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Chapter Seventeen

Promoting and Distributing Products Efficiently and

Interactively

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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- it is free, it is more believable and it reaches those who may not see commercialsPublicity Disadvantages - it may not be published by the media, it may be altered, or it may be negative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