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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 1
Developing Developing Distribution and Distribution and
Promotional Promotional StrategiesStrategies
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 2
Distributing ProductsDistributing Products
• Distribution strategies
• Marketing intermediaries
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 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 and provide financing
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 4
How Intermediaries How Intermediaries Simplify CommerceSimplify Commerce
• Reduce prices
• Reduce contacts
• Create utility
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 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, 2005 Business In Action 3e Chapter 12 - 6
Channel SelectionChannel Selection
• Market coverage
• Cost
• Control
• Channel conflict
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 7
Market CoverageMarket Coverage
• Distribution
– Intensive
– Selective
– Exclusive
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 8
Cost FactorsCost Factors
• Selling
• Storage
• Distribution
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 9
Control IssuesControl Issues
• Channel length
– Shorter
– Longer
• Overall control
–More
– Less
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 10
Channel ConflictChannel Conflict
• Inadequate product support
• Too many intermediaries
• Multiple sales channels
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 11
Managing Physical Managing Physical DistributionDistribution
• Order processing
• Inventory control
• Warehousing
• Materials handling
• Transportation
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 12
Online DistributionOnline Distribution
• The Internet
– Distribution system
–Market reach
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 13
Promotional StrategiesPromotional Strategies
• Promotional goals
• Product variables
• Promotional mix
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 14
Setting Promotional Setting Promotional GoalsGoals
• Informing
• Persuading
• Reminding
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 15
Analyzing Product Analyzing Product VariablesVariables
• The nature of the product
• Price of the product
• Position in the life cycle
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 16
Choosing a Marketing Choosing a Marketing ApproachApproach
• Push strategy
• Pull strategy
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 17
Elements of PromotionElements of Promotion
• Personal selling
• Advertising
• Direct marketing
• Sales promotion
• Public relations
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 18
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, 2005 Business In Action 3e Chapter 12 - 19
Advertising and Direct Advertising and Direct MarketingMarketing
• Product awareness
• Product image
• Consumer demand
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 20
Direct Marketing Direct Marketing VehiclesVehicles
• Direct mail
• Target e-mail
• Telemarketing
• Internet
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 21
Advertising CategoriesAdvertising Categories
• Product
• Institutional
• National
• Local
• Cooperative
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 22
Major Advertising MediaMajor Advertising Media
• Newspapers
• Television
• Direct mail
• Radio
• Magazines
• Internet
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 23
Sales PromotionSales Promotion
• Consumer promotion
• Trade promotion
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 24
Consumer Sales Consumer Sales PromotionPromotion
• Coupons• Rebates• Point-of-purchase• Special events
• Cross-promotion• Samples• Premiums• Specialty ads
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 25
Trade Sales PromotionTrade Sales Promotion
• Trade allowances
• Display premiums
• Contests or sweepstakes
• Travel bonus programs
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 26
Public RelationsPublic Relations
• News release
• News conference
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© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 27
Integrated Marketing Integrated Marketing CommunicationsCommunications
• Promotional mix and IMC– Public relations– Personal selling– Advertising– Direct marketing– Sales promotion