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CHAP 17.

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. 2. What are the factors that influence distribution?.

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CHAP 17.

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  1. CHAP 17. MARKETING 2

  2. 1. What is distribution/place? The channels of distribution are those methods whereby goods get from manufacturer to the customer.

  3. THE CHANNELS OF DISTRIBUTION

  4. 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

  5. THE PROMOTIONAL MIX 2. Personal Selling 1. Sales Promotion PROMOTIONAL MIX 3. Public Relations 4. Advertising

  6. 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.

  7. 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

  8. 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.

  9. 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

  10. 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.

  11. 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

  12. 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

  13. Persuasive Advertising may be competitive, generic or image based advertising Competitive Advertising –comparing one brand with another.

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