DISTRIBUTION, LOCATION AND TIMING

University: TUI University
Course number: MKT301
Module Two
SLP
Ercilia Talbert
Dr. Jonathan Freeman
12 Apr 2011
DISTRIBUTION, LOCATION AND TIMING
The service will be distributed through the company`s website and it will involve downloading the games through the same portal. Payments regarding the purchase of these games will be made through trusted online payment service providers found within the region such as PayPal Kenya. The services as indicated earlier will made available in Nairobi, Kenya; this is the target market for our company. The market is not yet fully exploited and this is a chance to offer such services to that region. 24/7 services will be offered since all downloads and transactions will be made online. The customers will order the services online and they will be required to register for an account for free in order to enjoy our services.
Time is a crucial factor in the creation of a market entry strategy. The creation of an image via promotion and the development of an intelligence system take effort, money, and time. Brand names cannot be created overnight. Enormous investments are required in the promotion campaigns. Transaction costs are also required and they are a crucial factor in the development of market entry strategy and can become a hindrance to the international trade. Costs incurred include bargaining and search costs. Language barrier, risk, logistics costs, and physical distance hinder the direct monitoring of the trade partners. These factors are very important when the company is considering entering a new market (Agriculture and Consumer Protection, 1997).
VARIATIONS BY TARGET MARKET
Targeting, positioning, and segmentation all combine a three stage process. The first stage is the determination of the type of customers that exist in that location (Perner, 2010). In this case, the customer types being targeted are of the ages between 13 - 25 years. The second stage is the selection of the customers who are fit to be served and, the last stage is the implementation of the segmentation by optimization of the company`s services and products for that segment (Perner, 2010).
Segmentation entails finding out the existence of different types of consumers and their varying needs. Experience has shown that companies that concentrate on meeting the desires of a section of consumers over the others have the tendency of becoming profitable. Concentrated strategy involves one firm choosing one of the several customer segments in existence and leaving the other section to competitors. The target customers are usually offered services at low prices (Perner, 2010). For this company, concentrated strategy is the best because its focus is on a section of the consumers (13 - 25 years old). The services set to be offered will be provided at a low price.
There are variables that can be utilized for segmentation:
* The first variable is demographic variable and it refers to the indiv...