Question

Please identify the channel system/ distribution strategy used by the start-up business of accounting and evaluate its appropriateness. If the start-up accounting business doesn’t require distribution strategy, focus your argument on the location of the start-up business. How the start-up’s place strategy creates superior value? Promotion Strategy: Identify the promotion strategy used by the start-up business and assess the appropriateness of the strategy to the target market. How the start-up’s promotion strategy create superior value?

Answer 1

Distribution strategy used by Start up business- Accounting business is a service based business not a product based. In product based business, distribution channel is at high priority, in service based business, start ups can use online channel, newspaper, industry publication etc. Accounting firms can also go for third party for distribution channel like salesforce.com

Place of Start up accounting business- Accounting firm can be online as well as offline. If it is online, it will be known to everyone, if it is offline, it should choose a place where there are many companies, those companies might need accounting services and it will be easier to approach them.

Promotion Strategy- Firstly company should write down its vision, mission strategy and goals. It should know its target market and customers. Company should do its SWOT analysis and try to over come from its weak points. Company should concentrate on five Ps of marketing, i.e. Product, Price, promotion, place and people. Initially, company should keep the prices of its services as low as possible, it should provide quality and timely services so that it can make image in customers' mind. It should increase its sales numbers by acquiring more customers, it should create the need of accounting services and importance in the customers' mind. It should advertise its services through online and offline channels.