Marketing Structure

A successful study of the marketing structure must include a marketing plan specific to the product and the market share goal. A market cost feasibility analysis should be formulated. This information should be used to determine production practices, changes in the products, if needed, and where products should be sold for the greatest return.

An assessment of the current business environment also is required. Although the business environment of a particular area may be beyond the control of local managers, it needs to be understood, because it often influences the type of marketing organization required for success. An understanding of customer requirements, including the following, is needed.

 

Market territory

The physical locations where the product is going to be sold must be decided. It must be determined whether it is local, national or somewhere between.

 

Population concentrations

There have to be enough people within a market who will buy the product on a timely basis. It is easier to sell a given level of production throughout the year in urban areas where there are many different types of consumers. In rural areas, a greater percentage of people will have to buy the product in order to sell the same amount. A major factor in selling products is how many times a year the product will be purchased: once a day, week, month, or year. The fewer times a product is purchased by a specific consumer per year, the more buyers needed.

 

Income levels

Different customers have different income levels, tastes and preferences for products. Some may consider a product essential, others, conspicuous consumption.

 

Number of market outlets

The number of market outlets is the number of places consumers can purchase the product, whether in one large store, many small ones, roadside stands or mail order.