MCOM 2nd Year Global Target Marketing Strategies Study Material Notes

which the products of the enterprise can be sold and all the efforts of the enterprise are diverted and devoted to these segments. It is believed that whole hearted concentration upon some selected segments of the market may produce the better results than half-hearted efforts in total market. In the words of Philip Kotler, “Instead of going after a small share of a large market, the firm goes after a large of one or a few special markets. Put another way, instead of spreading itself thin in many parts of the market, it concentrates its forces to gain a good market position in few areas.” Concentrated marketing strategy is widely used in India, particularly by publishers. A publisher, generally concentrates upon publishing the books either in some selected subjects, or for a selected standard.

Advantages of Concentrated Marketing Strategy. Advantages of concentrated marketing strategy may be described as follows:

(i) It makes the maximum exploitation of the resources of the enterprise. 

(ii) It makes it possible to earn the maximum profits with limited resources of the enterprise. 

(iii) It decreases the cost of production, management and administration substantially Disadvantages of Concentrated Marketing Strategy. Disadvantages of concentrated marketing strategy may be described as follows:

(i) It increases the possibilities of competition. 

(ii) This marketing strategy is very risky because if wrong segment is. selected, the existence of the firm itself is endangered. Alternative marketing strategies may be explained with the help of diagrams given above.

MEANING OF CHANNELS OF DISTRIBUTION

A distribution channel may be defined as “the path traced in the direct or indirect transfer of title to a product as it move from a producer to ultimate consumer or industrial users.” A distribution channel in other words, is “the set of firms and individuals that take title, or assist in transferring title, to the narticular good or service as it moves from the producer to the consumers.”

“Each member of a channel is a link in a distribution network of organisation that extend from the produces to the end users of products or services. Although – some firms performs all channel function typically several organisations are linked together in a distribution channel to carry out various activities of storage, transportation, sales contracts, service sorting and repackaging.”

“Marketing Channels are the distribution net-work through which producers flow to the market.”

“A channel of distribution for a product is the route taken by the title to the goods as they move from the producer to the ultimate consumer, or industrial user.”

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