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.

MarketingNon-consumer Titles

Less complex to market. Do not require shelf space. Target audience is smaller, more

defined, and easier to reach.

Reference works, corporate training titles and educational titles.

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 TexasDr. Vicky Cereijo