Marketing channels.
Multichannel distribution.
Disadvantages of Multiple Marketing Channels:
Decreased economies of scale, increased sales costs, lack of control, Production and Cash Flow Stress
Today’s successful companies know that they can’t go it alone in creating value for customers. Instead, they must create effective value delivery systems, consisting of suppliers, producers, and distributors that work together to get the job done. Partnering with suppliers and distributors can yield big competitive advantages.
The distribution policy is the marketing tool that links production with consume. The definition of this policy will allow determining the way we are going to make the product arrive at the final consumer, which will depend on the distribution chain link we are at (producer, intermediary or retailer).
15. The meaning of the augmented product: 5 levels of products and services
1. Core Product
This is the basic product and the focus is on the purpose for which the product is intended. For example, a warm coat will protect you from the cold and the rain.
2. Generic Product
This represents all the qualities of the product. For a warm coat this is about fit, material, rain repellent ability, high-quality fasteners, etc.
3. Expected Product
This is about all aspects the consumer expects to get when they purchase a product. That coat should be really warm and protect from the weather and the wind and be comfortable when riding a bicycle.
4. Augmented Product
This refers to all additional factors which sets the product apart from that of the competition. And this particularly involves brand identity and image. Is that warm coat in style, its colour trendy and made by a well-known fashion brand? But also factors like service, warranty and good value for money play a major role in this.
5. Potential Product
This is about augmentations and transformations that the product may undergo in the future. For example, a warm coat that is made of a fabric that is as thin as paper and therefore light as a feather that allows rain to automatically slide down.
Product planners need to think about products and services on three levels. Each level adds more customer value. The most basic level is the core customer value, which addresses the question: What is the buyer really buying? When designing products, marketers must first define the core, problem-solving benefits or services that consumers seek. Example: people who buy an Apple iPad are buying much more than just a tablet computer. They are buying entertainment, self-expression, productivity, and connectivity with friends and family—a mobile and personal window to the world.
At the second level, product planners must turn the core benefit into an actual product .They need to develop product and service features, a design, a quality level, a brand name, and packaging. For example, the iPad is an actual product. Its name, parts, styling, operating system, features, packaging, and other attributes have all been carefully combined to deliver the core customer value of staying connected.
Finally, product planners must build an augmented product around the core benefit and actual product by offering additional consumer services and benefits. Example: The iPad is more than just a digital device. It provides consumers with a complete connectivity solution. Thus, when consumers buy an iPad, Apple and its resellers also might give buyers a warranty on quick repair services when needed, and a Web site to use if they have problems or questions. Apple also provides access to a huge assortment of apps and accessories, along with an iCloud service that integrates photos, music, documents, apps, calendars, contacts, and other content across all of their devices from any location. Apple has a free delivery service when buying pd in official web.
Consumers see products as complex bundles of benefits that satisfy their needs.
