Transcript CHAP 17. - SGC Business | The Business Department of St

CHAP 17.
MARKETING 2
1. What is
distribution/place?
The channels of distribution are those
methods whereby goods get from
manufacturer to the customer.
THE CHANNELS OF
DISTRIBUTION
MANUFACTURER MANUFACTURER MANUFACTURER
WHOLESALER
RETAILER
RETAILER
CUSTOMER
CUSTOMER
CUSTOMER
Example
Example
Example
2. What are the factors that
influence distribution?
Target Market- Do the customers shop with this
retailer
Product Image – the retail outlet should reflect
the product image – i.e. designer clothes not to
be sold in a hardware store
Ease of Delivery – how easy is it to supply the
retailers location
Payment Arrangement – some retailers may look for
cash on delivery, credit may be offered etc
THE PROMOTIONAL MIX
2. Personal Selling
1. Sales Promotion
PROMOTIONAL
MIX
3. Public Relations
4. Advertising
3. What is promotion?
This refers “to the method made by the
business to communicate there product to
the target market”
4. Sales promotion – “providing
incentives to customers that attract them to
certain products”
Examples – free samples, competitions, extra %
free, merchandising, giveaways, promotions,
catalogues.
Merchandising is “displaying goods to
customers in an attractive manner in
shops”
Example
- new spicy cocktail sausages new to
market
- new juice drink on the market handed
out in samples
- Window displays
5. Personal Selling
This is where the seller tries to
verbally persuade the customer to
buy a product/service.
This is normally done by sales reps.
This is important for an existing
business as they keeps the link
between the customer and any new
products to the market.
This loyalty can be rewarded with a
lifetime of sales if they create a
good impression.
Telemarketing means “communicating
by phone to sell products. Businesses
use free-phone 1800 numbers to
contact sales staff on product
queries.”
This is a cheaper method of selling
than personal selling
Note:
TV selling – is also popular in today’s
society. Channels like shopping
channel, QVC now are effective in
selling products. This type of selling
is seen as cheaper and less attractive
goods rather than quality
sophisticated products.
6. Public Relations
This involves “establishing and maintaining a
good public image for a business”.
PR is used to build a good reputation for a
business. In large companies a PR manager
is in place to deal with promotional
activities.
Examples:
• Press statements to local/national media
• Trade fairs
• Sponsorship of sports teams – AIB linked
GAA club championships
7. Advertising
Defined as “the communication aimed
at the target market”
There are two type of advertising:
• Informative Advertising
This is relaying factual information to
the customers in a direct method
• Persuasive Advertising
Try to persuade customers to buy or
behave in a certain way
• Persuasive Advertising may be
competitive, generic or image based
advertising
Competitive Advertising –comparing one
brand with another.