Part 1
Product: Apple iPod - 80GB
PLACE:
The Apple iPod doesn’t fall specifically under a direct or indirect channel of distribution. Instead, Apple uses a variety of direct and indirect distribution channels. (Channels of distribution - Perreault & McCarthy, p. 248-251) Apple sells its product not only through their own online stores and retail stores but they also sell their product through their direct sales force, and third party wholesalers and resellers. Asides from the above mentioned, you could purchase iPod’s through specific department stores like Macys (Department Stores - Perreault & McCarthy, p. 294), member only warehouse locations like Costco and Sam’s Club, large retail chains like Best Buy and Circuit City, and recently, mass-merchandisers like Wal-mart. (Mass-Merchandisers - Perreault & McCarthy, p. 295) I think that Apple uses a physical distribution concept for their iPod; I think that they try to coordinate as one complete system; however, they run into problems with inventory, it seems that when Apple first releases their products, they never have enough in stock at any of their intermediaries. (Physical Distribution Concept - Perreault & McCarthy, p. 271) I think that the iPod uses a selective market distribution; I think that Apple chooses their intermediaries wisely in order to ensure that those who they work with will do an excellent job at selling their product. The wholesalers and retailers they work with are also a lot more likely to promote the iPod more aggressively because they know that they’ll be receiving the majority of the sales through their own efforts. (Selective Distribution- Perreault & McCarthy, p. 259-260) I also believe that the target market wants exceptional custome ...