Title: Distributing Multimedia Titles
1Distributing Multimedia Titles
2Objectives
- Describe the marketing issues related to
publishing CD-ROM titles - List and describe the major distribution models
- Describe how multimedia titles are distributed
online - Discuss the issues related to delivering
multimedia using kiosks
3Chapter Outline
- Distributing multimedia titles on CD-ROM
- Distributing multimedia titles online
- Kiosk-based multimedia
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Distributing Multimedia Titles
4Marketing CD-ROMs Hurdles
- The industry is new
- Consumers often return titles because they won't
run on their machines - Lack of good content
- Too little shelf space
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Distributing Multimedia Titles
5Marketing CD-ROMs Strategies
- Product strategy
- Promotion strategy
- Pricing strategy
- Distribution strategy
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Distributing Multimedia Titles
6Product Strategy
- Methods of product differentiation
- Character who appears in a series of titles
- High-quality media
- Rich content
- Achieving brand-name recognition
- Build on existing reputation
- Ally with companies that already have recognition
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Distributing Multimedia Titles
7Promotion Strategy
- Cooperative advertising
- Point-of-purchase materials
- Publicity
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Distributing Multimedia Titles
8Cooperative Advertising
- Retailer and publisher share costs
- Title and retailer are featured in the same ad
- Expensive
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Distributing Multimedia Titles
9Point-of-purchase materials
- Aisle displays
- Proven way to increase sales
- Retailers may not set up or maintain displays
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Distributing Multimedia Titles
10Publicity
- Stories in news media, often generated by press
kits - Advantages
- Credible
- Can be included in other promotional materials
- Can be directed to intended audience
- Free
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Distributing Multimedia Titles
11Pricing
- Average cost now around 20 to 50.
- Suggested retail price (SRP) is discounted to
wholesalers (50) and retailers (35) - The street price is the price actually paid by
the consumer
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Distributing Multimedia Titles
12Pricing Strategy
- All costs, including marketing and overhead, must
be included - Price can be kept lower if distributed only to
retailers and users
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Distributing Multimedia Titles
13Distribution Models
- Wholesaler-Specialty Retailer-Consumer
- Specialty Retailer-Consumer
- Catalog Company-Consumer
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Distributing Multimedia Titles
14Wholesaler
- Buys from publishers and resells
- Gives publisher access to retailers
- Disadvantages
- Won't promote product
- Requires large discounts
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Distributing Multimedia Titles
15Retailer
- Typically only stocks 100 to 200 titles
- Chooses according to demand
- Prefers to work with a few publishers
- Sometimes charges for shelf space
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Distributing Multimedia Titles
16Superstores and Specialty Retailers
- Mass merchandisers
- Book, toy, video, music stores
- Specialty retailers work well when their customer
base matches the target market
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Distributing Multimedia Titles
17Distribution Alternatives
- Direct mail
- Bundling
- Catalog sales
- Rentals
- Partnerships
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Distributing Multimedia Titles
18Direct Mail
- Purchased mailing lists
- Mailing list should match the target audience
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Distributing Multimedia Titles
19Bundling
- Distribution with another computer product
- OEM marketing--publisher works with "original
equipment manufacturer" - No marketing costs
- Very large discounts are required
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Distributing Multimedia Titles
20Catalog sales
- Catalogs sell ad space
- Consumers order directly from the catalog
- Advertising should be done continually
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Distributing Multimedia Titles
21Rentals
- Blockbuster
- Effect on sales
- Similar to providing "demo" copies
- Users may purchase the title if they believe it
will be frequently used
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Distributing Multimedia Titles
22Partnerships
- Developer partners with distributor
- Distributor makes all marketing and some design
decisions
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Distributing Multimedia Titles
23Marketing Non-consumer Titles
- Examples
- Reference works
- Corporate training
- Higher education
- Target audience is small and well-defined
- Developer can take a more direct approach to
distribution
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Distributing Multimedia Titles
24Distributing Multimedia Titles Online
- Advantages
- Large audience
- Content can be updated immediately
- Disadvantage -- slow speed
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Distributing Multimedia Titles
25Internet and CD-ROM
- CD-ROM contains most content and large media
objects - Updates available via the Internet
- Publisher must arrange for Web site to be managed
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Distributing Multimedia Titles
26Kiosk-based Multimedia
- Types of kiosks
- Informational
- Transactional
- Success is determined by location
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Distributing Multimedia Titles
27Key Terms
- bundling
- cooperative advertising
- demand
- developer
- informational kiosk
- OEM
- online distribution
- point-of-purchase
- press kit
- publicity
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Distributing Multimedia Titles
28Key Terms (continued)
- publisher
- retailer
- shelf space
- street price
- suggested retail price (SRP)
- target audience
- transactional kiosk
- value-added
- wholesaler
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Distributing Multimedia Titles