1. Distribution, Promotion, and Selling6
Distribution, Promotion, and Selling
6.1 The Marketing Mix─Distribution
6.2 The Marketing Mix─Promotion
6.3 Selling and Promotion

2. Ideas in Action Turning a Bad Experience Into a Million Dollars
After loosing most of her hair at age 11 from a harsh chemical treatment, Jasmine Lawrence began to research treatments that promoted healthy hair.
Jasmine began to manufacture her own line of hair care products.
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3. By age 15, Jasmine was the CEO of her own company.
Jasmine initially sold her products directly to customers, including website based sales.
As her business developed, Jasmine starting selling to retailers and chain stores.
By age 15, Jasmine was the CEO of her own company.
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4. 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.
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5. Terms distribution channels of distribution direct channel
indirect channel
physical distribution
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6. Channels of Distribution
determining the locations and methods that will be 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
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7. 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
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8. Channel Options
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9. Manufacturer to Consumer
Sales channels may include:
the Internet
direct mail
television shopping channels
most cost-effective
limited sales opportunities
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10. Manufacturer to Retailer to Consumer
sales force sells goods to retailers
retailers sell goods to consumers
more sales opportunities
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11. Manufacturer to Wholesaler to Retailer to Consumer
manufacturer sells large quantities to a wholesaler
wholesaler stores product
sells smaller quantities to many retailers
lower production costs can lead to lower prices
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12. Manufacturer to Agent to Wholesaler to Retailer to Consumer
The manufacturer delegates the sales function to an agent.
frequently used in international marketing
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13. What are the four basic options of the channels of distribution?
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14. Distribute Goods and Services
Distribution channels will vary based on the industry needs.
Customer satisfaction is an important factor to consider when planning a distribution strategy.
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15. 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
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16. Service Businesses
Most service businesses sell directly to the consumer.
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 outlets
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17. Manufacturing Businesses
Manufacturers usually sell products to other businesses.
The other businesses sell to the final consumer.
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18. Why are channels of distribution different for different types of businesses?
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19. Physical Distribution
Physical distribution of products includes:
transportation
storage
handling
packaging
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20. 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.
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21. Product Storage and Handling
Benefits of efficient storage include:
helps balance supply and demand of products
Other considerations of storage include:
adds to the cost of products
increases the risk of theft or damage
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22. 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.
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23. Receiving Goods to Sell
All types of businesses must receive goods from suppliers.
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24. What factors are important to consider in the physical distribution of products?
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25. 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.
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26. Terms
advertising
publicity
press release
public relations
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27. Promotion Strategies promotional mix advertising publicity
personal selling
sales promotion
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28. Advertising advertising
a paid form of communication sent out by a business about a product or service
Advertising is critically important for new and/or small businesses.
Advertising should clearly communicate the intended message.
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29. Online Advertising
Online advertising has increased as Internet usage has grown.
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30. Common types of online advertising include the following:
Banner Ad
Floating Ad
Wallpaper Ad
Trick Banner
Pop-Up Ad
Pop-Under Ad
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31. As it is easier to determine the effectiveness of online advertising than traditional advertising, new methods to charge for online advertising have been developed.
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32. 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
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33. Cost per Click (CPC) Cost per Action (CPA)
the advertiser is charged based on the number of user clicks on the advertisement
viewers need to actually 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
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34. Disadvantages of Online Advertising
In an effort to combat excessive spamming, many Internet users now utilize software that blocks promotions from reaching their computers.
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35. Television Advertising
commercials
last less than a minute
infomercials
last a half hour or more
provide in-depth coverage about a specific product
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36. 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
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37. Disadvantages of television advertising include:
it is very expensive
the audience is too broad to be effective for most businesses
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38. 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
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39. 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
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40. 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 volume of people
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41. 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.
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42. Telephone Directory Advertising
Consumers use telephone directories repeatedly.
Ads usually appear close to the listing and phone number of the business placing the ad.
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43. Disadvantages of telephone directory advertising include:
People only look in the directory when they are already seeking a specific product or service.
It is hard to persuade a potential customer to use your business instead of your competitor’s business.
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44. 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.
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45. Disadvantages of direct-mail advertising include:
Direct-mail is often considered to be “junk mail” and it gets discarded without being read.
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46. 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.
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47. Disadvantages of magazine advertising include:
National distribution can make some magazines an inappropriate way to advertise a local business.
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48. Outdoor Advertising billboards and signs
can be effective as the name of your business is located near where you want people to see it
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49. Disadvantages of outdoor advertising include:
limited information can be included
may not project the image you wish to convey
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50. Transit Advertising signs on public transportation
can provide more information than a billboard
effective if your target market includes consumers who use mass transit
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51. Budgeting for Promotion
Obtain cost estimates for all advertising that is under consideration.
Calculate a projected budget.
Determine whether the ratio of advertising expenses to sales is in line with industry averages.
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52. Why is promotion important to a business?
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53. 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.
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54. press release
a written statement meant to inform the media of an event or product
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56. Public Relations public relations
the act of establishing a positive relationship with customers and the general public
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57. 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
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58. 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
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59. What are the advantages and disadvantages of publicity?
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60. 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.
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61. Terms personal selling rational buying decisions
emotional buying decisions
sales promotion
rebate
telemarketing
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62. 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
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63. personal selling
a direct communication between a buyer and a sales person
the sales person tries to influence the prospective buyer’s purchasing decision
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64. 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
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65. Why is selling important to a business?
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66. 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 personal selling
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67. 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
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68. Buying Decisions rational buying decisions
based on the logical reasoning of customers
customers evaluate alternatives
purchase after careful thought
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69. 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
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70. Customer Decision-Making Process
A problem-solving approach for helping customers includes the following steps:
define the problem
gather information
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71. identify various solutions evaluate alternatives
select the best option
take action
evaluate the action
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72. Why is it important to meet customer needs and wants in the selling process?
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73. 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
telemarketing
using the phone to market your product or service
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74. What is the purpose of sales promotions?
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75. PERFORMANCE INDICATORS EVALUATED
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.
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76. 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.
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77. Determine priorities and set deadlines.
Evaluate group presentations.
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78. 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?
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79. Who are popular examples of entrepreneurs?
What are three characteristics of successful entrepreneurs?
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