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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 1
Developing Developing Distribution and Distribution and
Promotional Promotional StrategiesStrategies
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 2
Distributing ProductsDistributing Products
• Distribution strategies
• Marketing intermediaries
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 3
Wholesalers and Wholesalers and RetailersRetailers
• Match buyers and sellers• Provide market information• Provide promotional and sales support• Gather an assortment of goods• Transport and store products• Assume risks• Provide financing
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 4
How Intermediaries How Intermediaries Simplify CommerceSimplify Commerce
• Reduce prices
• Reduce contacts
• Create utility
– Time
– Place
– Possession
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 5
Alternative Distribution Alternative Distribution ChannelsChannels
Business Goods and Services
Consumer Goods and ServicesProducer
Producer
Producer
Producer
Producer
Agent/Broker
Wholesaler
Wholesaler
Retailer
Retailer
Retailer
Consumer
Consumer
Consumer
Consumer
Consumer
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 6
Channel SelectionChannel Selection
• Market coverage
• Cost
• Control
• Channel conflict
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 7
Managing Physical Managing Physical DistributionDistribution
• Forecasting
• Order processing
• Inventory control
• Warehousing
• Materials handling
• Outbound transportation
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 8
Distribution Strategy Distribution Strategy and the Internetand the Internet
• Improve efficiency
• Expand market reach
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 9
Promotional StrategiesPromotional Strategies
• Promotional goals
• Product variables
• Promotional mix
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 10
Setting Promotional Setting Promotional GoalsGoals
• Informing
• Persuading
• Reminding
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 11
Analyzing Product Analyzing Product VariablesVariables
• The nature of the product
• Price of the product
• Product’s position in the life cycle
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 12
Choosing a Marketing Choosing a Marketing ApproachApproach
• Push strategy
• Pull strategy
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 13
Selecting the Promotional Selecting the Promotional MixMix
• Personal selling
• Advertising
• Direct marketing
• Sales promotion
• Public relations
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 14
Personal Selling ProcessPersonal Selling Process
1. Prospecting
2. Preparing
3. Approaching
4. Presenting
5. Handling objections
6. Closing
7. Following up
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 15
Advertising and Direct Advertising and Direct MarketingMarketing
• Product awareness
• Product image
• Consumer demand
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 16
Direct Marketing Direct Marketing VehiclesVehicles
• Direct mail
• Target e-mail
• Telemarketing
• Internet
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 17
Advertising CategoriesAdvertising Categories
• Product
• Institutional
• National
• Local
• Cooperative
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 18
Major Advertising MediaMajor Advertising Media
• Newspapers
• Television
• Direct mail
• Radio
• Magazines
• Internet
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 19
Sales PromotionSales Promotion
• Consumer promotion
• Trade promotion
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 20
Consumer Sales Consumer Sales PromotionPromotion
• Coupons• Rebates• Point-of-purchase• Special-event sponsoring• Cross-promotion• Samples• Premiums• Specialty advertising
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 21
Trade Sales PromotionTrade Sales Promotion
• Trade allowances
• Display premiums
• Contests or sweepstakes
• Travel bonus programs
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 22
Public RelationsPublic Relations
• News release
• News conference
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© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 23
Integrated Marketing Integrated Marketing CommunicationsCommunications
• Promotional mix and IMC– Public relations– Personal selling– Advertising– Direct marketing– Sales promotion