Market Coverage

I personally think it is best to have a selective level of distribution within the market coverage. That way, consumers have to do some shopping around but overall it is convenient to find the product and the consumer doesn’t have to go out of their way to make the purchase. If it is too limited where to find the product then it will be a hassle to find the product or will have the consumer put of buying the product rather than grabbing it while they’re out.

Intensive really isn’t probable for all types of products because televisions are not going to be sold at gas stations. However, I do not agree that products should be exclusive. Having to buy a product in a specific place is trying to make the product seem of higher value and make the customers want to try and attain the product. The product can still be kept in an exclusive price range but it does not have to be kept in exclusive stores. More would be sold if it were easier to buy.

For example, Pandora used to be exclusive. Now they are carried in smaller jewelry stores not just at exclusive Pandora stores. The price has not changed but the popularity has increased. This is due to the fact the product is seen by more people and appeals to them when they are browsing in the jewelry store. Consumers may have never thought to purchase one before because they had not seen it. Having Pandora sold in more locations has definitely increased their sales and has been beneficial. I do not think you would lose clients just because additional stores were carrying the products, because the price is still the same, just more convenient to purchase. 

Which market coverage do you think is the most effective? Do you think it varies with the type of product? Is it more about the exclusivity than the actual product? 

Response to Sean's Question: Out of all these principles I just mentioned, which one do you believe is most important for small businesses and why?

I agree with all of the principles Sean included when it comes to small businesses. I think the most important would be getting your name out there. I think this leads to all the other principles. Once the business name is out there clients will be drawn to the company. They will then purchase products. If the product is of good value the customer will then become a repeat customer and the business can build a relationship with the customer. This will then have the customer recommend the business to others, which will cut out the need to focus on a target market due to the right target market being recommended from other customers. This will benefit the business because they will better use their resources since not as much advertising will be necessary to promote the business. With strong relationships with the customers and valued products the customers will bring in more business.

            A small business will need to mostly focus on the start up of their business. When the opening of the business occurs they need to be sure to get their name out there. I think in the end the rest will take care of itself especially in a small town where everyone talks. Getting your foot in the door is really what will determine if the business will survive the first year or have to close its doors.

What is the highest cost to businesses when starting a business? Do you think businesses should better distribute their costs into the different principles Sean had mentioned?