DISTRIBUTION AND CHANNEL MANAGEMENT; INTRODUCTION TO ADVERTISING

DISTRIBUTION AND CHANNEL MANAGEMENT;INTRODUCTION TO ADVERTISING

SUBMITTED TO : SUBMITTED BY:PROF. SHAHNAWAZ ABIDI A.S. FARDEEN, ALIM KHAN, ALI HAIDER & ALIYA HAIDER

DISTRIBUTION FUNCTIONThe major purpose of marketing is to satisfy human needs by delivering products of various types to buyers when and where they want the demand at a reasonable cost.

The when and where is the function of Distribution

DISTRIBUTION DISTRIBUTION CHANNELA set of interdependent organizations(intermediaries) involved in the process of making a product or service available for use or consumption by the consumer or business user..The use of intermediaries results from their greater efficiency in making goods available to target markets. Offer the firm more than it can achieve on it sown through the intermediaries: Contacts, Experience, Specialization, Scale of operation. Purpose: match supply from producers to demand from consumers.DISTRIBUTION CHANNELSFUNCTIONSTYPICAL CHANNELS OF DISTRIBUTION

DISTRIBUTION AS A KEY FACTOR FOR COMPETITION.THE THREE PHASES OF DISTRIBUTION CHANNEL OPTIMIZATIONCurrent channel and partner evaluation: Unbiased evaluation of your companys current distribution channels and partners, their effectiveness in reaching customers, and ability to differentiate your organization from the competitionNew partner evaluation and selection: Systematic identification of high-growth opportunities within a market or geographic region; selection of appropriate partners to take advantage of those growth opportunitiesPartner managing and monitering: Assessment of partners performance; development of sales support and communication materials; planning for partner conflict resolution

ADVANTAGES OF DISTRIBUTION Reduce the duration of outagesImprove the speed and accuracy of outage predictions.Reduce crew patrol and drive times through improved outage locating.Improve theoperational efficiencyDetermine the crew resources necessary to achieve restoration objectives.Effectively utilize resources between operating regions.Determine when best to schedule mutual aid crews.Increased customer satisfactionA DMS incorporates IVR and other mobile technologies, through which there is an improved outage communications for customer calls.Provide customers with more accurate estimated restoration times.Improve service reliability by tracking all customers affected by an outage, determining electrical configurations of every device on every feeder, and compiling details about each restoration process.

Distributionis therefore thekeytocompetingin the markets and Success ultimately depends upon the effectiveness and reach of its go-to-market strategy. Distribution channel optimization is therefore a critical ingredient to sustaining growth through a rigorous customer focus.DISTRIBUTOR AS DIFFERENTIATORhigh-performance businesses (i.e., the 10 percent that outpace competitors regardless of economic conditions) excel in the development of meaningful customer insights and practical ways to put those insights into action. They understand what their customers want, and they know how to deliver solutions that customers will buy. An unwritten, but nonetheless significant, extension of this idea is that they not only know what customers will buy, but where and how they want to buy. In short, no company is successful for its insights alone. Success ultimately depends upon the effectiveness and reach of its go-to-market strategy. Distribution channel optimization is therefore a critical ingredient to sustaining growth through a rigorous customer focusHence distribution differentiate business from successful business.At their most basic level, distribution partners enable suppliers to deliver goods or services to end users, and distributors reach significantly influences the extent to which suppliers can engage with customers. On a more meaningful level, distribution partners provide customer service in areas where suppliers cannot or do not (e.g., financing, insurance, training, maintenance, repairs). Taken together, the two deliver an enhanced customer experience. If managed properly, distributors provide access to customers that can determine a suppliers reach, revenue, and long-term growth potential.Companies with productive channel relationships stand to increase sales, reduce operating costs, and improve customer reach. Importantly, effective distribution channel management delivers benefits to all players in the value chain, often by increasing the size of the market or capturing a greater share of customer wallet through the channel. Proper distribution planning can ensure that the best available channels and distribution methods are in place to efficiently move products and services to customers

CHANNEL FUNCTIONSA marketing channel performs the work of moving goods from producers to consumers. It overcomes the major time, place and possession gaps that separate goods and services from those who would use them.KEY FUNCTIONS:RESEARCHPROMOTIONCONTACTMATCHINGNEGOTIATINGPHYSICAL DISTRIBUTIONFINANCINGRISK TAKINGCHANNELAmarketing channelis a set of practices or activities necessary to transfer the ownership of goods, from the point ofproductionto the point ofconsumption. It is the way products and services get to theend-user, theconsumer; also known as adistribution channel.A marketing channel is a useful tool for management,and is crucial to creating an effective and well-planned marketing strategy.

LEVELS OF CHANNELCHANNEL DESIGN DECISIONSAnalyzing customer needs(a) Lot size (b) Waiting and delivery time (c) Spatial convenience(d) Product variety (e) Service backupEstablishing channel objectives Channel objectives should be stated in terms of targeted service output levels . Channel design must take into account the strengths and weaknesses of different types of intermediaries. Identifying major channel alternatives A channel alternative is described by three elements : (a)the types of available business intermediaries, (b) the number of intermediaries needed, (c) and the terms and responsibilities of each channel member . Evaluating major channel alternativesANALYSIS OF CUSTOMER Needs

CHANNEL MANAGEMENT DECISIONSSELECTING CHANNEL MEMBERS : characteristics of intermediaries -channel members length of business, other lines carried, growth and profit record, cooperativeness and reputation.MOTIVATING INDIVIDUAL CHANNEL MEMBERS Positive motivators higher margins, special deals, premium, cooperative advertising allowances, display allowances and sales contests. Negative motivators threatening to reduce margins, to slow down delivery, or to end the relationship altogetherEVALUATING THEIR PERFORMANCE OVER TIME : Evaluating standards sales quotas, average inventory levels, customer delivery time, treatment of damaged and lost goods, cooperation in company promotion.TRAINING : training programs and customer service.

MODIFYING CHANNEL ARRANGEMENTS Companies can choose from a wide variety of channels for reaching customers from sales forces to agents, distributors, dealers, direct mail, telemarketing, and the internet.TYPES OF CHANNEL ARRANGEMENTSThe type of business intermediaries : Company Sales force, prospects in the area, Manufactures Agency, Industrial Distributors.The number of intermediaries : Intensive Distribution & Exclusive Distribution.Terms and responsibilities of each channel participants : price policies, conditions of sale, territorial rights and specific service to be performed by each party.

Legal and Ethical issues in channel relations.Economic criteria :- Each channel alternative will produce a different level of sales and cost. Example : Company sales representatives are better trained to sell the companys products. A Sales agency could comically sell more than a company sales force due to more sales guys and better knowledge of the geographical area.Control criteria :- Channel evolution has to include control issues. Using a sales agency poses a control problem. Example : The agent might not master the technical details of the companys product or handle its promotion materials effectively.Adaptive Criteria :- Each channel involves some duration of commitment and loss of flexibility. Example : A manufactures seeking a sales agency might have to offer a five year contact. During this period, other means of selling such as direct mail might become more effective, but the manufactures is not free to drop the sales agencyADVERTISINGAdvertisinginbusinessis a form ofmarketingcommunicationused to encourage, persuade, or manipulate anaudience(viewers, readers or listeners; sometimes a specific group) to take or continue to take some action. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. This type of work belongs to a category calledaffective labor.

Why is advertising required?

Advertising is at the front of delivering the proper message to customers and prospective customers. The purpose of advertising is to convince customers that a company's services or products are the best, enhance the image of the company, point out and create a need for products or services, demonstrate new uses for established products, announce new products and programs, reinforce the salespeople's individual messages, draw customers to the business, and to hold existing customers.THE SIGNIFICANCE OF ADVERTISING INBUSINESS IS AS FOLLOWS:Crucial for a launch or announcement.Source of revenue for publishers.Promotes goods, services, ideas and events.Helps in increasing the sales.Maximizes the profit of an advertiser.Creates consumer awareness.Educate society.Art, Science and Profession.Demands creativity.Element ofmarketing mix.Target oriented.Use persuasion for results.Demands monitoring ofdemandand supply.Builds brand's image.Generates employment.

ROLE, IMPORTANCE & TYPES OF ADVERTISINGTypes of advertisingTelevisionRadioInfomercialOnlineNew mediaProduct placementPress advertisingBill boardMobile bill boardIn storeStreetShelter outdoor advertisingCelebrity advertisingAerial

Objective of advertisingCommunication or sales?Social and Ethical issues in AdvertisingSales versus Communications Objectives Sales-Oriented Objectives Major Problem: Carryover effect:- monies spent on advertising do not necessarily have an immediate impact on sales. Advertising may create awareness, interest, and/or favourable attitudes toward a brand, but these feelings will not result in an actual purchase until the consumer enters theMARKETfor the product, which may occur later. Factors inuencing sales Sales versus Communications Objectives Communications effects pyramid Effect of advertising on consumers: movement from awareness to action

PART II EXAMPLES OF ADVERTISING TELEVISION ADVERTISINGTelevision advertising is the most powerful form of advertising,traditionally,because it is a combination of audio and video advertising with unlimited variety, unlike other forms of advertising such as newspaper,magazines,radio stations and websites.Base on research report people give four hours and a half before television leisure activity since most of the time.But the costs involved in television advertising is very high as it will be repeated many times if TV commercials are creative them people do not think so they do not buy products.Productions of television advertising affects hiring screenwriters,actor,video editors or an advertising agency.

NEWSPAPER ADVERTISINGA newspaper ad can contains details such as prices and telephone number or coupons.There are many advantages to advertising in the newspaper. Form the advertisers point of view,newspaper advertising can be convenient because production changes can be made quickly if necessary and you can often insert a new advertisement on short notice.Another advantage is the large variety of ad sizes newspaper advertising offers.Even though you may not have a lot of money in your budget, you can still place a series of small ads without making a sacrificeSee in this advertisement we`ll pay your tax and sale these words attracts the consumer attention.This advertisement is colourful and contain variety of products with details n price.

STREET ADVERTISINGOut of home advertising that reaches the consumer while they are out side the homeOut of home advertising is focused on marketing to consumers when they are on the go in public places,in transit, waiting (such as in a medical office) and/ or in specific commercial location (such as in retail venue).

RADIO ADVERTISING A 30-second ad on radio is often less expensive than a 30-second TV ad and casier to produce. Radio ads can be produced very quickly ,unlike television ads and unlike magazine prints ads you do not have to wait for the next issue to come out.Morning and evening are key time when many businesses want their ads to run and there are only so many spots to go around.This can drive up the cost for those choice time sluts.Health benefits for worker with disabilities (HBWD) radio advertisements spread important massages about HBWD, the illions Medicaid Buy-In program authorized under the feders ticket to work incentives improvement act.

CELEBRITY ENDORSEMENTA form of brand or advertising campaign that involves a well known person using their fame to help promote a product or service.Manufacturers of perfumes and clothing are some of the most come business users of classic celebrity endorsement techniques such as television ads and launch events appearance in the marketing of their products.

IDPA4039-"HBWD"-Anna, rev.Carol Fisher, Scott WarrenRoyse-Wagner2004Vocal60132.74Copyright 2004, PPG & RW. All