CHAPTER 6

Marketing: Place and Promotion

THE 4Ps OF MARKETING: PLACE

PLACE is the process of getting products to the places where they

will be sold, or distribution, and how to determine the actual
locations where the products are sold.

MARKETING INTERMEDIARIES are organizations that assist in

moving goods and services from producer to business and
consumer users (often called middle-men).

A CHANNEL OF DISTRIBUTION is the whole series of marketing

intermediaries, such as agents, brokers, wholesalers, and retailers,
which join together to transport and store goods in their path (or
channel) from producers to consumers.

AGENTS/BROKERS are marketing intermediaries who bring

buyers and sellers together and assist in negotiating an exchange,
but do not take title to the goods (dont own the goods at any point
in the process).

A WHOLESALER is a marketing intermediary that sells to other

organizations.
A RETAILER is an organization that sells to ultimate consumers.

MERCHANT WHOLESALERS are independently-owned firms

that take title to the goods that they handle.

Full-service wholesalers perform all of the distribution functions.

Limited-function wholesalers perform only selected functions, but
try to do them especially well.
RACK JOBBERS furnish racks or shelves full of merchandise to
retailers, display products, and sell on consignment.
CASH-AND-CARRY WHOLESA-LERS serve mostly smaller
retailers with a limited assortment of products
DROP SHIPPERS solicit orders from retailers and other
wholesalers and have the merchandise shipped directly from a
producer to a buyer.
Agents and Brokers

Agents and brokers bring buyers and sellers together and help
negotiate an exchange, but they never own the products.
They earn commissions or fees based on a percentage of the
sales revenues.
Agents maintain long-term relationships with the people they
represent. Brokers are usually hired on a temporary basis.

Retail Intermediaries
For customers, the most useful intermediary is the retailer. These
are the firms who bring goods and services to neighborhoods and
make them available to consumers.

LOGISTICS AND TRANSPORTATION

SUPPLY CHAIN MANAGEMENT is the process of moving goods

and materials from one place to another.
LOGISTICS is planning, implementing, and controlling the physical
flow of materials, goods, and related information from points
of origin to points of consumption.

RETAILING

A retailer is a middleman that sells to consumers.

Method of Competition in Retailing

There are five major ways in which retailers compete for

customers.

1. Price competition
2. Service competition
3. Location competition
4. Selection competition
CATEGORY KILLER STORES offer wide selection of goods in
a specific category

5. Entertainment competition
Retail Distribution

Different products call for different re-tail distribution strategies.

INTENSIVE DISTRIBUTION puts products into as many retail
outlets as possible, including vending machines (used for
convenience goods.)
SELECTIVE DISTRIBUTION sends products to only a preferred
group of retailers in an area (used for shopping goods).
EXCLUSIVE DISTRIBUTION sends products to only one retail
outlet in a given geographic area (used for specialty goods).

Other Types of Retailing

Electronic retailing means selling goods and services to ultimate

consumers over the Internet

TELEMARKETING is the sale of goods and services by

telephone.
At outbound call centers an employee calls people to try to sell a
product
An inbound call centers handles calls from customers on a toll-
free number.

Vending machines dispense convenience goods when customers

deposit enough money into the machine.
DIRECT SELLING is selling to consumers in their homes or where
they work.

THE 4Ps OF MARKETING: PROMO-TION

Promotion is an effort by marketers to inform and remind people in

the target market and about products and to persuade them to
participate in the exchange.

The marketer must:

i. define the target audience;
ii. select methods to reach the audience;
iii. design the right message for the audience;
iv. make sure the audience gets the message

PROMOTIONAL MIX, includes advertising, personal selling, public

relations, and sales promotion.
INTEGRATED MARKETING COM-MUNICATION (IMC) combines
all the promotional tools into one comprehensive and unified
promotional strategy.

ADVERTISING is paid, nonpersonal communication through

various media by organizations and individuals who are in some
way identified in the advertising message.

PRODUCT PLACEMENT is paying to put products into TV shows

and movies where they will be seen.
PERSONAL SELLING is face-to-face presentation and promotion
of products and services.

Step 1: Prospect and Qualify

PROSPECTING involves researching potential buyers and
choosing those most likely to buy .This is also called qualifying,
making sure that people have the need for a product, the authority
to buy, and the willingness to listen to a sales message. A person
who meets these criteria is the prospect.
Step 2: Pre approach
Before making a sales call, sales representatives must learn as
much as possible about customers and their wants and needs.
Step 3: Approach
The approach should give an impression of friendly professional-
ism to create rapport, to build credibility, and to start a relationship

Step 4: Make presentation

The presentation should match the benefits of your value package
to the clients needs.

Step 5: Answer objections

Step 6: Close sale
Step 7: Follow Up

PUBLIC RELATIONS (PR)

is the management function that evaluates public attitudes,

changes policies and procedures accordingly, and executes a
program of action and information to earn public understanding
and acceptance.
A good public relations program has three steps:
i. listen to the public: start with good marketing research;
ii. change policies and procedures in response to what
customers want;
iii. Inform people that youre being responsive to their needs.

PUBLICITY is any information about an individual, product, or an

organization that is distributed to the public through the media and
thats not paid for or controlled by the sponsor.

SALES PROMOTION is the promotional tool that stimulates

consumer purchasing and dealer interest by means of short-term
activities.

SAMPLING is letting consumers have a small sample of a product

for no charge.

EVENT MARKETING is sponsor-ing events such as rock concerts

or being at various events to pro-mote your products.

Other Types of Promotion

VIRAL MARKETING is the term now used to describe everything

from paying people to say positive things on the Internet to setting
up multilevel selling schemes whereby consumers get
commissions for directing friends to specific websites.

WORD-OF-MOUTH PROMOTION is a promotional tool that

involves people telling other people about products they have
purchased.