copyright © 2009 pearson education canada 12-1 chapter 12 developing distribution and...

Copyright © 2009 Pearson Education Canada 12-1

Chapter Chapter 12 12

DevelopingDeveloping

Distribution andDistribution and

PromotionalPromotional

StrategiesStrategies


Distributing Distributing ProductsProducts

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

• Marketing Intermediaries– Business people and organizations that

facilitate movement of goods from producers to consumers


Wholesaler and Retailer Wholesaler and 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


Types of Retail StoresTypes of Retail Stores

• Category killer

• Convenience store

• Department store

• Discount store

• Factory/retail

outlet

• Hypermarket

• Off-price store

• On-line retailers

• Specialty store

• Supermarket

• Warehouse club


How Intermediaries Simplify CommerceHow Intermediaries Simplify Commerce


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


Channel Selection Channel Selection FactorsFactors

MarketMarketcoveragecoverageMarketMarket

coveragecoverage

CostCostCostCost

ControlControlControlControl

ChannelChannelconflictconflictChannelChannelconflictconflict


Managing Distribution

ForecastingForecasting

Inventory controlInventory control

Order processingOrder processing

WarehousingWarehousing

Materials handlingMaterials handling

TransportationTransportation


Distribution Strategy Distribution Strategy and the Internetand the Internet

ImproveImproveefficiencyefficiency

ExpandExpandmarket reachmarket reach


Promotional StrategiesPromotional Strategies

Promotional goals

Product variables

Promotional mix


Choosing a Marketing Choosing a Marketing ApproachApproach

WholesalerWholesaler RetailerRetailer ConsumerConsumerProducerProducer

WholesalerWholesaler RetailerRetailer ConsumerConsumerProducerProducer

Communication FlowCommunication Flow

Push StrategyPush Strategy

Pull StrategyPull StrategyCommunication FlowCommunication Flow


Setting PromotionalSetting PromotionalGoalsGoals

InformInformInformInform RemindRemindRemindRemindPersuadePersuadePersuadePersuade


Analyzing Product Analyzing Product VariablesVariables

Nature ofNature ofthe productthe product

Price ofPrice ofthe productthe product

Product’s positionProduct’s positionin its life cyclein its life cycle


Selecting the Selecting the Promotional MixPromotional Mix

Personal sellingPersonal selling

AdvertisingAdvertising

Direct marketingDirect marketing

Sales promotionSales promotion

Public relationsPublic relations


Personal Selling Personal Selling ProcessProcess

ProspectingProspecting1

PreparingPreparing2

ApproachingApproaching3

PresentingPresenting4

Handlingobjections

Handlingobjections

5

ClosingClosing6

Following UpFollowing Up7


Advertising and Direct Advertising and Direct MarketingMarketing

Product awareness

Product image

Consumer demand


Direct Marketing Direct Marketing VehiclesVehicles

Direct mailDirect mail

Targeted E-mailTargeted E-mail

TelemarketingTelemarketing

InternetInternet


Advertising CategoriesAdvertising Categories

NationalNationalNationalNational LocalLocalLocalLocal CooperativeCooperativeCooperativeCooperative

ProductProductProductProduct InstitutionalInstitutionalInstitutionalInstitutional


Major Advertising MediaMajor Advertising Media

RadioRadioRadioRadio MagazinesMagazinesMagazinesMagazines InternetInternetInternetInternet

NewspapersNewspapersNewspapersNewspapers TelevisionTelevisionTelevisionTelevision Direct MailDirect MailEmailEmail

Direct MailDirect MailEmailEmail


Sales PromotionSales Promotion

ConsumerConsumerpromotionpromotion

TradeTradepromotionpromotion


Consumer Consumer Sales PromotionSales Promotion

• Coupons

• Rebates

• Point-of-purchase (POP)

• Special-event sponsoring

• Cross -promotion

• Samples

• Premiums

• Specialty advertising


Trade PromotionsTrade PromotionsTrade PromotionsTrade Promotions

Contests orContests orsweepstakessweepstakesContests orContests or

sweepstakessweepstakes

TradeTradeallowancesallowances

TradeTradeallowancesallowances

Travel bonusTravel bonusprogramsprograms

Travel bonusTravel bonusprogramsprograms

DisplayDisplaypremiumspremiumsDisplayDisplay

premiumspremiums


Public RelationsPublic Relations

News releaseNews releaseNews releaseNews release News conferenceNews conferenceNews conferenceNews conference

ProductProductdemonstrationsdemonstrations

ProductProductdemonstrationsdemonstrations

ImportantImportantnewsnews

ImportantImportantnewsnews

MediaMediaquestionsquestions

MediaMediaquestionsquestions


IMCIMC

Integrated Marketing Integrated Marketing CommunicationsCommunications

PublicPublicRelationsRelations

PersonalPersonalSellingSelling

AdvertisingAdvertisingDirectDirectMarketingMarketing

SalesSalesPromotionPromotion

EffectivenessEffectiveness

ConsistencyConsistency

Imp

act

Imp

actC

lari

tyC

lari

ty

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