THE HUB:
Choosing & Motivating The Channel of Distribution:
The term “Channel of Distribution” is commonly used in the subjects of commerce, marketing and management. It is used in the context of shaping an understanding among trades men and entrepreneurs of the importance in knowing the inner working of this area of business as it relates to the transfer of goods and services and sustaining good relations with customers based on quality outputs and competitive pricing strategies aimed at attaining and maintaining competitive advantage. The term, also, is perceive to be relevant to the subject of “Communication” as one looks at issues relating to the production and flow of information through appropriate mediums aimed at seeking out or gaining the attention of specific or varied demographic types.  The Japanese and Chinese know this only too well which is why they are able to penetrate markets based on few simple factors: one is research and the appropriate use of primary and secondary market intelligence, market differentiation and customer satisfaction and two controlling price fluctuation through the appropriate management of the channel / or the process that is used in the production of consumer good and how they are transferred to the final consumer.

In which ever context it is used it is important to understand how to appropriately select and strategically navigate and manage the process of getting value added products and services and vital information from the producers or service providing industries to the final consumer or end user. Business leader’s ability to effectively manage this process will ultimately determine their chances of realizing competitive advantage and the healthy sustenance of the lives of their firms. The success in the appropriate selection and the strategic management of the realities surrounding macro level marketing, inter-regional and international trade between manufacturing and service provider industries, depends on market intelligence gathered through market research.

The term market research is not to be taken lightly. One might be tempted to depend primarily on public records / published data as the single secondary source of information when preparing to make personal investment or in advising other to invest millions of dollars in the acquisition of products or services. In such a case it is strongly advised that sometime be spent in examining the relevance of the published secondary data to current market realities and more so the credibility of the data.  It is even more important to foster an environment that encourages the making of educated decisions based on the collection of market intelligence through primary research outlets.

The knowledge to effectively choose and motivate the appropriate channel of distribution can’t be over emphasised. It is relevant to the maintenance of quality products and the provision of premium quality services. It is relevant to creating an enabling environment that allow business leaders to make close to accurate decisions in the flow of products and services. It is relevant to the strategic pricing of products and how businesses are able to position themselves to influence customer loyalty. Let us examine a flow chart as it relates to the channel of distribution. To be continue
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