ct economy cars for those consumers who are interested in value and in a low entry price, but it also manufactures the Cadillac for those consumers who are interested in luxury. Certainly these are two very different types of automobiles, but they are intended for different consumers.
In some cases, the customers for a new product are not readily identifiable. For example, 3M developed Post-It Notes by accident when it was unable to develop an effective adhesive for a different product. The clerical staff in the office began using the "failed" adhesive for removable memos, and the resulting product is one of 3M's most successful (Davy, 1998). This is an example of a product which did not have a built-in target market, but which found a market niche nonetheless.
Once a company has determined the target market, it can determine the distribution strategy. The combination of product and consumer determines the way in which the product is marketed. For example, products which are marketed to the general public often use retailers as the final point of sale; the product may move through wholesalers and distributors on the way to the customer. On the other hand, products which are marketed primarily to industrial consumers are generally not available at the retail level.
In addition to the way in which products reach the final customer, the distribution strategy also determines the units in which the product is available. Retail customers are more likely to purchase products in smaller units (such as singles or pairs) where industrial customers are more likely to use larger units, such as dozens or pallets. Knowing who the customer is can help the manufacturer determine the type of distribution that is appropriate for dividing the final units into appropriate levels (this is typically done by wholesalers and distributors). By determining the end customer, the manufacturer is able to determine the best method for getting the ...