Assignment 226

Chapter Nine

Promoting and Distributing

Copyright © 2018 by McGraw-Hill Education. All rights reserved.

9-*

Learning Objectives

Describe the use of advertising to promote the sale of a product.

Discuss some opportunities and problems involved in selling to ethnic groups.

Describe the opportunities for small firms in global marketing.

Explain how physical distribution affects marketing strategy.

9-*

Learning Objectives (cont.)

Describe different channels of distribution used for marketing products and discuss factors to consider in choosing an appropriate channel.

Describe the functions of intermediaries used in selling a product.

Describe the creative selling process used in personal selling.

9-*

Advertising

Advertising

Informs customers of the availability, desirability, and uses of products.

9-*

Types of Advertising

Product advertising

Calls attention to or explains a specific product.

Institutional advertising

Selling an idea about the company.

Tries to keep the public conscious of

The company and its good reputation while also trying to sell specific products.

9-*

Developing the
Advertising Program

How much money to budget and spend for advertising.

What media to use.

What to say and how to say it.

What advertising agency to use.

What results are expected.

9-*

Setting the Budget

Percentage of sales or profits method

Advertising costs have a consistent relationship to the firm’s sales volume and/or profit level.

Units of sales method

The firm sets aside a fixed sum for each unit of product to be sold.

9-*

Setting the Budget

Objective (task) method

Specific objectives are set.

The medium that best reaches this target market is chosen.

Executive decision method

The marketing manager decides how much to spend. This method’s effectiveness depends on the manager’s experience and/or intuition.

9-*

Selecting Advertising Media

9-*

Some Popular Media Used
by Small Firms

Infomercials

Long, usually half-hour TV ads hosted by a hyper “sellevangelist” selling a relatively new product or service.

Paid programming, teleshopping as QVC.

9-*

How to Select the
Appropriate Medium

The media of choice are those that your target market pays most attention to.

Absolute cost

Actual expenditure for running an ad.

Relative cost

Relationship between the actual cost and the number of consumers the message reaches.

9-*

Measuring the Results of Advertising

Immediate-response advertising

Tries to get customers to buy a product within a short period of time so that response can be easily measured.

Measure response by coupons brought to the store, letters or phone requests referring to ads, amount of sales of particular item, and checks on store traffic.

9-*

Merchandising

Merchandising

Promoting the sale of a product at the point of purchase.

The way the product is presented to customers.

Window displays, store banners, product label and packaging, and product demonstrations.

Some stores change the location of items in the store frequently, forcing customers to walk through other areas.

9-*

Sales Promotion

Sales promotion

Includes marketing advertising and personal selling that stimulate consumer purchasing and dealer effectiveness.

9-*

Sales Promotion

Consumer promotions use coupons, discounts, contests, trading stamps, samples, and rebates.

Trade promotions include advertising specialties, free goods, buying allowances, merchandise allowances, cooperative advertising, and free items given as premiums.

9-*

Sales Promotion

Sales force promotions consist of benefits such as contests, bonuses, extra commissions, and sales rallies that encourage salespeople to increase their selling effectiveness.

9-*

Sales Promotion

Trade show

An exhibition of products or services by companies in the same industry.

Also called trade fair.

9-*

Trade Show Tips for Exhibitors

Be sure to choose the appropriate trade show.

Use teaser gifts to draw crowds.

Pay attention to signage.

Confer frequently with your staff and stay flexible.

Follow-up on leads.

Track sales resulting from your exhibit to see if it was all worth it.

9-*

Publicity

Publicity

Is information about a business that is published or broadcast without charge.

Considered free advertising, as when something about your business becomes newsworthy.

Send a well-written publicity release to a news editor for possible use.

Also send information about new products or services.

9-*

Opportunities for Small Firms in Global Marketing

Global marketing

Involves products that are produced, bought, sold, or used almost anywhere in the world.

How many products that you use everyday came from elsewhere in the world?

How many products that you use daily were made in America?

Compare the numbers.

9-*

Opportunities for Small Firms in Global Marketing

Importing

Involves purchasing and marketing other nations’ products.

Exporting

Involves marketing our products to other nations.

9-*

Reasons for Importing

Imported goods may be the product the company sells to customers or the raw material for the goods it produces. (Example cotton sent to Egypt for them to process into 500 count sheets.)

Companies from other countries are just as interested in selling to U.S. markets, as we are to them.

Imported good may form the main source of revenue-or competition- for a small business in all stages of buyin producing or selling a product.

Small business owners capitalize on the fact that some Americans have a preference for foreign goods or services, such as Japanese cars, English fine china, Russian caviar, Italian leather, and French crystal.

The increasing flow of new and improved products into the country can improve the output or increase competitive levels.

9-*

Misconceptions of Exporting

Only large firms can export successfully.

Payment for goods sold to foreign buyers is uncertain.

Overseas markets represent only limited sales opportunities.

Foreign consumers will not buy American products.

Export start-up costs are high.

9-*

Some Opportunities and Risks in
International Operations

Figure 9.2

9-*

Deciding Whether or
Not to Export

You should must be willing to commit the resources and make sure you:

Have a product suitable for export.

Can reliably fill the needs of foreign countries while still satisfying domestic demand.

Can offer foreign buyers competitive prices and satisfactory credit terms.

Are willing to devote the time and skills needed to make export activities a significant part of your business.

9-*

Distribution

Distribution involves the effective physical movement of a product from the production line to the final consumer.

You must make decisions in areas as protective packaging, materials handling, inventory control, storing, transportation (internally and externally), order processing, and various aspects of customer service.

9-*

9-*

Transportation

Transportation modes

Methods used to transfer products from place to place.

Intermodal shipping

The use of a combination of truck, rail, or ship to transport goods.

9-*

Choosing a Distribution Channel

Distribution channel

Consists of the marketing organizations responsible for the flow of goods and services from the producer to the consumer.

9-*

Factors to Consider in Choosing
a Distribution Channel

Geographical markets and consumer types.

Whether the product will be distributed through many outlets, selected outlets, or exclusive distributors.

Kind and amount of marketing effort the producer intends to exert.

Need for receiving feedback about the product.

Adequate incentives to motivate resellers.

9-*

Distribution Channels
for Consumer Goods

Figure 9.3

9-*

Distribution Channels
for Industrial Goods

Figure 9.4

9-*

Selling through Intermediaries

Intermediaries are those units or institutions in the channel of distribution that either take title to or negotiate the sale of the product.

Brokers bring buyers and sellers of goods together.

Agents are intermediaries who market a product to others for a fee.

Wholesalers are intermediaries who take title to the goods and then sell them to retailers or other intermediaries.

Retailers sell goods or services directly to the ultimate consumer.

Off-price Retailers are those who buy designer labels and well-known brands of clothing at less than typical retail prices.

9-*

Steps in the Sales Process

Figure 9.5

9-*

How to Lose a Sale

Figure 9.6

9-*

Steps in the Creative Selling Process

9-*

• Preparation: the salesperson should know the company’s policies, procedures and rules; how to

operate equipment, as the cash register; and a

great deal about the product, including how and

when to use it, its features and comparisons with

other products or brands, available options

( color, size and price.)

• Prospecting is seeking out customers with a new product, through contact with old customers or?
• Making initial contact with a smile, saying “I’ll be with you in a minute.” or even complementing the customer on clothing, jewelry, or so forth.
• Presenting the product is where you stress benefits to the or discuss the merits or beauty of the product. Normally, do not show more than two. Know you company rules as to showing product.

9-*

Creative Selling Process continued

Handling Objections is part of the job. Not everyone will suit every product. Use it as a way to sell.

Closing the sale is helping the customer make the buying decision, by offering a service as delivery, an incentive, or giving a choice

Suggestion selling is making a definitive suggestion for a possible additional sale, such as the maintenance contract …the matching item…accessories.

Sales follow-up, is a thank you, checking up on the delivery , or asking “May I call you when a similar item comes in, goes on sale?” Always keep a guest book of information for your own personal help.

9-*