Lecture 9: Distribution and Managing Growth Flashcards
What can you scale?
- Your products/service
- Your channels
- Your customers
Explain the pros and cons of the three scaling methods of your products/services.
Outsourcing: hire someone else
• Pros: fastest (though not fast); moderate quality, good short-term solution
• Cons: expensive, communication is difficult, difficult to change and maintain
Do it yourself
• Pros: tools exist to help, great to learn new skills, easy to make changes and maintain
• Cons: difficult, requires long time, may not use your own skills and talents optimally
Team up
• Pros: high quality solution, best for short term projects, potential for long-term
relationships
• Cons: make sure you’re not exploiting them, friends may be flaky
Which questions do you need to ask when scaling your channels?
How costly is it to pursue this channel?
How many hours will it take?
Name two other scaling ideas
Increase market demand
Make a new product
How to increase demand for existing product?
Reach customers in new ways
Promote varies use
Promote more frequent usage/replacement
What is the halo effect? And give some marketing examples.
To assume that if something is good on one attribute then it is good on all others. Iphone -> positive effect on other apple products.
What is the horn effect?
Believe that negative trait are connected to each other.
What is individual branding, umbrella branding, and sub-branding?
Brand that are not connected and have a different name, but are from the same company
New product under the name of the same brand in different sectors
New product under the name of the same brand in the same sector
When not to extend a brand?
When your brand is too strong, when it’s a certain category.
If you have concrete associations or your brand is tied to specific product characteristics.
What are the benefits of a distribution channel?
Bigger reach, easier for customers
Which parts to you have to support when you’re making distribution choices?
Targeting and positioning
What is direct distribution?
Direct sale between manufacturer and the consumer.
What is indirect distribution?
Selling your products to retailers.
What is exclusive distribution?
Only to one distributor. For example AT&T can only sell the iPhone of apple.
What are the pros and cons of intensive distribution?
Pros: good for product awareness, more profit.
Cons: huge expenses, difficult to manage retailers.
