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Finding The Best Market Place For Your Marketing StrategyMarket place is a term within the 4P’s of the marketing mix used to describe how a product will be distributed to its potential customers. It generally refers to where and how the offering is made available to the consumer (e.g through dedicated retail outlets, through departmental stores, by dedicated order, via the internet etc) The key benefit of this brief is to consider a number of strategies and then appreciate where you belong within the distribution framework of your market : 1. Channels of distribution This term is concerned with the movement of goods from the point of production to the point of consumption. You must decide which channel to use in order to reach your customers in their target market most effectively. Common channels of distribution?
Channel A is a direct marketing channel also referred to as direct selling. This is found a lot in industrial markets (where companies may supply tools or raw materials directly to the industrial customer) but is increasingly a feature of consumer markets (selling via the internet or mail order) to give the customer the benefit of a lower price. Channel B represents mass marketed consumer goods. Wholesalers buy in bulk from the manufacturer and then sell them on to retailers who sell to customers. Channel C. In this channel the retailer is omitted from the market. These channels are used in cash and carry outlets such as Metro where customers will buy in bulk. Channel D Here the wholesaler is removed from the channel. The retailers who dominate this channel are powerful supermarket and retail chains. Number of distribution outlets You have to consider the number of distribution outlets that your company may want to use. If you are aiming your product for the mass market, you may need to use multiple outlets for effective distribution. However, if you are targeting a niche market place, then you require fewer selective outlets. Return from market place to marketing strategy
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