Transcript 4.2 e place promo intl ecommerce

4.2 e
Place, Promotion, International,
Ecommerce
Place: Distribution
Channels of Distribution
 Distribution Strategy
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Be able to discuss effectiveness of
different channels of distribution
Channels of Distribution
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The trail of activity as the product moves from
manufacturer to customer
five channels of distribution
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Manufacturer to
Manufacturer to
Manufacturer to
Manufacturer to
Manufacturer to
agent, to wholesaler, to retailer, to customer
wholesaler, to retailer, customer
wholesaler to customer
retailer to customer
customer
length of the channel of distribution
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How many intermediary stops are involved
Direct and indirect channels of
distribution
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Direct
 Manufacturer
possible
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goes to customer as directly as
Indirect
 More
middlemen
 What/who
is a middleman?
Wholesaling
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Characteristics
 Buy
from manufacturer or agent, attain
ownership, sort and size, store, distribute, sell,
assume risk
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Risks
 Capital
 Money
tied up in something people don’t want
 Spoilage
 Theft
and shrinkage
Transportation
The marketing function included in the
place “P” that involves the moving of
goods to and from buyers and sellers
 The term ‘logistics’ is included in this
section
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Shipping and Receiving
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The process of sending out goods
The process of accepting and checking in goods
Terminology
FOB
Invoice
 Terms of discount
 Purchase order
 Packing slip
 Receiving record
 Credit memorandum
 UPC code
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IB Specification: Promotion
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Types of promotion
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Above the line
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Promotional activities carried out through media, such as television,
radio and newspaper, are classed as above the line promotion.
Below the line
The terms "below the line" promotion or communications, refers to
forms of non-media communication
 BTL includes sales promotion incentives such as
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Promotional mix
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Temporary price reduction, loyalty programs, coupons, BOGOF, sponsorhsip
The combination of promtional techiques which a firm uses to
communicate the benfits of its produts/service to custoerms
Be able to
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distinguish between the different types of promotion
Analyze and determine effectiveness of the various promotional
tools
Prepare an appropriate promotional mix
Promotion
Advertising
 Sales promotion
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 Premiums/samples/schwag
 Event
sponsorship
Personal selling
 Direct mail
 Text messages and Email
 Trade fairs
 Public relations
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Promotion objectives
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Remind customer of the product’s USP
 Product
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Increase demand; increase sales
 Shift
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differentiation
the demand curve
Improve brand loyalty
 Reduce
perception of substitutes
 Increase the ‘inelasticity
Correct misleading information
 Develop the public image of the business
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Personal Sales
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Personal delivery of a specially designed
message to a prospect by a seller, usually in the
form of face-to-face communication, personal
correspondence, or a personal telephone
conversation.
Unlike advertising, a personal sales message can be
more specifically targeted to individual prospects and
easily altered if the desired behavior does not occur.
 far more costly than advertising
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is generally used only when its high expenditure can be
justified.
Personal Sales:
The Salesperson’s Process
Pre approach
 Approach/greeting
 CPR
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 Questions,
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features, benefits
Trial Close
 Ask
them to buy
Overcome Objections
 Close
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Promotion Strategies: Advertising
 Created from the USP
 Aka Big Idea or Key Fact
 Body/ copy/ message
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Provide information
Create desire
Call for action:
 Attention, Interest (benefits for reader), Desire, motivation, Action (ask for
response).
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Appeal
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Rational
Irrational
Emotional
Technique
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humor
Comparative
Conformity
surreal/new wave
Testimonial
Intellectual
nostalgic
Promotion Strategy:
Media Alternatives
Print
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Newspaper
Magazine
Poster
Brochure
Buses and bus stops
Sports venue, just about anywhere/everywhere
Electronic
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Radio and TV
E commerce: Web Page
Text message and email
Sales promotions
Give-aways with logo: key rings, notebooks, pens
Tshirts
 Hats
 Stickers
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IB Specification: International
Evaluate opportunities and threat posed
by entry into international markets
 Be able to analyze given situations
considering
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 Cultural
factors
 Legal factors
 Political factors
 Social factors
 Economic issues
Photo by dCon from
Golden Gate Bridge
during Bay Area Bike Tour
International Trade
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..\..\2008 2009 course\unit 4\unit 4
international trade.ppt
International Marketing
• Marketing activities between sellers and buyers
in different countries
•Commercial efforts that drive international
trade
•Using the world as a scope for marketing
activities
•20% of international trade is composed
of services
but service accounts for 65% of the world economy
Global Differences
•Various Needs
-Potential Customer
-Level of Income
-Buying Habits
-Purchasing Motives
-Customs
International Trade
Positive Balance
of Trade
Negative Balance
of Trade
More
Exports
Balance of Trade
More
Imports
Globalization
a process of interaction and integration among
the people, companies, and governments of
different nations
 a process driven by international trade and
investment and aided by information technology.
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has effects on the environment, on culture, on
political systems, on economic development and
prosperity, and on human physical well-being in
societies around the world.
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Definition from www.globalization101.org
MNC
Starbucks
Nike
Sony
IBM
Toyota
McDonald’s
Consumers Pay
Lower Prices
More Jobs
are Created
Advantages
Increase in
Spending
Businesses
Generate
More Revenue
Common Markets
EU
European
Union
Over 20 countries
Common Currency
No trade barriers
Increases competitive
advantage
Created 5 million
new jobs
NAFTA
North American
Free Trade
Agreement
Similar to common
market/EC
$7 trillion economy
Includes Canada,
USA, and Mexico
Unique
Absolute Advantages
Nation having a monopoly on a product
or producing it with exceptional efficiency.
Ex: DeBeer Diamonds
Efficient
Comparative Advantages
Nation specializes in products it can
produce both logically and efficiently.
Ex: Midwest corn or high plains wheat
Tariffs: Tax
Quotas: Confines
Restraints
Politics
Embargoes
IB Specification: E Commerce
B to Business
 B to Consumer/Customer
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Analyze effect of ecommerce on marketing
mix
 Discuss costs and benefits of ecommerce
to firms and customers
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