Distribution is a key element in the marketing mix used in building your marketing strategy.
A marketing strategy is a major component of a company's formal written marketing plan. Key inclusions in the marketing strategy include target market segments, the marketing mix, positioning and budget, according to the Business Dictionary. These strategic considerations are outlined in your marketing plan in relationship to their effect on the company's business and marketing goals.
Target Markets
Identify the primary and secondary target market segments that your company is going to market to is a major starting point in building a marketing strategy. Size of the market segment, growth rate, competition, brand loyalty development, market share potential, sales and profit potential are among key factors in picking the right market segments for your business, notes Net MBA. Companies may focus on one particular segment that is clearly the most profitable, or may select multiple segments to target.
Marketing Mix
The marketing mix is a combination of four major marketing elements that you use to deliver your offering to your target market. These four elements, as outlined by Quick MBA, are product, place, or distribution, price and promotion. Product relates to the combination of features and benefits that establish your product's value. Distribution involves the location and order fulfillment processes used to make delivery to your end customer. Your price point conveys your message as a low-cost, value-oriented, or high-end provider. Promotion is the specific messages and media used to market your solution.
Positioning
Positioning is a major consideration in a marketing strategy. Companies position their brands and products by establishing a distinct offering relative to competitors in the mind of consumers, based on the Business Dictionary definition of positioning. Differentiation is a key factor in positioning. This involves establishing specific features and services that separate your product from others. You must communicate your position to your target market. Common positions includes low-cost, value, premium or luxury, along with other specific benefits used for positioning.
Budget
Part of the marketing strategy definition references the importance of budget allocation. Marketing departments, like other functional areas in a company, receive a certain allocation of company resources for use in implementing marketing plans and strategies. Common marketing budget techniques include: percent of projected gross sales, percent of past gross sales, per unit sales, seasonal allocation and projected cash flow, according to the University of Northern Iowa John Pappajohn Entrepreneurial Center. Company managers typically determine the tactic used, and marketing directors determine best utilize the allocated budget in marketing.
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