NAKAYENGA SHARIFAH P100220015

MARKETING MANAGEMENT, CLASS B1

BY
DOCTORS WIYADI

STRATEGIC MARKETING PLANNING PROCESS AS APPLIED TO

DISTRIBUTION
What is Strategic Market Planning?
Strategic Market Planning is an ongoing process through which the company creates
marketing strategies and plans its implementations in the target market. The process taken into
account the current position of the company, helps in identifying the promotional opportunities
& then evaluating these opportunities. Target market is identified through comprehensive
research.
Strategic marketing planning is the development of marketing strategies based on the overall
business strategy.
Marketing plans are developed based on the scope of the strategic plan. Once the plan is
concluded, it is implemented to achieve the company's objectives
The strategic marketing planning process involves creating a marketing strategy that
outlines what your objectives are, what programs you’ll use to achieve those objectives, who
is responsible for those metrics, and by when you’ll be achieving those goals. In short,
developing and managing a strategic marketing plan is crucial in reaching business objectives.

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Digital marketing strategic planning
With the advent of the Internet and digital technology, traditional marketing via offline
channels such as TVs or newspapers are no longer enough for brands to make themselves
known. To succeed in the digital age, companies must incorporate digital marketing -
marketing via digital channels - in their strategic planning.
Digital marketing strategic planning includes creating a plan for establishing a brand
presence on the Internet through digital channels such as social media, organic search, or paid
ads.
The main goals of the digital marketing strategy are the same as for traditional ones -
to increase brand awareness and attract new customers. Thus, the steps are also similar.
Some examples of digital marketing campaigns include:
.
o Creating a blog,
o Running social media advertising
campaigns,
o Giving out digital products, e.g.,
eBooks, templates, etc.,
o Running an email marketing campaign

Digital marketing planning is the development of marketing strategies for online channels.
Say you have a great product or service that meets a pressing need.
That’s all well and good but a million-dollar idea has no path to becoming a million-dollar
revenue-generator if you can’t get your products or services in front of consumers and your
target market. This is where distribution channel strategies come into play to offer solutions.
A well-planned distribution channel strategy is specifically designed to increase the sales of
your products or services as they enter the market. At the end of the day, the fundamental
problem most businesses face is not how to develop the product or service, but how to market
and sell it to the public.
It may seem easy in the age of e-commerce and social media, but without a defined
distribution channel strategy, you stand less of a chance of reaching consumers or making an
impact with your target audiences.
Let’s explore the finer points of crafting a distribution channel strategy, the benefits of various
channels and what you can do to fine-tune your approach.
Marketing is a complicated process and mostly cannot be planned in short period of time. The
strategic market planning takes into account long term and short-term view of the market and
considers various parameters to plan according to the target market.
A strategy involves setting goals and priorities, determining actions to achieve the goals, and
mobilizing resources to execute the actions.
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Strategic Market Planning Stages
The strategic market planning has three stages:
1. Segmentation of the market and customers
2. Profiling of the market segments
3. Development of the actual marketing strategy

Steps to Successful Strategic Marketing Planning

Step 1: Liaise with other departments

While marketing does proactively drive demand and new business, they need to do so in the
framework of supporting the larger business objectives. That’s why when it comes to the
planning process, start by looking at other departments. Here’s what to ask yourself before
developing and managing a strategic marketing plan:
What are the executive team’s top priorities for the year?
What pipeline and revenue numbers are we aiming for this fiscal year?
Are any adoption rates or implementation goals being set for the product?
Step 2: Create marketing goals that align with the business
Now that you’ve understood the business goals, you’re more informed on how to plan
marketing strategy.
For example, if the business has a goal to generate $5 million in new business from Jan. 1 to
June 1, you have to ask yourself how marketing can drive new business. For instance, let’s say

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in your business, each new client would be purchasing an average of $500,000. That means
sales needs to close 10 new clients in order to meet their $5 million goal.
Then you need to figure out how many qualified accounts you need to tee up for sales, in order
to close 10 new clients. For example, a good way to start is: how many accounts today engage
with our marketing content, get passed to sales, are qualified, have a demo, and then book? If
the percentage is 10%, then you need 100 contacts to get transferred to sales in order to close
about 10 new clients.
That is to say, starting with a focus on your goals, you ensure that you are actually building a
marketing strategy vs. plan (a list of tactics).
Step 3: Determine which campaign planning will achieve that marketing goal
In order to generate 100 engaged contacts for sales, you want to look at your existing programs
and determine the success of each at driving engagement. For example, let’s say you ran four
webinars last quarter. Each had 100 registrants, and 30 people attended. Of those 30 people, 10
requested a demo and five were from qualified accounts. Once passed over, sales closed one
lead.
If that’s the average data, then you now know that you can expect a webinar to result in five
contacts and one deal.
Step 4: Create a marketing campaign calendar that aligns with your goals
Now that you have focused goals that are strategically aligned with business objectives, you
can create a calendar of activities, from content marketing to events. The best part? You won’t
have someone asking “why is marketing running that webinar again” because you’d know the
answer it’s to drive X number of leads to sales.
Step 5: Establish your investments
After that, it’s time to align investments to your planned campaigns. The good news is that
marketers who conduct the marketing strategy process from the get go can easily justify and
secure budget for their activities because they can directly tie that dollar into how it will impact
the business goal. That’s one of the reasons why Up tempo’s process of marketing strategy
planning encourages marketers to directly tie their spend to specific company goals.
Step 6: Let it run!
Finally, it’s time to execute on your plan and start achieving business impact. While you
execute on your strategic marketing plan, keep in mind that you should revisit the business
goals quarterly. That keeps you on the right track to ensure the marketing organization
continues to drive toward overarching corporate goals.
Knowing how to strategize marketing plans is a critical part of the marketing process. Now that
you’ve completed the six steps of strategic marketing planning, you’ve set yourself and your
team up for success.

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Distribution Channels

Distribution channels in marketing are one of the classics “4 Ps” (product, promotion, price,
placement and distribution). They’re a key element in your entire marketing strategy. They
help you expand your reach and grow revenue.

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For example, B2B and B2C companies can sell through a single distribution channel or through
multiple channels that may include:

• Wholesaler/Distributor
• Direct/Internet
• Direct/Catalogue
• Direct/Sales Team
• Value-Added Reseller (VAR)
• Consultant
• Dealer
• Retail
• Sales Agent/Manufacturer’s Rep
What is a distribution strategy?
A distribution strategy is the method used to bring products, goods and services to customers
or end-users. You often gain repeat customers by ensuring an easy and effective way to get
your goods and services to people, depending on the item and its distribution needs.
A distribution strategy is a method of disseminating goods or services to end-users.
Implementing the most efficient distribution method for your business is key to obtaining
revenue and retaining customer loyalty. Some companies opt to use multiple distribution
methods to adhere to different consumer bases. For example, if you’re selling a leather futon
and want to cater to people ages 60 and above, you might choose to directly sell products via
catalogue. For a younger customer base, you might decide to indirectly sell products by
working with a retailer such as Walmart.
Organizations consider which distribution strategy is best while being cost-effective and
increasing overall profitability. You can even use multiple or overlapping distribution
strategies to reach target audiences and meet company goals and objectives. For example, a
product might sell better online to one demographic and via a mail-to-order catalogue to
another target audience group.

Distribution Channels Concepts & Steps

1. Evaluate how your end-users need to buy

Distribution
2. Match end-user needs to a distribution strategy
channel steps
3. Identify natural partners
4. Build your distribution channel

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1. Evaluate how your end-users need to buy
Your distribution strategy should deliver the information and service your prospects need. For
each customer segment, consider:
I. How and where they prefer to buy
II. Whether they need personalized education and training
III. Whether they need additional products or services to be used along with yours
IV. Whether your product needs to be customized or installed
V. Whether your product needs to be serviced
2. Match end-user needs to a distribution strategy
If your end-users need a great deal of information and service, your company can deliver it
directly through a sales force. You can also build a channel of qualified resellers or consultants.
The size of the market and your price will probably dictate which scenario is best.
If the buying process is fairly straightforward, you can sell direct via a website/catalogue or
perhaps through a wholesale/retail structure. You may also use an inbound telemarketing group
or a field sales team.
If you need complete control over your product’s delivery and service, adding a channel
probably isn’t right for you.

3. Identify natural partners

If you want to grow beyond the direct model, look for companies that have relationships with
your end-users. If consultants, wholesalers or retailers already reach your customer base,
they’re natural partners.
4. Build your distribution channel
If you’re setting up a distribution channel with one or more partners, treat it as a sales process:

• Approach the potential channel partner and “sell” the value of the partnership.
• Establish goals, service requirements and reporting requirements.
• Deliver inventory (if necessary) and sales/support materials.
• Train the partner.
How to Run promotions and programs to support the partner and help them increase
sales.
At its core, distribution strategy should be based on your ideal customer — how does the
average client buy goods? How could you, as a producer, make the purchasing process easier?
Is it an extensive purchase were buying the item directly from the manufacturer could be worth
the potential hassle, or is it a routine item where the customer would rather receive the product
quickly and on-demand through a retailer? The role that an item will play in a client’s life and
the type of purchase decision associated with a product are important aspects to consider when
determining a strategy.

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What Are the Different Types of Distribution Strategies?
As mentioned above, the two main types of distribution strategies are direct and indirect. There
are also more nuanced types of distribution that fall into these categories — intensive, selective
and exclusive distribution. But what exactly do these methods entail? Let’s examine some of
the factors that go into each of these cutting-edge distribution strategies so you can determine
which practice is best for your primary customer base.
1. Direct Distribution
Direct distribution is a strategy where manufacturers directly sell and send products to
consumers. There are a few different ways to implement this method. Some organizations may
opt to take a more modern approach and use an e-commerce website where users can make a
purchase online. This is an effective option for companies with a client base that’s moderately
knowledgeable about technology, requests a specific solution to meet needs or is devoted to a
particular brand.
Another direct distribution method is through catalogues or phone orders. This option may
target an older customer base or users in specific industries that are attuned to placing orders
this way.
One important factor to consider when implementing a direct distribution strategy is the amount
of investment required. For example, manufacturers will need to add warehouses, vehicles and
delivery staff to their portfolio to effectively distribute goods on their own.
2. Indirect Distribution
The term “middleman” often gets a bad reputation, but in the case of distribution, these
organizations can be helpful in getting goods to consumers. Indirect distribution strategies
involve intermediaries that assist in the logistics and placement of products so that they reach
customers swiftly and in an optimal location based on consumer habits and preferences.
We will discuss the different types of intermediaries and their specific benefits later in this
article, but business needs, targeted clients and type of product are typically behind the
reasoning for using this strategy. Low commitment or routine purchases are often something
that customers grab absentmindedly in a department store without any specific brand loyalty.
A tube of toothpaste is a good example of a routine purchase. For these types of products, an
indirect distribution method that places a large number of items in multiple retail locations may
be a company’s best bet.
3. Intensive Distribution
Products are put into as many retail locations as possible with the intensive distribution
strategy. For example, gum is a product that typically uses this strategy. You can find gum at
gas stations, grocery stores, in vending machines and at retail locations like Target. This
method hinges on making a large number of goods available in multiple locations. These items
don’t typically necessitate an involved purchase decision where the customer does research
before making a purchase. Rather, these items are routine purchases that involve very minimal
effort to sell.

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4. Exclusive Distribution
When manufacturers opt for exclusive distribution, they make a deal with a retailer to sell a
product through that specific storefront only. Businesses may also sell goods directly through
their own branded stores, which is another example of exclusive distribution. For example,
customers can’t buy a Lamborghini at any location they need to go to a Lamborghini dealership
to purchase new luxury vehicles.
An example of an exclusive distribution deal where a manufacturer and a retailer teamed up is
the previous agreement that Apple had with AT&T in distributing iPhones. This agreement
caused people to forgo their phone plans with other companies so they could get their hands
on this exclusive product. This distribution strategy works especially well for highly coveted,
exclusive items.
5. Selective Distribution
Selective distribution is a middle-ground option between intensive and exclusive distribution.
With this strategy, products are distributed in more than one location, but not as many as with
an intensive distribution strategy. For example, clothing from different brands may be offered
selectively. A brand like Gucci may choose to distribute its items to its own stores in addition
to a few selected department stores rather than placing its products in a range of locations such
as Walmart or Target. This can help craft an implicit high-end brand message while also
increasing the opportunity for shoppers to purchase one of its products.

What Are Some of the Different Distribution Channels?

For companies that do opt to go with an indirect distribution method, there are a variety of
ways to get products into the hands of customers. Here are some of the intermediaries that
businesses use to fulfil distribution strategies.
1. Wholesaler
The role of a wholesaler is to source products in bulk from manufacturers and then sell them
to retailers. They usually seek to obtain items for a relatively low cost so that they can mark
them up and gain profit when selling them to retailers, who then further mark-up item cost to
make their own revenue. Wholesalers generally have their own warehouses and a catalogue of
purchased items that retailers can select from when making purchasing decisions. Many
wholesalers also require retailers to buy a set amount of product, meaning that goods are
obtained in bulk.
2. Retailer
With the indirect distribution strategy, retailers are the final step in the distribution channel
before customers purchase an item. Retailers can buy goods either directly from a manufacturer
or from a wholesaler. Retailers typically purchase products at a low price that is then marked
up to gain a profit. Retailers aren’t always storefronts — they can also operate through the
phone, online and even via catalogue. With the proliferation of the internet, many retailers
decide to manage an e-commerce website instead of a brick-and-mortar store to make sales.

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3. Franchisor
Franchising is an entirely different way of distributing products. You’re likely familiar with
the idea of franchising your local McDonald’s restaurant may be owned by a franchisor who is
licensed by the McDonald’s corporation to sell goods in the company’s name. A 2016
study from FRAN data and the IFA found 732,800 franchises operating in the United States.
These individually owned businesses can use company branding to gain sales and, in exchange,
pay a flat fee and ongoing royalties to enter an agreement.
Organizations and manufacturers with brand recognition benefit from this strategy by gaining
revenue without having to manage the granular day-to-day tasks associated with a brick-and-
mortar shop.
4. Distributor
The role of a distributor is to obtain and transport items from manufacturers to retailers or other
endpoint locations. The benefit of using a dedicated distributor is that manufacturers don’t have
to deal with the logistics of transport or the cost of maintaining shipping staff and materials.
Distributors may also be able to package diverse goods into one entity for sale to a retailer. For
example, your company may produce television remotes, while a different organization creates
batteries. By packaging these items together, the distributor can create a more attractive,
comprehensive product and improve the likelihood of a sale.

How Do I Select the Right Distribution Strategy for my Business?

Selecting the correct distribution strategy for your business depends on factors such as the type
of item you are creating, your customer base, warehouse capabilities and logistics support. Now
let’s go in depth on each of these factors:
1. Item Type
Depending on the type of purchase decision that customers make when deciding to buy a
produced item, the recommended distribution method may be different. There are three types
of purchase decisions: routine, limited and extensive.

i. A routine purchase is something that customers spend relatively little time

selecting and is generally low priced, such as hand soap or paper towels. With these
items, an extensive distribution strategy might work best as customers aren’t
necessarily devoted to specific brands and expect products to be accessible at
various locations. For these products, a high number of available items can lead to
higher sales.
ii. Limited purchase decisions are a sort of middle-ground between routine and
extensive purchases. These items are generally moderately priced and more time
may be spent selecting an item than with a routine purchase. Some examples of
limited purchase products are clothing and small appliances like toasters.
Customers put some thought into the purchase of these items due to price and
usability, but not as much effort as they would with an extensive purchase item like
a house or car. A selective or intensive distribution strategy may be suitable for
these items.

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iii. purchase decision is extensive. This includes big-ticket items such as houses, cars
and college educations. Generally, as the cost of an item goes up, the intensity of
the purchase decision increases as well. An exclusive distribution strategy could
work well for these items because it adds to the customer belief that an item should
be more expensive. It may also be more lucrative to have fewer of these costly
products available due to the high production price of each item.
2. Customer Base
We already touched on how targeted customer demographics can inform distribution strategy.
However, to get more detailed about which distribution strategies most effectively apply to
different customers, we need to drill down to some of the ways companies use indirect and
direct distribution.
Some of the methods of direct distribution include e-commerce, direct mail and
manufacturer-run storefronts. You might remember the days where corporations sent
catalogues of their items directly to customers, and you had to call the company to place an
order. Nowadays, distribution through direct mail is less common due to technological
advances, but some companies that have a user base that is used to purchasing goods in this
manner may continue to opt for this distribution method.

i. E-commerce is a distribution channel that is rapidly increasing in popularity. A

Shopify report predicts that global e-commerce sales will reach $4.8 trillion by
2021. This distribution channel has a relatively low barrier to entry for companies,
and many consumers are familiar with web-based technology, making it a win-win.
This method also eases the process of purchasing a product because consumers
don’t have to leave their houses to buy items; they just need an internet connection
and their credit card information.
ii. Storefronts are closing all over the country, yet some businesses continue to
distribute in this manner. One of the benefits of this distribution channel is that
customers can easily purchase related goods because items are curated in a brick-
and-mortar location. Additionally, consumers can look at and feel products in
person, which is especially beneficial when the price of a good and the intensity of
a purchase decision increases.

iii. Warehouse Capabilities and Logistics

Whether your company uses a direct or indirect distribution strategy depends on whether you
are willing or able to invest in aspects such as a transportation fleet, shipping personnel and a
warehouse for storing goods. This isn’t something that a manufacturer should enter into blindly
— acquiring these necessary factors involves a considerable upfront investment.
Your business will need to weigh the pros and cons of conducting your own distribution versus
using an intermediary when deciding on a distribution method.

What Are Some Technologies that Aid in Distribution?

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As technology becomes smarter, more and more solutions arise to streamline the distribution
process. One of the main ways to optimize the distribution workflow is to employ a distribution
software. Whether you’re a manufacturer conducting your own distribution or a distributor
looking to improve operations, a software solution can be a beneficial option. Here are some
of the new technologies included in distribution software that can positively influence your
business.
1. Automation
Automation capabilities can increase the speed at which work is completed and free up
employee time. This ability is offered for various tasks, and specific functionality differs based
on the distribution software vendor that you go with. An example of how this might look in
practice is through the automatic assignment of items to a vehicle based on where the other
materials in that vehicle are going and its planned route.
2. Internet of Things (IoT)
The internet of things is especially helpful in increasing productivity in the distribution process.
Many distribution systems include RFID tracking that enables users to scan items and track
their locations geographically and within the workflow. This helps users visualize the
movement of inventory in real time.
3. Cloud-Based System
The proliferation of cloud-based distribution software enables users to access solutions
anytime and anywhere. This is especially helpful in the distribution industry where employees
may need to look at data not just when they’re seated at their desks, but also when they’re
working hands-on in a distribution center. This option enables flexibility and accessibility.

What Are Some Common Distribution Software Features?

Distribution software contains many different features to aid in the distribution process. Here’s
a quick overview of some of the commonly included features in these programs.

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1. Sales Order Management
Sales order management functionality often includes the ability to input orders and then
transmit them to manufacturing so that items can be produced to meet customer needs. Some
programs enable this process to occur automatically and can receive customer information from
different touchpoints.
2. CRM
CRM tools can assist users in looking at customer information in real time to see historical
purchasing information, products that are currently being waited on and payment method. This
can improve the customer experience along with keeping distributors knowledgeable of varied
customer expectations.
3. Inventory Management
Inventory management features include the ability for employees to look at capacity, shortages
and on-hand stock. This assists with planning and review of demand processes. Some
distribution programs can use inventory information and demand planning to automatically
reorder materials needed to meet anticipated needs.
4. E-Commerce
E-commerce features assist companies in developing an online shopping platform to manage
and coordinate sales with customers. These tools often contain support for web analytics so
that organizations can track the products that clients are most interested in along with other
relevant data points.

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5. Logistics Management
These features enable transportation management and route planning. This may include
selecting which items should be shipped together for the most efficient shipping process along
with helping delivery drivers optimize their driving hours.
Compare Top Distribution Software Leaders

Conclusion

Creating an effective distribution strategy is a multi-faceted process. There are five different
distribution strategies to pick from, and the best one for your business depends on factors such
as ideal demographic, item type and current logistical setup. Because there are so many moving
parts associated with distribution, many companies opt to use an indirect distribution strategy
or to purchase distribution software to streamline the process. Whatever method your business
chooses, it’s essential to make sure that customer need and purchase decision level are
accounted for, as these factors will help determine the optimal distribution strategy.

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