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THE MULTIPLE BENEFITS OF UNDERSTANDING AND APPLYING THE DISTRIBUTION APPROACH TO MARKETING

Nowadays, companies are increasingly competing with each other. As such, this is quite difficult to differentiate oneself from others. Nevertheless, fully understanding the roots and basics of marketing will give you the opportunity to effectively and efficiently communicate in order to achieve your marketing goals. As of now you may wonder: what does marketing truly mean?

A Quick Definition of Marketing

When you think of marketing, terms such as value, exchange and relationship are paramount. Indeed, marketing is referred to as a perceived mutually beneficial exchange relationship. In other words, the exchange provided must be helpful and valuable for all parties involved. In order to set up and maintain a valuable exchange relationship, this is critical to consider the distribution approach to marketing. Let’s briefly discuss its attributes.

The Distribution Approach to Marketing

Information

As a marketer or potential marketer, you may want to construct a valuable and durable exchange relationship with your current buyers or potential customers. For this to occur, the first key component you need to think of is information which is described as a 2 ways flow from buyer to seller and seller to buyer. This is crucial to think like the customer. Doing so will help you determine what the customer needs to know, what he would like to know regarding the product such as its advantages, its drawbacks, its characteristics, and so forth… Likewise, as a marketer, this is essential to find out information about your customers such as their preferences, their recommendations if any, their feelings about the product, and so on… The exchange relationship can really begin through the flow of information.

Innovation

The second component of the distribution approach to marketing is innovation which is referred to as the complete delivery of the product or service that you provided to your customer. As I mentioned earlier, the world we live in is so competitive that it has become extremely hard to stand out. Yet, a nice product presentation, the way it is delivered, the experience that the customer has had with the seller is greatly valued and appreciated from the customer. The greater the experience, the greater the competitive advantage the seller will acquire compared to its competitors selling the same product.

Compensation

Last but not least, compensation is the last component of the distribution approach. There are several types of compensation. As you may know, monetary benefits is the first one. This results from the exchange from the buyer to the seller which claims that this exchange was mutually beneficial for both parties. However, compensation doesn’t necessary mean money. Indeed, compensation can include benefits such as positive word of mouth, prestige of your product or of your company, or customer loyalty. To summarize, the mutually beneficial exchange relationship relies on your ability to provide valuable information. The more information is given, the more communication with the customer, the greater chances are that the customer will develop a memorable experience which will most likely result in a mutually beneficial exchange relationship and positive word of mouth for your company or product.

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