Exclusive Distribution- Through the exclusion policy, this market coverage strategy chooses and picks up the target customers only in the selected marketing sectors. Here, the firmâ€™s aim is not to include a wider range of customers or operate as random dealers; rather, the firms reserve their distribution and sales channels within few yet prospective buyers. In this way, it can enhance the quality of sales and profitability to a much higher degree. The firms adopting exclusive market coverage restrict the supply of their products within a particular group of customers and limit the brand. This strategy helps eliminates competitors and maintains exclusivity within a particular geographical area. This is most common in luxury items like expensive smartphones, fancy cars, costly luxury garments, etc. The company sets up specific outlets where products are made available. Lamborghini, Gucci, Apple, etc., are some examples of exclusive distribution.
Inclusive Distribution- Such a market coverage strategy includes almost the whole chunk of customers and reaches out to most low-income groups. Retailers and distributors are the target sectors. Following this strategy, a company has to conduct extensive market research to meet the local demand and preference of products. Micro enterprises and rising entrepreneurs are motivated towards this distribution strategy as it is general and includes diverse items. Danone Kiteiras is a notable example of an inclusive distribution that encourages women from the poorest community of Brazil to sell their goods.
Selective Distribution- This exclusively focuses on the best-performing outlets in the most profitable and productive market segment. Here the producer and the marketing team invest their men and materials in the selected shops of the chosen zones. This is successful for the consumers who love trolling while shopping, as they can reach the specific outlets and buy the products of a particular brand. This ensures maximum market coverage, more profit, and lesser cost of marketing.
Undifferentiated Marketing Strategy- Entire market is on the marketing radar of an organization. Here, the undifferentiated products are sold to the undifferentiated groups of consumers following a single marketing mix effective for the entire market. It concentrates on market aggregation and caters to the requirements of local buyers. It deals in goods and services that might serve a large section of buyers in common. The wider reach helps to gain strong brand recognition. However, as it puts all the eggs in the same basket, such organizations are prone to suffering a loss if one market fails. This is also not preferable for people looking for customized products.
Differentiated Marketing Strategy- This is based on market segregation. Such producers choose prospective buyers and distribute products in selected zones and outlets, selling customized and modified goods for their target buyers only. May offer different items of the same category through different channels. For example, some want a detergent that maintains fabric quality; some want detergent power with excellent cleaning power, yet another set of customers insists on having environment-friendly detergents. Here, the detergent producers execute a differentiated market coverage approach and segment the markets as per the needs of the consumers.
Concentrated Marketing Strategy- These concentrates on a small share of the market segment and puts all their marketing efforts like advertisement and distribution on a particular portion of the selected market. This serves a specific network of customers only. Examples may be Rolls Royce, Rolex, and Forest Essentials.
Challenges Faced By The Firm To Increase Its Market Coverage
Choosing the right channel and using the right platform is the most challenging task face by marketers today. The right platform can give you a suitable set of target customers whose purchase decisions can be influenced. Finding and analyzing accurate data from reliable sources of information. Matching those data to study the consumersâ€™ overall preferences may pose a great hurdle.
Mapping the customersâ€™ journey from Facebook, Twitter, Linked In, etc., and understanding their buying motive and needs. Identifying the host of potential customers, tracking their journey can be challenging yet necessary because a prospective lead has every chance to rank among the top loyalists of the brand. Constantly monitoring customersâ€™ behaviors and keeping track of the performance metrics need efficiency and regularity.
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