Question

Choose an existing product or service and answer the following four questions.

What is the company's market penetration strategy (intensive, selective, etc.), and how do the channels being used reflect that strategy?

Do the channels being used reflect a push or pull distribution strategy?

Which of the channels being used do you believe are most profitable, given their relative costs? Which of the channels being used do you believe are not as profitable as others but are still necessary to maintain market coverage?

How much control does the company need over its channels (0-level, 1-level, 2-level, 3-level, multichannel, etc.)? How is this need for control reflected in the channels being used?

Answer 1

What is the company's market penetration strategy (intensive, selective, etc.), and how do the channels being used reflect that strategy?

Let me consider the business as Cookies selling, for such Cookies selling, Organization need to focus on target market, the market penetration strategy will consider various Niche market, and with such market, Organization can position their products, they can have many customers from competitor, further, knowing the target market, organization can understand various demography and psychographic of people within the target market, so, they can increase the market share of cookies business by concentrating on target market,

Following are the channels can be used to reflect such strategy, those are as stated below:

Distributors: here, company can build relationship with agents or distributors, so they can help penetrating various cookies products in target market,

Wholesalers and Retailers:

With such channel, Organization create trading relationship, they further can reach to users or consumers and help company to increase their product market share in the target market,

Do the channels being used reflect a push or pull distribution strategy?

Here, looking at the above channels, we can conclude that Company is following Push distribution strategy, as here, organization is creating relationship with distributors, wholesalers and retailers to push their products to various customers or users,

Which of the channels being used do you believe are most profitable, given their relative costs? Which of the channels being used do you believe are not as profitable as others but are still necessary to maintain market coverage?

Following are the marketing channels, according to me, are most profitable and given their relative cost, those are as stated below:

Website Marketing,

Social Media Marketing,

As, with such marketing, Organization can pull their users attention and company can have less investment required, again, company can get advantage of digitization, which can cover many customers from various location,

Following are the marketing channels could be less profitable, those are like Distributors channel and wholesaler and retailer channel, as with such marketing channel, companies are bound to follow push marketing strategy and all such may need heavy initial investment,

How much control does the company need over its channels (0-level, 1-level, 2-level, 3-level, multichannel, etc.)? How is this need for control reflected in the channels being used?

Company should keep control to entire marketing channels, and all the channels have distinct advantages, they can generate various opportunities for a company, so company should work on all the channels to raise their sales revenue, further, using digital channel or platform, they can share various success stories of product, service and people, which will inspire many stakeholders like customers, Employees,