You must also select the distribution method(s) you will use to get the offering into the hands of the customer. Of course, making a decision about pricing, promotion and distribution is heavily influenced by some key factors in the industry and marketplace.
These factors should be analyzed initially to create the strategy and then regularly monitored for changes. If any of them change substantially the strategy should be reevaluated. Environmental factors positively or negatively impact the industry and the market growth potential of your product/service. There are such of them: demographic changes – anticipated demographic changes may support or negatively impact the growth potential of your industry and market. This includes factors such as education, age, income and geographic location. The potential for market penetration involves whether you are selling to past customers or a new prospect, how aware the prospects are of what you are offering, competition, growth rate of the industry and demographics. Impact on customer’s business as measured by costs of trying out your offering, how quickly the customer can realize a return from their investment in your offering, how disruptive the introduction of your offering is to the customer’s operations and the costs to switch to your offering. Sales promotion techniques such as trade allowances, special pricing and contests.