Interamerican University of Puerto Rico
Economic and Management Sciences Division
Graduate Department
English Trimester Program
BADM 5090 – Marketing Management

Study Session 7

Irmaliz Romero Santo Domingo
M00-49-9648
Finally you have accomplished it. You had a great idea, you've grown, you've overcome all the obstacles and you have your own business, with a business plan included. The first objective is achieved. And now what? You have a unique product, a niche market and you set an affordable price to the market for sale. But how will you sell the product? This was a very important question that our entire group made during the discussion of Hoverboard’s Marketing Plan. There are a multitude of channels that can be chosen for the product to go into the hands of the user, but we must know them before deciding which way to go.
We summarized the three traditional distribution channels: the long one, in which the manufacturer sells to wholesaler, retailer and the latter to final customers; the medium, in which manufacturer, retailer and customer involved; and the short and direct channel, which sells directly to consumers.
In practice, the first option that presents itself is to create your own store. Before starting to search for a space, you must have clear concepts such as where to locate it, the number of stores and the potential of the area. Hint: if you see many of your competitors in one are you must ask yourself, what’s cooking there? Of course, before you settle assess your ability to differentiate from your competitors and, if not yet very clear, better look for another area!
But, how much is the start off point going to cost you? There are several formulas. The first: calculate how much it will cost to reach every potential customer. For example, if you're going to have to make calls and visits, calculate the time it will take and the people