Disadvantages:
1. The manufacturer company does not have any control over the of goods distribution method.
2. If the distributor company does not distribute the goods for any reason, the producer will be paralyzed due to the unity of the distribution channel.
3. The company's financing system is subject to the payment of a single source.
4. If the performance of the distribution system is not satisfactory to the manufacturer, the manufacturer company cannot demonstrate a proper and rapid response.
5. In the long-term, the distribution company will effectively determine the manufacturer's policy, and the manufacturer must comply with the distributor's decisions.
6. The repayment period of the cost of goods sold to large distribution companies
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• The capillary distribution channel is one of a variety of distribution channels that performs this task in retail mode and aims to increase the number of customers who purchase goods and increase the level covered.
Statistical population, sampling method and sample size: The statistical population in this research is all the broadcast industry companies and the sample considered is Hafez broadcasting company. In the past few years, according to the statistics and reports of commerce department this company is among the top 100 companies in Iran with distributing more than 20 thousand tons of various types of basic goods and quotations, and freed at a constant rate in the country in particular in the year 2010.
• To conduct sampling, cluster sampling was used in this research. At first, five branch offices of Hafez broadcasting company were randomly selected, and then at the next stage, among the directors and sales and planning authorities, these branches were randomly being selected as research samples.
• Among of 100 distributed questionnaires between employees, 90 questionnaires that were fully answered were selected for
2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?
the company. First of all, the company is unable to generate a sufficient amount of sales. The
Different retailing businesses have very different distribution methods based on the types of product that they sell, some arguably more effectively than others.
Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.
If the company has a good reputation among consumers and its products is a popular choice, the customers become interested in the company’s ability to maintain stability of manufacturing.
A manufacturer of durable medical equipment would have to do what any product manufacturer would do. His distribution channels would depend on:
the distributor, whereas there is no such risk to a sales agent. For example, distributors often
Hence, manufacturing department should not interfere in the distribution department, and the latter should be experienced in distribution of products like Omnivue to the end customers.
2. The brand can also have a product failure if the consumers do not like the taste.
16.. A firm might choose __________ when it wants to maintain control over the service level and service outputs offered by the
solution in this situation is brought down to survival of the fittest. The owners and manufacturers
2. If they reject the contract their product line will stay the same and they will not have
In the case is the statement, “The factory distributors in these few cities indicated that they, not Handy Andy, Inc., stood behind the one-year warranty.” Is this a problem for Handy Andy? Why or why not?
In general, there are several methods for data collection and the different data collection methods provided its own advantages and disadvantages (Sekaran 2003, p. 223). For carrying out the data collection, the appropriate methods should be applied. In the research, the data collection could be done through the interview, for example, face-to-face and telephone interview. To collect the data by using interview technique, the questionnaire is commonly employed as the instrument for gathering data, the questionnaire could be able to distribute by mail or electronic mail. In addition, the data collection could be conducted by observation of individuals with or without audio or video recording. Before choosing the methods for data collection the expertise of the researcher, the degree of accuracy required, time and resources must be taken into consideration. Thus,
Turnbull (1986) recommend that a major weakness is a one-sided focus on the activities of the manufacturer together, that negotiate in the flow of goods and services to the customer