promoting and distributing products efficiently and...
TRANSCRIPT
Copyright 2003 McGraw-Hill Ryerson Limited 1
Chapter Seventeen
Promoting and Distributing Products Efficiently and
Interactively
Copyright 2003 McGraw-Hill Ryerson Limited 2
The Promotion MixPromotion is an attempt by marketers to engage potential customers in an information exchange Marketers may use Promotional Tools in their attempt to exchange information with potential clients
AdvertisingPersonal sellingPublic relationsSales promotion
These items make up the “Promotion Mix”
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Fig 17.1
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AdvertisingAdvertising - is paid, nonpersonalcommunication via various media in which the organization is identifiedAdvertising is informativeAdvertising provides us with free TV, community newspapers and radio programsIn an advertising campaign, each medium must be carefully consideredIn international markets it must be adjusted to practices and culture of each country.
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New Forms of AdvertisingTV has developed the “Infomercial” which is an entire program devoted to advertising. They have been so successful because they show the product. The Internet is the newest medium. It is more interactive with the user. Marketers have experienced problems advertising globally due to cultural and language difficulties.Regional advertising seems to be easier and more effective.
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Personal SellingPersonal selling - searching out prospective customers, face to face presentation and promotion, and service after the saleSteps in the Sale
Prospect and qualify clientPre-approachApproachMake presentationAnswer objectionsClose saleFollow up
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Public RelationsPublic relations - based on research executes a program of action and information to earn understanding and acceptance.
Good PR program has 3 steps1. Listen to stakeholders2. Change policies and procedures3. Inform people that you’re being
responsive to their needs
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PublicityPublicity - any information about the company or its products distributed by the media that is not paid for or controlled by the sellerPublicity Advantages - it is free, it is more believable and it reaches those who may not see commercialsPublicity Disadvantages - it may not be published by the media, it may be altered, or it may be negative
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Sales Promotion
Sales Promotion - the stimulation of consumer purchasing and dealer interest .
Promotion can includefor the dealer- trade shows, virtual trade shows, demonstration and training in product use,for the consumer- samples, coupons, prizes, displays and contests
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The Promotion Mix
The Push Strategy - targets wholesalers and retailersThe aim is to “push” products through the channel of distribution to the consumerThe Pull Strategy - targets consumersThe aim is have consumer demand “pull” the product through the channel of distribution
Each target group needs a different promotion mix. Advertising, sales promotion and publicity are combined
for maximum impact.
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Building IMC
IMCIMC
Gather Data & Gather Data & Maintain DatabaseMaintain Database
Respond Quickly To Respond Quickly To Adjust Policies & Adjust Policies & ProceduresProcedures
Provide Accessible Provide Accessible InformationInformation
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The Role of DistributionDistribution - the movement of goods from producer to consumerChannel of Distribution - the path taken by goods from the producer to consumerIntermediaries - those in the channel of distribution such as wholesalers and retailers transporting and selling the goods
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Most Common Distribution Channels
Product flow Definition Example
Manufacturer
Wholesaler
Retailer
Consumer
A maker of products
A marketing intermediary who sells to organizations and individuals but not to final consumers
A marketing intermediary who sells to final consumers
User of goods, services andideas
Del Monte
National Grocers
LoblawsSupermarkets
You and me
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IntermediariesFunctions of Intermediaries
TransportationStorageSalesAdvertising
Brokers & Agents -intermediaries who arrange a sale but do not take title to the goodsWholesalers & Retailers -intermediaries who buy the goods for resale
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The Value of IntermediariesIntermediaries can be eliminated but their functions can notIntermediaries survive because they perform some of the marketing functions better than the producerIntermediaries add cost to the product, but they add value to the product that off-sets the cost increase
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Wholesale Intermediaries
Merchant WholesalersRack JobbersCash-and-CarryDrop Shippers
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Retail Competition
PriceServiceLocationSelectionEntertainment
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Retail Distribution Strategy
Intensive
SelectiveSelective
ExclusiveExclusive
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Non-Store Distribution
E-tailingTelemarketingVending Machines, Kiosks, CartsDirect SellingDirect Marketing
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Channel CooperationCorporate DistributionContractual DistributionAdministered DistributionSupply Chain Management
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Contractual Distribution
Franchise Systems
Wholesaler-Sponsored Chains
Retail Cooperatives
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The Supply ChainThe Supply Chain(Figure 17.11)(Figure 17.11)
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Distribution/Storage Mode
RailroadMotor VehiclesWaterPipeline Air
IntermodalStorageMaterials Handling