Transcript Brand strategies

13. Product and Distribution
Strategies
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Topics
• Channels of distribution
• Roles of marketing intermediaries in
distribution channel
• Channel & intermediary selection
• Partnering among channel members
• Retail
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Products
• Marketing concept of product includes:
– Item itself
– Warranties
– Brand
– Image
– Packaging
– Label
• Products are goods & services used as basis of
commerce
• Product identities created through:
– Branding
– Packaging
– Labeling
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Brands
• Used to identify & differentiate products
– Brand name
– Brand mark
– Trademark
• May be owned by:
– Wholesalers
– Retailers
– Manufacturers
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Brands (Cont.)
• Brand strategies
– Individual brand vs. family branding
– Licensing
• Brand loyalty
– Brand recognition Brand preference Brand
insistence
• Brand equity
– Brand-name awareness
– Perceived brand quality
– Brand associations
– Brand loyalty
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Packaging
• All activities involved in developing & providing a
container for product
• Functions:
– Protect product
– Offer consumer convenience
– Promote product
• Package design considerations
– Cost
– Intermediary needs
– Multiple-unit vs. single-unit – Environmental
– Family packaging
responsibility
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Labeling
• Presentation of information on product or
packaging
• Federal regulations specify required
information for specific products
• Also carries express warranty details
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Classifications
• Consumer products:
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Convenience products
Shopping products
Specialty products
Unsought products
• Business products:
– Expense items
• Supplies
• Industrial process consumables
– Capital items
• Installations, accessory equipment
• Business/industrial services
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Product Lines & Product Mix
• Product line:
– Group of similar products
• Product mix:
– All products of the firm
• Three ways in which to improve product mix:
– Change products
– Delete products
– Develop & add new products
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Product Life Cycle
• Four stages:
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Introduction stage
Growth stage
Maturity stage
Decline stage
• Awareness of life-cycle stage & estimated
length of each life-cycle stage for each
product affect marketing strategy decisions
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New Product Development
• New products grouped into three categories:
– Imitations
– Adaptations
– Innovations
• Stages of new product development process
– Idea generation
– Idea screening
– Concept dev. & testing
– Product development
– Test marketing
– Commercialization
• Business analysis
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Channels of Distribution
• Direct channels
• Indirect channels
– Marketing intermediary categories
• Merchant middlemen (take title to goods)
– Full-function & limited-function
• Functional middlemen (don’t take title to goods)
– Intermediary types
• Retailers
• Wholesalers
• Agents, brokers, etc.
– Multiple channels for different segments
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Roles of Marketing
Intermediaries In Channel
• Provide services related to all marketing functions
– Exchange functions
• Provide place utility
• Provide sales force
• Provide promotional support
– Physical distribution functions
• Deliver product
• Carry stock
– Facilitating functions
• Provide marketing info.
• Assume risks
• Sort, standardize, divide
• Provide financing
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Channel & Intermediary
Selection
• Factors influencing distribution strategy
decisions:
– Producer, market, product, competitive factors
• Intensity of market coverage
– Intensive distribution
– Selective distribution
– Exclusive distribution
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Partnering Among Channel
Members
• Supply chain management
– Logistics
– Physical distribution
• Warehousing
• Materials handling
• Inventory control
– Esp. through vendor-managed inventory
• Order processing
• Transportation
– Setting customer service standards
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Retail
• Nonstore retailing
– Direct selling
– Direct-response retailing
– Internet retailing
– Automatic vending
• In-store retailing
– Classified by:
• No. of stores
– Independent retailers vs. chain retailers
• Store size; type & quantity of merchandise carried
– Department stores, discount stores, catalog &
warehouse showrooms, etc. (see Table 13.2)
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Retail (Cont.)
• Wheel of Retailing
– Entry phase
– Trading-up phase
– Vulnerability phase
• Retail marketing strategy development
– I.D. target market
– Develop product strategy
– Develop customer service strategy
– Develop pricing strategy
– Develop location strategy
– Develop promotional strategy
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