EFFECTIVE CHANNELS OF DISTRIBUTION IN PRODUCT MARKET SHARE DEVELOPMENT IN ENHANCING ORGANISATIONAL PERFORMANCE
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EFFECTIVE CHANNELS OF DISTRIBUTION IN PRODUCT MARKET SHARE DEVELOPMENT IN ENHANCING ORGANISATIONAL PERFORMANCE
Chapter one
INTRODUCTION
1.1 Background of Study
In previous years, the primary goal of business organisations was to manufacture and sell, but recent marketing dynamics have shifted our poor industrialists’ focus to finding out what consumers want and buy, as only then will there be certainty that the product can be sold profitably and provide a return on investment.
Previously, product departments created what they wanted for the marketing department, but now the marketing department requests what customers want from the company, indicating what will be produced.
Marketing is defined differently by different authors. Kotler (1984) and Bolt (1987) define it as an attempt by a manufacturer or service provider to present a product or service in a manner that will be acceptable to their numerous customers, both prospective and existing.
Henry (1986) and Foster (1982) define it as the execution of business functions that direct the flow of goods and services from the producer to the consumer.
To do this, the market implements product planning, pricing, promotion, and marketing channels in such a way that the product is developed to meet the needs of their customers.
Marketing recognises these demands and offers products that are designed to meet them, either individually or in groups. As a result, buyers must decide which product will best meet their needs.
Recognising the consumer problem, marketing managers use research and development to create an information system and programme that takes customers through the process of analysing each product and making an informed decision about which product to purchase.
1.2 Statement of Problem
It was discovered that despite all of the human and material resources invested in the creation and development of a product, it was still not visible on shelves and store stands.
In this regard, the following questions arise: what use is a good product if the questions to be answered are: after all efforts by the manufacturer in producing it acceptably, fixing a competitive price, backed up by promotion and advertising,
when the product does not reach the consumers as a result of an inappropriate marketing channel I the consumers search for the product as a result of ineffective channel mix management by the marketing managers?
Why aren’t these things available on shelves? If these are rival products, what are their advantages over the missing goods on display? If it is distribution benefits, what technique was employed in channel selection for the product that is currently unavailable on shelves?
What channel lines have been adopted for the product? Who is responsible for channel management, and how effective is the channel mix? How frequently does he examine the channels to monitor their performance? What alternatives are available?
Answers to these concerns, as well as related issues, must be sought, explored, re-assessed, and addressed in order to achieve effective market share development for a product in the physical distribution of the product of the manufacturing company.
1.3 GOALS OF THE STUDY
The primary goal of this research is to investigate the impact of distribution channels on effective market share development in improving organisational performance for a product. More specifically, the study intends to
i. Identifying the problem related with product distribution channels.
ii. Identifying the scope and importance of the distribution channel in relation to the marketing mix
iii. Identifying product distribution networks at Lisabi Mills.
iv. Analyse the efficacy of the channels in product delivery to consumers.
v. Making recommendations/suggestions based on research findings to effectively develop product market share.
1.4 RESEARCH QUESTIONS.
The study, among other things, will attempt to determine whether:
1. If channel is a significant distribution variable that influences a consumer product’s reach or spread.
2. If incorrect channel management has a detrimental impact on the company’s market share.
3. If low market visibility/availability contributes to the consumer’s loss of confidence in the maker.
4. If convenient access to products contributes to consumer purchasing decisions at the point of sale (POS).
1.5 Research Hypothesis
The following research hypothesis will be evaluated.
Hypothesis 1.
Ho: The channel is not a significant variable that promotes or spreads production.
Hi: The channel is an important variable that aids in research and manufacturing spread.
Hypothesis 2.
Ho: Poor channel management has a detrimental impact on the company’s share.
1.6 Significance of the Study
This study is relevant in various ways. First and foremost, it aims to emphasise the importance of the product market by properly arranging distribution routes in the manufacturing industry.
This is because knowing the dynamics of market channels in product distribution allows organisations to meet their sales targets and other business goals while also ensuring maximum profit through high sale volume and market share retention.
The study is also significant since it will help manufacturing companies and other market-related corporate entities understand the ethical position of marketing channel identification and creation in terms of operational effectiveness and corporate goals.
Most importantly, this study will add to the body of knowledge by elaborating on existing literature on the subject and providing a balanced framework for manufacturing setups for optimal market planning and distribution.
1.7 Limitations of the Study
Due to time constraints and specifications, this dissertation will focus on completed goods distribution and consumer goods.
This dissertation will not include the dissemination of raw materials and technical resources, allowing other scholars with suitable specifications to take use of the opportunities.
1.8 Definition of Terms
Channel: This activity makes a product available to customers where and when they want to purchase it.
Brand loyalty is defined as customer patronage of a product regardless of the availability of substitutes or its price.
Customer: This is the final user of the product.
P.O.S: Point of Sale.
4PS: This is the marketing approach, which stands for product planning, pricing, promotion, and placement.
Marketing Mix: The combination of controllable variables used by a corporation to fulfil a specific target group.
Market: A collection of potential customers who have comparable needs.
Sales Decline: The product life cycle stage occurs when new products replace older ones.
Promotion is the process of conveying information between a seller and a buyer in order to affect their attitudes and behaviours.
Target Market: This is a market segment (a set of consumers) to which the company appeals.
Sales: the turnover of a specific product; the exchange of products or properties for money.
Strategy: This is the chosen path of action to be taken in achieving a goal.
Distribution is the process of distributing items or services to final consumers.
A middleman is someone who buys items from producers and then sells them to retailers or customers.
A retailer is a trader who sells products at retail. That is someone who sells goods in small quantities directly to customers.
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