MRKTNG 3000 1nd Edition Lecture 11 Outline of Last Lecture I New product development II New product strategy a Technology drivers b Market drivers III Idea generation IV Brainstorming V Concept testing VI Product development VII Market testing Outline of Current Lecture VIII Distribution a Coverage strategies b Retailing Current Lecture Distribution 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 consumer Width 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 products Selective Restrict distribution in geographical areas based on performance selective outlets Medium coverage and medium sales effort Exclusive 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 store Assortment Broad deep Price level avoid price comparison Customer 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 store