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IntroductiontoBusiness-PPT-Ch12.pptx
- 1. PowerPoint Image Slideshow Introduction to Business Chapter 12 DISTRIBUTING AND PROMOTING PRODUCTS AND SERVICES
- 2. Learning Outcomes 1. What is the nature and function of distribution (place)? 2. What is wholesaling, and what are the types of wholesalers? 3. What are the different kinds of retail operations? 4. How can supply-chain management increase efficiency and customer satisfaction? 5. What is promotion, and what are the key elements of a promotional mix? 6. How are advertising media selected? 7. What is personal selling? 8. What are the goals of a sales promotion, and what are several types of sales promotion? 9. How does public relations fit into the promotional mix? 10. What is social media, and how has it changed promotion? 11. What is e-commerce, and how does it affect promotion?
- 3. • Distribution (Place) • Factor - manages acquisition or raw materials • Products move from • Producer or Manufacturer • Business users & consumers • Place • Location selection • Store layout • Atmosphere • Image building • Location, inventory, transportation, logistics
- 5. Exhibit 12.2 A Typical Supply Chain
- 7. Exhibit 12.3 Channels of Distribution for B2B and Consumer Products
- 8. Exhibit 12.4 How Distribution Channels Reduce the Number of Transactions Sorting – • eggs sorted by grade & size Accumulating • Merge several lines of women's dresses from different designers Allocating • Breaking similar products into smaller lots • Tank load of milk
- 9. A distribution channel is a series of marketing entities through which goods and services pass on their way from producers to end users. a. True b. False Agents are sales representatives for manufacturers or wholesalers and usually are hired on a commission basis. a. True b. False _____ is the efficient management of the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers. A. Material handling B. Transportation C. Exchange D. Distribution E. Intermediation The _____ is a series of marketing entities through which goods and services pass on their way from producers to end-users A. industrial channel B. distribution channel C. consumption channel D. inventory control process E. vertical integration process
- 10. The chain of manufacturer, agent, wholesaler, and retailer through which items like x-ray machines, dental equipment, and safety goggles flow is called a(n) ______ channel. • A. industrial • B. consumer • C. service • D. distribution • E. promotional A person who works as a sales representative for a manufacturer or wholesaler and gets paid a commission on any sales is classified a(n): A. broker B. merchandiser C. merchant wholesaler D. agent E. distribution captain Within the distribution channel, retailers and wholesalers are called: A. inventory control agents B. marketing intermediaries C. movement facilitators D. logistical managers E. industrial users The two types of distribution channels are: • A. industrial and consumer • B. wholesaler and retailer • C. centralized and decentralized • D. manufacturing and marketing • E. functional and networked
- 11. Roy Petrie is a flower wholesaler. He buys fresh flowers from countries in South America, divides the large batches into small bunches, and delivers them to independent florists. This process is called: • A. breaking bulk • B. lot dispersal • C. inventory separation • D. product diffusion • E. inventory diffusion A retailer would separate children’s clothing purchased from Carter’s into various sizes and types of clothing, such as size 6 shirts, size 2T shorts, and size 4T sun dresses. This process is called: A. allocating B. adaptive packaging C. accumulating D. sorting out E. accruing The process of packing 3 16-ounce bottles of Hershey chocolate syrup in super-sized packages like those sold at Sam’s and Costco is an example of: A. allocating B. adaptive packaging C. accumulating D. sorting out E. accruing _____ is the breaking down of large shipments of similar merchandise into smaller, more usable quantities that can be sold to consumers and end users. A. Lot dispersal B. Breaking bulk C. Inventory dispersion D. Product separation E. Product diffusion
- 12. 1. What is the nature and function of distribution (place)? • CONCEPT CHECK 1. List and define the marketing intermediaries that make up a distribution channel. 2. Provide an example of a strategic channel alliance. 3. How do channels reduce the number of transactions?
- 14. The Coca Cola Supply Chain • Large beverage companies like Coca-Cola and Pepsico use a very large and complex indirect channel system to distribute their drink products. The Coca- Cola company has a very large and complex channel distribution system. After studying the content in Section 12.1, and watching the video be prepared to discuss the Coca Cola supply chain.
- 15. The Coca Cola Supply Chain 1. Can you outline the indirect channel system based on the information in the Section, the video and on the website? 2. Why would Coke or Pepsi choose to use an indirect system rather than produce and distribute 100% of their products themselves? 3. What are the advantages and disadvantages Coke experiences from the large and complex channel formed with their many bottling partners around the globe?
- 16. An intermediary that takes possession and title of goods is called a merchant wholesaler. a. True b. False _____ are distribution channel members that buy finished products from manufacturers and sell them to retailers. A. Manufacturers B. Wholesalers C. Service providers D. Market managers E. Product managers Independent wholesalers that buy goods from manufacturers on their own account and then resell them to other businesses are: A. brokers B. agents C. horizontal marketing systems D. merchant wholesalers E. vertical marketing systems What is the primary difference between a merchant wholesaler and an agent? • A. the types of products it carries • B. the types of customers it serves • C. the location of its offices • D. whether it takes title to the product • E. whether direct or indirect communication is used in the transaction
- 17. A manufacturers' representative is sometimes called a(n): A. cash and carry wholesaler B. limited-service wholesaler C. industrial distributor D. manufacturer’ agent E. merchant broker _____ bring buyers and sellers together, do not title to merchandise, receive commission on sales; and have little say over company sales policies. •A. Agents •B. Wholesalers •C. Cash and carry wholesalers •D. Brokers •E. Sales representatives In which of the following industries are you most likely to find a broker? A. furniture B. real estate C. toy D. hardware E. petrochemical Manufacturers' representatives usually: A. do not take title to goods B. receive commissions on sales C. act as independent agents D. represent noncompeting manufacturers E. do all of the above
- 18. 2. What is wholesaling, and what are the types of wholesalers? • CONCEPT CHECK 1. Define wholesaling, and describe what wholesalers do. 2. Describe merchant wholesalers. 3. Explain the difference between agents and brokers.
- 19. Table 12.1 Retailing Takes Many Forms
- 20. Table 12.1 Retailing Takes Many Forms, continued
- 21. Employee Type Employee Density Merchandise Type Merchandise Density Fixture Type Fixture Density
- 22. Retailing • Review the material about retailing covered in Section 12.3, paying particular attention to Table 12.1. Based upon your own life experience, would you agree with the conclusions from the first video that the examples in Table 12.1 of non-store retailing are in a better position to grow their operations than in-store retailers such as department, specialty and discount stores? Which of the in- store organizations seem to you to be in a stronger position for the future?
- 23. Retailing • View the second video, which in 2017 predicted 5 technologies that would help retail enhance operations to thrive in 2020. Have you experienced or used any of these 5 yourself? Some of these may seem a bit futuristic, but do you think they are likely to happen soon, if not this year? For example, Amazon announced in March 2020 that they are planning to sell their automated checkout system to others:
- 24. Retailing 1. Can you describe these 5 technologies in a brief sentence or two? Beacon Facial Recognition Robot Assistants Smart Mirrors Auto Checkout
- 25. An example of nonstore retailing is the vending machine from which you purchased a soda. a. True b. False A retailer is showing concern for a store’s atmosphere when he considers the type of store fixtures to have, the size and type of signage to use, the type of background music to play, and the number and type of employees to hire. a. True b. False Internet retailing is also called e-retailing. a. True b. False The two types of retailing are: • A. functional and non-functional • B. in-store and out-store • C. centralized and decentralized • D. in-store and nonstore • E. virtual and concrete
- 26. Which of the following factors can be used to create an atmosphere in a store that sells sports memorabilia? A. life-sized pictures of famous athletes mounted on the wall B. store clerks dressed in referee uniforms C. bright lights D. the rebroadcasting of famous sports events as background noise E. all of the above Which of the following is NOT a typical task performed by a supply chain manager? A. coordinating the sourcing and procuring of raw materials B. maintaining an inventory control system C. coordinating customer service activities D. hiring packers and drivers E. scheduling production Which of the following is an example of in-store retailing? A. an Internet purchase from an Internet bookseller B. a Tupperware party C. the purchase of a bag of corn chips from a vending machine D. the purchase of a bottle of Anna Pavlova perfume that is only available at Saks Fifth Avenue stores E. none of the above Abercrombie & Fitch stores are aimed at college-aged consumers. The parent company also operates retail clothing stores under the name Hollister, which are targeted to 14- to 18-year-olds and under the name Abercrombie, which sell children's wear. Abercrombie & Fitch operate: A. hypermarts B. factory outlets C. convenience stores D. specialty stores E. department stores
- 27. 3. What are the different kinds of retail operations? • CONCEPT CHECK 1. Describe at least five types of in-store retailing and four forms of nonstore retailing. 2. What factors most influence a retail store’s atmosphere?
- 28. Goal of Supply Chain • Coordinate all activities of supply-chain members • Increase customer satisfaction • Totally customer driven
- 29. Service Distribution Channel Location • Company Headquarters Layout of area • Interior – Dry Cleaners Alternative Locations • Architect visiting client Atmosphere • Credibility
- 30. 4. How can supply-chain management increase efficiency and customer satisfaction? • CONCEPT CHECK 1. What is the goal of supply-chain management? 2. What does it mean for a supply chain to be customer driven? 3. How does distribution (place) differ for services products?
- 31. Marketing Mix Promotion Ways that a company may inform, persuade, remind a target market about their products/services Product Price Promotion Place Target Market
- 32. Promotions Increase awareness Attract interest Arouse desire Initiate action Identify customers Inform potential services
- 33. SALES PROMOTIONS 05 ● Designed for consumers or businesses ● Coupons, incentives, special offers, price reductions SOCIAL MEDIA MARKETING 04 ● Paid & non-paid advertising, delivered through social media ● Variety of formats DIRECT MARKETING 03 ● Promotions sent directly to consumers ● Physical mail, email ● Incentives, catalogs, flyers, communications PERSONAL SELLING 02 ● Products promoted through endorsements and product knowledge from a salesperson ● Customized for individual customers ADVERTISING 01 ● Paid announcements from an identified sponsor ● Broadcast, Print, Online ● Designed to be seen by large audiences PUBLIC RELATIONS 06 ● Messaging through the use of media ● Pre-written stories, press releases Types of Promotion
- 35. The goal of all promotion is to stimulate action. a. True b. False Information promotion is more common in the early stages of the product life cycle. a. True b. False _____ is the act of informing, persuading, and reminding the target market about a product. A. Marketing B. Distribution C. Promotion D. Operations E. Motivations Which of the following is NOT an example of a promotional goal? A. creating awareness B. providing information C. delivering the product D. retaining customers E. increasing the use of products
- 36. Which goal are airlines trying to achieve when they use frequent flyer programs, which give customers points that can be redeemed for free travel, rental cars, and other merchandise? A. increase the amount and frequency of use B. provide information C. create product awareness D. get consumers to try their product E. identify target market(s) When Canada Dry first introduced Wink soda in the 1960s, it used the slogan, "Join the cola dropouts." The purpose of this advertising campaign was most likely to: A. retain loyal customers B. act as reminder advertising C. move the cola into the maturity stage of its product life cycle D. get customers to try the new product E. support a mass marketing strategy Integrated marketing communications (IMC): A. is a careful coordination of all promotional activities B. produces a consistent and unified advertising message C. produces a customer-focused advertising message D. is typically overseen by a marketing communications director E. is accurately described by all of the above The _____ is the combination of advertising, personal selling, sales promotion, and public relations used to promote a product. A. marketing mix B. distribution strategy C. promotional mix D. product strategy E. sales mix
- 37. 5. What is promotion, and what are the key elements of a promotional mix? • CONCEPT CHECK 1. What is the objective of a promotional campaign? 2. What is the promotional mix? 3. What are the features of an integrated marketing communications campaign?
- 38. Advertising Costs & Market Penetration
- 39. Do Super Bowl Ads really Work for Car Companies? • As quoted in a recent USA article, citing the The Hollywood Reporter as the source, the cost of a 30-second commercial during the 2020 Super Bowl is $5.6 million, up $400,000 from 2019. Review the material in Section 12.6, then watch the interview with Audi of America’s Director of Marketing Loren Angel on Bloomberg Television's "In the Loop” show.
- 40. Do Super Bowl Ads really Work for Car Companies?
- 41. The goal of all promotion is to stimulate action. a. True b. False Information promotion is more common in the early stages of the product life cycle. a. True b. False _____ is the act of informing, persuading, and reminding the target market about a product. A. Marketing B. Distribution C. Promotion D. Operations E. Motivations Which goal are airlines trying to achieve when they use frequent flyer programs, which give customers points that can be redeemed for free travel, rental cars, and other merchandise? A. increase the amount and frequency of use B. provide information C. create product awareness D. get consumers to try their product E. identify target market(s)
- 42. The _____ is the combination of advertising, personal selling, sales promotion, and public relations used to promote a product. A. marketing mix B. distribution strategy C. promotional mix D. product strategy E. sales mix Compassion International is a nonprofit organization dedicated to releasing poor children from spiritual, economic, social and physical poverty. What would be the most likely goal for an advertising campaign for this international organization? A. increase the amount and frequency of use B. provide information C. create product awareness D. get consumers to try their product E. identify target market(s) Integrated marketing communications (IMC): A. is a careful coordination of all promotional activities B. produces a consistent and unified advertising message C. produces a customer-focused advertising message D. is typically overseen by a marketing communications director E. is accurately described by all of the above When Canada Dry first introduced Wink soda in the 1960s, it used the slogan, "Join the cola dropouts." The purpose of this advertising campaign was most likely to: A. retain loyal customers B. act as reminder advertising C. move the cola into the maturity stage of its product life cycle D. get customers to try the new product E. support a mass marketing strategy
- 43. 6. How are advertising media selected? • CONCEPT CHECK 1. How is technology impacting the way advertisers reach their markets? 2. What are the two main factors that should be considered when selecting advertising media?
- 44. Exhibit 12.9 Steps in Making a Successful Sale Qualifying Questions Does the prospect have a need for our product? Can the prospect make the buying decision? Can the prospect afford our product?
- 45. 7. What is personal selling? • CONCEPT CHECK 1. What are the advantages of personal selling? 2. Explain the selling process.
- 48. Table 12.2 Types of Consumers and Sales Promotion Goals
- 49. 8. What are the goals of a sales promotion, and what are several types of sales promotion? • CONCEPT CHECK 1. How does sales promotion differ from advertising? 2. Describe several types of sales promotion.
- 50. Table 12.3 The Functions of a Public Relations Department
- 51. Advertising versus Publicity • Read and study the material in Section 12.9, paying particular attention to Table 12.3. Afterwards, view the video, which explains the differences between advertising and public relations (PR), also called publicity. • You have already learned about the various forms of paid advertising. In the video, the speaker, Christine Nicholson, calls PR “earned media”.
- 52. Advertising versus Publicity 1. What do you think she meant by this? 2. Did it make sense to you when she claimed PR was worth three times more than traditional forms of advertising? 3. There’s an old marketing saying for which the author is unknown: Advertising is what you pay for, publicity is what you pray for. Can you determine which of the following statements is likely to be advertising and which is probably PR (publicity)?
- 53. 9. How does public relations fit into the promotional mix? • CONCEPT CHECK 1. How does public relations differ from advertising? 2. Describe several types of publicity.
- 55. 10. What is social media, and how has it changed promotion? • CONCEPT CHECK 1. How are companies embracing social media as a way to connect with customers? 2. What has been the effect of social media on traditional advertising?
- 57. E-Commerce Trends That Will Change Retail In 2023
- 58. 11. What is e- commerce, and how does it affect promotion? • • • This OpenStax ancillary resource is © Rice University under a CC-BY 4.0 International license; it may be reproduced or modified but must be attributed to OpenStax, Rice University and any changes must be noted. Any images credited to other sources are similarly available for reproduction, but must be attributed to their sources.