BERMAN08.PPT 35KB Jun 05 2011 09:30:17 PM

MARKETING CHANNELS
Product Management Strategy
Berman Chapter 8
Version 3.0
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Overview of Product
Management Strategy
• A. New Product Planning
• B. Product Life Cycle
• C. Reverse Channels
– recall and recycling

• D. Packaging
• E. Legal Aspects
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A. New Product Planning
Process
• Sequence
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idea generation
product screening
concept testing
business analysis
product development
test marketing
commercialization
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“Channel Considerations”
New Product Plng
– other channel members
• wholesalers, retailers, facilitators

– new product sales forecast
– channel overlap
• new , existing

– test marketing
– willingness to stock and display
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• Justification
• Channel members
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generate new ideas
evaluate new product concepts
closer to market, customers, competitors
purchasing agents for customers
essential for success
unbiased response vs subordinates
parts,
suppliers expertise
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•Existing Channels / New Product Fit
Functional Fit
• ability to store, sell, repair and service
• channel overlap
• incremental costs, new products vs existing
• established customer relationships
• incremental quantities, coop opportunities
• single source suppliers
•reduce order costs
•compatibility problems

• incremental expense of new members,
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suppliers

B. Channel Mgnt and Product Life Cycle
• wholesaler/retailer by PLC stage
• different strategies at each stage
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training at introduction
reduced sales at decline
service experience and product life
boutique, specialty store, department store,
discount store, direct marketing

• wholesaler/retailer control
– gatekeepers, change agents

• derived demand sources
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• Wholesaler Retailer Roles
– at introduction
• diffusers, gatekeepers, scouts, troops
• pioneer brand, follower brands
• slotting allowances, pay-to-stay, failure fee

– at growth
• reevaluation and adjustment
• expansion of channel member responsibilities

– at maturity
• reevaluate coverage, increase enthusiasm
• shelf space, private label strategies
• new market segments, extend stage

– at decline

• reduce members, discontinue, develop new markets

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• Evaluation of The Product Life Cycle
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variance between categories, forms and brands
self fulfilling prophesy
cycle variances in length
cycle variances in intensity
recycling

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• C. Reverse Channels

• returned goods - credit, repair
• product recall
• product recycling

– final consumer to manufacturer
• backhaul opportunity

– accumulate quantities vs sorting
– combine categories vs separation
(grades, color, sizes)

– large quantities of manufacturers (customers)
– unauthorized suppliers, customers, buyers
• charities, schools
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• Product Recall
• measurement = completion rate

– cost reductions during recalls

• contacting customers
• notification time period
• reduce lost business

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• Product recycling
– waste - postconsumer, comparable,
preconsumer
– ways to promote - government, laws,financial
incentives, disincentives, educational programs,
– strategies to reduce waste, increase recycling
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design for ease of disposal
innovative packaging
closed loop recycling

products with high recycling rates
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• D. Packaging and Channels
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Contain and Protect Products
Promote Products
Facilitate product storage, use and convenience
Facilitate recycling
Reducing environmental damage

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• E. Legal Aspects of Channel
Management

– exclusive dealing
– tying arrangements
– full line forcing
– reciprocity
– refusal to deal
– private label
– slotting allowances
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