Question

discusses the various market segments and distribution channels for the MCOs. Outline the market segments and identify the most successful distribution channels for those markets. Use some outside research to support your statements. Why do you believe each distribution channel successfully reaches the targeted market? (Manged Care and Health Insurance)

Answer 1

1. Market segmentation :

Market segmentation is the technique used to enable a business to better target it products at the right customers.

It is about identifying the specific needs and wants of customer . Market segmentation is of two types.

1. Business market segmentation:

• Geographic segmentation
• Customer type
• Buyer behavior

1. consumer market segmentation

The following sections provide a detailed description of the most common forms of consumer market segmentation.

Geographic segmentation.

Demographic segmentation.

Psychographic segmentation.

Behavioral segmentation.

Other types of consumer segmentation.

2. Distribution channel:

A distribution channel in marketing refers to the path or route through which goods and services travel to get from the place of production or manufacture to the final users.

A distribution channel strategy enables you to sell to customers in geographical areas or market sectors that your direct sales team cannot reach.

You can choose from a number of distribution channels, including wholesalers, retailers, distributors and the Internet.

Distribution channels in marketing are one of the classic “4 Ps” (product, promotion, price, placement a.k.a. “distribution”).

Distribution channels include one or more of these options:

• retail — stores selling to final consumer buyers (one store, or a chain of stores)
• wholesale — an intermediary distribution channel that usually sells to retail stores
• direct mail — generally catalog merchants that sell directly to consumer buyers at retail prices plus shipping via mail
• telemarketing — merchants selling directly to consumer buyers at retail via phones
• cyber marketing — merchants selling directly to consumer buyers at retail prices, or business-to-business products and services at wholesale prices via computer networks
• sales force — salaried employees of a company, or independent commissioned representatives who usually sell products for more than one company

• Most successful distribution is by cyber marketing — merchants selling directly to consumer buyers at retail prices, or business-to-business products and services at wholesale prices via computer networks.