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

2. 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

3. 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

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

5. Strategies ©2007 Prentice Hall 11-5 RetailersWholesalers

6. 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

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

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

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

10. Non-Store Formats ©2007 Prentice Hall 11-10 E-Commerce Retail Theater Multi-channel Retailing Multi-channel Retailing Mail-Order Firms

11. Distribution Mix ©2007 Prentice Hall 11-11 Channel Length Market Coverage CostControl Channel Conflict

12. ©2007 Prentice Hall 11-12 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

13. Market Coverage ©2007 Prentice Hall 11-13 Distribution Convenience Goods and Organizational Supplies Expensive Technical or Specialty Products IntensiveSelectiveExclusive

14. Cost Factors ©2007 Prentice Hall 11-14 Selling Storage Distribution

15. Control Issues ©2007 Prentice Hall 11-15 How Goods Are Sold in the Marketplace How Goods Are Sold in the Marketplace ChannelLengthOverallControl LongerShorter LessMore

16. Channel Conflict ©2007 Prentice Hall 11-16 Inadequate Product Support Too Many Intermediaries Multiple Sales Channels

17. Managing Distribution ©2007 Prentice Hall 11-17 Warehousing Materials Handling Order Processing Inventory Control Transportation

18. Customer Communication Strategies ©2007 Prentice Hall 11-18 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

19. Setting Communication Goals ©2007 Prentice Hall 11-19 InformingInformingRemindingRemindingPersuadingPersuading

20. Define Your Message ©2007 Prentice Hall 11-20 Ideas to convey to target audience Ideas to convey to target audience Expand core message Emotional appeal

21. Market Approach ©2007 Prentice Hall 11-21 PushPull

22. Communication Mix ©2007 Prentice Hall 11-22 Personal selling Personal selling Advertising Advertising Direct marketing Direct marketing Sales promotion Sales promotion Public relations Public relations

23. Personal Selling ©2007 Prentice Hall 11-23 Prospecting 1 Preparing 2 Approaching 3 Presenting 4 Handling Objections Handling Objections 5 Closing 6 Following Up 7

24. Advertising ©2007 Prentice Hall 11-24 Product Institutional Search Online display

25. Direct Marketing ©2007 Prentice Hall 11-25 DirectMailDirectMailTele-marketingTele-marketingTargetE-mailTargetE-mail

26. Sales Promotion ©2007 Prentice Hall 11-26 ConsumerPromotion TradePromotion

27. Public Relations ©2007 Prentice Hall 11-27 Crisis Communication Crisis Communication News Media

28. Social Media ©2007 Prentice Hall 11-28 Word-of-mouth Widgets Post-sales communication Post-sales communication