Products and Services Essay Example | Topics and Well Written Essays - 750 words

Products and Services - Essay ExampleChina for instance has a long list of turbocharger manufacturers but according to research studies, there is still a room for competition. Target markets are U.S. suppliers like Honeywell International, Inc., Borgwagner, Inc, Mitsubishi Corp, IHI of Japan and other car making companies worldwide. According to a news of Bloomberg on July 27, 2010, the market for turbo charger railcar part is fairly conservative, and the demand for turbochargers for cars grow from 50 percent to a range from 28 million and 30 million units by 2015, with a rate of 4 billion euros ($5.2 billion) to 5 billion euros beca usage of the emission rules and fuel savings (Central turbos, com. Aug. 10, 2010). This news further cited that car makers are looking for suppliers of turbochargers and are exiting to go into a joint venture with suppliers. Distribution system Getting this yield into the market requires distribution, which could be direct or indirect, and a multi-ch annel system. According to Gerth, David, an author who compiled prolonged notes on marketing distribution, a distribution system is a set of interdependent organizations that help make the proceeds available to consumers or for further use in other business. Some companies completely develop an alliance with its distribution channel because of the nature of its products. A channel of distribution and an alliance is needed by the turbo charger because they will perform a function here which could not be eliminated like integrating the turbo charger into the performance system of the car. It only requires a short channel length because the nature of turbocharger does not involve frequent purchases, and the product entails concentration. . For this reason, the manufacturer and supplier need to have a harmonious family relationship that is called for. An indirect distribution is recommended in this kind of product since the company will not sell directly to the consumers and customer s. This is a common practice of distribution when a product is in an assembly line, and being used to supply manufacturers (Tutors,net). Under this arrangement, the company will get an intermediary to his distribution chain. These intermediaries take responsibility of the product and makes sure that it reaches the customer. Conversely, direct distribution is the process of selling goods directly to consumers. Since the product is a car part, it will form part of the car package that will be sold to customer. A multi channel system of distribution is not appropriate for marketing the turbo charger as the product is not displayed in food market or supermarket stores. A multiple channel system is commonly used when there are more than one distribution design or product brands. Channel members The turbocharger auto part is a type of product that requires a dependent channel arrangement because in this form of setup, channel members are cut back together to work on a common goal (tutor s.net), such that they form a stable relationship. This arrangement is also referred to as a crosswise Marketing Arrangement wherein two or more companies join together to follow a marketing opportunity (Gerth, David).For example, the XYZ company works together with Toyota Motors to develop a turbocharged car to be sold to customers. It does not need a multi-channel distribution to reach customers. Another approach of channel