© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 1

Developing Developing Distribution and Distribution and

Promotional Promotional StrategiesStrategies

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 2

Distributing ProductsDistributing Products

• Distribution strategies

• Marketing intermediaries

© 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

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 4

How Intermediaries How Intermediaries Simplify CommerceSimplify Commerce

• Reduce prices

• Reduce contacts

• Create utility

© 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

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 6

Channel SelectionChannel Selection

• Market coverage

• Cost

• Control

• Channel conflict

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 7

Market CoverageMarket Coverage

• Distribution

– Intensive

– Selective

– Exclusive

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 8

Cost FactorsCost Factors

• Selling

• Storage

• Distribution

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 9

Control IssuesControl Issues

• Channel length

– Shorter

– Longer

• Overall control

–More

– Less

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 10

Channel ConflictChannel Conflict

• Inadequate product support

• Too many intermediaries

• Multiple sales channels

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 11

Managing Physical Managing Physical DistributionDistribution

• Order processing

• Inventory control

• Warehousing

• Materials handling

• Transportation

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 12

Online DistributionOnline Distribution

• The Internet

– Distribution system

–Market reach

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 13

Promotional StrategiesPromotional Strategies

• Promotional goals

• Product variables

• Promotional mix

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 14

Setting Promotional Setting Promotional GoalsGoals

• Informing

• Persuading

• Reminding

© 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

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 16

Choosing a Marketing Choosing a Marketing ApproachApproach

• Push strategy

• Pull strategy

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 17

Elements of PromotionElements of Promotion

• Personal selling

• Advertising

• Direct marketing

• Sales promotion

• Public relations

© 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

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 19

Advertising and Direct Advertising and Direct MarketingMarketing

• Product awareness

• Product image

• Consumer demand

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 20

Direct Marketing Direct Marketing VehiclesVehicles

• Direct mail

• Target e-mail

• Telemarketing

• Internet

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 21

Advertising CategoriesAdvertising Categories

• Product

• Institutional

• National

• Local

• Cooperative

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 22

Major Advertising MediaMajor Advertising Media

• Newspapers

• Television

• Direct mail

• Radio

• Magazines

• Internet

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 23

Sales PromotionSales Promotion

• Consumer promotion

• Trade promotion

© 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

© 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

© Prentice Hall, 2005 Business In Action 3e Chapter 12 - 26

Public RelationsPublic Relations

• News release

• News conference

© 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