Distribution for a Teen Magazine Advanced Marketing

Distribution Distribution deals with the place factor of the marketing mix. It is how the product you are selling ends up in the consumer hands. You get consumers interested in the product by how you market it You get them to buy a product by how it is distributed

Distribution The channel of distribution is the path a product takes from the manufacturer to the final user. Your final user can be a An industrial user (Company) A consumer Example product: Shampoo Who does shampoo get distributed to? Consumer Company

Distribution When a consumer purchases shampoo they use an intermediaries to do so. Intermediaries are basically middlemen They reduce the number of contacts necessary for a company to get its product out to consumers Imagine if Wal-Mart, Wal-Greens, CVS, etc…didn’t sell shampoo? How would you buy it?

Distribution One of the most common types of intermediaries is the merchant intermediaries. Wholesaler Retailer A wholesaler buys large quantities of a good from a manufacturer and then sells them to retailers Rack jobbers buy products and then manage the inventory they purchased, Count stock, refill stock, maintain store displays, etc.. Only bill retailer for the amount they sell Drop Shippers own the goods they sell but do not physically handle the actual product Coal, Lumber, Chemicals They sell the goods for the manufacturer & the manufacturer ships it

Distribution Retailers sell goods to the final consumer for personal use. A brick and mortar retailer has a physical store that they sell products at

Distribution Retailers do not have to have a store to sell their product Vending machines Direct mail Catalogs TV Home Shopping Websites Larger brick and mortar retailers will offer options listed above

Distribution Channels of Distribution are either direct or indirect Direct distribution occurs when the producer sells goods or services directly to the consumer without the help of intermediaries Indirect distribution involves the use of intermediaries

Distribution Method

Your Magazine You are creating a magazine that targets teens Can be male or female Target audience is 13 – 17 Can focus any topic dealing with teens Celebrities Music Cars Fitness Dance Beauty Fashion

Presentation The class will act as a boardroom We may move class to boardroom You should be dresses for success Begin by introducing yourself, why you are presenting, overview of presentation Be able to compare your product with your competition effectively

Competition

First Step Determine what type of magazine you want to create Create a title What is your focus? What makes your magazine standout? Need to know the 4 P’s of competition What is their product? What is their price? What is their promotion? Where is their magazine distributed?

Competition If I did a “girl” magazine one of my main competitors would be Seventeen What attracts people to this magazine? Current articles Monthly editions Use of popular celebrities Gives advice on topics most girls don’t like to talk about Product Seventeen focuses on friendship, gossip, advice, girl talk…

The 4 P’s of Seventeen Price $3.50/issue 36 issues for $ issues for $12 12 issues for $10 Promotion Project Seventeen MTV partnership Games Giveaways Weight Loss help Membership option Ford Modeling contract

The 4 P’s of Seventeen Place Available online Retail Stores Walmart Walkgreens CVS Albertsons Gas Stations Circle K

Second Step Choose a color scheme that matches your product Girl magazines use bright colors, pink, purple, etc.. Boy magazines use darker colors: green, red, black, blue Choose a font that makes your title standout Choose a background picture that makes your magazine appealing & creative

Presentation Begin by introducing yourself Explain what your goal with this project was I wanted to create a magazine that targeted teenage girls who want to lose weight & become more active How you are going to help Zazz, Inc. succeed I am confident that my product will make Zazz, Inc successful because  9 out of 10 girls are unhappy with their appearance  1 out of 10 girls skip 2 meals a day because they are unhappy with their weight Be able to provide an overview of your presentation Explain what you will cover before you cover it

Third Step

Bell Work For Place, where would be the best spot to sell your teen magazine?

Bell Work What pricing strategy do you think is effective for a teen magazine? $3.00 or less $ $3.50 $ $4.00 $4.01 or higher Large discount for subscription

Bell Work What are three characteristics of a female, teenage target market? Interested in…. Boys Fashion Beauty Friends

Bell Work How many words can a magazine title have? a) One b) Two c) Three d) Four e) Both a and b f) As many as you want

Bell Work Rank in order which you think is most important on a magazine cover? Title Color Scheme Picture Content

Bell Work Why do magazine companies create a website to accompany their product? More people use the internet than read Sell ad’s

Bell Work Why is knowing your competition important when creating your product? Take what they do well and make it better Take advantage of their weaknesses If a company doesn’t do a good job at something….you should focus on making sure you do  You get the customer your niche fits

Bell Work What is an intermediaries? Intermediaries are basically middlemen They reduce the number of contacts necessary for a company to get its product out to consumers Imagine if Wal-Mart, Wal-Greens, CVS, etc…didn’t sell shampoo? How would you buy it?

Bell Work Nov. 4 What is the difference between a rack jobber and a drop shipper? Rack jobbers buy products and then manage the inventory they purchased, Count stock, refill stock, maintain store displays, etc.. Only bill retailer for the amount they sell Drop Shippers own the goods they sell but do not physically handle the actual product Coal, Lumber, Chemicals They sell the goods for the manufacturer & the manufacturer ships it

Bell Work Nov. 5 What is the difference between direct distribution and indirect distribution? Direct distribution occurs when the producer sells goods or services directly to the consumer without the help of intermediaries Indirect distribution involves the use of intermediaries

Carlos Dominguez

Dylan Smith

Tania

Jacob

Ron Wooten

Jon Earles

Adam

Taryn Struck

Leslie

Bell Work Company A sells CD players at the retail price of $40. Company B sells them at a discount for $30. What is the discount as a percentage of the retail price? 33% 25% 133% 75%