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Chapter 13 Distributing and Promoting Products - Coggle Diagram
Chapter 13 Distributing and Promoting Products
Distribution channel (
or marketing channel) – a sequence of marketing organizations that directs a product from the producer to the ultimate user
Middleman
(or marketing intermediary) – a marketing organization that links a producer and user within a marketing channel
Merchant middleman
– a middleman that actually takes title to products by buying them
(buy the product, own it, and sell it to you)
Functional middleman
– a middleman that helps in the transfer of ownership of products but does not take title to the products
(only transfers the product, does not earn it)
Wholeseller
– interested in selling products in bulk
Agent/broker
– do not take title
3 levels of market coverage
Intensive distribution
– the use of all available outlets for a product
Many convenience goods, including candy, gum, and soft drinks, are distributed intensively.
Selective distribution
– the use of only a portion of the available outlets for a product in each geographic area
Manufacturers of goods such as furniture, home appliances, and clothing typically prefer selective distribution.
Example: Hanes brand socks are distributed through Target and Kohl’s.
Exclusive distribution
– the use of only a single retail outlet for a product in a large geographic area
Exclusive distribution usually is limited to prestigious products.
Nonstore retailing
– a type of retailing whereby consumers purchase products without visiting a store
Nonstore retailers use direct selling, direct marketing, and vending machines.
Direct Selling (physical sales)
Direct selling – the marketing of products to customers through
face-to-face sales presentations at home or in the workplace
Direct selling sometimes involves the “party plan,” which requires effective salespeople who identify potential hosts and provide encouragement and incentives for them to organize a gathering in their home or workplace
Direct Marketing (online sales)
Direct marketing – the use of the
telephone, Internet, and nonpersonal media
to introduce products to customers, who then can purchase them via mail, telephone, or the Internet
IMC (Integrated Marketing Communications)
advertising
a paid nonpersonal message communicated to a select audience through a mass medium
personal selling
personal communication aimed at informing customers and persuading them to buy a firm’s products :red_flag:
sales promotions
– the use of activities or materials as direct inducements to customers or salespersons
public relations
communication activities used to create and maintain favorable relationships between an organization and various public groups, both internal and external
Advertising agency
– an independent firm that plans, produces, and places advertising for its clients
Personal Selling
- is not only the most adaptable of all promotional methods but also the most expensive
(in order)
prospecting
approaching the prospect :red_flag:
making the presentation
answering objections
closing the sale
following up
Sales Promotion methods
Most sales promotion methods can be classified as promotional techniques for either consumer sales or trade sales.
Consumer sales promotion method
– a sales promotion method designed to attract consumers to particular retail stores and to motivate them to purchase certain new or established products
Trade sales promotion method
– a sales promotion method designed to encourage wholesalers and retailers to stock and actively promote a manufacturer’s product
Types of public-relations tools
Written materials
Brochures, newsletters, company magazines, annual reports
Corporate-identity materials
Speeches
Event sponsorship
Publicity
– communication in news-story form about an organization, its products, or both
News release
– a typed page of about 300 words provided by an organization to the media as a form of publicity
Feature article
– a piece (of up to 3,000 words) prepared by an organization for inclusion in a particular publication
Captioned photograph
– a picture accompanied by a brief explanation
Press conference
– a meeting at which invited media personnel hear important news announcements and receive supplementary textual materials and photographs