1. Product Development and Distribution
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Product Development and Distribution
21.1 Product Management
21.2 Distribution Management
21.3 Channel Design

2. 21.1 Product Management DLTs
Explain how products, product lines, and product assortments are developed.
Discuss how product selection, packaging, and branding improve product sales and customer satisfaction.
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3. Product Development
The product – consists of all attributes, both tangible and intangible, that customers receive in exchange for the purchase price.
Coordination with other elements of the marketing mix
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4. Product Design Levels
Basic product – physical product in simplest form
Enhanced product – product includes different features and options
Extended product – includes additional features that aren’t part of the product but increase its usability
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5. Product Selection
Product line – group of similar products with obvious variations in design/quality to meet needs of distinct customer groups.
Product assortment – complete set of all products a business offers to a market.
Packaging – provides protection, information, accessibility, promotion
Branding – name, symbol, word, or design that identifies a product, service or company
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6. Product Assortment Matrix
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7. 21.2 Distribution
DLTs
Discuss the important factors to be considered when selecting channels of distribution.
Describe the different channels of distribution.
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8. Purposes of Distribution
Economic discrepancies
Differences between types of products produced and types consumers want.
Differences between the time of production and the time consumers want the products
Differences between the location where products are produced and the location where consumers want them
Differences between the quantities produced and the quantities consumers want.
Economic utility – amount of satisfaction received from using a product or service.
Time utility – customers can purchase a product when they need it
Place utility – products are available at a convenient location
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9. Channels of Distribution
Channel members – Businesses that participate in activities that transfer goods and services from producer to users.
Types of distribution channels
Direct distribution – producer sells directly to consumer
Indirect distribution – producer sells to a chain of channel members before it reaches consumer
Integrated marketing channels – one business owns the organizations at other levels of the channel
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10. Distribution Channels for Consumer Products
© Cengage Learning 2013.
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11. 21.3 Channel Design
DLTs
Discuss the factors that affect a producer’s choice of distribution channel.
Describe the characteristics of major forms of transportation used to distribute products.
Give examples of product-handling procedures that improve product distribution.
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12. Selecting a Channel of Distribution
Different types of consumers require different channels of distribution
Factors to consider
Perishability of the product
Geographic distance between producer and consumer
Need for special handling of the product
Number of users
Number of types of products manufactured
Financial strength and interests of the producer
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13. Four Possible Channels for the Distribution of Computer Games
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14. Transportation Decisions
Common transportation methods
Railways
Trucks
Piggyback service
Airplanes
Other transportation methods
Waterways
Pipelines
Containerization
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15. Product Handling Tracking products Product storage Order processing
Bar codes
Product storage
Warehouses
Distribution center
Order processing
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