Taoao: The Target Market: Identify The Target Market?

Identify the Target Market

Taobao target market is the young generation. The young generation are from 20 to 30 years old with good educational levels. This is because they will be able to afford the items being sold at Taobao. Recently, they also added people that are older in their target market base. Adults that are working are able to pay for the products being sold on Taobao as well. The major customer of Taobao are those living in the more developed cities. They also target more locally based and abroad. They sell more items by having more target market.

Channel Distribution Density

The Channel Distribution Density that Taobao uses includes both intensive and selective distribution. Both types of distributions are used depending on the products and the shop owners of Taobao.
In intensive distribution, the product is sold to many retailers and wholesalers. This type of distribution is used for

Customers are able to view and test the products out at the retail outlet with convenience. Retailers can also promote the product to the customers by making them aware of the products availability and tell them the information of the product before encouraging the sale. This is an excellent intermediary for distributing the products around the world. Many retails prefer getting their products directly from the producers to save the trouble of going through wholesalers as it will be more convenient.
Producer to Wholesaler to Retailer to Customer
Products are sold directly to wholesalers. This is used when large amount of product is bought from the producer. Wholesalers then break the bulk into smaller quantities before selling it to retailers. However, larger retailers are able to buy directly from the producers and cut out the wholesalers. This means that large retails can sell their products cheaper to the customers as compared to those retailers that buys from the wholesalers.
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