© 2006 Pearson Education Canada Inc. Chapter 12 - 1

Chapter Chapter 12 12

Developing Developing Distribution Distribution

and and Promotional Promotional StrategiesStrategies

© 2006 Pearson Education Canada Inc. Chapter 12 - 2

Distributing Distributing ProductsProducts

• Distribution Strategy– Overall plan for moving products to buyers– Most firms don’t sell directly to final users

• Marketing Intermediaries– Middlemen that facilitate movement of goods

from producers to consumers

© 2006 Pearson Education Canada Inc. Chapter 12 - 3

Wholesaler & Retailer Wholesaler & Retailer RolesRoles

• Match buyers and sellers

• Provide market information

• Offer promotional and sales support

• Gather an assortment of goods

• Transport and store products

• Assume risks

• Provide financing

© 2006 Pearson Education Canada Inc. Chapter 12 - 4

Types of Retail StoresTypes of Retail Stores

• Category Killer

• Convenience store

• Department store

• Discount store

• Factory outlet

• Hypermarket

• Off-price store

• Specialty store

• Supermarket

• Warehouse club

© 2006 Pearson Education Canada Inc. Chapter 12 - 5

How Intermediaries Simplify CommerceHow Intermediaries Simplify Commerce

© 2006 Pearson Education Canada Inc. Chapter 12 - 6

Alternative Distribution Alternative Distribution ChannelsChannels

Consumer Goods and Services

ProducerProducer

ProducerProducer

ProducerProducer

ProducerProducer Agent/BrokerAgent/Broker

WholesalerWholesaler

WholesalerWholesaler

RetailerRetailer

RetailerRetailer

RetailerRetailer

ConsumerConsumer

ConsumerConsumer

ConsumerConsumer

ConsumerConsumer

© 2006 Pearson Education Canada Inc. Chapter 12 - 7

Channel Selection Channel Selection FactorsFactors

MarketMarketCoverageCoverage

MarketMarketCoverageCoverage

CostCostCostCost

ControlControlControlControl

ChannelChannelConflictConflictChannelChannelConflictConflict

© 2006 Pearson Education Canada Inc. Chapter 12 - 8

Managing Distribution

ForecastingForecasting

Order ProcessingOrder Processing

Inventory ControlInventory Control

WarehousingWarehousing

Materials HandlingMaterials Handling

TransportationTransportation

© 2006 Pearson Education Canada Inc. Chapter 12 - 9

Distribution Strategy Distribution Strategy and the Internetand the Internet

ImproveImproveEfficiencyEfficiency

ExpandExpandMarket ReachMarket Reach

© 2006 Pearson Education Canada Inc. Chapter 12 - 10

Promotional StrategiesPromotional Strategies

Promotional Goals

Product Variables

Promotional Mix

© 2006 Pearson Education Canada Inc. Chapter 12 - 11

Setting PromotionalSetting PromotionalGoalsGoals

InformingInformingInformingInforming RemindingRemindingRemindingRemindingPersuadingPersuadingPersuadingPersuading

© 2006 Pearson Education Canada Inc. Chapter 12 - 12

Analyzing Product Analyzing Product VariablesVariables

Nature ofNature ofthe Productthe Product

Price ofPrice ofthe Productthe Product

Product’s PositionProduct’s Positionin the Life Cyclein the Life Cycle

© 2006 Pearson Education Canada Inc. Chapter 12 - 13

Choosing a Marketing Choosing a Marketing ApproachApproach

WholesalerWholesaler RetailerRetailer ConsumerConsumerProducerProducer

WholesalerWholesaler RetailerRetailer ConsumerConsumerProducerProducer

Communication FlowCommunication Flow

Push StrategyPush Strategy

Pull StrategyPull StrategyCommunication FlowCommunication Flow

© 2006 Pearson Education Canada Inc. Chapter 12 - 14

Selecting the Selecting the Promotional MixPromotional Mix

Personal SellingPersonal Selling

AdvertisingAdvertising

Direct MarketingDirect Marketing

Sales PromotionSales Promotion

Public RelationsPublic Relations

© 2006 Pearson Education Canada Inc. Chapter 12 - 15

Personal Selling Personal Selling ProcessProcess

ProspectingProspecting1

PreparingPreparing2

ApproachingApproaching3

PresentingPresenting4

HandlingObjections

HandlingObjections

5

ClosingClosing6

Following UpFollowing Up7

© 2006 Pearson Education Canada Inc. Chapter 12 - 16

Advertising and Direct Advertising and Direct MarketingMarketing

Product Awareness

Product Image

Consumer Demand

© 2006 Pearson Education Canada Inc. Chapter 12 - 17

Direct Marketing Direct Marketing VehiclesVehicles

Direct MailDirect Mail

Target E-mailTarget E-mail

TelemarketingTelemarketing

InternetInternet

© 2006 Pearson Education Canada Inc. Chapter 12 - 18

Advertising CategoriesAdvertising Categories

NationalNationalNationalNational LocalLocalLocalLocal CooperativeCooperativeCooperativeCooperative

ProductProductProductProduct InstitutionalInstitutionalInstitutionalInstitutional

© 2006 Pearson Education Canada Inc. Chapter 12 - 19

Major Advertising MediaMajor Advertising Media

RadioRadioRadioRadio MagazinesMagazinesMagazinesMagazines InternetInternetInternetInternet

NewspapersNewspapersNewspapersNewspapers TelevisionTelevisionTelevisionTelevision Direct MailDirect MailDirect MailDirect Mail

© 2006 Pearson Education Canada Inc. Chapter 12 - 20

Sales PromotionSales Promotion

ConsumerConsumerPromotionPromotion

TradeTradePromotionPromotion

© 2006 Pearson Education Canada Inc. Chapter 12 - 21

Consumer Consumer Sales PromotionSales Promotion

•Coupons

•Rebates

•Point-of-Purchase

•Special-Event Sponsoring

•Cross Promotions

•Samples

•Premiums

•Specialty Advertising

© 2006 Pearson Education Canada Inc. Chapter 12 - 22

Trade PromotionsTrade PromotionsTrade PromotionsTrade Promotions

Contests orContests orSweepstakesSweepstakesContests orContests or

SweepstakesSweepstakes

TradeTradeAllowancesAllowances

TradeTradeAllowancesAllowances

Travel BonusTravel BonusProgramsPrograms

Travel BonusTravel BonusProgramsPrograms

DisplayDisplayPremiumsPremiumsDisplayDisplay

PremiumsPremiums

© 2006 Pearson Education Canada Inc. Chapter 12 - 23

Public RelationsPublic Relations

News ReleaseNews ReleaseNews ReleaseNews Release News ConferenceNews ConferenceNews ConferenceNews Conference

ProductProductDemonstrationsDemonstrations

ProductProductDemonstrationsDemonstrations

ImportantImportantNewsNews

ImportantImportantNewsNews

MediaMediaQuestionsQuestions

MediaMediaQuestionsQuestions

© 2006 Pearson Education Canada Inc. Chapter 12 - 24

IMCIMC

Integrated Marketing Integrated Marketing CommunicationsCommunications

PublicPublicRelationsRelations

PersonalPersonalSellingSelling

AdvertisingAdvertisingDirectDirectMarketingMarketing

SalesSalesPromotionPromotion

EffectivenessEffectiveness

ConsistencyConsistency

Imp

act

Imp

actC

lari

tyC

lari

ty