MRKTNG 3000 1nd Edition Lecture 11Outline of Last LectureI. New product developmentII. New product strategy a. Technology drivers b. Market driversIII. Idea generation IV. BrainstormingV. Concept testingVI. Product developmentVII. Market testing Outline of Current LectureVIII. Distributiona. Coverage strategies b. RetailingCurrent LectureDistribution- Intermediary functions (benefits) Transactional (Buying/selling, risk taking)Facilitating (financing, grading)Informing (marketing research, providing info)Logistical (Concentration, storing and sorting, physical distribution)These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Distribution strategy (depth and width strategies)Depth: Levels of middlemen between producer and consumerWidth: Number of distributors offering product/service 3 coverage strategies:Intensive- Provide offering in as many outlets as possible-Coverage/sales effort tradeoff- sales depend on consumers seeing productsSelective- Restrict distribution in geographical areas based on performance (selective outlets)-Medium coverage and medium sales effortExclusive- offering selective markets-Middle ground, medium coverage and sales efforts -Sales are maximized -Lazy Boy, Ferrari, etc. Retailing: the sale, and all activities, directly related to the sale, of goods and services to ultimate consumers for personal, nonbusiness use Size of retailer:-Most are small-10 largest= 15% of total -Small succeed through-Things large stores can’t do-Service-Joint/contractual vertical marketing Classification of retailers by form of ownership:-Corporate chain (centrally owned and managed, carry similar products)-Independent (single, unaffiliated store)-Contractual Vertical Marketing system (retailer cooperative, voluntary chain, franchising)Classification of retailers of marketing strategies example:Store type- department storeAssortment- Broad, deepPrice level- avoid price comparisonCustomer service- extensive Non-store retailing:-Retailing activities resulting in transactions that occur away from a retail store-Salesperson to consume, outside of the store (door to door)-Shopper salesperson contact via phone-Sale of products through machine-Advertising contacts customers; purchase outside the