Promotion and Distribution 2014 Pearson Education, Inc.14-1
chapter 14 Better Business 3rd Edition Solomon (Contributing
Editor) Poatsy Martin
Slide 2
What Is Promotion? 2014 Pearson Education, Inc.14-2 Promotion
Communication about an organization and its products that is
intended to inform, persuade, or remind target market members There
are several ways in companies can communicate to target market
members Promotion is NOT just advertising!!! The Promotion Mix The
particular combination of promotion methods a firm uses to reach a
target market 1) Advertising 3) Public Relations 4) Personal
Selling 5) Sales Promotion Integrated Marketing Communications
(IMC) Coordination of all promotion efforts for maximum
informational and persuasive impact on customers, and to
communicate a unified impression about a product Goal = Consistent
Messages to Customers
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The Promotional Mix 2014 Pearson Education, Inc. 14-3
Slide 4
Integrated Marketing Communication A strategy to deliver a
clear, consistent, and unified message about the company and its
products to customers at all contact points. 2014 Pearson
Education, Inc. 14-4
Slide 5
The Role of Advertising Businesses use Advertising to: Build
brand awareness and brand association Emphasize product
differentiation Build brand loyalty and brand equity Inform and
educate consumers Increase sales and lower prices 2014 Pearson
Education, Inc. 14-5 Advertising is paid, nonpersonal
communication, designed to influence a target audience. Television
remains the #1 advertising media. But it is fragmenting.
Slide 6
Some Common (Not All) Types of Advertising 2014 Pearson
Education, Inc. 14-6 Institutional (or corporate) advertising
Advertising that focuses on creating a positive image toward an
organization or an entire industry as opposed to a specific
product. Ex. Beef, Its Whats for Dinner, sponsored by the
Cattlemens Beef Board and National Cattlemens Beef Association or
Got Milk by California Milk Processing Board Produce (brand)
advertising Used to promote a specific products uses, features, and
benefits. This is the type of advertising we most often see.
Comparative advertising Advertising that compares a brands
characteristics with those of other established brands. You have
probably seen toothpaste, pain relievers, and detergents compared.
Retail (or local) advertising Advertising that focuses on
attracting customers to a fixed location like a department store or
a grocery store.
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Types of Advertising Appeals 2014 Pearson Education, Inc.7 The
5 Appeals of Product Advertisements 1)Humor 2)Informational 3)Sex
4)Emotional (ex. Fear/Heartfelt) 5)Celebrity
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Types of Advertising Media 2014 Pearson Education,
Inc.14-8
Slide 9
Advertising Trends Online advertising Social media Mobile
marketing Product placement Infomercials Global advertising 2014
Pearson Education, Inc. 14-9
Slide 10
Public Relations Public Relations is the ongoing effort to
create non- sales, positive relationships with all of a firms
different stakeholders. The management function that establishes
and maintains mutually beneficial relationships between an
organization and its stakeholders. 2014 Pearson Education,
Inc.14-10
Slide 11
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
2014 Pearson Education, Inc. 14-11
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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 2014 Pearson Education,
Inc. 14-12
Slide 13
Personal Selling Personal selling is paid, personal
communication between buyer and seller. Direct communication
between a firms 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 2014 Pearson Education, Inc.14-13
Slide 14
Types of Salespeople Order getters Order takers Order
influencers Support personnel 2014 Pearson Education, Inc.
14-14
Slide 15
2014 Pearson Education, Inc. 14-15 The Personal Selling
Process
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Sales Promotion 2014 Pearson Education, Inc. 16 Consumer Sales
Promotion Stimulate immediate sales Premiums Contests/Games/Promo
Items Samples Coupons Rebates Point of Purchase Displays Trade
Sales Promotion Stimulate wholesalers and retailers to push
specific products Special Deals Allowances Trade Shows Contests
Sweepstakes Special Events
Trade Sales Promotions 2014 Pearson Education, Inc. 14-18
Slide 19
Advantages & Disadvantages of Promotional Tools 2014
Pearson Education, Inc. 14-19
Slide 20
What is the Distribution (Place) Element of the Marketing Mix?
The process that makes products available to consumers when and
where consumers want them. 2014 Pearson Education, Inc. 14-20
Slide 21
Distribution: Getting the Product to the Consumer 2014 Pearson
Education, Inc. 21 ProducerWholesaler Channel of Distribution the
path that a product takes from the producer to the consumer
Distribution Strategy: getting the right product to the right
person at the right place, at the right time Consumer
Slide 22
Elements of a Distribution Strategy 2014 Pearson Education,
Inc. 22 Physical Distribution the actual movement of products to
consumers (i.e. by what means do products get to marketing
channels/consumers, like trucking, railroad, air, etc.) Direct
Channel producers who sell products directly to consumers (ex.
Producer->Consumer) Channel Intermediaries (aka Middlemen,
Marketing Channels) help products move from factories to consumers
efficiently (ex. Retailers and Wholesalers) Question: Are Sams Club
and Costco Wholesale acting as a retailer or wholesaler?
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2014 Pearson Education, Inc.14-23 Types of Distribution
Channels
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Marketing Intermediaries 2014 Pearson Education, Inc. 14-24
Merchant Wholesalers (ex. PYA/Monarch, IFH) Full-service merchant
wholesalers Limited-service merchant wholesalers Drop Shippers Cash
and Carry Wholesalers Truck (rack) Jobbers Agents/Brokers (ex. The
Match Maker, Inc. my company!) Connect Buyers and Sellers
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Retailers and Wholesalers 2014 Pearson Education, Inc.25
Retailers the distributors that sell products directly to the
ultimate users Wholesalers distributors that buy products from
producers and sell them to other businesses or Non-final users
(i.e. other retailers or wholesalers)
Slide 26
The Role of Marketing Intermediaries 2014 Pearson Education,
Inc.26 Justifications for marketing intermediaries Intermediaries
perform essential marketing services (promotion of products, help
sell product) Intermediaries provide important market information
to producers (whats selling, whos buying, customer feedback)
Intermediaries help store products (producers wont be burdened with
storage costs) Intermediaries provide customers with convenience
and choice selection Intermediaries accept risk for customer non-
payment or non-sold products Intermediaries create efficiency and
utility Intermediaries help REDUCE COSTS and provide VALUE!
How?
Slide 27
Why Are Intermediaries Needed? 2014 Pearson Education, Inc.
14-27
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Types of Retailers 2014 Pearson Education, Inc.14-28
Slide 29
Non-Store Retailers Electronic shopping Telemarketers Direct
sellers Direct marketers 2014 Pearson Education, Inc. 14-29
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Retail Strategies: Market Coverage Intensity 2014 Pearson
Education, Inc.14-30 Intensity of market coverage Intensive
distribution The use of all available outlets for a product to
saturate the market Convenience Products Selective distribution The
use of only a portion of the available outlets for a product in
each geographic area Shopping Products Exclusive distribution The
use of only a single retail outlet for a product in a larger
geographic area Specialty Products
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Distribution Logistics 2014 Pearson Education, Inc. 14-31
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Benefits & Costs of Transportation Modes 2014 Pearson
Education, Inc. 14-32
Slide 33
Warehousing & Inventory Control Storage warehouses store
goods from moderate to long periods of time Distribution warehouses
(or distribution centers) are designed to gather and move goods
quickly to consumers 2014 Pearson Education, Inc. 14-33
