ricoshenk [05.10 18:11]  

Marketing Distribution Decision

The path through which products and services are transported to the vendors is of a high significant to the producer. The distribution channel can be short or long. This depends on the types of transaction involved and the area to be covered. The customers are the central focus when designing a distribution decision in any market. The most successful companies in the world have maintained a close contact with their customers by developing a clear understanding of the dimensions of consumer behavior.
Distribution is a critical part of the marketing mix strategies and consumer behavior. This insight drives the structural process related to decision making in distribution. The choice of distribution is a basic channel of management in service and product distribution. This is determined by the need to have a structured segment of the target market based on the customer’s preference patterns. Consumers with low purchasing power prefer smaller sizes in a multichannel of successful break bulk operations.
Customer’s consumption behavior does not only cover the market orientation but also the offers extended to stores management. Consumer behavior and attitudes significantly affect the process of distribution channel for Terra-Cycle in Japan. They also influence the retail decision in a number of ways. Just the same ways as the channels of distribution are influenced by the dimensions of consumer behavior the decision makers also have to consider the reverse influence.
The culture of garbage disposal in Japan has enabled the island to have the best recycler in the world. Many innovators like Terra-Cycle have been invited to utilize their efforts in the country valuable resource. The recycling culture has continuously evolved and improved under the credit of the Ministry of Environment in Japan. Because of the existing competition in the country, Terra-Cycle has to establish a diverse distribution channel to avoid a conflict of interests and competition in the industry.
The intensity of distribution will be based on the demand of finished products and the supply of waste materials. The company will have to establish a dense network in the cities of Japan such as Tokyo, Shanghai, Tokai, and Hiroshima among others. These established urban centers are the source of differentiated raw materials such as plastics, metal, rubber, glass, and other types of materials.
Terra-Cycle will have to engage the use of multiple channels as a way of improving their collection and distribution mechanisms. This approach enables the company to secure its customer and supplier base as a strategy of mitigation against low supply of materials. Low seasons may occur once or twice in a year; this may make the company get to a standstill and thus make it economically unproductive.
Terra-Cycle has to select a number of wholesale and retail outlets to distribute its finished products to consumers. The retail and wholesale outlets should be widely distributed in the whole of Japan. The company should also consider outsourcing logistic services as a way of reducing its operational costs of products supplying to distribution centers. This will enable the company to avoid unnecessary expenses at low seasons.
Terra-Cycle has to concentrate on the highly populated areas like the urban centers in order to have an adequate supply of raw materials and finished products. Making of these products from garbage increases the demand of raw materials (garbage) and creates utility to the new products. A more diverse distribution channel enables the company to have a lower bargaining power than a single distributor might have. This will positively affect the operations of Terra-Cycle in the market and, therefore, the company has to select a more diverse channel of distribution.
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