Distribution model Business & Marketing Coursework

Distribution Model
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Distribution Model
Launching a new product into the market does not guarantee the success of an enterprise. There are other underlying factors that need to be put into consideration to offset the impending market decline. Pricing and distribution are among the key ingredients of the marketing mix that are vital in product development and overall booming of the business. These two ingredients form part of the widely adopted marketing mix that consists of the 4 Ps (Product, Price, Promotion, Place) ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"1PZNnXvP","properties":{"formattedCitation":"(Dolnicar et al., 2018)","plainCitation":"(Dolnicar et al., 2018)","noteIndex":0},"citationItems":[{"id":456,"uris":["http://zotero.org/users/local/IBolxqVE/items/UWD5SYBB"],"uri":["http://zotero.org/users/local/IBolxqVE/items/UWD5SYBB"],"itemData":{"id":456,"type":"chapter","abstract":"This chapter discusses strategic marketing areas that need to be integrated with the target segment decision (positioning and competition), and the tactical marketing decisions that follow from all of those strategic decisions in relation to product development and modification, pricing, distribution channel choice, and advertising and promotion. A checklist is provided at the end.","collection-title":"Management for Professionals","container-title":"Market Segmentation Analysis: Understanding It, Doing It, and Making It Useful","event-place":"Singapore","ISBN":"978-981-10-8818-6","language":"en","note":"DOI: 10.1007/978-981-10-8818-6_11","page":"245-254","publisher":"Springer","publisher-place":"Singapore","source":"Springer Link","title":"Step 9: Customising the Marketing Mix","title-short":"Step 9","URL":"https://doi.org/10.1007/978-981-10-8818-6_11","author":[{"family":"Dolnicar","given":"Sara"},{"family":"Grün","given":"Bettina"},{"family":"Leisch","given":"Friedrich"}],"editor":[{"family":"Dolnicar","given":"Sara"},{"family":"Grün","given":"Bettina"},{"family":"Leisch","given":"Friedrich"}],"accessed":{"date-parts":[["2020",5,4]]},"issued":{"date-parts":[["2018"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} [Dolnicar et al., 2018]. Companies need to strike a balance in their product prices and also the distribution strategies or else risk being caught up in at a standstill where the product does neither makes profit nor attracts more customers.
Organizations come up with new products or services with an ultimate goal of value addition in terms of profit. It is therefore, very crucial to factor in the idea of product pricing to realize value addition as well as customer satisfaction. Product pricing is a mechanism by which an organization decides on the price of a particular product or service ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"9XWm0KFV","properties":{"formattedCitation":"(Deepak & Jeyakumar, 2019)","plainCitation":"(Deepak & Jeyakumar, 2019)","noteIndex":0},"citationItems":[{"id":503,"uris":["http://zotero.org/users/local/IBolxqVE/items/RBFVY5RI"],"uri":["http://zotero.org/users/local/IBolxqVE/items/RBFVY5RI"],"itemData":{"id":503,"type":"book","publisher":"Educreation Publishing","source":"Google Scholar","title":"Marketing management","author":[{"family":"Deepak","given":"R. Kanthiah Alias"},{"family":"Jeyakumar","given":"S."}],"issued":{"date-parts":[["2019"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Deepak & Jeyakumar, 2019). Pricing can be a very complex task because of the numerous factors that need to be considered when deciding on the price level. Consequently, most successful firms employ empirical evidence and information from different sources on different factors such as the competitor’s price, cost incurred, and consumer value to determine an ideal product price. Effective pricing practices attract a larger consumer market and in return the organization’s profit function is optimized.
The availability of a product and service at the consumer's convenience is another very important aspect of product marketing. In the 4Ps model of the marketing mix, distribution, which is a requirement that a product or service be made readily available to potential consumers fall under the place category ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"2y9LNW6z","properties":{"formattedCitation":"(Dolnicar et al., 2018)","plainCitation":"(Dolnicar et al., 2018)","noteIndex":0},"citationItems":[{"id":456,"uris":["http://zotero.org/users/local/IBolxqVE/items/UWD5SYBB"],"uri":["http://zotero.org/users/local/IBolxqVE/items/UWD5SYBB"],"itemData":{"id":456,"type":"chapter","abstract":"This chapter discusses strategic marketing areas that need to be integrated with the target segment decision (positioning and competition), and the tactical marketing decisions that follow from all of those...