© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 1

Developing Developing Distribution and Distribution and

Promotional Promotional StrategiesStrategies

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 2

Distributing Distributing ProductsProducts

DistributionStrategies

DistributionStrategies

MarketingIntermediaries

MarketingIntermediaries

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 3

Wholesalers and Wholesalers and RetailersRetailers

• 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

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 4

How Intermediaries Simplify CommerceHow Intermediaries Simplify Commerce

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 5

Alternative Distribution Alternative Distribution ChannelsChannels

Business Goods and Services

Consumer Goods and ServicesProducerProducer

ProducerProducer

ProducerProducer

ProducerProducer

ProducerProducer

Agent/BrokerAgent/Broker

WholesalerWholesaler

WholesalerWholesaler

RetailerRetailer

RetailerRetailer

RetailerRetailer

ConsumerConsumer

ConsumerConsumer

ConsumerConsumer

ConsumerConsumer

ConsumerConsumer

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 6

Channel Channel SelectionSelection

MarketMarketCoverageCoverage

MarketMarketCoverageCoverage

CostCostCostCost

ControlControlControlControl

ChannelChannelConflictConflictChannelChannelConflictConflict

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 7

Managing Distribution

ForecastingForecasting

Order ProcessingOrder Processing

Inventory ControlInventory Control

WarehousingWarehousing

Materials HandlingMaterials Handling

TransportationTransportation

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 8

Distribution Strategy Distribution Strategy and the Internetand the Internet

ImproveImproveEfficiencyEfficiency

ExpandExpandMarket ReachMarket Reach

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 9

Promotional StrategiesPromotional Strategies

Promotional Goals

Product Variables

Promotional Mix

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 10

Setting PromotionalSetting PromotionalGoalsGoals

InformingInformingInformingInforming RemindingRemindingRemindingRemindingPersuadingPersuadingPersuadingPersuading

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 11

Analyzing Product Analyzing Product VariablesVariables

Nature ofNature ofthe Productthe Product

Price ofPrice ofthe Productthe Product

Product’s PositionProduct’s Positionin the Life Cyclein the Life Cycle

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 12

Choosing a Marketing Choosing a Marketing ApproachApproach

WholesalerWholesaler RetailerRetailer ConsumerConsumerProducerProducer

WholesalerWholesaler RetailerRetailer ConsumerConsumerProducerProducer

Communication FlowCommunication Flow

Push StrategyPush Strategy

Pull StrategyPull Strategy

Communication FlowCommunication Flow

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 13

Selecting the Selecting the Promotional MixPromotional Mix

Personal SellingPersonal Selling

AdvertisingAdvertising

Direct MarketingDirect Marketing

Sales PromotionSales Promotion

Public RelationsPublic Relations

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 14

Personal Selling Personal Selling ProcessProcess

ProspectingProspecting1

PreparingPreparing2

ApproachingApproaching3

PresentingPresenting4

HandlingObjections

HandlingObjections

5

ClosingClosing6

Following UpFollowing Up7

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 15

Advertising and Direct Advertising and Direct MarketingMarketing

Product Awareness

Product Image

Consumer Demand

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 16

Direct Marketing Direct Marketing VehiclesVehicles

Direct MailDirect Mail

Target E-mailTarget E-mail

TelemarketingTelemarketing

InternetInternet

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 17

Advertising CategoriesAdvertising Categories

NationalNationalNationalNational LocalLocalLocalLocal CooperativeCooperativeCooperativeCooperative

ProductProductProductProduct InstitutionalInstitutionalInstitutionalInstitutional

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 18

Major Advertising MediaMajor Advertising Media

RadioRadioRadioRadio MagazinesMagazinesMagazinesMagazines InternetInternetInternetInternet

NewspapersNewspapersNewspapersNewspapers TelevisionTelevisionTelevisionTelevision Direct MailDirect MailDirect MailDirect Mail

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 19

Sales PromotionSales Promotion

ConsumerConsumerPromotionPromotion

TradeTradePromotionPromotion

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 20

Consumer Consumer Sales PromotionSales Promotion

•Coupons

•Rebates

•Point-of-Purchase

•Special-Event Sponsoring

•Cross Promotions

•Samples

•Premiums

•Specialty Advertising

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 21

Trade PromotionsTrade PromotionsTrade PromotionsTrade Promotions

Contests orContests orSweepstakesSweepstakesContests orContests or

SweepstakesSweepstakes

TradeTradeAllowancesAllowances

TradeTradeAllowancesAllowances

Travel BonusTravel BonusProgramsPrograms

Travel BonusTravel BonusProgramsPrograms

DisplayDisplayPremiumsPremiumsDisplayDisplay

PremiumsPremiums

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 22

Public RelationsPublic Relations

News ReleaseNews ReleaseNews ReleaseNews Release News ConferenceNews ConferenceNews ConferenceNews Conference

ProductProductDemonstrationsDemonstrations

ProductProductDemonstrationsDemonstrations

ImportantImportantNewsNews

ImportantImportantNewsNews

MediaMediaQuestionsQuestions

MediaMediaQuestionsQuestions

© Prentice Hall, 2004 Business In Action 2e Chapter 12 - 23

IMCIMC

Integrated Marketing Integrated Marketing CommunicationsCommunications

PublicPublicRelationsRelations

PersonalPersonalSellingSelling

AdvertisingAdvertisingDirectDirectMarketingMarketing

SalesSalesPromotionPromotion

EffectivenessEffectiveness

ConsistencyConsistency

Imp

act

Imp

actC

lari

tyC

lari

ty