Distribution Channels P4 (a)

Distribution Channels

Purpose

The purpose of this task is to discuss the different methods of distribution that can be used by media companies and how they are performed. 

Meaning

Through this, I will be able to find out the meaning of why these methods are used and why Vanity Fair use a specific or various types of distribution to sell their products. 

Distribution of products is a method used to share a media product out among a wide number of recipients. Vanity Fair, being under subsidiary ownership, will have its products originally distributed from Condé Nast, their parent company. From this, they will use different distributing methods to disperse as many of their products as they can to potential customers. There are many ways in which their products can be distributed.

Direct Selling

Direct selling is the advertising and selling of products personally to customers away from a fixed retail location. Though this method, market research can also be performed as the element of personal contact allows salesmen to gather responses in depth and gives them the opportunity to choose their own customers while laying out a selling price. Many companies benefit from being able to maintain capital control within the company by this way of distribution. 

Advantages and Disadvantages:

(+) Allows companies to quickly determine if their product is successful or not. 

(+) Beneficial to test consumer responses with a small trial before upscaling and launching a full, costly product, potentially costing Vanity Fair more than they would be bringing in if the product were to fail. 

(+) Builds customers loyalty as many consumers enjoy receiving information about products and easily become regular customers. 

(-) The demand from consumers may stop uninvited contact from customers. 

(-) Many possible customers may not appreciate privacy violations or the complete idea of communication. 

(-) May generate poor quality lead and failing to bring a high number of repeat customers.

Vanity Fair use this method of distribution to sell their products to a variety of customers. Their products are displayed on racks in many stores to attract viewers. These racks are demonstrated in many different stores both affluent businesses and more mainstream retailers. This is so Vanity Fair can draw in a variety of customers all from different economic backgrounds, enabling them to sell to a wider audience. This personal way of selling allows customers to make clear choices on whether they want to purchase, but also enables them to see and review the hard copy products so analysis whether they think is a worthy buy before purchasing. This way it makes customers feel more in control of their purchases and reduces risk of returns to Vanity Fair. 

Wholesale Distribution

This method is the sale of goods or merchandise to anyone other than a standard consumer. When a business has difficulties defining who their target customers will be, but don't have the time luxury to go out and sell, their marketing plan can mainly concentrate of wholesale distribution. Though this method, the selling is left to wholesalers and retailers who have specialised skills in retail sales. 

Online Distribution

Online distribution is the delivery or DISTRIBUTION of media content such as audio, video, software and video games. This is a distribution method that is going against the traditional procedures. Through this, companies can cut out the "middle man" whilst maintaining the ability to sell to a wider market, making this technique very attractive to businesses such as Vanity Fair.

Advantages and Disadvantages:

(+) Lower costs

(+) Higher profit potential

(+) Instantly global (wide exposure)

(+) Convenient for customers as they have instant access to the product via Vanity Fair's website.

(+) Open 24/7, allows more access to customers to purchase, even when personal selling is not available.

(-) Limited public - not everyone has the internet resources or will know how to use it for shopping.

(-) Impersonal - do not get the face-to-face interaction with customers.

(-) Fear from customers - Many possible customers have a fear of inputting their personal information, e.g. credit card details, on the internet as this increases the risk of ID theft, fraud, violating peoples security.

Vanity Fair use online distribution methods in order to sell their products. This is a convenient method for both Vanity Fair and also its possible and regular customers, as this way, the company can bring in more revenue from these sales without spending any extra capital and customers can also just go on the internet and purchase, not having to go to any specific places, making it more convenient for them. As well as providing the option for the public to order and have their issues delivered, Vanity Fair also offer online issues, where viewers can purchase and read issues electronically, e.g. IPAD copies are offered to customers when they are purchasing Vanity Fair issues, this way, after purchasing the product, they can download and view the issues via their iPad. This emphasised on the "convenient" factor of the product as this will make it easier for customers to view magazines "on the go" rather than carrying the extra weight of a hard copy magazine.