Final Project: Marketing Strategy - Distribution

In order to get your product to the public, the company must consider certain economic criteria before picking distributors to sell your product. The book Marketing: An Introduction says to consider the following:


“Using economic criteria, a company compares the likely sales, costs, and profitability of different channel alternatives. What will be the investment required by each channel alternative, and what returns will result? The company must also consider control issues. Using intermediaries usually means giving them some control over the marketing of the product, and some intermediaries take more control than others. Other things being equal, the company prefers to keep as much control as possible. Finally, the company must apply adaptability criteria. Channels often involve long-term commitments, yet the company wants to keep the channel flexible so that it can adapt to environmental changes. Thus, to be considered, a channel involving long-term commitments should be greatly superior on economic and control grounds.” (Marketing: An Introduction, Armstrong & Kolter, Pg. 325)


Also, companies must also determine the number of channel members to use at each level. Armstrong & Kolter believe there are three strategies are available: “intensive distribution, exclusive distribution, and selective distribution” (Marketing: An Introduction, Armstrong & Kolter, Pg. 323). Wegner prides itself on creating quality products with superb craftsmanship. Because the laptop computer backpack is designed to hold computer laptops, Wegner first plans to distribute it to the major electronics outlets such has Frys and Best Buy and office supplies outlets such as Office Deopt, Office Max and Staples. Since people relate laptops to these stores, retailers can recommend that they purchase a Wegner “Ibex” backpack to keep their new purchase safe. Outlets like these can distribute the product on a long term basis even though control of the sales will be in the hands of the stores themselves. Online distribution of the product through Wegner’s online store is also key since people from all over the world can view their site. As other stores are able to sell the product on line, the “Ibex” backpack can be shipped all over the world.