Almost every marketing strategies revolve around 4Ps or 7Ps.It’s also been supposed that all Ps are usually controllable factors, were in PESTL (Political, Economical, Social, Technological, and Legal) are uncontrollable factors. It’s time to review on the academic scholarship, particularly in context to create awareness to the Marketers by providing insight to the analytical approach in distributor’s change over the decision.
It’s true that CMO on his immediate discretion can discontinues a product from
Any date he wishes merely with one circular to all stakeholders and shareholders of the company. Perhaps he also in tandem can do the same with the Price, Promotion, people, process and physical evidence too. But the decision to change place (i.e. Distribution) at once, perhaps is the daunting task.
Depending upon the industry, Intermediaries have a variety of titles/Names. Among popular names are C&F, Distributors, C&A, wholesalers, retailers, Propaganda, agents, etc. The titles also depend upon the ownership & job description and responsibility to be carried out by them. As their function demands they are responsible for indenting the good, receiving the good, inventory the goods, invoicing the goods, assorting them, sorting, repackaging, shipping the goods, ensuring the transportation, insurance, the goods to forward movement to the retailers for the ultimate destination for the consumer. In this process, they also promote the product and provide required services facility if needed for the product. At this point they display and facilitate the choices to be made by the purchaser which is typically important for new products. Feedback is also a very important function which they extend (Customer's feel, repurchase, compliments, and dissonance) that makes companies make required changes in other Ps to stay competitive & relevant for the customers.
As known that the flow of goods also carries revenue (the carrier of Profit). The delay the decision of discontinuation/substitution of distributors is great concern for CMO on the profitability of organizations. Since decision exacerbate while holding on present sales, substituting the demand and lead to issues which get put on hold leads to scrap the value of goods due to breakages, expiry, leakages, & spoilage unattended. Regular customers to the distributors take time to set to another route to purchase or show their resistance or get influenced to substitute the demand with competing products. Power of distributors they will take the issues to litigate where another hold on the decision can harm the sales and impact the progress of organizations.
What is advised? A distilled MOU is to be concocted, incorporating all possibilities of happenings which can impact business progress and process and secured the organization with clear acceptable norms where both the parties are at mutual welfare without hammering the work?
To reaffirm “Thinks before you act” Since an effective distribution channel are a source of strategic advantage for companies.