Non Products Exist in this World

"Both the market and the distributive channel are often more crucial than the product. Products are within the business as the accountants define it. They are within its legal boundaries. Economically the other two areas are as much part of business." - Peter Drucker, Managing for Results.

According to Peter Drucker product actually does not exist at all, economically speaking, except within a market, bought by a customer for an end-use, and brought to him through a distributive channel. Markets as well as distributive channel do exist, however, independently of any one product. They are primary, the product is secondary.

Product management is a sub?section of management. But market and distributive channel exists outside of management control. They are the most crucial and along with that most difficult part of business to understand and dominate.

A product needs to find its niche market. And to reach this niche market, it needs a niche distributive channel. The whole supply chain should be friction free for smooth functioning of product profitability. According to Nirmalya Kumar, marketing consultant, brand owner of yesterday world are still thinking themselves an emperor. But in reality they are barely standing in nude. Distributive channels, Wal-Mart, Tesco, Aldi, etc, have found their place in the sun.

Market logic is very simple. These retailers use to act as a link between customer and the product manufacturer. But sooner than never, this distributive channel recognized their power. They are lot efficient than the product brand owner. They know their customer much better than brand owners. So they can mould their strategy in a very swift speed.

Apart from that manufacturer use to made their product for in east in China, Indonesia etc. This global supply chain has shown a remarkable efficiency in last decade of 20th century. All the best brands on 20th century use to get their product manufacturer in low labour countries. Now distributive channel want to replace brand owner to dominate the supply chain. According to data from market, 80-90% of American consumers buy from Wal-Mart, target etc. 50% of all sale of brand number one and two are recorded by these biggies channels.

These biggies have now started copying these manufacturer products. Given the advantage of 10-15% saving in advertising, 5% in sales force and 5% in R&D, these distributive channels are cutting the brand owner throat by reducing the prices at rock bottom. Wal-Mart knows how to discount lowest and still be profitable to thwart any competition. Marketers at these distributive channels know very well that brands are passé. Only customer experience and access to the product matters, as Jagdish Seth's 4 A's defines.

Products brand owners need to understand the fact. It is market and distributive channels century. And they must learn to live with the tigers.

Arvind Kumar is an Electrical Engineer from a premier Institute, Indian Institute of Technology, Delhi, India. He has 3 years experince in marketing business consulting services and marketing services. He is founder and CEO of http://www.nuttymarketer.com

---

Arts Marketing : Suggestions for Students and Beginners

Many artists create art but when it comes to marketing... Read More

Four Essential Marketing Plan Components

Preparing a Marketing Plan for your product or service is... Read More

Digital Printing vs. Press Printing ? A Comparison Guide

When it comes time to print your brand identity materials,... Read More

Chill Out With A Summer Time Marketing Plan

Is your business experiencing a summer time slump? Traditionally only... Read More

Business Cards That do the Business

A business card makes a statement about who you are... Read More

Guerrilla Marketing in Action

Guerrilla Marketing is using time, energy and imagination to market... Read More

Calling All Carbon-Based Lifeforms

Many businesses want to market to all carbon-based life forms.... Read More

Mortgage Marketing - How to Earn More Business From Realtors®

Is your marketing strategy getting the results you desire?Mailing postcards,... Read More

Every Days a Holiday!

You probably know that February 2nd is Groundhog Day. But... Read More

Business Card Design - How to Stand out and Get Noticed

One of the most powerful, yet over looked weapons in... Read More

10 Reasons Why Businesses Fail at Marketing.

1) They don't fully understand it.Perception: Marketing is advertising. Reality:... Read More

Thinking About More Business

What does an old Russian joke have... Read More

Direct Mail Sales Letter Mistakes to Avoid

Some companies that use direct mail to sell their products... Read More

Get Personal: Letters vs. Direct Mail

One of the reasons direct mail works is the personal... Read More

Loan Officer Marketing ? How to Target the Right Agents

Once there was a loan officer, who marketed his services... Read More

How To Successfully Launch A New Business Activity

I often talk with business owners who tell me how... Read More

Stretching Your Marketing Dollars--7 Cheap and Easy Ways to Market on a Budget

Just because you have to stretch your marketing dollars doesn't... Read More

The Advantages of Full Color Brochure Printing

A brochure can be a great promotional tool, whether it... Read More

Postcards Work

What's the fastest, simplest and cheapest way to promote just... Read More

Market Research ? How Good is the Data?

"Make money for taking surveys"," Cash for your opinion", "Make... Read More

Explode Your Sales With Free & Exclusive Content

Offering free and exclusive content to ezine publishers and webmasters... Read More

Focusing Your Marketing Efforts

One of my favorite quotes is often used to describe... Read More

Getting the Maximum Marketing Mileage Out of Your Nametag

As a small business owner, you must always explore creative... Read More

Forward Thinkers Stay Ahead of the Curve

What is it like from a marketing perspective to be... Read More

Dont Use Yourself as Your Pricing Yardstick

"I wouldn't pay more than what I charge now."If you... Read More

Loan Officer Marketing ? Why Realtors® Don?t Read Your Brochures

When you place brochures from every mortgage company side by... Read More

Budgeting for a Postcard Mailing

If you've never done a postcard mailing, you're probably wondering,... Read More

Making the Intangible Real

How do you make the intangible real? How do you... Read More

How To Recover Your Almost Customers

You'll always need to find new prospects for your business.... Read More

Advertising Your Private Practice: Beware of the Problems-Part 1

One of the biggest mistakes coaches, counselors and other healing... Read More

Direct Marketing ? Brand Identity Guru Tips

If your company doesn't have a direct marketing program in... Read More

Bridging the Chasm from Lead to Loyal Customer

Bridging the Chasm from Lead to Loyal Customer: A Step... Read More

Using Purchased Leads

A little advice about using leads that you purchase from... Read More