better bus chapter 14 instructor pp t

7/28/2019 Better Bus Chapter 14 Instructor Pp t

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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.

2010 Pearson Education, Inc. 2


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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?

2010 Pearson Education, Inc.Publishing as Prentice Hall

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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

2010 Pearson Education, Inc.Publishing as Prentice Hall 22

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


37Note: Dollars in millions


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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

2010 P Ed ti I 40

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