Marketing Mix Distribution
The Role of Distribution To ensure that the products are available for customers at the right place , right time , in right quantities and in right conditions Definition Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means using intermediaries.
2-stage Channel Manufacturer Wholesaler Retailer Consumer 3-stage Channel Manufacturer Agent Wholesaler Retailer Consumer
TYPES OF INTERMEDIARY • Retailers • Wholesalers • Distributors • Agents/Brokers • Franchise • Modern trade (supermarkets/Hypermarkets) • Vending machines • E-commerce (electronic retailing)
MARKET COVERAGE STRATEGIES INTENSIVE DISTRIBUTION SELECTIVE DISTRIBUTION EXCLUSIVE DISTRIBUTION
MARKET COVERAGE STRATEGIES INTENSIVE DISTRIBUTION Intensive distribution occurs when the product is placed in as many outlets as possible and no interested intermediary is barred from stocking the product. The key benefit to customer is that convenience and availability may be just around the corner. Example: convenience goods such as bread, newspapers, milk, soap, soft drinks etc.
SELECTIVE DISTRIBUTION A more selective approach in using a small number of carefully selected outlets within a defined geographical area to distribute the products. Example: shopping goods such as consumer durables, furniture, clothing etc which need a specialist retailer who might be expected to offer technical advice and after sales services.
EXCLUSIVE DISTRIBUTION Exclusive distribution is the opposite of intensive distribution, and means that only one outlet is used in a relatively large geographical area to distribute the product. Example: specialty products of high value and prestigious. (higher image control) Mercedes, Rolex watches, Designer labels etc.
4. 4. P Promoti omotions ons (C (Commun ommunication) ication) Product Marketing Price Promotion Mix Place
Companies need to regularly communicate with their customers
Marketing promotions are the means by which an organization Inform Persuade attempts to inform, persuade (convince) and remind consumers Remind – directly or indirectly – about the products it sells Target Consumers
“Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor (Philip Kotler ) Company Advertisement Payment Audio/Visual Media House Payment
Public Presentation – can address a large public to gain awareness Qualities Impersonal – No live person of get contact with Advertising Amplified Expressiveness - Can use visual, sound, print, etc. and express the message with more details
Print media – Newspapers, Magazines, directories Broadcast advertising – Radio, television, mobile phones Outdoor advertising – Billboards, posters Transport advertising – Buses, Trains Internet advertising – web based banners Cinema advertising – screen ads
“Sales promotion consists of short-term incentives to encourage purchase or sales of a product or service” Sales promotion offers reasons to buy now To To Sales encourage encourage Promotions sellers consumers Trade Consumer Promotions Promotions
To motivate shop owners to stock and display more and more products E.g. ‘25 Shops which display the products will be awarded a 2- days sponsored trip to Singapore’
To motivate customers to purchase
MARKETING COMMUNICATION MIX ELEMENTS 03 - Public Relations Building good relationships with the company’s various publics by obtaining favorable publicity, building a good “corporate image” and handling or heading off unfavorable rumors, stories and events (Philip Kotler)
04 - Personal Selling: Personal presentations by the firms sales force for the purpose of making sales and building customer relationships. (Philip Kotler) 05 - Direct Marketing: Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate long term relationships. (Philip Kotler)
AIDA MODEL ATTENTION INTEREST DESIRE ACTION
The End Thank You
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