Marketing channels

Today I will talk about marketing channels. And first question for today will be an overview of distribution channel for Sony phone, which looks like this:

And second will be channels in terms of complexity and distance.

Channels in terms of complexity: marketing channels have a lot of functions, and these functions are complicated themselves. There are a lot of more complicated channels then channel what is used for Sony phone. The channel is more complicated if there are more participants, like more wholesalers, also if there are agents or brokers. All these have an impact on complexity.

Channels in term of distance. Geography is very important factor. If better distance between producer and markets, the less expensive is distribution. Sony phones are developed at one place, but have a lot of places around the world, where Sony phones are sold. It means that they need to spend more money for distribution in countries what is far away. Sony phones are sold to wholesalers, and after to retailers. So to sell phones company have to overcome the distance (for instance, export and import) and pay more. Eventually channels provide some distance overcome, and this is the way how channels can be termed in term of distance.

Here.. Description of function what are fulfilled through channel members.

Ø  Producer: producers buy raw materials, finished items to produce Sony phones and after sell them to wholesalers.

Ø  Wholesaler: it is a person or firm that buys big quantity of goods from producers. And after resell them to retailers. So there are firms which buy Sony phones to resell them to the retailers to sell it to consumer.

Ø  Retailer: A retailer is an entity that sells goods or commodities directly to consumers, through various distribution channels with the goal of earning a profit. Eventually, retailers resell Sony phones to final consumers.

Ø  Consumer: people who buys products and use it.

How can image of Sony phones be influenced!?

The image of Sony phones can be influenced very easily. For instance, people buy phones in such a big stores, which are popular and have a good reputation, like KPN or MediaMarkt. Also these stores often provide an opportunity to buy phones in the internet. It indicates the size of these stores, and often these stores have good reputation and a lot of clients. All these facts have an impact on consumers. Better reputation – better attitude and perception of the product.

But if wholesales will sell products to small stores, which has bad reputation, in will have bad influence on consumers. On psychology level they will think that these phones aren’t good, also quality of phones aren’t good and eventually they will not buy it.

Essentially, there are a lot of facts can influence image of product, but in my opinion the most important for people are quality of the product and also very important is where these products will be sold and how these products will be advertised. If Sony will be sold in big stores which people know and with good advertisement, it will be good image of company and subsequently of phones.

And the last information for today.. About strategies...

All companies have their own strategy and there are a lot of kind of strategies what can be used. For example, strategy of coverage of consumers. Sony company can choose their clients; it means can target clients who will buy Sony phones. Also they can do segmentation analysis and after company can choose place where phones will buy more, where demand will be higher, also they can define critical number of retailers. It will lead to higher profit for the company. And finally they can pick up wholesalers who will work for the retailers. One more strategy is assortment strategy. In my opinion, Sony company uses attractiveness strategy, because they have wide, and deep assortment, like for example: phones, players, TV, PlayStation. Also market strategy has three tips of distribution and distribution what has been chosen for Sony is “Selective distribution”. Sony isn’t a product which people want to buy every day, because phones aren’t first needs product, so it cannot be intensive distribution. “Durable goods such as electrical appliances and exclusive fragrances usually fall into this category.” For Sony phone consumers spend time searching information about the product; visiting retail outlets to compare designs, styles, prices and other features.