We should bring up one of the most neglected \"P\"s - placement. Without the ava

Question

We should bring up one of the most neglected "P"s - placement. Without the availability of the product, consumers are not able to even make a purchase. Is Jones Cola sold at the same locations as Coke?  The distribution channels can greatly influence buyers based upon availability of the product, efficiencies or inefficiencies, and the status of the channel.

It has been said that "Channels of Distribution may be the best opportunity for a sustained competitive advantage."

Based on your understanding, would you agree or disagree?   

For those who agreed that "Channels of Distribution may be the best opportunity for a sustained competitive advantage," HOW do you suppose that a good channel can provide the marketer that competitive advantage?

It has been said that "Channels of Distribution may be the best opportunity for a sustained competitive advantage."

Based on your understanding, would you agree or disagree?   

Explanation / Answer

I agree, that channels of distribution may be the best opportunity for a sustained competitive advantage due to below reasons:

1. Channels of distribution: can be defined as a set of sources through which the end product reaches the customers. It can be through sources like Wholesalers, Retailers, distributors or event direct selling through different modes.

2. Reach : Even the best of products does not shine in the market if it does not have a proper channel of distribution.Channel of distribution gives competitive advantage through visibility for the product. The product will be higher reach than the competitors while using an effective channel of distribution

3. Cost effective: When cost effective channels of distribution are chosen by the manufacturers, they tend to be always ahead of their competitors. This can be achieved through low cost and high revenue.

4. Selection: Selection of good channel is a major challenge for any marketer. For different products the channel of distribution is different to attain the competitive advantage. Hence a through market analysis has to be made before selection of channels.

5. Benefits for manufacturer by using good channels can be as below

- logistics would be completely taken care without any hassle

- the line of distribution would be more instead of direct selling

- using the intermediaries customer is a major benefit for the manufacturers

- selling small quantities directly by the manufacturers can be avoided and hence saves cost

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