Chapter 13: Product and Distribution Strategies

Brand
name, term, sign, symbol, design, or anything that represents/differentiates a company from a competitor.
Brand Equity
added value that a respected and successful name gives to a product.
Brand Name
part of a brand consisting of words or letters that form a name that identifies and distinguishes an offering from those of competitors.
Category advisor
vendor that is designated by the business customer as the major supplier to deal with all other suppliers for a special purchase and to present the entire package to the business buyer.
Category manager
person who oversees an entire group of products and assumes profit responsibility for the product group.
Convenience product
item the consumer seeks to purchase frequently, immediately, and with little effort.
Direct distribution channel
marketing channel that moves goods directly from producer to ultimate user.
Distribution channel
path through which products–and legal ownership of them–flow from producer to consumers or business users.
Distribution strategy
planning that ensures that customers find their products in the proper quantities at the right times and places.
Exclusive distribution
distribution strategy involving limited market coverage by a single retailer or wholesaler in a specific geographical territory.
Family brand
brand name used to identify several different, but related, products.
Individual brand
different brand names given to each product within a line.
Intensive distribution
distribution strategy that involves placing a firm’s products in nearly every available outlet.
Logistics
activities involved in controlling the flow of goods, services, and information among members of the supply chain.
Manufacturer’s (national) brand
brand offered and promoted by a manufacturer or producer.
Physical distribution
actual movement of products from producer to consumers or business users.
Private (store) brand
product that is not linked to the manufacturer, but instead carries the label of a retailer or wholesaler.
Product
bundle of physical, service, and symbolic attributes designed to satisfy buyers’ wants.
Product life cycle
four basic stages–introduction, growth, maturity, and decline–through which a successful product progresses.
Product line
group of related products that are physically similar or are intended for the same market.
Product mix
company’s assortment of product lines and individual offerings.
Retailer
channel member that sells goods and services to individuals for their own use rather than for resale.
Selective distribution
distribution strategy in which a manufacturer selects only a limited number of retailers to distribute its product lines.
Shopping product
item typically purchased only after the buyer has compared competing products in competing stores.
Specialty product
item that a purchaser is willing to make a special effortto obtain.
Supply chain
sequence of suppliers that contribute to creating a good or service and delivering it to business users and final consumers.
Test marketing
introduction of a new product supported by a complete marketing campaign to a selected city or TV coverage area to examine both consumer responses to the new offering and the marketing effort used to support it.
Trademark
brand with legal protection against another company’s use, not only of the brand name but also of pictorial designs, slogans, packaging elements, and product features such as color and shape.
Vendor-managed inventory
company’s decision to hand over its inventory control functions to suppliers.
Wheel of retailing
theory of retailing in which new retailers gain a competitive foothold by offering low prices and limited services and then add services and raise prices, creating opportunities for new low-price competitors.
Wholesaler
distribution channel member that sells primarily to retailers, other wholesalers, or business users.