Monday, November 18, 2019

MBA in a Nutshell #14 - Marketing : Marketing Mix - Place

We are still trying to progress through the 4 Ps of marketing. Today we are covering Place.

The first we thing w need to understand are distribution options. There are three levels of distribution options.

We commit to intensive distribution if we are aiming for maximum exposure. We do this by using any wholesaler or retail outlet that would let us stock our goods. Most consumer products fall into this category.

We can also use elective distribution if we sell the higher ticket items. The RPGs and boardgames I play are normally sold through special FLGS stores.

Finally, we use selective distribution to aim for limited exposure. Specialty goods that a highly differentiated or luxury items fall into this category. For decades, Shiroi Koibito white chocolate biscuits can only be found in Hokkaido but these days you can buy them at Donki.

Specifically, there are four general forms of distribution channels that a business would need to choose to reach their customer.

Direct Response Marketing is the method adopted by my program under Dr Wealth. We sometimes employ our databases to get folks to attend our previews which results in converted customers for training. It is the conversion rates that makes me lose sleep at night.

Retail Marketing is probably the most common form of marketing where goods are placed in stores. In such a case, placement of products play an important role. Retailers are moving toward house-brands that erode the profits of manufacturers.

MLM or Network Marketing is actually a legitimate form of marketing that is mentioned in textbooks. MBA books like to think that MLM is going to rise in Asia, even going as far to say that MLM is more culturally compatible with Asians because we still believe in selling to family and friends. In all my preview workshops, attendees consider MLM one of the worse ways to make money - way lower than Internet Marketing or Forex Trading.

Finally, when an MBA text mentions Cyber Marketing, you will know that this book is a little bit dated. Cyber marketing is the predominant form of marketing today and probably warrants a separate textbook on its own. I've always wondered whether a formal textbook exist that contains the same material as those dubious Internet Marketing seminars.  If you do know of a textbook, let me know. 


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