling directly from the point of production to that of consumption (Lyndon & Sally, 1998). 1. B) Channel Organizations: Conventional, Vertical, Horizontal and Multichannel Marketing Systems There are four main forms of marketing systems along which most distribution channels are organized. Firstly, we have a conventional marketing system which involves one or more producers, wholesalers and retailers acting independently and separately in efforts to maximize their own gains (Kerin, Hartley & Rudelius, 2011). Secondly, we have a vertical marketing system in which producers, wholesalers and retailers function as a unified unit. Here, one of the channel members acts as the owner of all the others and exercises power over them ( Frazier & Summers, 2000). Thirdly, there exist horizontal marketing systems in which two or more business companies at the same level combine their financial and marketing resources in pursuit of marketing opportunities (Lyndon & Sally, 1998). Finally, we have a multichannel marketing system where the producer uses two or more marketing channels in distributing goods and services (Nevin, 2002). 2.) Analyze your target market's needs Customers in different target