Question 1:

Distribution channels are defined as the way in which, the product moves from the producers to the ultimate consumers. Organizations have to build effective distribution channels in order to achieve a strategic advantage. However, there are few discrepancies between the manufacturer and customers, which an organization endeavors to overcome, such as;

• Discrepancy of assortment: It usually occurs when the organization does not produce all the items that a customer would need in order to obtain full satisfaction from the products.
• Discrepancy of quantity: It is defined as the change between the quantity of goods produced by the manufacture & the amount of goods the consumer is willing to buy.
• Temporal discrepancy: This discrepancy occurs when a product is manufactured, however, the consumers are not ready or willing to purchase the product.
• Spatial discrepancy: It is defined as the discrepancy among the location of manufacturer and location of broadly dispersed market.

Function of Distribution Channel:

The first and foremost function of distribution channels is to facilitate the process of exchange through trimming the number of marketplaces and interact with the customer for the purpose of making the sales. The distribution channel should deliver contact efficiency.Another crucial function of a marketing channel is to overcome or reduce discrepancies between the manufacturerand the customer.

The distributor adjusts the discrepancy of quantity of goods by holding stock and distributingthe product in an efficient manner. To overcome the discrepancy of assortments, the distribution channel should assemble many products in one place in order to fulfil the customer’s required assortments. In order to reduce the temporal discrepancy, the marketing channel should produce the product in the expectation of the demand.The product should be made available in those locations which are convenient to the customer in order to weaken spatial discrepancies that may develop.

Marketing Research Harvard Case Solution & Analysis

Another function of distribution channels is to maintain standardize payment terms and purchase lots and delivering schedules. The aim of the organization is to provide high quality products at lower prices in order to achieve greater efficiency. The crucial function of channel is to build a strong relationship with their customer.

Impact of Advent of E Commerce:

The advent of internet had greatly reduced selling and promotion cost. By the advent of e-commerce, the company maintained virtual inventories. The order can be collected through online services. It has also reduced the risk of holding higher inventories. It has apositive impact of information function, i.e. gathering data and market research would become easy through the internet.

Question 2:

The concept and the case that I have chosen is market segmentation andthe case referred is Metabical Positioning. The firm should create an attractive and unique marketing strategy for each segment. This case study is about Metabical which is a weight loss drug that is clinically proven as being effective for overweight people. It requires a communication and positioning strategy with the consumers. Metabical should choose the targetmarketsegment based on three characteristics, i.e. on demographics, psychographics and behavior.

Market segmentation is basically the division of the market of potential customers into different segments or groups in which, we decide which customer to serve, by identifying different groups of customers because the customers differ in needs and wants or differ in responses to marketing strategies......................

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