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Pricing Strategy

4

Distribution Channel

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Distribution Channel

There are various channels of distribution that allows business transaction from manufacturers to customers. A level two distribution channel is best suited for Wal-Mart Company where intermediaries are involved. For instance, when it concerns selling products like phones, selling indirectly to clients helps provide a price that will target more consumers. Distributors can help in a scheduled shipment of Wal-Mart phones to various destinations, which makes the distribution patterns effective.

Wal-Mart can manage the distribution channel for phone products through choosing and maximizing the channel intermediaries. Wal-Mart markets its phone product the promotion on platforms such as billboards and magazines. Thus, when the channel of distribution is increased, many customers will be targeted in the retail shops around different geographical locations. The intermediaries chosen should align with the Wal-Mart business objectives and models. The potential advantage of using intermediaries in managing the distribution channel is to increase the sales volume while remarkably reducing the cost of operations. Wal-Mart can also distribute its phone products through the various retail stores available in different locations and even embrace multi-brand retail outlets to effectively manage the distribution channel.

Another way for Wal-Mart to manage the distribution channels is through increasing the supply chain management to ensure the flow of good phones to the consumers is efficient enough to meet the competition from other companies that produce similar products (Peter, et al., 2019). The supply chain visibility at Wal-Mart needs to be prioritized, and better strategies such as sufficient training given heightened attention. It is evident that Wal-Mart uses a promotional link mix of lower prices which has helped penetrate the market and boost its distribution channel. Phone products are best sold through Wal-Mart partnerships with service providers such as Verizon. The goal of penetrating a broad market, including venturing into a new market, requires efficient supply chain management to ensure opportunities for expansion are easily identified and utilized.


References:

Peter, J. P., & Donnelly, J. H. (2019). A preface to marketing management. Amazon. https://www.amazon.com/Preface-Marketing-Management-Paul-Peter/dp/1260151611.

Sonntag, M. (n.d.). Product distribution strategy: The ultimate guide [infographic]. Repsly. https://www.repsly.com/blog/consumer-goods/everything-you-need-to-know-about-product-distribution.

YouTube. (2016, March 10). Distribution strategy – an introduction . YouTube. https://www.youtube.com/watch?v=cuPnPJCWJwU&t=1s.