1. CHAP 17.
MARKETING 2

2. 1. What is distribution/place?
The channels of distribution are those methods whereby goods get from manufacturer to the customer.

3. THE CHANNELS OF DISTRIBUTION
MANUFACTURER
WHOLESALER
RETAILER
CUSTOMER
MANUFACTURER
WHOLESALER
RETAILER
CUSTOMER

4. Example

5. 2. What are the factors that influence distribution?
Target Market- Do the customers shop with this retailer
Product Image – the retail outlet should reflect the product image – i.e. designer clothes not to be sold in a hardware store
Ease of Delivery – how easy is it to supply the retailers location
Payment Arrangement – some retailers may look for cash on delivery, credit may be offered etc

6. THE PROMOTIONAL MIX 2. Personal Selling 1. Sales Promotion PROMOTIONAL
3. Public Relations
4. Advertising

7. 3. What is promotion?
This refers “to the method made by the business to communicate there product to the target market”
4. Sales promotion – “providing incentives to customers that attract them to certain products”
Examples – free samples, competitions, extra % free, merchandising, giveaways, promotions, catalogues.

8. Merchandising is “displaying goods to customers in an attractive manner in shops”
Example
new spicy cocktail sausages new to market
new juice drink on the market handed out in samples
Window displays

9. 5. Personal Selling
This is where the seller tries to verbally persuade the customer to buy a product/service.
This is normally done by sales reps. This is important for an existing business as they keeps the link between the customer and any new products to the market.

10. This loyalty can be rewarded with a lifetime of sales if they create a good impression.
Telemarketing means “communicating by phone to sell products. Businesses use free-phone 1800 numbers to contact sales staff on product queries.”
This is a cheaper method of selling than personal selling

11. Note:
TV selling – is also popular in today’s society. Channels like shopping channel, QVC now are effective in selling products. This type of selling is seen as cheaper and less attractive goods rather than quality sophisticated products.

12. 6. Public Relations
This involves “establishing and maintaining a good public image for a business”.
PR is used to build a good reputation for a business. In large companies a PR manager is in place to deal with promotional activities.
Examples:
Press statements to local/national media
Trade fairs
Sponsorship of sports teams – AIB linked GAA club championships

13. 7. Advertising
Defined as “the communication aimed at the target market”
There are two type of advertising:
Informative Advertising
This is relaying factual information to the customers in a direct method
Persuasive Advertising
Try to persuade customers to buy or behave in a certain way

14. Persuasive Advertising may be competitive, generic or image based advertising
Competitive Advertising –comparing one brand with another.