Constructing Routes to Market
Posted April 25, 2012on:
I don’t have any experience in constructing route to markets. But, this according to me is one of the most important factors in product and marketing management. I am just writing this blog based on some theoretical knowledge and framework of this vital concept.
To develop a Route-to-Market (RTM) plan, it is important to:
- understand current position of the category and the brand in the market and in the target segments
- know all your customer segments and their behavioral specifics
- have an understanding of all the available sales and distribution channels to the customer segments
- understand the adv/disadvantages of each of the channels for the brand to reach the customer segments
1. Where and how will your customers would want to buy the product
2. Incorporate a supply chain perspective to optimize the customer value
3. Recognize the catalysts and obstacles to change and do a feasibility analysis
4. Understand the distribution contracts to address exclusivity, pricing, margins, and competitive issues.
5. Understand the components of the distribution
6. Recognize the strengths and weaknesses of each channel and align the products/services with the channel
7. Define the ideal distributor for you and how the existing disrtibutors are different
8. Outline the financial and non-financial motivators for the distributors
9. Recruit the distributors and resellers
10.Train the distributors on the products and build expertise
11.Implement effective programs like cross-promotions, deals, etc.
12.Engage the distributors in the advisory councils
A company’s RTM strategy will be based on the target consumer segments, channel dynamics, competition, internal capabilities and the business environment. After the decision is made, and the routes to market are decided, it is important to actively manage it and always look for new sales points, and channels to drive growth.
The primary challenge is for a company to make certain it has put the consumer first—that it is designing a go-to-market strategy that starts from the customer perspective. Many companies build their go-to-market model from the inside out. But there is a lot of leverage in constructing it from the outside in, or at least in modifying it on the basis of knowing what customers want to have change.