What Is Markeitng Essay Research Paper MARKETING1L1WHAT — страница 5

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to home computers]-secret deo. [From women to men]. Example for new uses for the product: ARM & HAMMER BAKING SODA [cooking-refrigerator-polish silver-cleaning carpets-litter box-laundry-bathing]. 2.Product modification: Is an attempt to revitalize a product by changing it some way to increase demand (new and improved). Example for that: GOHAINA and its plastic cover. 3.Brand repositioning: It means replacing or re segmenting. Example for that: JCPENNY AND OMAR AFENDY. 4-THE DECLINE PHASE: The product enters this phase by the cause of a change in the consumer tastes or the change of technology. Example: typewriters-camera-vcrs&cassets (are on the way). The sales and profits decreases, that might happen because the hard competition. The company must to choose between two

ways. 1.Deleting the brand 2.A- BRAND HARVESTING: It means decreasing the costs to almost zero, and allowing the brand to count surviving on its own. Example the drugs companies. B- BRAND REVIVAL: Brings a brand back to life depending on the brand?s name strength. Example for that is BARBIE. PLACE It is the next p of the 6 p?s that makes the marketing mix. Simply it answers the question {how does a producer or a manufacturer get his product to the consumer?}. There are two main ways to distribute your product, direct marketing and indirect marketing. When distributing a product through direct marketing, the producer sell directly to the consumer, while distributing a product through indirect marketing, the producer uses intermediates to deliver the product. Definition of a

distribution channel A distribution channel is composed of all firms or individuals that take title or assist on taking title of a product, as it moves from the producer to the consumer. Types of intermediates 1.RETAILERS: they sell to final consumer, used mostly by producers of fast consumer goods. 2.WHOLESALERS: they buy (take title) and resell products to other wholesaler or a retailer. They are also called distributors. 3.AGENTS: they represent the producer, they do not take title, they get a commission, and they sell on behalf of the producer in a specific geographic area. 4.BROKER: they are the link between the buyer and the seller, with out representing any of them. They do not take title, they do not have a continuing relationship with the sell, and they get a commission.

Why we use a middle man? 1.Transactional function: on making a buy and a sell, the middleman takes risks of stoking the products in an inventory (administration function). 2.Logistical function: the requiring of assembly, storage to go to retail shelf. 3.Facilitating function: obtaining information that producers need, about marketing conditions, promotion of the products, extending credit. Types of distribution systems 1.Direct marketing: it is the avoiding of the middleman. Examples: vMail orders vCatalogs vDoor-to-door (it is an open chance for theft) vCo-owned retail outlets, this way the producers by pass the retailers and the wholesalers. Example: the public sector stores. vTelephone sales (telemarketing). vInteractive shopping. Example: the Internet, the television

shopping cable. 2.Producer to retailer: in this case the producers by pass the wholesalers, in order to have more control on the product. This action depends to some extent on the product. This way is used mostly in durable goods (furniture, electronics). This way is expensive and time consuming so it is done in large bulks, example: fine foods in the past. 3.Franchise system: a company gives to a distributor the right of selling the company?s product under the company?s name, exclusively in an area. The distributor pays the company money in the form of royalty. 4.Producer to wholesaler: the wholesaler takes title of the product and this is used in fmcp (fast moving consumer goods), example: fine foods now. 5.Agents and brokers: they are used to sell to wholesalers and consumers,

example; auto mobile. ?The longer the chain is the least the control is.? Evaluation of distribution channels 1.The characteristics: the characteristics of your consumer and your product, influences the distribution channel. It is direct marketing if your consumers are few, and you need to reach them more closely. But it is indirect marketing if your consumer segment is large, and you do not need to reach them closely. 2.Gaining a competitive advantage: as we all know competitive advantage could be any thing, it would be the distribution channel. Example: L?eggs (stockings), they put their product where least expected, in the super market, mineral water is another example, where the company?s competitive advantage is not quality nor price as they are all the same, but it is the