12: Distributing and Promoting Products and Services
- Page ID
- 2543
\( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)
\( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)
\( \newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\)
( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\)
\( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\)
\( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\)
\( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\)
\( \newcommand{\Span}{\mathrm{span}}\)
\( \newcommand{\id}{\mathrm{id}}\)
\( \newcommand{\Span}{\mathrm{span}}\)
\( \newcommand{\kernel}{\mathrm{null}\,}\)
\( \newcommand{\range}{\mathrm{range}\,}\)
\( \newcommand{\RealPart}{\mathrm{Re}}\)
\( \newcommand{\ImaginaryPart}{\mathrm{Im}}\)
\( \newcommand{\Argument}{\mathrm{Arg}}\)
\( \newcommand{\norm}[1]{\| #1 \|}\)
\( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\)
\( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\AA}{\unicode[.8,0]{x212B}}\)
\( \newcommand{\vectorA}[1]{\vec{#1}} % arrow\)
\( \newcommand{\vectorAt}[1]{\vec{\text{#1}}} % arrow\)
\( \newcommand{\vectorB}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)
\( \newcommand{\vectorC}[1]{\textbf{#1}} \)
\( \newcommand{\vectorD}[1]{\overrightarrow{#1}} \)
\( \newcommand{\vectorDt}[1]{\overrightarrow{\text{#1}}} \)
\( \newcommand{\vectE}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash{\mathbf {#1}}}} \)
\( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)
\( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)
\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)After reading this chapter, you should be able to answer these questions:
- What is the nature and function of distribution (place)?
- What is wholesaling, and what are the types of wholesalers?
- What are the different kinds of retail operations?
- How can supply-chain management increase efficiency and customer satisfaction?
- What is promotion, and what are the key elements of a promotional mix?
- How are advertising media selected?
- What is personal selling?
- What are the goals of a sales promotion, and what are several types of sales promotion?
- How does public relations fit into the promotional mix?
- What is social media, and how has it changed promotion?
- What is e-commerce, and how does it affect promotion?
- 12.0: Introduction
- This page discusses distribution in marketing, focusing on wholesaling and retail operations. It emphasizes supply-chain management's role in efficiency and customer satisfaction, along with promotion elements like advertising and personal selling. Insights from Steve Piehl of Harley-Davidson underline the importance of selling experiences over products.
- 12.1: The Nature and Functions of Distribution (Place)
- This page emphasizes the importance of distribution in managing raw materials and product movement to consumers and B2B users. It covers various intermediaries such as agents and wholesalers that streamline transactions and facilitate the flow of goods. Nontraditional channels, particularly online sales, provide alternative access to niche markets. Ultimately, effective distribution enhances supply chain efficiency and market reach.
- 12.2: Wholesaling
- This page discusses wholesaling, highlighting that it involves intermediaries who buy from manufacturers and sell to retailers or institutions. It identifies two main types of wholesalers: merchant wholesalers, who own products and constitute 80% of establishments and 60% of sales, and agents/brokers, who facilitate sales without ownership, earning commissions. Agents represent manufacturers, while brokers connect buyers and sellers across markets without holding inventory.
- 12.3: The Competitive World of Retailing
- This page explores U.S. retail operations, highlighting the service industry's employment of approximately 15 million people and the dominance of major corporations despite small businesses. It distinguishes between in-store and nonstore operations, discussing various retail formats and the role of store atmosphere and branding in customer experience.
- 12.4: Using Supply Chain Management to Increase Efficiency and Customer Satisfaction
- This page discusses supply-chain management's goal of improving efficiency and customer satisfaction through coordination among members to fulfill specific customer demands. It emphasizes a shift from traditional mass production to a customer-driven approach, exemplified by companies like Dell. Supply-chain managers are essential for overseeing sourcing, production, inventory, and transportation, contributing to cost control and customer satisfaction.
- 12.5: Promotion Strategy
- This page discusses promotion as a marketing strategy that influences consumer behavior through various methods like advertising and social media. It highlights Khaled's partnership with Weight Watchers to attract men by leveraging authenticity in influencer marketing and Southwest Airlines' "Transfarency" campaign, which uses integrated marketing communications (IMC) to emphasize transparency in fees.
- 12.6: The Huge Impact of Advertising
- This page discusses advertising media selection, focusing on the importance of choosing appropriate channels to effectively reach target consumers. It highlights the ongoing relevance of traditional advertising while acknowledging the challenges posed by digital platforms and changing consumer behaviors. Marketers must consider costs, audience reach, selectivity, and the frequency of exposure in their media choices.
- 12.7: The Importance of Personal Selling
- This page explains personal selling as a direct, face-to-face approach to sales that is complemented by advertising. It allows for customized presentations and focused outreach, engaging around 6.5 million individuals in the U.S. The process involves several key stages: prospecting, qualifying leads, approaching customers, presenting products, handling objections, closing sales, and following up to ensure customer satisfaction and foster future relationships.
- 12.8: Sales Promotion
- This page discusses the role of sales promotions in enhancing advertising and personal selling, emphasizing immediate purchase stimulation through various tactics like coupons and loyalty programs. It highlights recent trends, including online couponing and ethical concerns in influencer marketing, leading to calls for stricter regulations.
- 12.9: Public Relations Helps Build Goodwill
- This page discusses public relations (PR) as a crucial part of the promotional mix focused on building goodwill for companies through activities such as publicity, lobbying, and crisis management. Key components include generating positive news, product promotion, and community relations, with press releases as a major tool. Additionally, buzz marketing, which emphasizes intense word-of-mouth promotion, enhances visibility and engagement, making it a favored strategy among leading firms.