Marketing III: Distribution & Advertising BBI2O. Distribution Channels The path that goods follow to get from producer to consumer Three types: Direct.

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Presentation transcript:

Marketing III: Distribution & Advertising BBI2O

Distribution Channels The path that goods follow to get from producer to consumer Three types: Direct Indirect Specialty

Direct Channels Consumer buys directly from the producer Ex: farmer’s market, bakery, factory outlet, or factory-run stores like Ikea or Roots No intermediaries means less cost added to product Consumer pays less by buying direct Manufacturer can sell to the consumer for a higher price than they would to a wholesaler

Indirect Channels One or more intermediaries between producer and consumer Importers: Bring in goods from foreign manufacturers Wholesalers: Buy goods from the manufacturer in large quantities, then distribute them more locally in smaller quantities to retailers Retailers: Sell goods directly to consumers

Specialty Channels Indirect channels that do not involve a traditional retail store E-Commerce Vending machines Telemarketing TV sales Catalogues Door-to-door sales

E-Commerce What are the pros and cons of buying online for the consumer? For what types of goods is e- commerce not as appropriate? How has e-commerce impacted traditional distribution channels?

Advertising Paid-for promotion of a business’s goods/services Can have different goals… How might the goals of advertising change over the course of the PLC?

Types of Advertising Direct-to-home (i.e. flyers) Print (magazines, newspapers) Billboards Transit ads (i.e. on buses, shelters) Television Radio Internet

Types of Advertising The more people the ad can potentially reach, the more expensive the ad This is why ads during the Superbowl are so expensive A marketer doesn’t want to have to pay to reach people who are not in its target market Ideally, the ad is targeted to reach only those people who are potential customers

Types of Advertising What would be the best type of advertising for… Etnies skate shoes Maroush Shawarmas A Dodge minivan A Corvette MAC cosmetics

Headline Illustrations Copy Signature

Illustrations Headline Copy

Other types of promotion Coupons Contests Premiums/giveaways Samples