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Promotion andDistributionBetter Business
1st Edition
Poatsy Martin
2010 Pearson Education, Inc. 1
chapter
14
Slide presentation prepared by Pam Janson
Stark State College of Technology
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All rights reserved. No part of this publication may be reproduced,stored in a retrieval system, or transmitted, in any form or by anymeans, electronic, mechanical, photocopying, recording, or otherwise,without the prior written permission of the publisher. Printed in theUnited States of America.
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Learning Objectives
1. What is a promotional mix, and what is its function in apromotional campaign?
2. What are the different categories of advertising, and what role dothese categories play in business and society?
3. How are the various public relations tools essential to the
marketing mix?4. What are the six steps in the personal selling process?
5. What are the two main types of sales promotions, and what typesof tools are commonly used as incentives?
6. Why are marketing intermediaries and distribution channels
important elements in marketing?7. What types of services do agents/brokers and wholesalers
provide?
8. Why are retailing and physical distribution key aspects ofdistribution?
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What Is Promotion?
All of the techniques marketers use toinform targeted customers of the benefitsof a product and to persuade them topurchase the good, service, or idea
Increases brand awareness, brand loyalty,and sales
One of the most visible components of themarketing mix
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The Promotional Mix
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Promotional Campaign Steps
1. Identify target market.
2. Determine marketing objectives.
3. Design the message.4. Determine the budget.
5. Implement the promotional mix.
6. Evaluate and adjust as needed.
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Integrated Marketing
Communication
Strategy todeliver a clear,consistent, and
unified messageabout thecompany and its
products tocustomers at allcontact points
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Advertising in Business
and Society
Advertising is paid, impersonal masscommunication from an identified sponsor toinfluence a targeted audience
Effective advertising builds brand awareness,association, loyalty andequity
Advertising informsconsumers
Advertising industrycreates jobs
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Types of Advertising
Product
Corporate (orinstitutional)
Comparative
Retail (or local)
Business-to-business
Nonprofit Public service
Advocacy
Interactive
Internet
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Advantages and Disadvantages
of Advertising Media: Part 1
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Advertising
Trends Internet advertising
Product placementand infomercials
Global advertising
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Public Relations
The management function that establishesand maintains mutually beneficialrelationships between an organization and its
stakeholderso Stakeholders include all interested parties,
including consumers, stockholders, employees,suppliers, the government, and the public in
general
The purpose is to maintain a positive imageof the organization in stakeholders minds
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Public Relations Tools
Controlled messageso Corporate, advocacy, and public service
advertising and corporate reports publishing
Semicontrolled messageso Messages are placed on Web sites, in chat
rooms, and on blogs
o Sponsorships
Uncontrolled messageso Publicity
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Personal Selling
Direct communication between a firms salesforce and potential buyers to make a sale and to
build good customer relationships
Most expensive part of the promotional mix as asalesperson deals with one buyer at a time
Preferred with high-value, custom-made, ortechnically complex products
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Types of Salespeople
Order getters
o Creative selling
Order takers
Support personnel
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The Personal
SellingProcess
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Consumer Sales
Promotion Tools
Coupons
Rebates
Frequent-user incentives
Point-of-purchase displays Free samples
Contests and sweepstakes
Advertising specialties Others: BOGO, catalogs, demonstrations,
premiums, etc.
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Trade Sales Promotions
Trade shows and conventions Trade allowances
Cooperative advertising
Free merchandise
Sales contests Dealer listings
Catalogs and store demonstrations
In-store displays
Quantity discounts
Training and support programs
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Advantages and Disadvantages
of the Promotional Tools
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Distribution
The last of the 4 Ps (place)
Makes products available to consumerswhen and where consumers want them
Managing the entire process is calledsupply-chain management
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Marketing Intermediaries
A business firm that operates between producersand consumers or business users
o Wholesalers
o Agents/brokerso Retailers
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The distribution channel is the whole set ofmarketing intermediaries who get goods frommanufacturers to final consumers
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Why AreInter-
mediaries
Needed?
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Types of Distribution Channels
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Methods of Distribution:
Wholesaling
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Types of Wholesalers
Merchant wholesalers
o Full-service wholesalers
Wholesale merchants
Industrial distributors
o Limited-service wholesalers
Cash-and-carry wholesalers
Truck wholesalers
Drop shippers
Rack jobbers
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Agents/Brokers
Facilitate buying and selling
Do not take title to products
Typically earn a commission on the sale
Agents are hired on a more permanentbasis than brokers are
Types
o Manufacturers agentso Selling agents
o Purchasing agents
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Retail Strategies
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Intensive
distribution
Convenience
goods
Example: Frito
Lay chips
Selective
distribution
Shopping
goods
Example: Sony
HD televisions
Exclusive
distribution
Specialty
goods
Example:
Porsche cars
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Types of Retailers
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Non-Store
Retailers
Electronic shopping
Vending machines
Kiosks and carts
Telemarketing
Direct selling
Direct marketingo Catalog sales, direct
mail, telemarketing,infomercials
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Retail Organization
Corporate chain stores
o Safeway, Sears, Wal-Mart
Wholesale groups
o Independent Grocers Alliance (IGA), WesternAuto, True Value, Associated Grocers, andAce
Franchiseso McDonalds, Subway, KFC, Pizza Hut, Jiffy
Lube, and Holiday Inn
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Physical Distribution
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Inbound
logistics
Materials
handling
Outbound
logistics
Reverselogistics
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Warehousing and
Inventory Control
Storage warehousesstore goods frommoderate to long
periods of time
Distributionwarehouses (or
distribution centers) are designed to gather andmove goods quickly to consumers
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Benefits and Costs of
Transportation Modes
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Chapter Summary
1. What is a promotional mix, and what is its function in apromotional campaign?
2. What are the different categories of advertising, and what role dothese categories play in business and society?
3. How are the various public relations tools essential to the
marketing mix?4. What are the six steps in the personal selling process?
5. What are the two main types of sales promotions, and what typesof tools are commonly used as incentives?
6. Why are marketing intermediaries and distribution channels
important elements in marketing?7. What types of services do agents/brokers and wholesalersprovide?
8. Why are retailing and physical distribution key aspects ofdistribution?
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Beyond the Book
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Leading Media CompaniesMEDIA
COMPANY:Time Warner Comcast Walt Disney News Corp.* DirecTV
2006 $33,993 $27,392 $16,838 $14,091 $13,744
% CHANGE 6 11.9 9 9.6 12.5
NEWSPAPER $0 $0 $0 $249 $0
MAGAZINE $3,604 $0 $366 $0 $0
TV $397 $0 $5,394 $5,121 $0
RADIO $0 $0 $147 $0 $0
CABLENETWORKS
$6,970 $1,053 $6,757 $3,848 $0
CABLE
SYSTEMS
$11,738 $26,339 $0 $0 $13,744
DIGITAL $5,458 $0 $280 $385 $0
MOVIE $2,909 $0 $2,671 $2,954 $0
OTHER $2,919 $0 $1,224 $1,534 $0
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Product Placement
Hall of Fame
Movie Product
Cast Away FedEx, Wilson
I Am Legend Ford, Apple
Youve Got Mail AOL, Starbucks
Harold & Kumar Go to White Castle White Castle
Men in Black II Mountain Dew, Burger King, eBay
Talladega Nights: The Ballad ofRicky Bobby
Wonder Bread
Top Gun Department of the Navy, Ray-Ban
Transformers GM
E.T. the Extra-Terrestrial Reeses Pieces
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NO-AD Suncare
NO-AD Suncare is manufactured by SolarCosmetic Labs of Miami, Florida
The NO-AD line was introduced in 1960
NO-ADs goal is to provide the best qualityproducts at the lowest price NO-AD offers twice the size product for the
same price as the national brands
Products include sunscreen, sunless tanner,and face and lip sun block There is no advertising for this product line
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Tiffanys and Nelson Peltz, Activist
Marketer
Nelson Peltz is a partner in Trian
Trian has a 8.4% stake in Tiffany
Peltz and his partners suggestedthat Tiffany:
o Sell watches in stores otherthan Tiffanys
o Focus on women buyingjewelry for themselves
Tiffany has implemented theseideas and others to improve itsmarketing mix
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