chapter 14 Promotion and Distribution Better Business 2nd Edition Solomon (Contributing Editor) Poatsy Martin

Transcription

1 chapter 14 Promotion and Distribution Better Business 2nd Edition Solomon (Contributing Editor) Poatsy Martin 14-1

2 Learning Objectives 1. What is a promotional mix, and what is its function in a promotional campaign? 2. What are the different categories of advertising, and what role do these categories play in business and society? 3. How are the various public relations tools essential to the marketing mix? 4. What are the steps in the personal selling process? 5. What are the two main types of sales promotions, and what types of 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 of distribution? 14-2

3 What Is Promotion? All of the techniques marketers use to inform targeted customers of the benefits of a product and to persuade them to purchase the good, service, or idea Increases brand awareness, brand loyalty, and sales One of the most visible components of the marketing mix 14-3

4 The Promotional Mix 14-4

5 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. 14-5

6 Integrated Marketing Communication Strategy to deliver a clear, consistent, and unified message about the company and its products to customers at all contact points 14-6

7 The Role of Advertising Advertising is paid, impersonal mass communication from an identified sponsor to influence a targeted audience Effective advertising builds brand awareness, association, loyalty and equity Advertising informs consumers Advertising industry creates jobs 14-7

8 Types of Advertising Product Corporate (or institutional) Comparative Retail (or local) Business-to-business Nonprofit Public service Advocacy Interactive Internet 14-8

9 Types of Advertising Media 14-9

10 Advertising Trends Internet advertising Product placement and infomercials Global advertising 14-10

11 Public Relations The management function that establishes and maintains mutually beneficial relationships between an organization and its stakeholders - Stakeholders include all interested parties, including consumers, stockholders, employees, suppliers, the government, and the public in general The purpose is to maintain a positive image of the organization in stakeholders minds 14-11

12 Public Relations Tools Controlled messages - Corporate, advocacy, and public service advertising and corporate reports publishing Semicontrolled messages - Messages are placed on Web sites, in chat rooms, and on blogs - Sponsorships Uncontrolled messages - Publicity 14-12

13 Publicity Information about an individual, organization, or product transmitted through mass media at no charge Advantages - Free - Often more believable as it is presented as a news story Disadvantages - Actual message and timing controlled by the media, not the seller - Bad news gets shared too 14-13

14 Personal Selling Direct communication between a firm s sales force and potential buyers to make a sale and to build good customer relationships Most expensive part of the promotional mix as a salesperson deals with one buyer at a time Preferred with high-value, custom-made, or technically complex products 14-14

15 Types of Salespeople Order getters - Creative selling Order takers Support personnel 14-15

16 The Personal Selling Process 14-16

17 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

18 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 14-18

19 Advantages & Disadvantages of Promotional Tools 14-19

20 Distribution The last of the 4 Ps (place) Makes products available to consumers when and where consumers want them Managing the entire process is called supplychain management 14-20

21 Marketing Intermediaries A business firm that operates between producers and consumers or business users - Wholesalers - Agents/brokers - Retailers The distribution channel is the whole set of marketing intermediaries who get goods from manufacturers to final consumers 14-21

22 Why Are Intermediaries Needed? 22

23 Types of Distribution Channels 14-23

24 Wholesale Intermediaries 14-24

25 Types of Wholesalers Merchant wholesalers - Full-service wholesalers Wholesale merchants Industrial distributors - Limited-service wholesalers Cash-and-carry wholesalers Truck wholesalers Drop shippers Rack jobbers 14-25

26 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 permanent basis than brokers are Types - Manufacturers agents - Selling agents - Purchasing agents 14-26

27 Retail Strategies Intensive distribution Convenience goods Example: Frito Lay chips Selective distribution Shopping goods Example: Sony HD televisions Exclusive distribution Specialty goods Example: Porsche cars 14-27

28 Types of Retailers 14-28

29 Non-Store Retailers Electronic shopping Vending machines Kiosks and carts Telemarketing Direct selling Direct marketing - Catalog sales, direct mail, telemarketing, infomercials 14-29

30 Retail Corporate chain stores - Safeway, Sears, Wal-Mart Wholesale groups - Independent Grocers Alliance (IGA), Western Auto, True Value, Associated Grocers, and Ace Franchises - McDonald s, Subway, KFC, Pizza Hut, Jiffy Lube, and Holiday Inn 14-30

31 Distribution Logistics 14-31

32 Benefits & Costs of Transportation Modes 14-32

33 Storage warehouses store goods from moderate to long periods of time Warehousing & Inventory Control Distribution warehouses (or distribution centers) are designed to gather and move goods quickly to consumers 14-33

34 Chapter Summary 1. What is a promotional mix, and what is its function in a promotional campaign? 2. What are the different categories of advertising, and what role do these 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 types of 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 of distribution? 14-34

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