Marketing or Distribution Channel

 What is the Marketing or Distribution Channel? A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user. We can totally say all you see the stores or shops in the street are Distribution Channel. For example, 7-11, Family Marts, COSTCO, Carrefour, App stores, telecommunications and so on all belong to Distribution Channel.

    7-11, you can buy everything, no matter you want to buy drink, cookie, clothes, stationery and lunch. If you want to give a statement of judgment, this judgment must be ‘the most convenience place’. You can see it everywhere.

However, for the seller, 7-11 can give your product more exposure than any others, because there are more than 5000 house all around Taiwan. Now, Uni-president Company extends their range to telecommunications, coffee shop, and gas stations. This is why Uni-president Company becomes more and more powerful. Also, Family Marts are the one like 7-11.

    To be a member of COSTCO you need to hand in NT1000 dollars, and you can receive a membership cards. However, why I take COSTCO to be an example is the rule has never changed since opening, and others like Carrefour are copy from COSTCO. In COSTCO, you can see every product is bigger than others; however, they just use NT1000 dollars to negotiate with other company and to lower the cost of product. People can buy the cheaper products in warehouse store. This is one of the basic Distribution Channel why everyone knows it.

    I don’t know how many people realize the Apple Company how to earn money. However, I think many people must say selling Iphone, but the answer is app stores. Iphone is like 7-11 for personal, and people use App stores to buy what they need and what they want. People just spend one times’ price to buy Iphone, but people may spend many times’ money to buy programs. If one millions people use Iphone, five thousand people spend NT30 dollars. The Apple Company can earn more than ten thousand dollars, but if you want to earn ten thousand dollars by Iphone which you need to spend more time. Also, the play stores are these kinds of Distribution Channel like app stores, and these systems are used in HTC, SONY, and SAMSUNG.

    Telecommunications is one of Distribution Channel which is used by every family. Your smart phone, your telephone and also your network are all telecommunications. Telecommunications is very important in our life, no matter where you live. In the world war two, if your country can control other country’s telecommunications, the win for the war are close to your country. In the business, the company needs to send E-mail to understand each other. In the school, we can learn every subject by telecommunications. However, the skills of telecommunications need spend lots of money, so most of them belong to government.

    The special one I want to say is a dial-a-ride. Why? Taxi is a very convenient transportation over the world, and people can call the taxi in everywhere and every time. A dial-a-ride is a system. When people call the taxi, the taxi drivers need to spend NT5 dollars to this system. For customers it is for free, and for the taxi drivers it just spend NT5 dollars can get one customer; however, a dial-a-ride system just need stay in the official and use telephone can earn money. This is the Distribution Channel in our life, but we didn’t know.

    Multi-level marketing and direct sale is one of the new and developing Marketing or Distribution Channel. For difference with others is in multi-level marketing and direct sale the stores or shops are instead of by the person. Also, in Multi-level marketing and direct sale the products are cheaper than others system. Multi-level marketing and direct sale can’t spend lots of money to invest, can’t need to rend a big house, and can’t hire the employees. The most important skill you need is to be a good leader, because your partners are hired by you. 

    To sum up, Marketing or Distribution Channel can be a person or a big company system. Marketing or Distribution Channel can decrease more cost in the product, but you can get more change to be sell. Bill Gates says: the next one who is rich than me; one is doing Marketing or Distribution Channel.

Also, people who are successful to create Marketing or Distribution Channel must become the rich; the children can go on this system too.