Question

Review the key variables that affect the marketer's choice of distribution channels. Suppose you are the sales manager of one honey product store in the US. Suppose you decide to open an e-store on the Web to target Canadian market. Briefly discuss how you would ship/deliver the orders to Canadian buyers. ??Please give as much as possible, thanks!

Answer 1

?Answer

• Channels of Distribution Affect Marketing:

Retail Distribution
Retail distribution is the most traditional form of distribution channel. The common model includes the manufacturer using an intermediary such as a wholesaler or distributor to deliver products directly to retailers, then ultimately to the consumer. This model delays delivery to the consumer and increases consumer cost as each participant in the distribution channel must take possession of the product and receives compensation for its individual role in distribution. Manufacturers may choose to eliminate wholesalers or distributors to decrease product delivery time and decrease the cost to the consumer.
Wholesalers
Manufacturers may also employ wholesale operations that purchase products from manufacturers at a deeply discounted price. The wholesaler often uses a distributor or other smaller wholesaler as an intermediary to deliver products in bulk to retailers, or it may offer products directly to retailers or consumers. The scope of the manufacturer relationship with the wholesaler can have varying effects on product delivery time and price. If a wholesaler deals directly with the end consumer, a reduction in end consumer delivery time and price can result. In wholesale relationships the manufacturer's role in the marketing process is to choose quality wholesaler relationships and find the best fit with the company's strategic vision.
Distributors
Distributors are links in the distribution channel chain that deliver products to retailers. Distributors may either be dedicated to one manufacturer as a captive representative or represent a number of manufacturers and wholesalers. Distributors are often used with high volume products such as beverages when retailers must be consistently supplied with product.
Direct Sales
Manufacturers may use a direct sales force to deliver products to consumers. Manufacturers who choose this distribution channel often deliver higher priced products with lower sales volume. The use of wholesalers and distributors is less cost effective in this scenario as lower volume products carry higher holding costs, so intermediaries can be more costly. Manufacturers who remove these intermediaries can command higher profit margins as a result. Manufacturers using direct sales take on full responsibility for direct consumer communications and marketing.
Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product's availability and pricing at different e-retailers.

• open an e-store on the Web

An online shop evokes the physical analogy of buying products or services at a regular "bricks-and-mortar" retailer or shopping center; the process is called business-to-consumer (B2C) online shopping. When an online store is set up to enable businesses to buy from another businesses, the process is called business-to-business (B2B) online shopping. A typical online store enables the customer to browse the firm's range of products and services, view photos or images of the products, along with information about the product specifications, features and prices.

Online stores typically enable shoppers to use "search" features to find specific models, brands or items. Online customers must have access to the Internet and a valid method of payment in order to complete a transaction, such as a credit card, an Interac-enabled debit card, or a service such as PayPal. For physical products (e.g., paperback books or clothes), the e-tailer ships the products to the customer; for digital products, such as digital audio files of songs or software, the e-tailer typically sends the file to the customer over the Internet.

• ship/deliver the orders to Canadian buyer

Shipping: The product is shipped to a customer-designated address. Retail package delivery is typically done by the public postal system or a retail courier such as FedEx, UPS, DHL, or TNT.
Drop shipping: The order is passed to the manufacturer or third-party distributor, who then ships the item directly to the consumer, bypassing the retailer's physical location to save time, money, and space.
In-store pick-up: The customer selects a local store using a locator software and picks up the delivered product at the selected location. This is the method often used in the bricks and clicks business model.