©2007 Prentice Hall 11-1 Distribution and Customer Communication Chapter 11

Chapter 11 Objectives After studying this chapter, you will be able to: Explain what marketing intermediaries do and list their seven primary functions Explain how wholesalers and retailers function as intermediaries Discuss the key factors that influence channel design and selection Differentiate intensive, selective, and exclusive distribution strategies ©2007 Prentice Hall 11-2

Chapter 11 Objectives, cont. Identify the seven categories of customer communication Discuss the importance of integrated marketing communications Explain the purpose of defining a core marketing message Describe the use of social media in marketing communications ©2007 Prentice Hall 11-3

Developing Distribution Strategies ©2007 Prentice Hall 11-4 Distribution Channels Intermediaries

Strategies ©2007 Prentice Hall 11-5 RetailersWholesalers

Role of Intermediaries ©2007 Prentice Hall 11-6 Gather Assortment Of Goods Gather Assortment Of Goods Transport and Store Products Transport and Store Products Assume Risks Match Buyers And Sellers Match Buyers And Sellers Provide Market Information Provide Market Information Provide Promotional And Sales Support Provide Promotional And Sales Support Provide Financing

Distribution Channels ©2007 Prentice Hall 11-7 Consumer Goods and Services Producer Agent/Broker Wholesaler Retailer Consumer

Forces That Create Variety of Retail Formats ©2007 Prentice Hall 11-8 Wheel of Retailing Scrambled Merchandising Scrambled Merchandising

Store-Based Retailing Formats ©2007 Prentice Hall 11-9 Specialty Store Category Killer Department Store Discount Store

Non-Store Formats ©2007 Prentice Hall E-Commerce Retail Theater Multi-channel Retailing Multi-channel Retailing Mail-Order Firms

Distribution Mix ©2007 Prentice Hall Channel Length Market Coverage CostControl Channel Conflict

©2007 Prentice Hall Channel Length Producer to Consumer Producer to Retailer to Consumer Producer to agent/broker to wholesaler to retailer to consumer Producer to wholesaler to retailer to consumer

Market Coverage ©2007 Prentice Hall Distribution Convenience Goods and Organizational Supplies Expensive Technical or Specialty Products IntensiveSelectiveExclusive

Cost Factors ©2007 Prentice Hall Selling Storage Distribution

Control Issues ©2007 Prentice Hall How Goods Are Sold in the Marketplace How Goods Are Sold in the Marketplace ChannelLengthOverallControl LongerShorter LessMore

Channel Conflict ©2007 Prentice Hall Inadequate Product Support Too Many Intermediaries Multiple Sales Channels

Managing Distribution ©2007 Prentice Hall Warehousing Materials Handling Order Processing Inventory Control Transportation

Customer Communication Strategies ©2007 Prentice Hall Select Communication Mix Select Communication Mix Ethics, Etiquette and Regulations Ethics, Etiquette and Regulations Define Your Message Decide on Market Approach Decide on Market Approach Set Communication Goals Set Communication Goals

Setting Communication Goals ©2007 Prentice Hall InformingInformingRemindingRemindingPersuadingPersuading

Define Your Message ©2007 Prentice Hall Ideas to convey to target audience Ideas to convey to target audience Expand core message Emotional appeal

Market Approach ©2007 Prentice Hall PushPull

Communication Mix ©2007 Prentice Hall Personal selling Personal selling Advertising Advertising Direct marketing Direct marketing Sales promotion Sales promotion Public relations Public relations

Personal Selling ©2007 Prentice Hall Prospecting 1 Preparing 2 Approaching 3 Presenting 4 Handling Objections Handling Objections 5 Closing 6 Following Up 7

Advertising ©2007 Prentice Hall Product Institutional Search Online display

Direct Marketing ©2007 Prentice Hall DirectMailDirectMailTele-marketingTele-marketingTarget Target

Sales Promotion ©2007 Prentice Hall ConsumerPromotion TradePromotion

Public Relations ©2007 Prentice Hall Crisis Communication Crisis Communication News Media

Social Media ©2007 Prentice Hall Word-of-mouth Widgets Post-sales communication Post-sales communication