Market coverage is the evaluation of the marketplace and determination of how much of it you should cover with your promotional strategy of a product or business.
Companies have to take into account factors like the economy, culture, buyer behavior, etc.
How companies choose a market coverage strategy?
- The company’s resources
- The type of service is to be offered
- Diversities within the market
- The competitors’ market coverage strategies
What are the 3 types of market coverage
There are three different types of target market coverage every marketing manager should know; Intensive Distribution, Exclusive Distribution, and Selective Distribution.
The afore-mentioned options allow businesses to distribute their offerings in many different and unique ways.
What is selective market coverage
Under selective coverage, the marketer deliberately seeks to limit the locations in which this type of product is sold.
What sales coverage means
Sales coverage, in simple terms, “is the ratio of total prospects in an area to the number of prospects who can be effectively targeted or approached”.
To explain it further, a sales coverage strategy deploys its sales force optimally and uses sales channel after taking in account the target customer segmentation.
What is full market coverage
Full market coverage (or undifferentiated segmentation strategy) This approach applies a single marketing mix to the entire market.
It means a business tries to serve all consumer groups with the products or services they might need.
What can help you to formulate an effective market coverage strategy?
- Set your company apart from your competitors
- Set clear goals and objectives
- Use market segmentation to find your target audience
- Develop an appropriate, multi-channel marketing strategy
- Plan your budget
- Measure and collect data
What is exclusive market coverage
The second method used to cover your target market is called Exclusive distribution. This method is the exact opposite of intensive distribution as the goal isn’t to extend the reach of your offering through as many sales channels as possible.
What are the 3 market coverage strategies
There are three market coverage strategies: Undifferentiated Marketing – the goal is to focus on the most common need of consumers.
Differentiated Marketing – specialized for each individual target market. Concentrated Marketing – focuses on a section of the market place.
What is the importance of concentrated market coverage
Pros and Cons of Concentrated Marketing It helps companies and businesses to become aware of the customers’ needs and can a special place in the market.
They can reduce their cost through economies of scale by specializing in various operations of productions, distribution, and transportation.
What is intensive market coverage
Intensive distribution aims to provide saturation coverage of the market by using all available outlets.
For many products, total sales are directly linked to the number of outlets used (e.g., cigarettes, beer).
What is a coverage strategy
Market coverage strategy is a method for evaluating the various segments of the marketplace and deciding which segments to cover in the marketing of a particular product.
A marketing plan starts with the identification of a market coverage strategy.
What does distribution coverage refer to
Distribution coverage (or coverage ratio) compares distributable cash flow (DCF) generated in a period to the total cash distributions paid for that period.
Investors look at distribution coverage to better understand an MLP’s ability to pay distributions from the cash generated by its operations.
What does customer coverage mean
Customer Coverage defines how the organization will use its channels, roles, processes, and resources to go to market.
Customer coverage includes sales channels (third party resellers, referral partners, retailers, or company sales force); sales roles; sales processes; and sales deployment.
Which of these is a market coverage strategy in which a firm goes after a large share of one or few sun market
Differentiated marketing is a market-coverage strategy in which a firm goes after a large share of one or a few submarkets.
What is a distribution plan in marketing
What is distribution strategy? Distribution strategy involves coming up with an efficient method of disseminating your company’s products or services.
The goal of this type of strategy is to maximize revenue while maintaining loyal customers.
What is a coverage model
Bottom line, a sales coverage model is how a company makes their number. A sales coverage model enables companies to set achievable revenue goals then reach them with thoughtful placement of sales and marketing teams/individuals in the best territories and highest value accounts.
What is the market segmentation
Market segmentation is an extension of market research that seeks to identify targeted groups of consumers to tailor products and branding in a way that is attractive to the group.
How do you increase sales coverage
Use existing sales data to analyze customer buying habits and needs in each segment, and identify similarities.
This will help you set customized sales strategies for each customer segment and assign resources based on the segment’s priority.
What is meant by Channel Marketing
Channel marketing is the practice of working with a third party to take your products or services to market.
It’s a faster and more effective method than more traditional growth models, and it can be productive for businesses—large and small—across multiple industries.
What are the 7 strategies of marketing
These seven are: product, price, promotion, place, packaging, positioning and people. As products, markets, customers and needs change rapidly, you must continually revisit these seven Ps to make sure you’re on track and achieving the maximum results possible for you in today’s marketplace.
What is channel of distribution in marketing
Distribution channels are the paths that products and services take on their way from the manufacturer or service provider to the end consumer.
How do you calculate distribution coverage?
- Dividend Coverage Ratio = Net income / Dividend declared
- DCR = (Net income – Required preferred dividend payments) / Dividends declared to common shareholders
- DCR = Net income / Dividends declared to preferred shareholders
What are marketing channels and its types
Marketing channels can be categorised into direct and indirect channels depending on the structure of the channel.
The indirect channels are further divided into three types: one-level, two-level, and three-level channels based on the number of intermediaries present.
What is an example of a marketing channel
Direct mail campaigns are a typical example of direct marketing channels. Businesses create a mailing list that includes all potential customers within a specific geographic area, Marketing channels make the connection between producers and consumers and help businesses reach their customers.
How is distribution coverage measured
The Distribution Coverage Ratio is calculated as Distributable Cash Flow divided by total distributions to be paid for the respective periods.
What are the 5 marketing concepts
The five main marketing concepts are production, product, selling, marketing, and societal. Companies utilize these five concepts in regards to the product, price, distribution, and promotion of their business.
Why is segmenting the market important
The Importance of Market Segmentation Market segmentation can help you to define and better understand your target audiences and ideal customers.
If you’re a marketer, this allows you to identify the right market for your products and then target your marketing more effectively.
What is an example of concentrated marketing
A concentrated marketing strategy is targeted to one specific market segment or audience. For example, a company might market a product specifically for teenage girls, or a retailer might market his business to residents in a specific town.
What are marketing channel objectives
The primary purpose of a marketing channel is to create a connection between the organization that creates a product or service and prospective customers who may want to purchase it.
How do you choose marketing channels?
- Consider your goals
- Know where you customers hang out
- Talk to your consumers throughout their journey
- Scope out the competition
- Work your strategy + analyse the results
Citations
https://www.coursera.org/lecture/business-model-canvas/channels-and-customer-relationships-presentation-Xmwsp
https://www.lotame.com/what-is-market-segmentation/
https://www.opentextbooks.org.hk/ditatopic/34147
https://terminus.com/types-of-marketing-channels/
