1. CHAPTER OBJECTIVES © SOUTH-WESTERN EDUCATIONAL PUBLISHING PRODUCT DEVELOPMENT AND DISTRIBUTION nIdentify why product development decisions are important to consumers as well as businesses. nDescribe the three levels of product development and the types of product selection. nDiscuss how packaging and branding improve product sales and customer satisfaction. nDiscuss the important factors to be considered when selecting channels of distribution. nDescribe the characteristics of major forms of transportation used to distribute products. nGive examples of product-handling procedures that improve product distribution. 2222

2. © SOUTH-WESTERN EDUCATIONAL PUBLISHING PRODUCT DEVELOPMENT nProduct design levels nProduct selection nProduct line nProduct assortment nPackaging nBranding

3. © SOUTH-WESTERN EDUCATIONAL PUBLISHING MANY PRODUCTS WITH LIMITED VARIETY LIMITED PRODUCT CHOICES AND VARIETY LARGE VARIETY IN FEW PRODUCT CHOICES BROAD VARIETY OF MANY PRODUCTS PRODUCT BREADTH MoreLess PRODUCT DEPTH More Less PRODUCT ASSORTMENT

4. © SOUTH-WESTERN EDUCATIONAL PUBLISHING LEVELS OF CONSUMER BRAND AWARENESS nConsumers are unable to identify the brand. nConsumers can identify the brand but it has limited influence on their purchase decision. nConsumers can identify the brand but will not purchase it because of the brand. nConsumers easily recognize the brand and will choose it if it is available. nConsumers view the brand as the most satisfying; will not purchase a different brand.

5. © SOUTH-WESTERN EDUCATIONAL PUBLISHING CHANNELS OF DISTRIBUTION nDirect distribution nIndirect distribution nIntegrated marketing channels

6. © SOUTH-WESTERN EDUCATIONAL PUBLISHING DECIDING ON A CHANNEL OF DISTRIBUTION nPerishability of the product nGeographic distance between producer and consumer nNeed for special handling of the product nNumber of users nNumber of types of products manufactured nFinancial strength and interests of the producer

7. © SOUTH-WESTERN EDUCATIONAL PUBLISHING TRANSPORTATION DECISIONS nCommon transportation methods nRailway nTrucks nAirplanes nOther transportation methods nWaterways nPipelines nContainerization

8. © SOUTH-WESTERN EDUCATIONAL PUBLISHING PRODUCT HANDLING nTracking products nProduct storage nWarehouse nDistribution center nOrder processing