A similar partnership agreement between different companies with products or skills to share is the strategic alliance, which allows them to share the use of established distribution channels to achieve business growth in new markets. Retailers have been forging strategic alliances since the 1950s, and the pace continues unabated today as stores continue to diversify their international sales. The following figure shows the channel flows of the Monster Energy drink (and many other energy drink brands). Why is Monster's relationship with Coca-Cola so valuable? Each flow goes through bottlers and distributors to reach supermarkets, where the product will be available to consumers.
By reviewing channel flows, we found that bottlers and distributors play a role in every flow. Examples of the flows are listed below. Remember that while the consumer is the person who ultimately consumes the beverage, supermarkets, restaurants and other outlets are Coca-Cola customers.
Online marketinghas emerged over the past decade; it requires both the retailer and the consumer to have a computer and a modem.
Or, Virginia-raised turkeys are shipped to New York so they can be sent to Virginia supermarkets. Similarly, in markets where the distinctiveness of products has been significantly reduced, the ability to excel in physical distribution activities can provide a real competitive advantage. In addition, it will be clear that channel selection is not a static and definitive choice, but rather it is a dynamic part of marketing planning. Several channel strategies related to separation, postponement and acceleration of flow have been described separately in different parts of the marketing literature.
In a society like ours, the task of physically moving, manipulating and storing products has become the responsibility of marketing. Specialty department stores, such as Neiman-Marcus and Saks Fifth Avenue, send catalogs to create an upper-middle class market for expensive and sometimes exotic products. They provide the producer with extensive market coverage information on local market trends efficiently. In addition, the wholesaler must perform all the activities necessary for the operation of any other business, such as planning, financing and developing a marketing combination.
Wholesale includes all the activities necessary to market goods and services to companies, institutions or industrial users who are motivated to buy to resell or to produce and market other products and services. As with the other elements of the company's marketing program, distribution activities are carried out to facilitate exchange between sellers and consumers. Finally, while the idea of a distribution channel may seem unlikely for a service product, such as healthcare or air travel, service vendors also face the problem of delivering their products in the way, place and time their customers demand. Most manufacturing and manufacturing companies are not in a favorable position to perform all the tasks that would be necessary to distribute their products directly to their end-user markets.
In business marketing channels, manufacturers sometimes use their own sellers to sell to industrial buyers. Finally, promotion flow refers to the flow of persuasive communication in the form of advertising, personal selling, sales promotion and public relations.