Routes to market in the construction industry
'Routes to market’ (RTM) describes the range of methods used by a company to get its goods or services (or unique value proposition) to its customers. In other words, how is it intended that customers will hear of the product, appreciate its benefits and embark on purchasing it? RTM involves all the activities that form part of generating demand for a product or service.
Depending on the business involved, there can be a wide range of routes-to-market that will typically include; direct retailing, direct sales and marketing (including selling online), advertising, the use of agents and representatives, licensing or franchising, joint venture or partnership, websites, social media and so on.
When RTMs have been ill-considered and/or implemented, even the best product or service will most likely fail. Therefore, it is important to identify the most effective channels. This is generally achieved by market research to define the target market and how it prefers to buy.
The combination of RTMs used will determine the efficacy of the product/service delivery, sales volumes, the cost effectiveness of the service provided and its brand image in the market place.
Routes-to-market is sometimes referred to as ‘go-to-market’.
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