Transcript Chap 10 - Distributing Multimedia Titles

Distributing
Multimedia Titles
Distributing
Multimedia Titles
 Marketing Strategy
 Product Strategy
 Promotion Strategy
 Pricing Strategy
 Distribution Strategy
 Distribution Alternatives
Marketing Hurdles
 Consumers are reluctant to spend
money for unfamiliar titles.
 High rate of returns.
 Lack of good content – too many
titles are book like.
 Many titles for little shelf space.
Product Strategy
 Create titles that
have the same
“look and feel”,
objectives,
characters, and
theme.
 Include high quality
graphical images.
Product Strategy
(continued)
Develop brand
name recognition
to generate:
 Consumer
confidence.
 Confidence by
association.
Promotional Strategy
 Cooperative advertising – retailer
and publisher share cost (too
expensive for publisher).
 Point of purchase – materials on
aisle (impulse buying).
 Publicity – review stories in
magazines and papers.
Pricing Strategy
 Prices are steadily declining.
 Suggested retail price.
 Wholesalers – 50% discount.
 Retailers – 35% discount.
 Street price – customer’s
actual price.
Break-even Example
 Development costs: $500,000
 Per-unit Production cost: $2
 Retail Price: $20
 Wholesaler discount: 50% or $10
Break-even Example
(continued)
 Per-unit revenue:
$10 ($20-$10)
 Revenue less
production: $8 ($10$2)
 Units needed to
cover development
costs: 62,500 units
($500,000 / $8)
Distribution Strategy
CD-ROM publisher has three options in
distributing consumer titles:
 Wholesalers – buy from publishers
and resell to others.
 Retailers – sell to the public.
 Superstores and specialty retailers.
Distribution Alternatives
Given the competitive nature of the
multimedia consumer market, other
distribution alternatives may be used:
 Direct mail – mail order sales.
 Bundling – a title sold with another
product.
 Catalog sales – monthly catalogs.
 Rentals – rental of games and
entertainment.
 Partnerships – joint ventures.
Marketing
Non-consumer Titles
Reference works, corporate training titles
and educational titles.
 Less complex to market.
 Do not require shelf space.
 Target audience is smaller, more
defined, and easier to reach.
Distributing Online
 The Internet is a
major delivery
medium for
multimedia.
 Advantages:
 Vast audience.
 Ability to
constantly
refresh content.
Kiosk-based Multimedia
Two types of kiosks:
 Transactional – provide for
user input.
 Informational – allows the
user to access information.
The End
University of North Texas
Dr. Vicky Cereijo