IMPORTANCE OF DISTRIBUTION CHANNEL TO THE MARKETING OF A PRODUCT IN AN ORGANIZATION

CHAPTER ONE

INTRODUCTION

1.2            BACKGROUD TO THE STUDY

Distribution channel is one of the major factors that can ensure the success of any organization.

The distribution channel is of a great important in the marketing of goods and services. The activities involved in the production and distribution of goods and services is for it to get to the ultimate users. Consumers satisfaction being the vocal point in making effects, must be put together to affect the effectiveness of distribution channel decisions.

The distribution decision is concerned with selecting and locating middlemen to effectively move product from factory to consumer or customers. The objective is to organize a system of transportation storage and communication that will make the goods and services available to potential consumers. To be cost conscious the system must minimize the cost of storing and shipping merchandize while maintaining and improving sales to the ultimate consumers in addition to the channel members must be effective to do better job making the company’s product available to the final consumers. Hence in selecting a distribution channel many variables must be taken into consideration, this variable might include most of the times the nature of the product, the targeted customers, location, and the financial ability of the company, economic factor and available channels of a particular point in time. One of the roles in distribution channel is to convert potential buyers into profitable buyers. In order words channel member must not just serve market but must also make market. The distribution channel ensured constant flow of products form the point of production to the consumption at the time. The most imitative product that have price and promoted attractively is worthless without effective distribution channel.

Thus the distribution channel members can create place and time utility to facilitate possession utility.

1.2     STATEMENT OF THE PROBLEM

For instance, the Nigeria bottling company was incorporated in 1953, today; it has other branches located in various part of the country. Fanta, Coca-Cola, and Crest bitter Lemon, Eva water and Five alive are heavily distributed to dealer from being plant, the question is whether it is heavily distributed within the state or not if the quality of the product is nothing to write home about, it must be known here that the quality does not worth it to satisfy the consumers need. The Nigeria consumer actually, is not caught by any diplomatic attitude towards foreign goods.

1.3     OBJECTIVE OF THE STUDY

The objective of the study refers to the aims the researcher wants to achieve in the research work. This project work title ‘the importance of distribution channel in marketing of a product in an organization’

i)                   To identify the channel of distribution channel

ii)                To evaluate the importance of distribution channels strategies used by the organization

iii)              To determine the distribution channels and problems facing an organization

iv)              To improve and provide suggestion, solution by the way of recommendation to the problems in the course of this research work.

1.4     STATEMENT OF HYPOTHESIS

For a pave been drawn as a guide to the research work and will be tested for validity in Chapter four

Hypothesis One

H_O:    Distribution helps to inform the potential buyer as regarding the existent of a new product

H_I:    Distribution does not help to inform the potential buyer as    regarding the existing of a new product.

Hypothesis Two

H_O:    Frequently distribution channel of marketing product lead to          loyalty and higher sales.

H_I:    Frequently distribution channel of marketing product does not       lead to product loyalty and higher sales.

Hypothesis Three

H_O:    Distribution of a product constitutes a reason for the consumer      to buy such product.

H_I:    Distribution of a product do not constitutes a reason for the consumers.

1.5     SCOPE OF THE STUDY

The scope of the study is limited to Benin Zone of Coca-Cola Bottling Company this zone comprises of the Benin basic territory and the company’s dealer outlet in the zone.

The study tries to analysis the importance of the distribution channel in the attainment of the firms’ objective and its benefits to customer and in an organization.

1.6     SIGNIFICANCE OF THE STUDY

The distribution of goods and services and the distribution channel are very important in a organization. To carry out these function effectively and the distribution of goods and services and the distribution channels are very important in an organization. To carry out these functions effectively and efficiently the company’s concerns must look in conjunctions with other firms to get the job accomplished. Consumer satisfaction being the point in marketing and in an organization should therefore be geared up effective distribution channels of goods and services to the ultimate consumer which must be at the right quality, right time and at the right place, which include the right study.

1.7     LIMITATION OF THE STUDY

In the course of carrying out this study the student encountered the following problems.

i)                   Poor performance from the firm (Nigeria Bottling Company) this is because they were scared that the information given might be disclosed to their rivals.

ii)                Financial constrains also contributed adversely to the scope which would have covered a large scope and could covered for better respondents were very subjective.

iii)              Finally, most respondent were very subjective as they perhaps feared that the result of the study might have negative effect on them.

1.8     OPERATIONAL DEFINITION OF TERMS

Distribution:    It is the process or system of transporting and delivery goods from a particular area or among to a particular group of people. 

Marketing:   According to Kotler (1980) defines marketing which says that marketing is human activity directed at satisfying needs and wants through exchange process.

Channels:   A method or system that people use to communicate, or to send something somewhere to send products using a particular route.

Organization:    Is define as a group of people who form a business together in order to achieve a particular aim, is made up of people living together in an area or in an entity.

Customer:  This is define as the ability to buy more on a regular basis

Consumers:    Is a person, who buy goods or uses services, it is the ability to use something.

Manufacturing:  It is a business or an industry of producing goods in large quantities in factories.

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