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Marketing III:Distribution & Advertising
BBI2O
Distribution Channels
• The path that goods follow to get from producer to consumer
• Three types:• Direct• Indirect• Specialty
Direct Channels
• Consumer buys directly from the producer• Ex: farmer’s market, bakery, factory
outlet, or factory-run stores like Ikea or Roots
• No intermediaries means less cost added to product• Consumer pays less by buying direct• Manufacturer can sell to the consumer
for a higher price than they would to a wholesaler
Indirect Channels
• One or more intermediaries between producer and consumer• Importers: Bring in goods from foreign
manufacturers• Wholesalers: Buy goods from the
manufacturer in large quantities, then distribute them more locally in smaller quantities to retailers
• Retailers: Sell goods directly to consumers
Specialty Channels
• Indirect channels that do not involve a traditional retail store• E-Commerce• Vending machines• Telemarketing• TV sales• Catalogues• Door-to-door sales
E-Commerce
• What are the pros and cons of buying online for the consumer?
• For what types of goods is e-commerce not as appropriate?
• How has e-commerce impacted traditional distribution channels?
Advertising
• Paid-for promotion of a business’s goods/services
• Can have different goals…• How might the goals of advertising
change over the course of the PLC?
Types of Advertising
• Direct-to-home (i.e. flyers)• Print (magazines, newspapers)• Billboards• Transit ads (i.e. on buses, shelters)• Television• Radio• Internet
Types of Advertising
• The more people the ad can potentially reach, the more expensive the ad• This is why ads during the Superbowl
are so expensive• A marketer doesn’t want to have
to pay to reach people who are not in its target market
• Ideally, the ad is targeted to reach only those people who are potential customers
Types of Advertising
• What would be the best type of advertising for…• Etnies skate shoes• Maroush Shawarmas• A Dodge minivan• A Corvette• MAC cosmetics
Headline
Illustrations
Copy
Signature
Signature
Illustrations
Headline
Copy
Other types of promotion
• Coupons• Contests• Premiums/giveaways• Samples