Diving In!
Marketing is an essential aspect of any organization’s success, as it plays a crucial role in building brand awareness, driving sales, and increasing revenue. We are going to discuss one main topic:
1. Distribution in marketing and financial success of an organization.
“Never spend your money before you have it.”
– Thomas Jefferson
Distribution in Marketing & Financial Success of an Organization
According to Kotler and Keller (2016), the distribution channel is the “set of firms and individuals that take title or assist in transferring title, to a good or service as it moves from a producer to a consumer or business user.” When you dissect that, it simply means that the distribution channel is responsible for getting the product from the manufacturer to the end-user, it doesn’t matter if that a business or a individual looking to become or is your consumer.
A study by Accenture on ‘Reimagining the future’ states ‘optimizing the distribution channel can increase a company’s revenue by up to 10%.’ This can be see through investment in distribution to have better customer experiences. This in turn will lead to brand loyalty and stronger marketing positions.
According to a study by Forrester Research (2020), ‘global online retail sales are projected to reach $4.9 trillion by 2024 and companies that fail to integrate e-commerce into their distribution channels risk falling. Behind on their competition.
A report by Deloitte on What Companies can Learn from COVID-19, states ‘companies with agile distribution networks were better able to respond to distributions and meet changing customer needs during the pandemic. If you take a look at Amazon, their response during the pandemic was remarkable. Their revenue’s increased once they understood how to properly use their resources during an unforeseen event.
The increase and rise of digital platforms/technologies has allowed companies, whether its an emerging company or a well-established one, it has allowed them to create new opportunities and challenges for distribution channels.
It is important to remember that distribution encompasses activities such as transportation warehousing, inventory management, and orders. Companies are now more comfortable using analytics to organize themselves and integrate online and offline channels to deal with omnichannel inventories.
Looking Ahead
Companies must be able to adapt to the environment around them to generate revenue and financial success and this can be done through optimizing their distribution channels.
Catch us each week for more on Special Topics in Marketing!
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