Direct Channel

                                 "Entrepreneurial Channel Development and Supply Chain Managment"

                                                                     "Direct Channel"

Direct channeling of distribution is described as a situation in which the producer sells a product directly to a consumer without the help of intermediaries.  Basically, "cutting out the middle man", known as retailers.  A direct channel of distribution is the shortest and simplest form of distribution channel.  This has become very popular since the advent of the world wide web.  Using a Web based channel can have several advantages and benefits.  Web based selling has low overhead and gives your product and or service a potentially global reach.  Because no intermediaries share the profits, most direct distribution channels tend to have higher rates of profit than indirect channels. Having Web based selling, allows your business to be open 24/7 for your customers to shop.  Direct channeling also has its disadvantages is that a direct distribution channel cannot  compete with the geographical reach and business volume of a distribution channel that includes major wholesale and retailers.  Another downside to direct distribution of tangible products by phone, mail, or Internet is that customers are often asked to shoulder the burden of the shipping cost.

Source:  smallbusiness,chron.com

                                                 "Pricing in an Entrepreneurial Venture"

Understanding the value of your product(s) and or service(s) will certainly help you set your price line for your venture.  There are a number of the of things to be considered.  One of the best ways is to put yourself into the shoes of your ideal customers.  Determine, what the market will bear, usually this is done by looking at your competitors pricing.  Yes, you want to be aware of your competitor's prices, but do not let that consume you nor the sole determination for your venture price setting.  As our text book stats, lower prices may give consumers a impression that your product(s) and or service(s) are of poor quality.  You can start to scale and to be able to reach more people, your prices can go down to reflect this reality.  This might seem kind of clique, but actually makes total sense when you think about it from a business perspective instead of "this is what we're supposed to do".  It is possible to choose a price that feels good and that fits the market.

Another option, is to offer your product(s) and or service(s) at a lower price point and receive enough positive feedback that you can then raise your prices over time.  This is a great way to go no matter what business you are in. This way you build confidence and prove to yourself and your future customers that you have what it take to provide a quality product or service. Pricing is something you grow into.  You can not start out charging a price you do not feel comfortable charging.  Also, you do not what to low grade yourself.

                                                                             "Branding"

                                                                         "Branding Equity"

Branding Equity has many definitions, the most simple one is that brand equity is the value added by the brand to the product.  As stated in our text.  Prophet.com says that brand equity has four dimensions - brand loyalty, brand awareness, brand associations, and perceived quality, each providing value to a firm in numerous ways.  Once a brand identifies the value of brand equity, they can follow the brand equity road map to manage that potential value.

The introduction of brand loyalty to the model was and still is controversial as other conceptualizations position brand loyalty as a result of brand equity, which consist of awareness and associations.  To buy a brand or place a value on it, the loyalty of the customer base is often the asset most prized, so it makes sense to include it.  Brand equity also provides value to customers.  It enhances the customer's ability to interpret and process information, improves confidence in the purchase decision.  This model provides one perspective of brand equity as one of the major components of modern marketing alongside the marketing concept, segmentation, and several others.  

Source: prophet.com

                                                  Developing New Products and Services

New products and services are the lifeblood of all businesses.  Investment into the development is crucial to business growth and profitability.  Planning and organization need to be done carefully.  Understanding the products and services life cycle, so you will know when to begin the development process.  The life cycle has five steps.  Development, Introduction, Growth, Maturity, and Decline.  Identifying where products/services are in their life cycle is central to your profitability.  Effective research into your markets and competitors will help you.  Develop your ideas, because there is a lot a stake when developing your new products and services.  The clearer you are about your plans, the better you can analyze the risks involved.  Your products/services should match the market needs.  Discover what those needs are and meet customers' needs and offer better than the alternative offered by competitors.  Establishing a pricing strategy for new products/services.  The movement you decide to take an idea forward, consider the pricing.  An effective development process for products/services should be divided into key stages.  Idea generation, Idea distillation, Concept definition, strategy analysis, Concept development, Test marketing and finalizing the concept, and product launch.  Make sure you have a dedicated team to assist you.  Developing new products and services is an inherently risk process.  Always plan any investment carefully and strictly controls your cost.

Source: infoentrepreneurs.org/en/guides/develop-new-products-and-services

                                              Market Segmentation, Differentiation, and Positioning 

                                                                         "Positioning"

Positioning is often the overlooked aspect in the marketing process.  Really, positioning is one of the most important aspects of marketing your company or products is its position in the market, stated in an article by Kissmetrics.  Kissmetrics gives 4 ways to position your company among well entrenched competitiors.  Positioning is the last step in the STP process.  

First, Target a specific group of people.  Know your intended customers likes, dislikes, needs, wants, and behaviors.  You must connect your intended position to the unique desired benefits of the customers.  

Secondly, do one or two things very well.  Provide a number of plans for your customers.  Positioning is considered as creating your "value proposition" or as a "marketing promise" to your customer.  These things should be what your business venture's products/ services are known for, your "staple" or "signature".

Thirdly, tell a unique story.  If your competitors are telling the same story whether that is they have the lowest price, or are the most innovative, then you need to be telling a different story.  Do you offer the best services?  Or are you the easiest to use?  Or just simply be welcoming to products and services suggestions.

Lastly, be user friendly.  Focus on making the life of your customers easier and not try and milk them for every last dime.  This approach will have a huge impact on your business success.

Source: blog.kissmetrics.com/well-entrenched-competitors

                                              Identifying Customers Markets and Demand

                                                                     "Competition"

Having a clear understanding of what your customers expect from your products/services is very important.  But, also understanding what your competition has to offer is equally important.  As stated in our text, putting time into knowing the competition's products/ services is key to your venture's success.  Learning why customers choose one over the other is key.  Considering all competition when planning your business venture, to make sure you have the edge over the others in your industry.

There are two types of competition direct and indirect competition.  Direct competition offers similar products and services.  With direct competition, customers will consider price, location, service levels, and product features when deciding on where to spend their money.  It is known that, not all people will choose the same combinations of options.  So, offer a unique mix of options for customers to choose from.  Offering a lower price does not mean your guaranteed to gain customers.  Understanding where your competitors are positioned is key to identifying the gaps that your business can fill. Indirect competition are businesses that offer slightly different products/services, but target the same group of customers with the same goals of satisfying the same needs.  It is known that all businesses face this kind of competition.  These competitors do not offer the exact same products/services but, they set out to meet the needs of your customers, just in a different way.  With that being said, consider all the ways your customers needs can be satisfied.  Creating a strategy for handling this type of competition, you create an advantage over businesses that believe they are unique and have no direct competition.

Source: smallbusinessbc.ca/article/understanding-your-competition