© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 1

Developing Developing Distribution and Distribution and

Promotional Promotional StrategiesStrategies

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

Distributing ProductsDistributing Products

• Distribution strategies

• Marketing intermediaries

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 3

Wholesalers and Wholesalers and RetailersRetailers

• Match buyers and sellers• Provide market information• Provide 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 13 - 4

How Intermediaries How Intermediaries Simplify CommerceSimplify Commerce

• Reduce prices

• Reduce contacts

• Create utility

– Time

– Place

– Possession

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 5

Alternative Distribution Alternative Distribution ChannelsChannels

Business Goods and Services

Consumer Goods and ServicesProducer

Producer

Producer

Producer

Producer

Agent/Broker

Wholesaler

Wholesaler

Retailer

Retailer

Retailer

Consumer

Consumer

Consumer

Consumer

Consumer

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 6

Channel SelectionChannel Selection

• Market coverage

• Cost

• Control

• Channel conflict

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 7

Managing Physical Managing Physical DistributionDistribution

• Forecasting

• Order processing

• Inventory control

• Warehousing

• Materials handling

• Outbound transportation

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 8

Distribution Strategy Distribution Strategy and the Internetand the Internet

• Improve efficiency

• Expand market reach

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 9

Promotional StrategiesPromotional Strategies

• Promotional goals

• Product variables

• Promotional mix

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 10

Setting Promotional Setting Promotional GoalsGoals

• Informing

• Persuading

• Reminding

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 11

Analyzing Product Analyzing Product VariablesVariables

• The nature of the product

• Price of the product

• Product’s position in the life cycle

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

Choosing a Marketing Choosing a Marketing ApproachApproach

• Push strategy

• Pull strategy

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

Selecting the Promotional Selecting the Promotional MixMix

• Personal selling

• Advertising

• Direct marketing

• Sales promotion

• Public relations

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 14

Personal Selling ProcessPersonal Selling Process

1. Prospecting

2. Preparing

3. Approaching

4. Presenting

5. Handling objections

6. Closing

7. Following up

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 15

Advertising and Direct Advertising and Direct MarketingMarketing

• Product awareness

• Product image

• Consumer demand

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 16

Direct Marketing Direct Marketing VehiclesVehicles

• Direct mail

• Target e-mail

• Telemarketing

• Internet

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 17

Advertising CategoriesAdvertising Categories

• Product

• Institutional

• National

• Local

• Cooperative

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 18

Major Advertising MediaMajor Advertising Media

• Newspapers

• Television

• Direct mail

• Radio

• Magazines

• Internet

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 19

Sales PromotionSales Promotion

• Consumer promotion

• Trade promotion

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 20

Consumer Sales Consumer Sales PromotionPromotion

• Coupons• Rebates• Point-of-purchase• Special-event sponsoring• Cross-promotion• Samples• Premiums• Specialty advertising

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 21

Trade Sales PromotionTrade Sales Promotion

• Trade allowances

• Display premiums

• Contests or sweepstakes

• Travel bonus programs

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 22

Public RelationsPublic Relations

• News release

• News conference

© Prentice Hall, 2004 Business In Action 2e Chapter 13 - 23

Integrated Marketing Integrated Marketing CommunicationsCommunications

• Promotional mix and IMC– Public relations– Personal selling– Advertising– Direct marketing– Sales promotion