国际市场英语223

Unit1GeneralViewofInternationalMarketingWhatismarketing？Itisaprocessbywhichindividualsandgroupsobtainwhattheyneedandwantthroughcreatingandexchangingproductsandvaluewithothers.

AnintegratedprocessAnalysisMarketsmustbeunderstood,andthisunderstandingflowsfromanalysis.Marketingmanagersspendweeksanalyzingtheirmarketsbeforetheyundertakethedevelopmentofmarketingplansforinfluencingthosemarkets.

PlanningOnceamarketisunderstood,marketingprogramsandeventsmustbedesignedforinfluencingthemarket'scustomersandconsumers,andeventhefirm'scompetitors.

ExecutionThemarketingeventsareexecutedinthemarkets:advertisementsarerun;pricesareset;salescallsaremade,etc.

MonitoringMarketsarenotstaticentitiesandthusmustbemonitoredatalltimes.Aftereventsareexecuted,theyneedtobeevaluated.RolesofamarketingmanagerDetective----Whattobelearned(detected)andhow?Designer-----Designerof?Decisionmakerandinfluencer----Howdoesamarketingmanagerplaytheroleofasuperiorandsubordinate?Diplomat----Whydoesamarketingmanagerneedtoplayadiplomaticrole?Discussant----Whyisdiscussionextremelyimportantinmarketing?ThemarketingmixTherightproduct

attherightprice

availablethroughtherightchannelsofdistribution:placepresentedintherightway:promotionProduct

Aproductisnotamerecollectionofvisibleparts.Sowhatisyourunderstandingofa“product”?

promotionPromotionmixAdvertisingSalespromotion(consumerpromotion—coupon,trialuse,lottery…)(tradepromotion—tradeexhibition,salescompetition…)Publicrelation(pressconference,sponsorship…)Personalselling(salesrepresentatives)Directmarketing(directmail,telemarketing,e-mailmarketing）priceWhattobetakenintoconsiderationwhilepricingaproduct?e.g.

thecostoftheproductthetargetprofitthesupplyanddemandrelationshiptheabilityofthecustomertopaythecompetition(marketshare)

…???placeProductsmaygothroughvariouschannelsofdistribution.B2BandB2Ccompaniescansellthroughasinglechannelorthroughmultiplechannelsthatmayinclude:Wholesaler/DistributorDirect/SalesTeamDirect/CatalogDirect/InternetValue-AddedReseller(VAR)SalesAgent/Manufacturer’sRepRetailerConsultant…

Tocreateagooddistributionprogram,focusontheneedsof——YOUREND-USERS!Unit2MarketWhatisamarketInthesimplestterms,amarketistheplacewheresellersmeetbuyerstoexchangeproducts,orformoney.WhatismarketsegmentationMarketsegmentationisamarketingstrategythatinvolvesdividingabroadtargetmarketintosubsetsofconsumerswithcommonneedsandapplicationsfortherelevantgoodsandservices.Whysegment?…tohelpcompaniestobetterunderstandtheneedsofaspecificcustomerbase.premisesEachbrandcanonlysellproductseffectivelytocertainsegment(s)insteadofthewholemarket.

GOODFORＡＬＬ？！（ｗｈａｔｅｌｓｅ？）Howtodivideabroadtargetmarket

intosubsetsofconsumersForconsideration:DemographicelementsBuyers’values,attitudes,motivations,aestheticpreferences,patternsofusage,degreesofsusceptibility……CriteriaforagoodmarketsegmentItshouldbepossibletoidentifyandmeasureit;Itshouldbebigenoughtobeworththeeffort;Itshouldbeeasytoreachit;Itshouldnotchangequickly;Itshouldberesponsive.Pleasebriefyourunderstandingofeachcriterion.Advantagesformarketsegmentation1.Reasonableallocationofresourcesforthemostpotentiallyprofitablesegment(s).MoneyTimeOtherpromotionattention…Advantagesformarketsegmentation2.Specializinginaproductlinewhichtrulycaterforcertaindemand(s)inthemarket.AdvantagesformarketsegmentationWhatotheradvantagescanyoufigureout?DisadvantagesformarketsegmentationAlargeinvestmentoftimeandmoneyfor——ResearchAdjustmentofproducts…DisadvantagesformarketsegmentationAndalltheinvestmentmaybeawasteif——thekeysubsetsarenoteffectivelyidentified.e.g.Whatifthemarketsegmentswhichareidentifiedaretoonarrow?Unit3MarketingmixMarketingmixItisaplannedmixofthecontrollableelementsinamarketingplan,traditionallytermedas4Ps:product,price,place,andpromotion.(McCarthyin1960)Thenpoliticalpowerandpublicrelationshipwereaddedto4PsbyKotlerinthe1920s.Thenfurtherdevelopment…productItreferstoaphysicalproductorserviceoranideawhichisneededinthemarket.Physicalproduct

——tangibleService(anideamaybepartofservice)

——intangible

ElementsforconsiderationaboutaproductProductattributesProductlinesBrandingPackagingandlabelingLifecycleNewproductdevelopmentSupportservice…

Attribute:quality,featuresanddesign(importanceofdifferentiation)ProductlineAsetofrelatedproductssoldbyacompany(Canyoulistsomeexamplesandtrytoexplainwhy?)

BrandingAcrucialfactor,thecreationofauniqueandappealingnameandimageofaproductPackagingandlabelingPackagingmeansputtingtheproductinsuitablecontainersorpacketsforprotectionorotherpurposes.Labelinginvolvesindicationofthecontent,instructionforuse,informationoftheproducerandproduction,etc.LifecycleIntroductorystageGrowthstageMaturitystageDecliningstage

Newproductdevelopment

——anintegratedprocessSupportservice----theAugmentedpartofaproduct(e.g.Installation,traininginuse,repairing…)pricefactorsinfluencingpricing:InternalfactorsExternalfactorsCostMarketingstrategySalesobjectivesPricingexecutive(Whatelse?)…Themarket(e.g.demandandsupplyrelationship)ConsumersCompetitionGovernmentintervention(Whatelse?)…placeChannelsofdistribution----Intermediariesinvolvedintheprocessinwhichaproductispassedfromtheproducertoconsumers

Physicaldistribution----Orderprocessing----Warehousing----Inventory----transportationpromotionPromotionMixMajortools:----advertising----personalselling----salespromotion----publicity

Advertising----Classificationandchoiceofadvertising----Functionsofadvertising----Drawbacksofadvertising

Personalselling----responsive----impressive----persuasive----flexibleBut…----expensive----dependentonsalesforce

Salespromotione.g.discounts,freesamples,coupons,freegifts,storedisplay,demonstration…

Publicity----afavorablepresentationmadethroughmassmediaaboutaproductUnit4ProductWhatisaproductAproductisanythingthatisofferedtoamarketforattention,acquisition,useorconsumptionandthatmightsatisfyawantorneed.Itcouldbeanobject,anidea,someservice,information…Ithasacombinationoftangibleandintangibleattributes(benefits,functions,features…).ThreelevelsofaproductThecoreproductTheactualproductTheaugmentedproductCoreproductThedominantbenefitsorsatisfactionthatacustomerexpectsforaproduct.…centraltothecompany'sperformanceandmakethemostmoneythatsustainthebusiness.Examples:

WindowsOperatingSystemforMicrosoft

GoogleSearch(platform)forGoogleActualproductCharacteristics:aqualitylevelFeaturesStylingabrandnamepackaging.AugmentedproductAdditionalelementsrequiredfortheproducttohavecompellingvaluetoacustomer--andmakeitcompetitiveE.g.FreeinstructionsTimelyrepairTailoredserviceWarrantyInstantdelivery…(Pleasegivemoreexamples.)Importanceofaugmentedbenefits.

(Thisiswheremostcompetitiontakesplace.)Augmentedbenefitsvs.expectedbenefits

(Whatistheimplication?)ProductclassificationTofulfillcustomers’needsinmorepreciseandeffectiveways.Therearedifferentcriteriaforproductclassification.

TangibleandintangibleproductsAtangibleproductisaphysicalobjectthatcanbeperceivedbytouchsuchasabuilding,avehicle,agadget,orclothing.Anintangibleproductisaproductthatcanonlybeperceivedindirectlysuchasaninsurancepolicy.DurableproductsandnondurableproductsDurableproductsareusedoveranextendedperiodoftimeandnormallysurviveformanyyears.Examplesarerefrigerators,carsandfurniture.Nondurableproductsareusedandconsumedinstantly,likefoodanddrinks.ConsumerproductsandindustrialproductsConsumerproducts:ConvenienceproductsShoppingproductsSpecialtyproducts…Industrialproducts:MaterialsandpartsSuppliers…

Unit5PriceandpricingPricing定价策略“Pricingstrategiesforproductsorservicesencompassthreemainwaystoimproveprofits.Thesearethatthebusinessownercancutcostsorsellmore,orfindmoreprofitwithabetterpricingstrategy.Inthedownturnofbusiness/economicsituation,andsince,whencostsarelikelyalreadyattheirlowestandsalesarehardtofind,adoptingabetterpricingstrategyisakeyoptiontostayviable(能独立生存/发展的，可望成功的）.Merelyraisingpricesarenotalwaystheanswer,especiallyinapooreconomy.Toomanybusinesseshavebeenlostbecausetheypricedthemselvesoutofthemarketplace.Ontheotherhand,toomanybusinessandsalesstaffleave‘moneyonthetable’.Onestrategydoesnotfitall,soadoptingapricingstrategyisalearningcurvewhenstudyingtheneedsandbehaviorsofcustomersandclients”.(Gregson,Andrew.PricingStrategiesforSmallBusiness2008SelfCounselPress.ISBN978-1-55180-979-3)ModelsofPricing

（1）Cost-pluspricing

Cost-pluspricingisthesimplestpricingmethod.Thefirmcalculatesthecostofproducingtheproductandaddsonapercentage(profit)tothatpricetogivethesellingprice.Thismethodalthoughsimplehastwoflaws;ittakesnoaccountofdemandandthereisnowayofdeterminingifpotentialcustomerswillpurchasetheproductatthecalculatedprice.Thisappearsintwoforms,Fullcostpricingwhichtakesintoconsiderationbothvariableandfixedcostsandaddsa

%markup.TheotherisDirectcostpricingwhichisvariablecostsplusa

%markup,thelatterisonlyusedinperiodsofhighcompetitionasthismethodusuallyleadstoalossinthelongrun.（2）CreamingorskimmingInmarketskimming,goodsaresoldathigherpricessothatfewersalesareneededtobreakeven.Sellingaproductatahighprice,sacrificinghighsalestogainahighprofitistherefore"skimming"themarket.(3)LimitpricingAlimitpriceisthepricesetbyamonopolisttodiscourageeconomicentryintoamarket,andisillegalinmanycountries.Thelimitpriceisthepricethattheentrantwouldfaceuponenteringaslongastheincumbent(existing,responsible)firmdidnotdecreaseoutput.（4）Lossleader

Alossleaderorleaderisaproductsoldatalowprice(ie，atcostorbelowcost)tostimulateotherprofitablesales.Thiswouldhelpthecompaniestoexpanditsmarketshareasawhole.（5）Market-orientedpricingSettingapricebaseduponanalysisandresearchcompiledfromthetargetmarket.Thismeansthatmarketerswillsetpricesdependingontheresultsfromtheresearch.Forinstance,ifthecompetitorsarepricingtheirproductsatalowerprice,thenit'suptothemtoeitherpricetheirgoodsatanabovepriceorbelow,dependingonwhatthecompanywantstoachieve.(6)Penetrationpricing“Settingthepricelowinordertoattractcustomersandgainmarketshare.Thepricewillberaisedlateroncethismarketshareisgained.”

(KentB.Monroe,ThePricingStrategyAudit,2003,CambridgeStrategyPublications,p.41ISBN978-0-273-64938-0)(7)PricediscriminationSettingadifferentpriceforthesameproductindifferentsegmentstothemarket.Forexample,thiscanbefordifferentages,suchasclasses,orfordifferentopeningtimes.(8)PremiumpricingPremiumpricingisthepracticeofkeepingthepriceofaproductorserviceartificiallyhighinordertoencouragefavorableperceptionsamongbuyers,basedsolelyontheprice.Thepracticeisintendedtoexploitthe(notnecessarilyjustifiable)tendencyforbuyerstoassumethatexpensiveitemsenjoyanexceptionalreputation,aremorereliableordesirable,orrepresentexceptionalqualityanddistinction.(9)PredatorypricingAggressivepricing(alsoknownas"undercutting")intendedtodriveoutcompetitorsfromamarket.Itisillegalinsomecountries.(10)Contributionmargin-basedpricing

Contributionmargin-basedpricingmaximizestheprofitderivedfromanindividualproduct,basedonthedifferencebetweentheproduct'spriceandvariablecosts(theproduct'scontributionmarginperunit),andonone’sassumptionsregardingtherelationshipbetweentheproduct’spriceandthenumberofunitsthatcanbesoldatthatprice.Theproduct'scontributiontototalfirmprofit(i.e.tooperatingincome)ismaximizedwhenapriceischosenthatmaximizesthefollowing:(contributionmarginperunit)X(numberofunitssold).(11)PsychologicalpricingPricingdesignedtohaveapositivepsychologicalimpact.Forexample,sellingaproductat$3.95or$3.99,ratherthan$4.00.(12)DynamicpricingAflexiblepricingmechanismmadepossiblebyadvancesininformationtechnology,andemployedmostlybyInternetbasedcompanies.Byrespondingtomarketfluctuationsorlargeamountsofdatagatheredfromcustomers---rangingfromwheretheylivetowhattheybuytohowmuchtheyhavespentonpastpurchases;Dynamicpricingallowsonlinecompaniestoadjustthepricesofidenticalgoodstocorrespondtoacustomer’swillingnesstopay.Theairlineindustryisoftencitedasadynamicpricingsuccessstory.Infact,itemploysthetechniquesoartfullythatmostofthepassengersonanygivenairplanehavepaiddifferentticketpricesforthesameflight.(Gregson,AndrewPricingStrategiesforSmallBusiness2008.SelfCounselPressISBN978-1-55180-979-3.)(13)PriceleadershipAnobservationmadeofoligopolistic(寡头买主垄断的）businessbehaviorinwhichonecompany,usuallythedominantcompetitoramongseveral,leadsthewayindeterminingprices,theotherssoonfollowing.Thecontextisastateoflimitedcompetition,inwhichamarketissharedbyasmallnumberofproducersorsellers.（14）Targetpricing

Pricingmethodwherebythesellingpriceofaproductiscalculatedtoproduceaparticularrateofreturnoninvestmentforaspecificvolumeofproduction.Thetargetpricingmethodisusedmostoftenbypublicutilities,likeelectricandgascompanies,andcompanieswhosecapitalinvestmentishigh,likeautomobilemanufacturers.Targetpricingisnotusefulforcompanieswhosecapitalinvestmentislowbecause,accordingtothisformula,thesellingpricewillbeunderstated.Alsothetargetpricingmethodisnotkeyedtothedemandfortheproduct,andiftheentirevolumeisnotsold,acompanymightsustainanoverallbudgetarylossontheproduct.（15）Absorptionpricing

Methodofpricinginwhichallcostsarerecovered.Thepriceoftheproductincludesthevariablecostofeachitemplusaproportionateamountofthefixedcostsandisaformofcost-pluspricing.(16)High-lowpricing“Methodofpricingforanorganizationwherethegoodsorservicesofferedbytheorganizationareregularlypricedhigherthancompetitors,butthroughpromotions,advertisements,andorcoupons,lowerpricesareofferedonkeyitems.Thelowerpromotionalpricesaredesignedtobringcustomerstotheorganizationwherethecustomerisofferedthepromotionalproductaswellastheregularhigherpricedproducts”.(PhilipKotler&GaryArmstrong,PrinciplesofMarketing13E,2010,PearsonPrenticeHall,p.293ISBN978-0-13-607941-5)(17)Premiumdecoy(诱人，诱骗）pricingMethodofpricingwhereanorganizationartificiallysetsoneproductpricehigh,inordertoboostsalesofalowerpricedproduct.（18）Marginal-costpricingInbusiness,thepracticeofsettingthepriceofaproducttoequaltheextracostofproducinganextraunitofoutput.Bythispolicy,aproducercharges,foreachproductunitsold,onlytheadditiontototalcostresultingfrommaterialsanddirectlabor.Businessesoftensetpricesclosetomarginalcostduringperiodsofpoorsales.If,forexample,anitemhasamarginalcostof$1.00andanormalsellingpriceis$2.00,thefirmsellingtheitemmightwishtolowerthepriceto$1.10ifdemandhaswaned.Thebusinesswouldchoosethisapproachbecausetheincrementalprofitof10centsfromthetransactionisbetterthannosaleatall.（19）Value-basedpricingPricingaproductbasedontheperceivedvalueandnotonanyotherfactor.Pricingbasedonthedemandforaspecificproductwouldhavealikelychangeinthemarketplace.（20）Paywhatyouwant

Paywhatyouwantisapricingsystemwherebuyerspayanydesiredamountforagivencommodity,sometimesincludingzero.Insomecases,aminimum(floor)pricemaybeset,and/orasuggestedpricemaybeindicatedasguidanceforthebuyer.Thebuyercanalsoselectanamounthigherthanthestandardpriceforthecommodity.Givingbuyersthefreedomtopaywhattheywantmayseemtonotmakemuchsenseforaseller,butinsomesituationsitcanbeverysuccessful.Whilemostusesofpayingwhatyouwanthavebeenatthemarginsoftheeconomy,orforspecialpromotions,thereareemergingeffortstoexpanditsutilitytobroaderandmoreregularuse.Unit6PromotionPromotionalMix

Definition:Apromotionalmixisthecombinationofcommunicationsstrategiesthatacompanyusestoconveybrandbenefitstocustomersandtoinfluencethemtobuy.Fourelementsareinvolved:advertising,salespromotions,personalselling,andpublicity.SalesPromotionsWhatisSalespromotions?Salespromotionsaredesignedtomotivateexistingcustomerstobuymorefrequently.Howistobedone？Mostsalespromotionsmustbecombinedwithadvertisinginordertobeeffective.PriceincentiveWhenthesalespromotionisnolongerrunning,andthepriceincentiveisnotavailable,advertisingmaintainstheproduct’smessage.SalesPromotionsTherearetwotypesofsalespromotions,consumerpromotionsandtradepromotions.Salespromotionaltoolsdirectedtoconsumersincludecouponsthatcanberedeemedforcash,conteststhatinvolveprizes,andrebatesonapurchase.Mostofthesetechniquesareusedtopromoteconsumer-packagedgoods.TradePromotionsTradepromotionsarepromotionsdirectedtowardretailersandwholesalersinordertogetthemtostockthecompany’sproducts.Threetypesofpromotions:MerchandiseallowancesCaseallowancesDirectpaymentsConsumerpromotionsConsumerpromotionsaremorecloselyintegratedwithadvertisingstrategies.Funfacts:Peoplearemostlikelytochangetheirpurchasingbehaviorbecauseofpricepromotionarenotthelower-incomeconsumers,butupscalemiddle-agedcollegegraduates.Categoriesmostlikelytoinduceaswitchinloyaltyarebatteries,coffee,personalappliances,shampoo,andtoothpaste.ConsumerpromotionsConsumerpromotionsincludecoupons,pricedeals,premiums,rebates,andfreesamples.Couponswerethemostpopularwithconsumers(98percentoftherespondentssaidtheyhadusedthem).ConsumerpromotionsCouponCouponsarethevastmajorityofpromotions—76percent.Couponsareusedtoencouragenonuserstotryaproductorexistinguserstobuymorefrequently.Couponsaremoreeffectiveininducingshort-termswitchestoabrandthaninretainingconsumersoverthelongterm.Mostconsumersthathaveswitchedtoanotherbrandbecauseofcouponswillreverttotheirregularbrandwhencouponsarenolongeroffered.ConsumerpromotionsRebatesRebatesareshort-termpriceinducementswhichallowtheconsumertorecoveraportionoftheoriginalcostofanitem.FreesamplesFreesamplesarenewproductsofferedfreeasawaytogetconsumerstotrythem.Freesamplesarefeasibleonlyforlow-cost,frequentlypurchaseditems;otherwisetheybecomeprohibitivelyexpensive.PublicrelationsandPublicityPublicityisunpaidcommunicationaboutthecompanyoritsproductorserviceinthemassmedia.Mostcompaniestrytosupplementtheirpaidpromotionaleffortswithpublicitybyprovidingpressreleasesforradio,newspapers,andmagazines;filmsfortelevisionnewsshows;publicappearancesbycorporateexecutives;andsubsidiesfornotablefiguresonthenationalscene.PublicrelationsandPublicityPublicrelationsareorganizedeffortstopresentacompanyanditsproductsinapositivelightbyinfluencingrelevantgroupssuchasstockholder.McDonald’spublicrelationseffortinvolvessupportingchildren’shospitalswithitsfreeRonaldMcDonaldHouses,forvisitors.Itsattempttocommunicatetheseeffortsthroughnewsreleasesandreportsinthemediaisthepublicityelementofitspublicrelationscampaign.PublicrelationsandPublicityAdvantageofpublicity:credibility.Wheninformationappearsinaneutralsourcesuchasnewspaperortelevisionnewsbroadcast,itismorelikelytobebelievedthanwhenitcomesdirectlyfromaadvertiser.inexpensive.Therearefewcostsotherthanmaintainingapublicrelationsdepartmentorprintingcompanycommunications.Supportive.Publicitycansupporttheothercomponentsofthepromotionalmix.PublicrelationsandPublicityDisadvantage:Asacomponentofthepromotionalmix,itisnotusuallywellcoordinatedwiththeothercomponentsofthepromotionalmix.Thisisbecausetheresponsibilityforpublicityusuallylieswithacorporatepublicrelationsdepartmentratherthanamarketinggroup.Asaresult,strategiestodevelopfavorablepublicityforaproductorcompanytendtobedivorcedfromadvertising,salespromotion,andpersonalselling.PublicrelationsandPublicityAnotherdrawbackisthatpublicityfromadvertisingisnotwithinthecompany’scontrol.Whenacompanysendsapressreleasetothemedia,ithasnoinfluenceastohowitwillbetreated.McDonald’spublicityclaimsofnutritionalvalueforitsfoodshavesometimesbackfiredwhennutritionalgroupsandstateagencieschallengedtheseclaims.PublicrelationsandPublicityTherearethreetypesofpublicitiesinthebusinessworld:Pressreleases;itmightbeusedtoannounceanewproductortechnology,tocommunicatenewsaboutthecompany,ortocounteractsomenegativeeventorrumor.PublicrelationsandPublicityCompanycommunications.Companieswillalsotrytogetstoriesintonewspapers,magazines,orontelevisionnewsshowsinamorecomprehensivepublicitycampaigninvolvingvariouscompanycommunications.Specialevens.Increasingly,companiessponsorspecialeventssuchasmusicalorsportseventsasameansofpromotinggoodwillamongconsumers,stockholders,andotherrelevantportionsofthepublic.Questions:WhichtwotypesofsalespromotionsarewidelyusedintheMarketingfield?Canyougivesomeexamplesabouttheconsumerpromotionsandtradepromotions?Whatmaintainstheproduct’smessagewhenthesalespromotionandpriceincentiveisnotavailable?Whichcategoriesaremostlikelytoinduceaswitchinloyaltyamongcustomers?Unit7Place(Distribution)PlaceDefinition:Placeinthemarketingmixreferstothechannel,ordistributionsystem,throughwhichgoodsmovefromthesourcetothefinaluser.Placecouldbetheintermediaries,distributors,wholesalersandretailers.PlaceWhyimportant?Therightplacemeansgreaterchancesofsalesoveralongerperiodoftime.Thistranslatesintogreatermarketshare.

Distributionfocusesonmakingsurethereisaccessibleproductforthetargetmarkettopurchaseonceyouhaveinitiateddemand.Itcouldbedirectorthroughoneormoreintermediariesorchannelsthatmakeavailabletherightproductattherightplaceandattheoptimumprice,time,andquantity.Whatcanbedistributebetweenmanufacturers,wholesalers,andretailerInformation,orders,products,andpaymentsRetailers：selltofinalconsumers（Primarilyconsumergoods.)Wholesalers：buyandresellmerchandisetootherwholesalersortoretailers.Agentsandbrokers:bringingbuyersandsellerstogether,chargingacommissionforthisservice.TypeofChannelsAffectingissuesTherearefiveissuesaffectingdistribution:PenetrationTypeoutletsorchannelsCompetitionGeographyTimingPenetrationItisimportanttorealizethatwhetheryourfirmhasenoughpenetrationtomaximizesales,fullyutilizethemedia,andpayoutthemarketinginvestmentinanygivenmarket.Underpenetrated:Ifyoudonothaveenoughstoresorofficelocationstotakeadvantageofthemarket’ssalespotential.Overpenetrated:withtoomanystoresorofficesintradingarea

resultininefficiency,withduplicationofcoverage.TypeoutletsorchannelsIt’simportantforyoutotracesalesbydistributionoutletforyourproductcategory.Price,thetypeofproductandtheproductlifecyclegreatlyaffectthechanneldecision.Ifyourproductisnewandisstillbeingtested,productionlevelswillmostlikelyberelativelysmall,requiringveryspecificandlimiteddistribution.Determinecompetitivedistributionpatternsarehelpfulwhendecidingwhatmarketstofurtherpenetrate.Iftherearetwoequalmarketsintermsofpotential,theobviouschoiceforfurtherpenetrationwouldbetheonewiththeweakercompetitivesituation.CompetitionGeographyBDI(BrandDevelopmentIndex):sales-to-populationratiorelativetoothermarketsinthecompany’ssystem.CDI(CategoryDevelopmentIndex)data:providesagoodbenchmarkforthesuccessratepotentialfordifferentexpansionmarkets.AlowBDIinanygivenmarketcoupledwithapenetrationorcoverageanalysisthatshowsthatafirmisunderpenetratedpointstowardpotentialgeographicexpansioninthosemarkets.AhighCDImeansthatconsumersinagivenmarketpurchaseaproductathigherratesthanthecountryonawhole.TimingTimingmustbeaddressedinthedistributionobjectives.Statewhethertheobjectivesaretobecompletedinamatterofmonthsoryears.Becausedistributioninvolvesacommitmenttoactualconstructionorlong-termDistributiontimingisoftenlongertermthansomeoftheothertacticaltoolconsiderationsofthemarketingplan.ImportanceofdistributionCost(avera