How does a product or service get to the end user or consumer? If the product is a component, or something used by a service provider in the course of business, what process determines how it reaches that target? The buzzwords this week are channel of distribution and sales. The material this week focuses on how retailing and business-to-business selling fit into health care marketing strategy. Sales emerge as personal selling in the delivery of health care services to consumers, and certainly in the transfer of products to the end user. The focus this week is on the value of the sales force to marketing, the different methods where sales take place, and how one manages the development and use of a sales staff. It is important to recognize that each caregiver and staff member is a sales tool for an organization. A study of channels of distribution and the selling process provide general knowledge and a general appreciation for the marketing and management processes that occur in any industry. Understanding the channels of distribution and the ethical considerations involved in the processes are a benefit to all employees, whether you work as an administrative staff, a marketer, or in management. To further identify the importance of understanding channels of distribution with regards to business, consider, for example, the purchase of a major product . How does it end up in your business? It is an important and expensive product that requires understanding of how to use its resources and operate the product correctly. This requires a salesperson who is also a technical specialist and trainer. A product like this requires special presentations to the administrative board of the hospital prior to purchase, and direct support from the manufacturer. Thus, in this situation, most likely, there is not a middleman or distributor in the process. Next, think about commodity products such as office supplies. These are frequently sold by distributors and targeted to businesses. These types of commodity products are often generic equivalents of one another, and are sold on price alone, or an annual contractual basis. The selling and distribution of products such as these are usually effectively managed through a distributor network. Through all of these processes one commonality is the sales representative whose strategy changes depending on their marketing and sales plan of action that may change several times during the year. The representative uses materials developed specifically for the focus, and may be used by either the company representative or the distributor. The sales process is highly controlled, with specific deadlines, and quotas to meet. This week’s reading details the concepts of channels of distribution and sales. Much of the reading has a heavy focus on retail, explaining the many decisions that form the ″mix″ of distribution and sales. For purposes of this class, read the material for a general understanding of the vast and various distribution and sales strategies that are available. Recognize how these strategies relate to the health care industry and health care marketing. Additionally, gain a sense of how the distribution and sales of a product or service influences consumers and patients. While you are reading about distribution and selling, consider the following questions: What aspect of distribution channels is important to me in my career? What is the retail mix of a medical institution that mostly provides services? Why does the sales process require representatives who are independently knowledgeable about their products? The notion that sales and sales management are an important component of marketing brings up the questions: Which comes first, sales or marketing and which area is of the greatest importance to the achievement of the marketing plan objectives? Simply put, distribution strategies and effective selling skills are a major component of corporate success. Good products fail because marketers are inexperienced. Bad products move ahead because of clever selling strategies and multiple channels of distribution that mass distribute the product to a large market. Communication strategies are synergistic with distribution and selling skills. Some communications are clever and ethical, others are devious. These tactics are all part of the way that products come to market in business.
