Marketing Management Chapter 13

1. Marketing ManagementChapter 13 Product and Distribution Strategies

2. Product Strategy • Product—bundle of physical, service, and symbolic attributes designed to enhance buyers’ want satisfaction. • Included in this broad definition are considerations of package design, brand names, warranties, and product image

3. Marketing Impacts of Consumer Product Classifications

4. Product Strategy • Product Lines and Product Mix • Product Line—group of related products that are physically similar or are intended for the same market. • Product Mix—company’s assortment of product lines and individual offerings. • Examples of each?

5. Product Life Cycle – Know this! • Product Life Cycle—four basic stages through which a successful product progresses. • Introduction • Growth • Maturity • Decline

6. Stages in the Product Life Cycle Cash Cow

7. Marketing Strategy Implications of the Product Life Cycle

8. Product Identification • Brand—name, term sign, symbol, design, or some combination that identifies the products of a firm and distinguishes them from competitive offerings. • Brand name—the part of a brand consisting of words or letters that form a name that identifies and distinguishes an offering from those of competitors • Trademark—brand with legal protection against another company’s use (can include pictorial designs, slogans, packaging elements, and product features) • Examples? Oreo and TM licensing

9. Product Identification • Brand Categories • Manufacturer’s (or national) brands— brand offered and promoted by a manufacturer or producer • e.g. Ferrari • Private (or store) brand—identifies a product that is not linked to the manufacturer, but instead carries the label of a retailer or wholesaler • e.g. Kenmore, Jaclyn Smith • Generic

10. Brand Loyalty • Brand Recognition—brand acceptance strong enough that the consumer is aware of a brand, but not enough to cause a preference over competing brands • Brand Preference—occurs when a consumer chooses one firm’s brand, when it is available, over a competitors • Brand Insistence—when the consumer will accept no substitute for a preferred brand

11. Brand Equity • Added value that a certain brand name gives to a product • Brand Awareness • Brand Association • Added value means it is worth something • i.e. you can charge more

12. Distribution Strategy • Distribution Channels • Distribution Channel—path through which products - and legal ownership of them - flow from producer to consumers or business users. • Physical Distribution—actual movement of products from producer to consumer or business users.

13. Alternative Distribution Channels

14. Distribution Channels • Different channels for the same product may compete with each other • “Channel conflict” • How do manufacturers try to minimize channel conflict?

15. Distribution Channel Decisions and Physical Distribution • Logistics and Physical Distribution • Warehousing—storing products as they move through the distribution channel • Storage warehouses • Distribution warehouses • Materials Handling • Order Processing (Fulfillment) • Vendor-Managed Inventory

16. Discussion • Select a retailer • what is good and bad about the store? • how does the retailer differentiate itself? • Select a product (Coke, Ferrari, textbooks) • what is the distribution chain? • why does the distribution mechanism fit the type of product? • Assume we develop a great new cookie • what would we do at each stage of product development? • how would we distribute it?