1. Distribution, Promotion, and Selling
6.1 The Marketing Mix─Distribution
6.2 The Marketing Mix─Promotion
6.3 Selling and Promoting

2. Lesson 6.1 The Marketing Mix─Distribution
Goals
Describe the four basic options of channels of distribution.
Apply channels of distribution to the specific needs of various types of businesses.
List factors to consider in the physical distribution of products.
Chapter 6

3. Vocabulary supply chain management distribution
channels of distribution
direct channel
indirect channel
physical distribution
Chapter 6

4. Supply Chain Management
the coordination of manufacturers, suppliers, and retailers working together to meet a customer need for a product or service
Chapter 1

5. channels of distribution
involves the locations and methods that are used to make products available to customers
channels of distribution
the routes that products and services take from the time they are produced to the time they are consumed
Chapter 6

6. Direct and Indirect Channels
moves product directly from the manufacturer to the consumer
indirect channel
uses intermediaries
people or businesses that move products between the manufacturer and the consumer
Chapter 6

7. Channel Options
Chapter 6

8. Manufacturer to Consumer
sales methods may include:
the Internet
direct mail
television shopping channels
no intermediaries
most cost-effective
limited sales opportunities
Chapter 6

9. Manufacturer to Retailer to Consumer
sales force sells goods to retailers
retailers sell goods to consumers
offers more sales opportunities
Chapter 6

10. Manufacturer to Wholesaler to Retailer to Consumer
manufacturer sells large quantities to a wholesaler
wholesaler stores and sells smaller quantities to many retailers
lower production costs can lead to lower prices
Chapter 6

11. Manufacturer to Agent to Wholesaler to Retailer to Consumer
The manufacturer delegates the sales function to an agent.
frequently used in international marketing
Chapter 6

12. What are the four basic options of channels of distribution?
Chapter 1

13. Distribute Goods and Services
Distribution channels will vary based on business needs.
market size
type of product or service
customer needs and wants
Chapter 6

14. Retail Businesses
Retail businesses can distribute products in a variety of ways.
offer the product at a convenient location during convenient times
use advertising to reach customers
allow for phone or fax ordering
develop a website for online purchases
Chapter 6

15. Service Businesses Most service businesses sell directly to customers.
production and consumption of the service happens at the same time
the service needs to be provided to the customer when the customer needs it
some service providers sell through retail stores
Chapter 6

16. Manufacturing Businesses
Manufacturers usually sell products to other businesses.
The other businesses sell to the final consumer.
Chapter 6

17. Why are channels of distribution different for different types of businesses?
Chapter 1

18. Physical Distribution
transportation
storage
handling
packaging
Chapter 6

19. Transportation
The best and most cost efficient transportation method should be determined.
The type of product and the destination of the product will help guide the decision-making process.
Chapter 6

20. Product Storage and Handling
Benefits of efficient storage include:
balancing supply and demand of products
Other considerations of storage include:
adds to the cost of products
increases the risk of damage or theft
Chapter 6

21. Packaging
The purpose of packaging is to protect the product from the time between production and consumption.
Effective packaging provides value by minimizing product damage.
Chapter 6

22. Receiving Goods to Sell
All types of businesses must receive goods from suppliers.
Sources that can be consulted to find suppliers include:
The American Wholesalers and Distributors Directory
The ThomasNet website
Trade magazines
Chapter 6

23. What factors are important to consider in the physical distribution of products?
Chapter 1

24. Lesson 6.2 The Marketing Mix─Promotion
Goals
List the many forms of advertising and discuss advantages and disadvantages of each.
Define publicity and describe ways to use publicity as a promotional tool.
Chapter 6

25. Vocabulary advertising publicity press release public relations
Chapter 6

26. Promotion Strategies promotional mix advertising publicity
personal selling
sales promotion
Chapter 6

27. Advertising advertising
a paid form of communication sent out by a business about a product or service
Advertising is very important for small and/or new businesses.
Advertising should clearly communicate your message and image.
Chapter 6

28. Online Advertising
Online advertising has increased as Internet usage has grown.
Online technology lets businesses interact with consumers via
chat rooms
blogs
e-newsletters
Chapter 6

29. Common types of online advertising include the following:
Banner Ad
Floating Ad
Wallpaper Ad
Trick Banner
Pop-Up Ad
Pop-Under Ad
Chapter 6

30. As it is easier to determine the effectiveness of online advertising than traditional advertising, new methods to charge for online advertising have been developed.
Chapter 6

31. Three common ways to charge for online advertising include:
Cost per Mil (CPM)
the advertiser is charged based on the exposure of the message to a specific audience
priced per thousand viewers reached with the message
Chapter 6

32. Cost per Click (CPC) Cost per Action (CPA)
the advertiser is charged based on the number of user clicks on the advertisement
viewers respond to the ad by clicking on the hyperlink within the ad
Cost per Action (CPA)
the advertiser is charged when a user takes an action that leads to a sale
the publisher of the ad assumes all the risk in running this type of ad
advertisers prefer this type of charge for banner ads
Chapter 6

33. Disadvantages of Online Advertising
In an effort to combat excessive spamming, many Internet users now utilize software that blocks promotions from reaching their computers.
Chapter 6

34. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.
If you like, you can use this slide as a template for your own voting slides. You might use a slide like this if you feel your audience would benefit from the picture showing a text message on a phone.
Poll: What are three examples of online advert...

35. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.
If you like, you can use this slide as a template for your own voting slides. You might use a slide like this if you feel your audience would benefit from the picture showing a text message on a phone.
Poll: What is the difference between CPC and C...

36. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.
If you like, you can use this slide as a template for your own voting slides. You might use a slide like this if you feel your audience would benefit from the picture showing a text message on a phone.
Poll: An online ad that changes the background...

37. Television Advertising
commercials
last less than a minute
infomercials
last a half hour or more
provide in-depth coverage about a specific product
Chapter 6

38. Fees associated with television advertising include:
the fee paid to the station for airing the commercial
based on the length of time the commercial plays
the costs of producing the commercial
Chapter 6

39. Disadvantages of television advertising include:
it is very expensive
the audience is too broad to be effective for most businesses
Chapter 6

40. Radio Advertising less expensive than television advertising
listener demographics are more specific than television
easier to reach target audience
pay for air time
pay for production costs
Chapter 6

41. Disadvantages of radio advertising include:
the message is purely audio
a visual of the product is not shown
listeners may forget what they hear
listeners may “surf the airways” during commercials
Chapter 6

42. Newspaper Advertising
Historically, newspapers were the single largest form of advertising in the U.S.
Advantages of newspaper advertising include:
relatively inexpensive
targets a limited geographic area
reaches a large number of people
Chapter 6

43. Disadvantages of newspaper advertising include:
Many people in the audience may not be interested in your business.
Your ad faces a lot of competition from many other ads in the newspaper.
Chapter 6

44. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.
If you like, you can use this slide as a template for your own voting slides. You might use a slide like this if you feel your audience would benefit from the picture showing a text message on a phone.
Poll: A radio station will provide a psychogra...

45. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.
If you like, you can use this slide as a template for your own voting slides. You might use a slide like this if you feel your audience would benefit from the picture showing a text message on a phone.
Poll: What is a major advantage of newspapers ...

46. Telephone Directory Advertising
Consumers use telephone directories repeatedly.
Ads usually appear close to the listing and phone number of the business placing the ad.
Chapter 6

47. Disadvantages of telephone directory advertising include:
People only look in the directory when they are already seeking a specific business.
It is hard to persuade a potential customer to use your business instead of your competitor’s business.
Chapter 6

48. Direct-Mail Advertising
promotional materials sent to target customers through the mail
Companies that specialize in maintaining targeted mailing lists can provide almost any type of list needed.
Chapter 6

49. Disadvantages of direct-mail advertising include:
Direct-mail is often considered to be “junk mail.”
It often gets discarded without being read.
Chapter 6

50. Magazine Advertising
Magazines are an excellent way to aim products and services at specific markets.
Local magazines that target a limited geographic area are often the best choice for small businesses.
Chapter 6

51. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.
If you like, you can use this slide as a template for your own voting slides. You might use a slide like this if you feel your audience would benefit from the picture showing a text message on a phone.
Poll: What is an advantage of direct-mail adve...

52. Disadvantages of magazine advertising include:
National distribution can make some magazines an inappropriate way to advertise a local business.
Chapter 6

53. Outdoor Advertising billboards and signs
can be effective as the name of your business is located where many people can see it
Chapter 6

54. Disadvantages of outdoor advertising include:
limited information can be included
may not project the image you wish to convey
Chapter 6

55. Transit Advertising signs on public transportation
can provide more information than a billboard
effective if your target market includes consumers who use mass transit
Chapter 6

56. Social Networking Sites
Business owners are using social networking sites for business promotion.
Twitter
LinkedIn
YouTube
Facebook
Blogging
Chapter 1

57. Budgeting for Promotion
Obtain cost estimates for all advertising that is under consideration.
Calculate a projected budget.
Determine whether your advertising budget, as a percent of sales, is in line with industry averages.
Chapter 6

58. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.
If you like, you can use this slide as a template for your own voting slides. You might use a slide like this if you feel your audience would benefit from the picture showing a text message on a phone.
Poll: Why is promotion important to a business...

59. Publicity
publicity
a nonpaid form of communication that calls attention to your business through media coverage
can be positive or negative
Publicity is free.
Staging the events that generate publicity is usually not free.
Chapter 6

60. press release
a written statement meant to inform the media of an event or product
Chapter 6

61. Public Relations public relations
the act of establishing a positive relationship with customers and the general public
Chapter 6

62. Ways to support your community include:
sponsoring a sports team
donating to local charities
supporting work-based programs at local educational institutions
supporting Big Brothers or Big Sisters
organizing community programs
Chapter 6

63. Self-Promotion
Self-promotion is a way to keep the name of your business visible and in the forefront of people’s minds.
Self-promotion methods include the distribution of goods with your company’s identifying information on it.
t-shirts
office supplies
Chapter 6

64. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.
If you like, you can use this slide as a template for your own voting slides. You might use a slide like this if you feel your audience would benefit from the picture showing a text message on a phone.
Poll: What are the advantages and disadvantage...

65. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.
If you like, you can use this slide as a template for your own voting slides. You might use a slide like this if you feel your audience would benefit from the picture showing a text message on a phone.
Poll: What's one thing a business can do to im...

66. Lesson 6.3 Selling and Promoting
Goals
Explain the role of selling in a business.
Determine how to meet customer needs and wants.
Discuss other types of promotional activities.
Evaluate the effectiveness of promotional categories.
Chapter 6

67. Vocabulary personal selling rational buying decisions
emotional buying decisions
sales promotion
rebate
telemarketing
visual marketing
Chapter 6

68. Selling Entrepreneurs need selling skills for many reasons.
It is necessary to sell business ideas to potential investors when selling a business.
For many customers, the salesperson is the business.
a positive image should be conveyed
Chapter 6

69. personal selling
a direct communication between a buyer and a sales person
the sales person tries to influence the prospective buyer’s purchasing decision
Chapter 6

70. Product Knowledge features benefits
the physical characteristics or capabilities of the product or service
benefits
the advantages that could result from the use of those features
Chapter 6

71. What are some selling strategies an entrepreneur can employ?
Salespeople should represent company well
Identify customers’ needs, issues, & concerns
Turn features into benefits
Train salespeople well (product, market, industry)
Chapter 1

72. Determine Customer Needs and Wants
A salesperson must determine what need the customer is seeking to satisfy.
lower-level needs usually do not require personal selling
upper-level needs often require better selling skills
Chapter 6

73. Needs Assessment need satisfying problem resolution
fulfilling the needs of a customer who knows exactly what they want
problem resolution
helping the customer find products or services when they are not quite sure what they want
Chapter 6

74. Buying Decisions rational buying decisions
based on the logical reasoning of customers
customers evaluate alternatives
purchase after careful thought
Chapter 6

75. emotional buying decisions
based on the desire to have a specific product or service
little time or thought is used when making the buying decision
Chapter 6

76. Customer Decision-Making Process
A problem-solving approach for helping customers includes the following steps:
define the problem
gather information
Chapter 6

77. identify various solutions evaluate alternatives
select the best option
take action
evaluate the action
Chapter 6

78. Why is it important to meet customer needs and wants in the selling process?
Customers purchase goods and services to satisfy needs and wants. If their needs cannot be met, a sale will not be made.
Chapter 1

79. What are some emotional buying motives?
Fear
Protection
Appearance
Recreation
Improved health
Comfort
Recognition
Pride of ownership
Imitation
Prestige
Popularity
Chapter 1

80. What are some rational buying motives?
Safety
Simplicity
Quality
Reliability
Economy
Convenience
Service
Durability
Knowledge
Money gain
Ease of operation
Chapter 1

81. Other Types of Promotion
sales promotion
an incentive offered to customers in order to increase sales
rebate
a refund offered to people who buy a product
Chapter 6

82. Telemarketing telemarketing
using the phone to market your product or service
Chapter 1

83. Visual Marketing visual marketing
the use of visual media to promote, sell, and distribute a product or service to a targeted audience
logo
signage
promotional tools
company vehicles
uniforms
Chapter 1

84. What is the purpose of sales promotions?
Sales promotions offer incentives to customers in order to increase sales
Chapter 1

85. Evaluation Strategies
Is the volume of sales increasing?
New leads/appointments
How are you getting new customers?
Does your advertising and/or promotional activity produce direct responses?
Are you using the right media for target market?
Chapter 1

86. Do your networking activities create new opportunities for you?
Need to know source of new business
Do your marketing tactics make it easier to sell your services?
What is your sales conversion rate?
Does your plan have a positive return on investment (ROI)?
Chapter 6

87. How can you determine the effectiveness of promotional activities?
Chapter 1

88. What’s Next?
p.176: #4 in groups
HW: 6.3 Assessment (1-3)
Chapter 1

89. PERFORMANCE INDICATORS
Demonstrate knowledge and understanding of entrepreneurship
Engage in activities that clarify and enhance understanding of entrepreneurship
Plan and implement presentation/activities to educate and promote entrepreneurship to targeted groups
Chapter 6

90. Demonstrate critical-thinking skills
Derive facts from data, findings from facts, conclusions from findings, and recommendations from conclusions
Demonstrate critical-thinking skills
Develop a concept from an idea to reality
Plan, organize, and conduct a group project
Determine priorities and set deadlines
Chapter 6

91. THINK CRITICALLY
What are the benefits of presenting this project to elementary or middle school students?
Why is it important to explain risks associated with entrepreneurship?
Chapter 6

92. Who are popular examples of entrepreneurs?
What are three characteristics of successful entrepreneurs?
Chapter 6