Channels of distribution
A channel of distribution may also be referred to as a trade channel. It is a path or the route that goods from manufacturers or producers to the ultimate industrial users or the consumers. It is, therefore, the distribution network through which the producer puts his product so that it reaches the final consumer. A channel consists of the producers, several middle men such as the retailers, wholesalers and other various selling agents who bridge the gap between the producers and the final consumers. It, therefore, creates possession, time and place utilities in the course of changing of ownerships.Any channel of distribution will always consist of three flow types:
- Downwards flow of commodities from producers to consumers
- Upward flow of the payments from the consumers to the producers
- Flow of information in the market either upwards or downwards. The information may be complaints, compliments or informative information.
When a producer releases Smarty Pen to the market, he has several channels to choose in order to reach his or her consumers. Some of these channels may be long or short and directly link the producer to consumer. The length of the channel depends on the number of middlemen involved in the entire transaction process. Different channels are available to the producer and the choice of the channel will depends on the value, quality and the volume of the Smarty Pen. Therefore, the Smarty Pen producer should make a decision on which channels to use, and this depends on the above factors. With the necessary information, the company would be in a position to make a guided and informative decision on how to handle the full distribution problem.
In order to be reliable to the consumers, the producer should be in good terms with the distributors to avoid time wastage through the delay. Efficiency of the channel would lead to the producer earning more profit through increased sales. Therefore, the producer should choose the channel that does not delay the products from reaching the consumers. At the same time, the Smarty Pen producer should realize that the channel distributors expect quality pens at all the times. They also expect to receive the pens in time and the right order. Failure to this would lead to unreliability of the producer to the distribution channel. In order to avoid this, the Smarty Pen producing company must have the same line of interest as the channel distributors.
Integrated Marketing Communications (IMC) Promotion Plan
Integrated Marketing Communications (IMC) is an application of a consistent messaging of the brand across both the lines of the nontraditional and traditional channels of marketing and by using different methods of promotion in order to reinforce one another. I the writing of a comprehensive, integrated marketing communications plan, it would involve trying to bring together all the parts of a marketing plan for the Smarty Pen Company into one single documentation that can be used to guide in the process of implementing the plan. It acts as a key for brand building and would thus include all the parts that encompass a marketing campaign, ranging from the product description to the market analysis in both print and online advertising.
Therefore should offer an effective and a well-researched method of getting the product message to the target customers in the most effective time and place. In this case, therefore, the market evaluation is a key factor that is of essential considerations in the marketing of the product. Therefore, in order to venture the market, these issues have to be addressed in the Smarty Pen marketing plan. The plan gives an insight of the whole market and how to approach it at all times and in any angle. It is, therefore, of very importance to have a look at the size of the market to determine the amount of Smarty Pens product to include and also to determine the number of agents to include in the process of distribuztion. It would even help in the distribution of the pens even further.
Understanding the product also helps provide the customers with the relevant information on the product. It, therefore, helps the interaction between the customer and the producer of the Smarty Pen. The information is exposed to the customers through advertising, sales promotion and even direct contact with the customers. The customers are usually made aware of Smarty Pen and convinced beyond doubt on the credibility of the product. In the present times, online advertisement has become more reliable as compared to the older ways of advertising. It, therefore, gives an added advantage when it comes to matters pertaining winning a wider customer base. In this case, it is, therefore, an essential factor in marketing plan.
Other advertisement media that may be included in the marketing plan are the audio and visual or a combination of both. In the audio, radios are the ultimate goal. The radio would reach a wider customer base as compared to other print media. The advertisement is made as simple as possible and easy to understand as possible. In visual and audio visual, the advertisement is accompanied by a short video to enhance understanding the use of the Smarty Pen product. In this case, the medium to be used is the television. It is also a good medium as it can reach a wider customer base.
Integrated Marketing Communications (IMC) Budget
In organizing for a marketing communication and all the advertising involved different steps are involved among them budget preparation. The advertising that is involved in the process entails the use of resources. For effective use of resources, budgeting is of primal importance. It is, therefore, essential that the budgeting plan is done before commencing on the actual marketing plans. Therefore, after the marketing plan has been made, the Smarty Pen producing company would plan on the resources to be used to acquire the set marketing goals. The use of funds in the process of advertising increases the operation costs.
The firm cannot assume the whole cost of operations and, therefore, passes some or all the advertising cost to the consumer as an increase in price. The increase in price may render the pen unaffordable to some customers and thus despite the massive advertisement, the customer base may decrease. Therefore, budgeting is essential in order to keep a check on the way the resources are used. The resources used should not be too high such that there would be a too high cost to the firm. The cost of advertising should be such that it does not go beyond two percent of the cost of the item. It will, therefore, not increase the cost of the item to an unaffordable amount to the customers. The customers would, therefore, be in a position to acquire the products and at the same time the producer would be in a position to make more profits.
