Marketing Distribution Channel Analysis. Consider a distribution route to be a piece of the marketing pie. It is the method through which a corporation delivers its goods or services to customers.
It’s critical to look at this sector while performing a marketing study. To verify that you’re using the correct channels to deliver your goods to your customers.
Wholesalers, e-commerce websites, catalogue sales, consultants, a direct sales force that sells over the phone. Also, in person, or both, dealers, home shopping networks, and stores are examples of distribution channels. Because they directly impact the consumer, the distribution channel or channels chosen can influence the rest of the marketing plan.
The buyer’s demographic would then be appealed to through advertising and other marketing strategies. Small firms with limited resources or financial backing must do thorough market research. To identify which distribution channel is ideal for their target market.
Marketing Channel Mix
After a company analyzes its target market and core competencies and determines what it has to offer. It has completed its market research phase. To make sure that its product or service will be successful in the marketplace it must then determine how it will distribute its product. Or service to reach its target market. The method of distribution is known as a marketing channel mix. It is sometimes referred to as a “marketing mix.”
A channel mix refers to a combination of distribution channels used by an organization within an industry. Further, a company uses a channel mix in order to reach its target markets as cost-effectively as possible. A channel mix is in conjunction with other elements of marketing. They are the 4Ps – product, price, placement (distribution), promotion (advertising).
This refers to the actual product being sold by the company. The product itself may be physical (goods) or intangible (services). The product may also be an end result (product) rather than an individual item such as an insurance policy that provides monthly payments over time for an individual’s specific health needs (insurance policy as product).
In addition to being able to provide quality products and services at competitive prices. Hence, companies must also be able to differentiate their products from those offered by their competitors. In order for a company’s products or services to appeal to consumers, they must be differentiated from those offered by competitors in some way so that consumers will see them as unique and different from others.
Being able to differentiate your goods or services from what is offered by competitors will go a long way in helping to reduce the risk of having your products or services rejected by your target market. Companies that don’t have a way to differentiate their product or service from those of their competitors are at risk of losing market share and profits. The product is one of the most important elements of any marketing program.
Once a company has a product it needs to price it in such a way that it will appeal to consumers. The product must be priced low enough that consumers can afford it and high enough that the company will make a profit on each sale of the product.
This refers to the process through which a company delivers its products or services to its target markets. Distribution channels are used by firms to reach their target markets in order to sell their goods or services.
The last element of the 4Ps refers to advertising and other promotional activities used by companies in order to inform potential customers about their products or services and persuade them to buy them.