Marketing Channels

Despite the uncertainty of the economic situation in most countries around the world, Japan seems to be blessed with continuous economic growth, ongoing trade successes and generous trade surpluses (The Role of Japanese Distribution Strategies). Although Fijutsi is not a small manufacturer, it acts like one when it comes to the production of the computer cases since the production volume and and market share is not that high while it is penetrating the market in Japan. Having said so, like all manufacturers, they will need to utilize merchants to sell their product. Fijutsi will base its channel strategy in the demestic Japanese market accordingly.

Outline of Channel Strategy:
There seem to be a very clear gap between the production phase and the consumption and use phase. This gap includes differences in place, quality, quantity, time and information where distribution comes into the picture to bridge these differences between the phases. In marketing channel strategy the main theme would be the focus on how to use a wholesaler or a retailer.

Function of Channel:
While the channel exists between the produces and the end user, the role of the distributor includes handling the delivery of the goods and doing the marketing activity on behalf of the producer. The channel should make it easier for the consumers to have access to the product whereby locations of where to access the product are presented to the consumer as well as assuring the delivery and payment acceptance on behalf of the producer.

The Importance of Channel Strategy:
Due to the long term contractual binding force between the distributors and the producers, channel strategy can be used to successfully create a competitive advantage where time goes by and the gap among competitors will expand provided that the channel is planned and managed properly.

Channel Strategies:
Channel strategy can be ultimately classified into three schemes as follows:
  1. Open Channel Strategy: which is...