Textbook Section Iv Part a Internet Exercise 8

  Textbook Section IV Part A Internet Exercise 8: Selecting the Internet as a Distribution Channel

One very important decision that marketers need to make is which channels of distribution to use for its products or services. Four primary considerations need to be analyzed before making the distribution choice:

1. Distribution coverage required, degree of control, total distribution cost, and channel flexibility.

The distribution can go from a local town, county, state, region, country, or globally.

Looking at Dell, they are a global company and can meet the needs from the individual gamer to establishments at the government level. Their website at the very top shows what kind of purchase you are looking to make and can direct you to which country/language you will be purchasing in. The major companies that are multinational tend to have this option; being able to select which country and language you prefer. Very smart for business. Dell also discusses that their delivery methods are not standard and they will use the best option available to meet the customer needs. The distribution cost is a little extra because of the personalized attention being given to the individual customers, but the customer will bite the cost on that one, depending on how fast they want the computer. The flexibility here is great because shipping companies are competing for business, but FedEx and UPS don’t deliver to APO boxes, which is not convenient for military members or those with PO boxes.

Gateway is similar but instead of a general overview of their product, they directly ask you where you are coming from. It does not look like you can order a Gateway online, you have to go to a store to buy it, which would make the distribution coverage more standard and timely. I remember buying Dell as a kid because you could personalize everything on it and you could have it in less than a week. But, distribution costs should be kept low because of the methodical purchases of the...