GROUP 5
DECISION MAKING IN TERMS OF PRODUCT, PRICE AND CHANNEL OR DISTRIBUTION
LESSON 1: PRODUCT companies grow by enabling them to
- A product's formulation to satisfy the stay competitive, innovate, and enter
needs or desires of target customers new markets.
is the first step in the marketing
planning process. Products are a PRODUCT FEATURES
crucial component of market offerings. "A feature is something your product has or
Three fundamental criteria are used is," according to Dan Shewan, "usually
by the customer to evaluate the functionality offered by a software program
offering: price, service mix and quality, that enables users to do something."
and product features and quality.
BRANDING AND PACKAGING
PRODUCT LINE - a name, image, design, symbol, or
- a group of products related to one combination of these that a seller
another and are all marketed under uses to identify and set apart its
one single brand name sold by the products from those of rivals.
same company. - The process of building a brand and
positioning it in the eyes of consumers
LEVELS OF PRODUCT in relation to rival brands is known as
Products are more than just physical objects; branding. Selecting the brand to
they offer a bundle of benefits that satisfy market a new offering under is a
customer needs. crucial decision for companies.
1. Core value - To create a successful
product, companies should first Cannibalization is the process by which a
identify the core value it provides. business' new product reduces the sales of
2. Actual product - product planners one of its more established products. It should
enhance the actual product by be avoided, it can also indicate that a business
developing new features, design, is moving forward and creating new, improved
brand elements, and quality products.
standards. Packaging serves as a barrier against
3. Augmented Product - companies damage, contamination, leaks, and tampering
can augment the product with in addition
additional services and benefits to to serving as a means of promoting the brand,
create a superior offering. its advantages, product warnings, and
appropriate usage.
By focusing on these three levels – core value,
actual product, and augmented product LESSON 2: PRICE DECISION MAKING
companies can differentiate their offerings, The process by which a business
create customer satisfaction, and ultimately determines the best price for its goods or
drive business success. services based on a few variables like
demand, production costs, and
competition is referred to as pricing
PRODUCT DEVELOPMENT decisions.
- The entire process of introducing a It is a procedure used to determine the
new product to the market, from appropriate compensation that suppliers
ideation to launch, is referred to as or manufacturers should receive for their
product development. goods or services.
- It also entails testing, improving, and A few factors, including net revenue, labor
making sure the final product satisfies costs, manufacturing costs, profit margins,
the requirements and expectations of and raw material costs, are important to
the intended market. consider when estimating the appropriate
- It takes cooperation between several prices.
teams, including research, marketing,
design, and engineering, to create a
successful product. A well-run process
for developing new products can help
PRICING STRATEGIES & TACTICS A pricing strategy is an approach
taken by businesses to decide how
much to charge for their goods and transportation temporarily be
services. The interaction between unusable.
margin, price, and selling level is given 5. Returns
specific consideration while pricing - The SCM process concludes with
products. Therefore, it's important and support for the product and customer
complicated to design a proper pricing returns.
plan that ensures business success. - The return process is often called
The price is a component that affects reverse logistics, and the company
a company's revenue significantly. It must ensure it has the capabilities to
forms the key variable in the receive returned products and
company's financial modeling and correctly assign refunds for them.
affects its income, profits, and - Returns can also be a valuable form of
investments in the long term. Price feedback, helping the company to
reflects the idea of a business and identify defective or poorly designed
shows its behavior towards products and to make whatever
competitors and the value it gives changes are necessary.
customers. DISTRIBUTION CHANNEL
- The direct channel is the most
LESSON 3: CHANNELS OR DISTRIBUTION straightforward distribution channel,
eliminating intermediaries between the
SUPPLY CHAIN MANAGEMENT producer and the consumer. This
- is the monitoring and optimization of simple yet powerful model is
the production and distribution of a commonly used by small-scale
company’s products and services. producers, such as farmers and
- It seeks to improve and make more artisans, who sell their goods directly
efficient all processes involved in to customers at farmers' markets or
turning raw materials and components through online platforms.
into final products and getting them to - Retailers are businesses that
the ultimate customer. primarily sell products to consumers.
1. Planning In retailer channels you are likely to
- Companies must try to predict what interact with retailers daily, whether it's
their future needs will be and act at a physical store, online, or through
accordingly. Considering the raw other channels like kiosks or home
materials or components needed delivery. Unlike direct channels where
during each stage of manufacturing, producers sell directly to consumers,
equipment capacity and limitations, retailers act as intermediaries,
and staffing needs. marketing and selling products on
2. Sourcing behalf of the producers. This
- Sourcing entails working with vendors provides significant convenience to
to supply the materials needed consumers as they can purchase a
throughout the manufacturing process. variety of products from a single
Different industries will have different location. The key characteristic of
sourcing requirements. retail is the direct-to-consumer sale,
3. Manufacturing regardless of the specific sales
- The manufacturing process may be channel.
further divided into sub-tasks such as - From a consumer's standpoint, the
assembly, testing, inspection, and wholesale channel might seem like
packaging. During the manufacturing retail, but it involves an extra step: the
process, companies must be mindful wholesaler.
of waste or other factors that may - Wholesalers are businesses that
cause deviations from their original purchase large quantities of goods
plans. from producers, store them, and then
4. Delivery resell smaller quantities to retailers or
- A company with effective SCM will directly to businesses.
have robust logistic capabilities and - Lastly, the agent or broker channel
delivery channels to ensure timely, introduces another intermediary into
safe, and inexpensive delivery of its the distribution process. Unlike
products. This includes having a wholesalers who take ownership of
backup or diversified distribution goods, agents and brokers don't
methods should one method of own the merchandise they handle.
Their role is to connect buyers and B. Two Level Channel:
sellers, negotiating deals on behalf - This channel of distribution
of their clients. Agents often have involves two intermediaries
long-term relationships with either transferring goods from the
buyers or sellers, while brokers manufacturer to the customer.
typically work on a temporary basis In this wholesalers and retailer
to facilitate specific transactions. act as a connecting link
between manufacturers and
CHANNEL DESIGN consumers. This network
- is the strategic process that enables manufacturers to
commercial organizations use to cover a large market area. It is
balance resources across direct and the most adopted distribution
indirect channels or routes to market. channel for consumer
Direct channels typically include field products.
sellers and e-commerce platforms,
while indirect channels can include a C. Three Level Channel:
mix of partners, distributors and - This channel of distribution
marketplaces. involves manufacturers using
the services of agents or
A. One Level Channel: brokers to connect with
- This channel of distribution wholesalers and retailers.
involves one intermediary Manufacturers appoint agents
transferring goods from the in major areas who in turn
manufacturer to the customer. connect them to wholesalers
In this, the title and risk and retailers. It is suitable for
transfers from manufacturers manufacturers of limited
to retailers who in turn sell product lines with customers
goods to customers. This spread over a wide
distribution channel enables geographical area.
manufacturers to retain control
and approach many potential
customers.
GROUP 6
PROMOTION OF GOODS AND SERVICES
awareness, interest, and sales of
PROMOTION products.
- Refers to the various strategies and
tactics used to communicate with PROMOTION OF SERVICES
potential customers about the - Strategic processes are designed to
features, benefits, and value of increase awareness, generate
product or service, with the goal of interest, and stimulate demand for
increasing awareness, generating intangible offerings.
interest and ultimately driving sales. - Unlike physical products, services are
often complex and require effective
PRIMARY GOAL OF PROMOTION communication to convey their value.
Increase brand awareness
Create curiosity to product and service TYPES OF PROMOTION (GOODS AND
Increase sales SERVICES)
Build brand loyalty Advertising – is any paid form of non-
personal presentation of ideas, goods, and
PROMOTION OF GOODS services by an identifies sponsor.
- Specifically focused on strategies and o Goods: using digital platforms like
tactics designed to increase social media, traditional methods
o Services: relies on online ads like o Services: involves Offering Free
SEO, and social media targeting. Services or Trials which allow
Sales promotion – direct inducements potential customers to experience
that offer extra incentives to enhance or your services at no cost.
accelerate the products movements from
producer to consumer
o Goods: discounts and coupon
o Services: loyalty program rewards
Public relation – is a management
function which identifies, establishes, and
maintains mutually beneficial relationships
between an organization and publics
o Goods: include Product Launch
Events
o Services: includes press release
Social Media Marketing- means using
social media platforms.
o Goods: which involve creating
visually appealing and engaging
content for your audience.
o Services: involve engaging
content that share relevant
articles, tips, testimonials, and
case studies related to your
service.
Email Marketing- is the use of email to
promote products or services, as well as
incentivize customer loyalty.
o Goods: includes building an email
list and sending targeted
campaigns.
o Services: through use segmented
email lists to send customized
messages.
Point-of-Sale Promotion-is an in-store
promotion that happens at the point where
a transaction occurs to help increase
sales.
o Goods: by implementing attractive
displays and signage in retail
locations.
Sampling and Demonstrations- is
defined by giving consumers the ability to
touch, feel and sense your product or
brand.
o Goods: includes offering free
samples in stores
Networking and Partnerships
o Services: includes collaborating
with other businesses and through
attending events and trade shows
Customer Testimonials
o Services: involves showcase
success stories from customers
Free Trials or Consultations- is a
common marketing strategy used by
businesses to attract and convert potential
customers.
