How to Write a Marketing Plan by John Westwood

Author:John Westwood
Language: eng
Format: epub
Publisher: Kogan Page Publishers

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Below we consider the marketing channels and physical distribution used by The Equipment Manufacturing Company in the UK.

Marketing channels

The Equipment Manufacturing Company uses a mixture of direct sales (to large key accounts and contracting companies) and distributors (who hold stock of valves/filters and spares). It has recently started to use telemarketing to follow up dormant accounts. It has also set up an online shop on its website.

Physical distribution

The company manufactures valves at its factory in Manchester and filters at its factory in the South of England and holds a stock of components and spare parts at the factory. It does not stock finished valves or filters and only supplies to order. The company’s distributors operate on a discount level of 30 per cent from the company’s list price and this finances the stocks of equipment that they hold in stock. The company uses local haulage contractors for deliveries of finished goods. More urgent deliveries are made using nationwide overnight services such as DHL, UPS and TNT. The company operates an MRP (Materials Resource Planning) system with a computer database that includes order processing and invoicing. In addition the company operates a computer database for its distribution network and can advise one distributor where he can find a component (with another distributor) if he does not have it in stock. With the agreement of their distributors, the company is making this database accessible to all distributors via its website (this part of the website will be restricted and will only be accessible to authorised company and distributor personnel who will have to log in individually).

Now consider the marketing channels and distribution used by your own company for the products and areas covered by your marketing plan. Detail these below:

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