SIGNIFICANCE OF DISTRIBUTION CHANNEL TO THE MARKETING OF A PRODUCT IN AN ORGANIZATION
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SIGNIFICANCE OF DISTRIBUTION CHANNEL TO THE MARKETING OF A PRODUCT IN AN ORGANIZATION
ABSTRACT
This project was titled The Importance of Distribution Channels in Project Marketing within an Organisation. Distribution is an important aspect of pharmaceutical supply chain management. Various people and entities are normally in charge of handling, storing, and distributing such things.
In other cases, a person or entity is solely involved in and accountable for particular aspects of the distribution process. The researcher used the secondary source data collection method, which includes gathering information from relevant textbooks, magazines, journals, and websites.
It was discovered in this study that a poor channel of distribution is the root cause of their high production costs; thus, any organisation that wishes to achieve its goals and objectives efficiently and effectively must increase its control over its distribution channel and monitor its activities more effectively.Chapter one
INTRODUCTION
Background to the Study
One of the most important aspects determining an organization’s success is its distribution channel.
The distribution channel is extremely significant in the marketing of goods and services. The operations involved in the production and distribution of goods and services are to ensure that they reach their intended customers.
Consumer satisfaction, as the most important factor in determining effects, must be combined to influence the effectiveness of distribution channel decisions.
The distribution decision is concerned with selecting and positioning middlemen to efficiently convey product from the producer to the consumer or customers. The goal is to create a system of transportation, storage, and communication that will make commodities and services available to potential customers.
To be cost conscious, the system must reduce the cost of storing and delivering merchandise while preserving and increasing sales to the ultimate consumers. Additionally, channel members must be effective in making the company’s goods available to the final consumers. As a result, when choosing a distribution channel, many variables must be considered.
These variables may include the nature of the product, the targeted customers, location, and the company’s financial ability, as well as economic factors and available channels at the time.
One of the roles of the distribution channel is to turn potential consumers into profitable customers. In other words, channel members must not only serve the market, but also create it.
The distribution channel ensured a continuous flow of items from the point of production to consumption at the time. The most imitative product with a low price and an appealing marketing campaign is worthless without an effective distribution channel.
Thus, distribution channel members can provide place and time utility in order to facilitate possession utility.
Statement of the Problem
For example, the Nigeria Bottling Company was founded in 1953, and it now has outlets throughout the country. Emzor, Emzor, and Crest bitter Lemon, Eva water, and Five alive are heavily distributed to dealers from the plant;
the question is whether it is heavily distributed within the state. It must be noted that the quality of the product is not worth it to satisfy the consumers’ needs. The Nigerian consumer is not affected by any diplomatic attitude towards foreign items.
RESEARCH QUESTIONS:
The research questions are as follows:
What are the different channels of distribution?
What are the relevance of the organization’s distribution channel strategies?
What are the distribution routes and issues confronting an organisation?
Research Hypothesis
A plan has been established as a guide for the study effort and will be tested for validity in Chapter 4.
Hypothesis One.
HO: Distribution helps to tell potential buyers about the existence of a new product.
HI: Distribution does not help to tell potential buyers about the availability of a new product.
Hypothesis Two
HO: Marketing goods distribution channels frequently result in increased loyalty and sales.
Hello: Frequently, the distribution route for marketing products does not result in product loyalty or increased sales.
Hypothesis Three
HO: The distribution of a product provides a motive for the consumer to purchase it.
Hello: The distribution of a product does not represent a reason for the consumers.
PURPOSE OF THE STUDY.
The study’s objective refers to the goals that the researcher hopes to attain through their research. This project task title is ‘the importance of distribution channel in marketing of a product in an organisation’.
To identify the distribution channel.
To analyse the importance of the organization’s distribution channel plans.
Determine the distribution routes and difficulties facing an organisation.
To enhance and propose suggestions, solutions, and recommendations for the difficulties encountered during this study effort.
SCOPE OF THE STUDY:
The study’s scope is limited to Emzor’s Benin Zone, which includes the Benin basic territory as well as the company’s dealer outlet.
The study attempts to analyse the importance of the distribution channel in achieving the firm’s objectives, as well as the benefits it provides to customers and organisations.
Significance of the Study
This research endeavour will be significant for many companies when completed.
First, the study clearly showed if it is desirable for Emzor pharmaceutical industries to continue.
Its current distribution system, or the elimination of it due to the high cost of its method of operation, will undoubtedly increase the sale of its line of pharmaceutical products, resulting in an increase in profits for the company. Also to benefit one other pharmaceutical company and a representative of a global corporation in Nigeria.
Second, it will be important for consumers and middlemen in the sense that their comments and criticisms would be considered.
Finally, the study’s goal of increasing the efficiency of distribution channels will undoubtedly benefit Nigeria’s economic development in terms of adequate health care facilities and drug supply to the market.
Limitations of the Study
The student encountered the following issues while conducting this study.
Poor performance by the company (Emzor Pharmaceutical) was due to their fear that the information provided would be revealed to their competitors.
Financial constraints also had a negative impact on the scope, which would have covered a wide range and may have covered more responders who were more subjective.
Finally, most respondents were very subjective, maybe because they were concerned that the study’s findings would have a negative impact on them.
Operational Definition of Terms
Distribution is the process or system of moving and delivering commodities from a certain location to a specific set of individuals.
Marketing, as defined by Kotler (1980), is a human activity aimed at satisfying needs and wants through the exchange process.
Channels: A way or system that individuals use to communicate or convey something somewhere, such as sending products via a specific route.
Organisation: is defined as a group of people who join a business together to pursue a specific goal; it is made up of people who live in the same region or entity.
Customer: This is defined as the ability to purchase more on a regular basis.
Consumers are people who buy goods or services and have the ability to use them.
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