Distribution and Channels
A marketing/business function that is responsible for moving, storing, locating, and/or transferring ownership of goods and services
Distribution (Channel Management)
The product is launched into the market. Costs are high due to promotion, and sales are low as awareness is built.
Introduction
This involves mapping out goals, analyzing internal/external factors, and determining the best course of action. It includes forecasting future conditions and setting strategies to achieve objectives.
Planning
Examples of these include monthly rent, software subscriptions, and annual SEO agency retainers.
Fixed Costs
When a channel manager adds a higher-priced, higher-margin product to a lineup, they are utilizing this specific, tricky strategy to increase profitability.
Trading up
a person or company that sells goods in large quantities at low prices, typically to retailers.
Wholesaler
Demand increases, leading to higher profits, improved production efficiency, and more competition entering the market
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Growth
This establishes the framework, defines roles and responsibilities, and assigns tasks and resources to achieve the plan. It involves creating a structure for the organization.
Organizing
Costs that fluctuate in direct proportion to production or sales volume, such as PPC ad spend or print materials.
Variable
While commonly cited as having four stages, the PLC is often expanded to five, starting with this stage where costs are high and profits are non-existent.
Development
Use of social media outlets as a channel for promotion, selling, distribution, or other functions of marketing
Social media marketing
Sales volume peaks but levels off. The product is widely known, and market competition is intense, requiring strategies to maintain market share.
Maturity
This focuses on recruiting, selecting, training, and retaining the right personnel to ensure a capable workforce.
Staffing
This formula measures the profitability of a marketing investment relative to its cost.
Return on Investment
If a product costs $400 to make and sells for $500, what is the profit margin percentage?
20%
a way for individuals and companies to purchase and sell goods and services over the internet.
Sales drop due to changing consumer preferences, saturation, or superior competition, leading to product discontinuation or reinvention.
Decline
This involves guiding, motivating, leading, and supervising employees to perform tasks efficiently and achieve goals. It includes communication and conflict resolution.
Directing
This is the cost incurred to acquire a new customer, which is critical for digital marketing budgets.
CAC (Customer Acquisition Cost)
This strategy, often used by luxury brands, involves severely limiting the number of intermediaries to maintain a high-prestige image.
Exclusive Distribution
A combination or blend of marketing communication channels an organization uses to send messages to its existing and potential consumers
Promotional Mix
The strategic approach to managing a product throughout its lifecycle, encompassing development, manufacturing, marketing, and sales.
Product Life Cycle Management
This entails measuring actual performance against set standards, identifying deviations, and taking corrective actions. It ensures that organizational goals are met.
Controlling
the total amount of money brought in by a company's operations, measured over a set amount of time, calculated by price times quantity
Revenue
This phenomenon describes the point where the cost of finding new customers in the maturity stage outweighs the profit from the product, forcing a decision to harvest or divest.
Market Saturation