Explain marketing’s definition of a product and list the components of the product strategy. Describe the classification system for consumer and business goods and services. Distinguish between a product mix and a product line. Briefly describe each of the four stages of the product life cycle. List the stages of the new-product development process. Explain how firms identify their products. Outline and briefly describe each of the major components of an effective distribution strategy. Identify the various categories of distribution channels and discus the factors that influence channel selection. Learning Goals 1 2 3 4 5 6 7 8
Introduction stage – firm promotes demand for its new offering, informs the market about it, gives free samples to entice consumers to make a trial purchase, and explains its features, uses, and benefits.
Growth stage - sales climb quickly as new customers join early users who are repurchasing the item. Company begins to earn profits on the new product.
Maturity stage - industry sales eventually reach a saturation level at which further expansion is difficult.
Manufacturer’s brand - brand offered and promoted by a manufacturer. Examples: Tide, Jockey, Gatorade, Swatch, and Reebok.
Private or store brand - brand that is not linked to the manufacturer but instead carries a wholesaler’s or retailer’s label. Examples: Sears’ DieHard batteries and Wal-Mart’s Ol’Roy dog food & Member’s Mark brand
Family branding strategy - a single brand name used for several related products. Examples: KitchenAid, Johnson & Johnson, Hewlett-Packard, and Dole
Individual branding strategy - giving each product within a line a different name. Examples: Procter & Gamble products Tide, Cheer, and Dash.
Important in product identification and play an important role in a firm’s overall product strategy.
Choosing right package is especially important in international marketing.
Must meet legal requirements of all countries in which product is sold.
Universal Product Code - bar code read by optical scanner.
Packages and Labels
Distribution channel - path through which products—and legal ownership of them—flow from producer to consumers or business users. Distribution Strategy Physical distribution - actual movement of products from producer to consumers or business users.