Distribution for a Teen Magazine

Advanced Marketing

Distribution Distribution deals with the place factor of

the marketing mix.

It is how the product you are selling ends up in the consumer hands. You get consumers interested in the product by

how you market it You get them to buy a product by how it is

distributed

Distribution The channel of distribution is the path a product

takes from the manufacturer to the final user. Your final user can be a

An industrial user (Company) A consumer

Example product: Shampoo Who does shampoo get distributed to?

Consumer Company

Distribution When a consumer purchases shampoo

they use an intermediaries to do so. Intermediaries are basically middlemen They reduce the number of contacts necessary

for a company to get its product out to consumers

Imagine if Wal-Mart, Wal-Greens, CVS, etc…didn’t sell shampoo? How would you buy it?

Distribution One of the most common types of intermediaries is the merchant

intermediaries. Wholesaler Retailer

A wholesaler buys large quantities of a good from a manufacturer and then sells them to retailers

Rack jobbers buy products and then manage the inventory they purchased, Count stock, refill stock, maintain store displays, etc.. Only bill retailer for the amount they sell

Drop Shippers own the goods they sell but do not physically handle the actual product

Coal, Lumber, Chemicals They sell the goods for the manufacturer & the manufacturer ships it

Distribution Retailers sell goods to the final consumer

for personal use. A brick and mortar retailer has a physical store

that they sell products at

Distribution Retailers do not have to have a store to sell their

product Vending machines Direct mail Catalogs TV Home Shopping Websites

Larger brick and mortar retailers will offer options listed above

Distribution Channels of Distribution are either direct or

indirect Direct distribution occurs when the producer

sells goods or services directly to the consumer without the help of intermediaries

Indirect distribution involves the use of intermediaries

Distribution Method

Your Magazine You are creating a magazine that targets teens

Can be male or female Target audience is 13 – 17 Can focus any topic dealing with teens

Celebrities Music Cars Fitness Dance Beauty Fashion

Presentation The class will act as a boardroom

We may move class to boardroom You should be dresses for success

Begin by introducing yourself, why you are presenting, overview of presentation

Be able to compare your product with your competition effectively

Competition

First Step Determine what type of magazine you want to

create Create a title What is your focus? What makes your magazine standout?

Need to know the 4 P’s of competition What is their product? What is their price? What is their promotion? Where is their magazine distributed?

Competition If I did a “girl” magazine one of my main competitors would be

Seventeen

What attracts people to this magazine? Current articles Monthly editions Use of popular celebrities Gives advice on topics most girls don’t like to talk about

Product Seventeen focuses on friendship, gossip, advice, girl talk…

The 4 P’s of Seventeen Price

$3.50/issue 36 issues for $15.00 24 issues for $12 12 issues for $10

Promotion Project Seventeen

MTV partnership http://www.seventeen.com/

Games Giveaways Weight Loss help Membership option Ford Modeling contract

The 4 P’s of Seventeen Place

Available online www.amazon.com http://www.magazinesubscriptions.com/seventeen

Retail Stores Walmart Walkgreens CVS Albertsons

Gas Stations Circle K

Second Step Choose a color scheme that matches your

product Girl magazines use bright colors, pink, purple, etc.. Boy magazines use darker colors: green, red,

black, blue

Choose a font that makes your title standout Choose a background picture that makes

your magazine appealing & creative

Presentation Begin by introducing yourself

Explain what your goal with this project was I wanted to create a magazine that targeted teenage girls

who want to lose weight & become more active How you are going to help Zazz, Inc. succeed

I am confident that my product will make Zazz, Inc successful because

9 out of 10 girls are unhappy with their appearance 1 out of 10 girls skip 2 meals a day because they are unhappy

with their weight

Be able to provide an overview of your presentation Explain what you will cover before you cover it

Third Step

Bell Work For Place, where would be the best spot to

sell your teen magazine?

Bell Work What pricing strategy do you think is

effective for a teen magazine? $3.00 or less $3.01 - $3.50 $3.51 - $4.00 $4.01 or higher Large discount for subscription

Bell Work What are three characteristics of a female,

teenage target market?Interested in…. Boys Fashion Beauty Friends

Bell Work How many words can a magazine title

have?a) One

b) Two

c) Three

d) Four

e) Both a and b

f) As many as you want

Bell Work Rank in order which you think is most

important on a magazine cover? Title Color Scheme Picture Content

Bell Work Why do magazine companies create a

website to accompany their product? More people use the internet than read Sell ad’s

Bell Work Why is knowing your competition important

when creating your product? Take what they do well and make it better Take advantage of their weaknesses

If a company doesn’t do a good job at something….you should focus on making sure you do

You get the customer your niche fits

Bell Work What is an intermediaries?

Intermediaries are basically middlemen They reduce the number of contacts necessary

for a company to get its product out to consumers

Imagine if Wal-Mart, Wal-Greens, CVS, etc…didn’t sell shampoo? How would you buy it?

Bell Work Nov. 4 What is the difference between a rack jobber

and a drop shipper? Rack jobbers buy products and then manage the

inventory they purchased, Count stock, refill stock, maintain store displays, etc.. Only bill retailer for the amount they sell

Drop Shippers own the goods they sell but do not physically handle the actual product

Coal, Lumber, Chemicals They sell the goods for the manufacturer & the manufacturer

ships it

Bell Work Nov. 5 What is the difference between direct

distribution and indirect distribution? Direct distribution occurs when the producer

sells goods or services directly to the consumer without the help of intermediaries

Indirect distribution involves the use of intermediaries

Carlos Dominguez

Dylan Smith

Tania

Jacob

Ron Wooten

Jon Earles

Adam

Taryn Struck

Leslie

Bell Work Company A sells CD players at the retail

price of $40. Company B sells them at a discount for $30. What is the discount as a percentage of the retail price?

33% 25% 133% 75%