Western Economic Diversification Canada
www.wd-deo.gc.ca
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Marketing and Distribution
A key component of your business plan is marketing and distribution. Your marketing strategy will outline how you are going to sell, advertise and deliver your product.
This section provides brief definitions of marketing strategy and distribution channels. For information on how to develop them, use the resources in the How to Write a Business Plan.
Marketing Strategy
A marketing strategy is built around your target market and what you want to say to your customers. It looks at both pricing and packaging. You have a number of mediums at your disposal: catalogues and flyers, media advertising, speaking engagements, websites or e-business, sponsorships (of arts, sports, charity or community events), cross-promoting with another business or product, home parties, promotions (including premium offers, reduced or free offers, samples, incentives, and prize promotions), attending trade shows and conferences, demonstrations, bulk sale discounts, or telemarketing.
The International Chamber of Commerce (http://www.iccwbo.org/ ) provides codes of direct selling, advertising and marketing on the Internet, sponsorships and the use of promotions.
Distribution Channels
Distribution channels can be either direct to consumer or indirect. Direct channels are from you to the consumer - e.g. trade shows, direct sales.
Indirect channels involve intermediaries between the producer and the customer. These "middlemen" may include distributors, re-sellers, brokers, representatives, agents, multi-level networks, wholesalers and retailers.
Middlemen all receive a percentage of the money, but they also provide a service. For example, a distribution company can provide computerized inventory and order-taking, warehouse space, a sales force of account representatives, field reps to provide advice and service to customers, and delivery vans or refrigerated trucks to get your product to store shelves or customers' houses. The company may also attend tradeshows with your product.
