Topics: Marketing, Pricing, Product management Pages: 5 (1331 words) Published: December 8, 2012
– 2 Litre bottles too big for Spanish fridges
– Pronunciation in China – Kooke Koula
• ‘A thirsty mouthful of candle wax’
• Pepsi-Cola:
– “Come Alive with Pepsi” in German translated to:
• “Come alive out of the Grave … “
• McDonald’s:
– The white face of ‘Ronald McDonald’
• A white face is seen as a death mask in Japan
For many a product is simply the tangible, phsysical entity that they may be buying or selling. You buy a new car and that's the product - simple! Or maybe not. When you buy a car, is the product more complex than you first thought? In order to actively explore the nature of a product further, lets consider it as three different products - the CORE product, the ACTUAL product, and finally the AUGMENTED product. These are known as the 'Three Levels of a Product.' So what is the difference between the three products, or more precisely 'levels?' The CORE product is NOT the tangible, physical product. You can't touch it. That's because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly. The ACTUAL product is the tangible, physical product. You can get some use out of it. Again with the car example, it is the vehicle that you test drive, buy and then collect. The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car's manufacture, and any after-sales service. PLACE:

Another element of Neil H.Borden's Marketing Mix is Place. Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. There are six basic 'channel' decisions:

Do we use direct or indirect channels? (e.g. 'direct' to a consumer, 'indirect' via a wholesaler). •Single or multiple channels.
Cumulative length of the multiple channels.
Types of intermediary (see later).
Number of intermediaries at each level (e.g. how many retailers in Southern Spain). •Which companies as intermediaries to avoid 'intrachannel conflict' (i.e. infighting between local distributors). Selection Consideration - how do we decide upon a distributor? •Market segment - the distributor must be familiar with your target consumer and segment. •Changes during the product life cycle - different channels can be exploited at different points in the PLC e.g. Foldaway scooters are now available everywhere. Once they were sold via a few specific stores. •Producer - distributor fit - Is there a match between their polices, strategies, image, and yours? Look for 'synergy'. •Qualification assessment - establish the experience and track record of your intermediary. •How much training and support will your distributor require? Types of Channel Intermediaries.

There are many types of intermediaries such as wholesalers, agents, retailers, the Internet, overseas distributors, direct marketing (from manufacturer to user without an intermediary), and many others. The main modes of distribution will be looked at in more detail. 1. Channel Intermediaries - Wholesalers

They break down 'bulk' into smaller packages for resale by a retailer. •They buy from producers and resell to retailers. They take ownership or 'title' to goods whereas agents do not (see below). •They provide storage facilities. For example, cheese manufacturers seldom wait for their product to mature. They sell on to a wholesaler that will store it and eventually resell to a retailer. •Wholesalers offer reduce the physical contact cost between the producer and consumer e.g. customer service costs, or sales force costs. •A...
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