STAGE 2
In this stage, the focus is on determining the best way to sell the product or service to the target market. This includes considering the various options for reaching the target audience, such as having an e-commerce platform, using distributors, or a combination of both. Having a clear understanding of what you want to achieve and the best and most cost- effective route to market is critical, as it will dictate the marketing activities required to successfully sell the product or service.
The following points are some of the areas you will need to consider for:
E-commerce
- Ecommerce provider – which software package provides the right process for customer to purchase your products/services?
- Fulfilment - how will the back office fulfilment happen?
- Will this integrate into an existing website, or will there need to be development?
- Customer service – how do you plan to deal with returns, errors, issues, complaints etc…
- Legal – what additional legal wording is required, by the country that you sell within, to ensure consumer rights are covered?
Distribution
- Your pricing strategy – how do you want to mark up your products/services when being sold by a 3rd party?
- Which distributor do you go for? Who has the best audience for your product/service?
- What technical documentation and basic marketing collateral do they need to sell your products?
- What kind of deal do you want to have in place? Sale or return? Rebate?
- What marketing budget are they going to allocate, to help promote your products to their customer base?
In this stage, the cost-effectiveness of each sales channel is also considered. For example, selling directly through an ecommerce platform might be less expensive than using distributors, but it may also require more effort in terms of marketing and customer support.
Ultimately, the goal of this stage is to determine the most effective and efficient way to reach the target market and sell the product or service. This information will inform the marketing and sales strategy, ensuring that the right channels and activities are used to achieve the desired results.