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Promoting & Distributing

Use Of AdvertisingUse Of AdvertisingOpportunities & ProblemsOpportunities & ProblemsPhysical DistributionPhysical DistributionChannels Of DistributionChannels Of DistributionFunctions Of IntermediariesFunctions Of IntermediariesCreative Selling ProcessCreative Selling Process

Ch

apte

r

8

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AdvertisingAdvertising

“…“…informs customers informs customers of the availability, of the availability,

desirability, and uses desirability, and uses of products.”of products.”

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Types Of AdvertisingTypes Of Advertising

ProductProduct

InstitutionalInstitutional

PhotoLink/Getty Images

Royalty-Free/CORBIS

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DevelopingDevelopingAdvertising ProgramAdvertising Program

BudgetBudget

MediaMedia

What/How To What/How To Say ItSay It

AgencyAgency

Expected ResultsExpected Results

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Advertising BudgetAdvertising Budget1)1) Percentage Of Percentage Of

Sales/ProfitsSales/Profits

2)2) Units Of SalesUnits Of Sales

3)3) Objective- Immediate Objective- Immediate ResponseResponse

4)4) Executive DecisionExecutive Decision

PhotoLink/Getty Images

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Media SelectionMedia SelectionNewspaperNewspaperSignageSignageDirect MailDirect MailCirculars/HandbillsCirculars/HandbillsYellow PagesYellow PagesRadioRadioTelevisionTelevisionOnlineOnline Chad Baker/Getty Images

PhotoDisc/Getty Images

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Why PeopleWhy PeopleDon’t Shop OnlineDon’t Shop Online

Isn’t secureIsn’t secureJeopardize Jeopardize

PrivacyPrivacyMust Pay Must Pay

Shipping ChargesShipping ChargesNot Enough Not Enough

SelectionSelectionCan’t Touch/Try Can’t Touch/Try

FirstFirst

No Satisfaction No Satisfaction GuaranteeGuarantee

Returns A Returns A HassleHassle

Won’t Arrive On Won’t Arrive On TimeTime

Hard To Find Hard To Find ThingsThings

Enjoy Shopping Enjoy Shopping Out Of HouseOut Of House

Source: blink, www.earthlink.net/blink

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Necessary Website FeaturesNecessary Website Features

0% 10% 20% 30% 40% 50% 60% 70% 80%

Low Price

Inexpensive Shopping

Easy to Use

No Sales Tax

Good Service

Fast Delivery

Broad Selection

Easy Returns

Helpful Information

Source: “Dreaming of a Green Christmas”, Newsweek, November 11, 2002, p. E24

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InfomercialInfomercial

“…“…long, usually half-long, usually half-hour TV ads hosted by hour TV ads hosted by a hyper ‘sellevangelist’ a hyper ‘sellevangelist’ selling a relatively new selling a relatively new

product or service.”product or service.”

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Media SelectionMedia SelectionTarget MarketTarget MarketCostCostRelativeRelativeAbsoluteAbsolute

AvailabilityAvailability

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OtherOtherAdvertising TechniquesAdvertising Techniques

Merchandising- Point Of Merchandising- Point Of PurchasePurchase

Sales PromotionSales PromotionCustomerCustomerTradeTradeSales ForceSales Force

Publicity- FreePublicity- Free

Royalty-Free/CORBIS

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Ethnic DifferencesEthnic Differences

Sources Of InformationSources Of Information

Values Of PrintValues Of Print

Frequency Of Frequency Of Use/AffordabilityUse/Affordability

Target Market MediaTarget Market MediaRyan McVay/Getty Images

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GlobalGlobalMarketing: ImportingMarketing: Importing

Import & Sell ProductsImport & Sell Products

Sell International Sell International ProductsProducts

Sami Sarkis/Getty Images

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Levels & Risks Of Levels & Risks Of InternationalizationInternationalization

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Global Marketing:Global Marketing:Exporting MythsExporting Myths

Only Large FirmsOnly Large FirmsUncertain PaymentUncertain PaymentLimited Sales Limited Sales OpportunitiesOpportunities

Foreign Market Not Buy Foreign Market Not Buy AmericanAmerican

Startup Costs HighStartup Costs High

D. Falconer/PhotoLink/Getty Images

D. Falconer/PhotoLink/Getty Images

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Expansion/DiversificationExpansion/DiversificationEffective UseEffective UseLower Labor CostLower Labor CostNatural ResourcesNatural ResourcesReturn On InvestmentReturn On InvestmentTax AdvantagesTax AdvantagesDemand For U.S. ProductsDemand For U.S. ProductsReceiving Country BenefitsReceiving Country Benefits

Global Marketing:Global Marketing:Opportunities/ChallengesOpportunities/Challenges

PhotoDisc/Getty Images

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Loss Of Assets/EarningsLoss Of Assets/EarningsChanging Political SystemChanging Political SystemExchange RatesExchange RatesDifficulty In Getting Difficulty In Getting

EarningsEarningsState-Subsidized CompetitionState-Subsidized CompetitionUnskilled LaborUnskilled LaborCommunication/CoordinationCommunication/CoordinationCultural DifferencesCultural DifferencesCopyright/Patent ViolationsCopyright/Patent Violations

Global Marketing:Global Marketing:Problems/RisksProblems/Risks

Jason Reed/Getty Images

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Export Or Not?Export Or Not?Product SuitableProduct Suitable

Satisfy Foreign & Satisfy Foreign &

Domestic DemandDomestic Demand

Competitive Prices/TermsCompetitive Prices/Terms

Devote Time/SkillsDevote Time/Skills

Nick Koudis/Getty Images

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Exporting AssistanceExporting AssistanceFormsForms

Information/GuidanceInformation/GuidanceFinancial AssistanceFinancial Assistance

Small Business Small Business AdministrationAdministration

SCORESCOREACEACE

U.S. Department Of CommerceU.S. Department Of Commerce

C. Sherburne/PhotoLink/Getty

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DistributionDistribution

“…“…involves the involves the effectiveeffective movement of a product movement of a product from the production line from the production line to the final consumer.”to the final consumer.”

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Distribution ActivitiesDistribution Activities

StoringStoringOrder ProcessingOrder ProcessingTransportationTransportation

SpeedSpeedFrequencyFrequencyDependabilityDependabilityPoints ServedPoints ServedCapabilityCapabilityCostCost

StockTrek/Getty Images

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DistributionDistributionChannel ConsiderationsChannel Considerations

1)1) Geographical Market & Geographical Market & Consumer TypesConsumer Types

2)2) Intensive, Selected, Intensive, Selected, Exclusive OutletsExclusive Outlets

3)3) Producer’s Marketing EffortProducer’s Marketing Effort

4)4) FeedbackFeedback

5)5) Incentives For ResellersIncentives For Resellers

Andre Kudyusov/Getty Images

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DistributionDistributionChannels: ConsumerChannels: Consumer

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DistributionDistributionChannels: IndustrialChannels: Industrial

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IntermediariesIntermediaries

BrokersBrokers

AgentsAgents

WholesalersWholesalers

RetailersRetailers Ryan McVay/Getty Ima

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Retailing TrendsRetailing TrendsOff-PriceOff-PriceSelf-Service Fast Self-Service Fast

FoodFoodATMsATMsTelevision ShoppingTelevision ShoppingInternetInternet

Jason Reed/Ryan McVay/Getty Images

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Creative Selling ProcessCreative Selling Process

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Mental Attributes OfMental Attributes OfCreative SalespersonCreative Salesperson

JudgmentJudgment

TactTact

Positive AttitudePositive Attitude

Royalty-Free/CORBIS

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Physical Attributes OfPhysical Attributes OfCreative SalespersonCreative Salesperson