Place, or distribution channel, is the method for making your product available to the consumer.
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- There are eight main functions for distribution channels:
Information: gathering and distributing marketing research
Promotion: developing and communicating offers
Contact: communicating with prospective buyers
Matching: fitting the offer to the buyer's needs
Negotiation: reaching agreement on price and terms
Physical distribution: transporting and storing the goods
Financing: getting and using funds to cover the costs of channel work
Risk taking: assuming the risks the channel work.
- With limited resources, there is a great option of new software products - distribution on the World Wide Web. The Web provides a solution to two problems - inventory and risk.
- Using a timelock, you can allow potential customers to download a full copy of your software from your web page. The prospects are allowed to see the product fit their needs, solve their problems, and fall in love. After 30 days, (or 10 days or whatever you decide), the product time trial runs out and the prospect must call you for the key to unlock the software - which you gladly give them after they pay you.
- There are a number of two channels you may want to consider - direct mail order and software resellers.
- Find the distribution channels where your target customers habitually make purchases and try to get into that distribution channel. For example, a tax preparation software program could be distributed through a channel where the customer picks up tax forms.
©1997, 1998, 1999 Michele Determan