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

ABSTRACT

This project titled importance of distribution channels of the marketing of a project in an organization. Distribution is an important activity in the integrated supply – chain management of pharmaceutical products. Various people and entities are generally responsible for the handling, storage and distribution of such products. In some case, however, a person or entity is only involved in and responsible for certain elements of the distribution process. The researcher used the secondary source of data collection method involved sourcing information from the relevant textbooks, magazine, journals and the internet. It was observed in this study that a poor channel of distribution is the root cause to their high cost of production, therefore, any organization that desire to achieve its goal and objectives efficiently and effectively must as a matter of necessity increase it control over it distribution channel and monitor their activities more effectively.  

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION

1. Background to the Study

1.2       Statement of the Problem

1.3       Research questions

1.4       Research Hypothesis

1.5       Purpose of the Study

1.6       Scope of the Study

1.7       Significance of the Study

1.8       Limitations of the Study

1.9       Operational Definition of Terms

CHAPTER TWO: LITERATURE REVIEW

2.1       Introduction               

2.2       Literature Review

2.2.1    Marketing Channel Function

2.2.2    Distribution

2.2.3    Channel Conflict

2.2.4    Ways of Reducing the Conflict

2.2.5    Factors Affecting Choice Distribution Channels in an Organization

2.2.6    Physical Distribution

2.2.7    The Nature of Physical Distribution

2.3       Summary of the Review

CHAPTER THREE: RESEARCH METHODOLOGY

            3.1       Research Design

3.2       Population of the Study

3.3       Sample/Sampling Techniques

3.4       Instrumentation

3.5       Data Collection/Analysis

CHAPTER FOUR: DATA ANALYSIS, INTERPRETATION AND DISCUSSION

4.1       Introduction

4.2       Data Analysis

4.3       Data Interpretation

4.4       Discussion of Findings

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       Summary of Findings

5.2       Conclusion

5.3       Recommendations

5.4       Areas for Further Research

References

Appendices

CHAPTER ONE

INTRODUCTION

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.

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. Emzor, Emzor, 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.

RESEARCH QUESTIONS

The following are the research questions;

1. What are the channels of distribution channel?
2. What are the importances of distribution channels strategies used by the organization?
3. What are the distribution channels and problems facing an organization?

RESEARCH HYPOTHESIS

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

Hypothesis One

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

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

Hypothesis Two

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

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

Hypothesis Three

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

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

PURPOSE 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’

1. To identify the channel of distribution channel
2. To evaluate the importance of distribution channels strategies used by the organization
3. To determine the distribution channels and problems facing an organization
4. To improve and provide suggestion, solution by the way of recommendation to the problems in the course of this research work.

SCOPE OF THE STUDY

The scope of the study is limited to Benin Zone of Emzor, 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.

SIGNIFICANCE OF THE STUDY

This research work will be of significance to many companies when completed

Firstly, the study had obviously showed whether it is advisable for Emzor pharmaceutical industries to continue

It current distribution system or to do away with it as a result of the high cost of it’s method of operation efficiency of the distribution channel used by Emzor will definitely bring about increase in the sale of line of pharmaceutical products, which will result in increase in prefect to the company. Also to benefit one other pharmaceutical companies and representative of multinational enterprise in Nigeria.

Secondly, it will also be of significance to consumer and middlemen in the sense that their suggestions criticism will be taken into consideration.

Finally, efficiency of distribution channels sought by the study will obviously improve the economic development of Nigeria in terms of adequate health care facilities drugs supply to the market.

LIMITATION OF THE STUDY

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

1. Poor performance from the firm (Emzor pharmaceutical) this is because they were scared that the information given might be disclosed to their rivals.
2. Financial constrains also contributed adversely to the scope which would have covered a large scope and could covered for better respondents were very subjective.
3. Finally, most respondent were very subjective as they perhaps feared that the result of the study might have negative effect on them.

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.

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