Scribe Post for Monday, Oct. 11

Today in class we finished discussing pricing strategies.  We covered the following 5 categories for pricing strategies:

• New Product - which is used in the introductory phase of the product life cycle
• Differential - which is charging a different price for the same product to different buyers
• Product Line - which is when other products in the same product line (or mix) determine the price
• Promotional - which is when price is used as a form of promotion

Then we began discussing Chapter 14 on Distribution.  Distribution is how a producer gets the product to the consumer.  This fills the TIME and PLACE utility.

There are 3 types of market coverage:

• Intensive - used for convenience products, all possible outlets chosen
• Selective - used for shopping products, multiple outlets chosen
• Exclusive - used for specialty products, only one outlet

Then we discussed channels of distribution:

• Producer to consumer
• Producer to retailer to consumer
• Producer to wholesaler to retailer to consumer

The retailers and wholesalers help to improve efficiency in the distribution system and because they can buy in bulk, actually drive the price of the product down for the consumer.

Finally we ended with a discussion about different types of retailers.

In next class we will discuss Chapter 15 on Promotion.  Also, the bonus assignments given are due by next Monday.  (They are listed in the announcements in eCampus.)

The next scribe will be COURTNEY!!