Module-4
Distribution and Promotion: Roles and purpose of
Marketing Channels, Factors Affecting Channel Choice,
Channel Design, Channel Management Decision, Channel
Conflict, Designing a physical Distribution System.
Promotions- Marketing communications- Integrated
Marketing Communications (IMC)-communication
objectives, steps in developing effective communication.
Advertising: Advertising Objectives, Advertising Budget,
Advertising Copy, AIDA model, Traditional Vs Modern
Media- Online and Mobile Advertising, social media for
Advertising. Push-pull strategies of promotion.
Roles and purpose of Marketing Channels
• Transactional Function
– Buying: Purchasing products for resale or as an
agent for supply of a product
– Selling: Contracting potential customers,
promoting products, and soliciting orders.
– Risk Taking: Assuming business risks in the
ownership of inventory that can become obsolete
or deteriorate
• Logistical Function
– Assorting: Creating product assortments from
several sources to serve customers.
– Storing: Assembling and protecting products at a
convenient location to offer better customer
service.
– Sorting: Purchasing in large quantities and
breaking into smaller amounts desired by
customers.
– Transporting: Physically moving a product to
customers.
• Facilitating Function
– Financing: Extending credit to customers
– Grading: Inspecting, testing, or judging products,
and assigning them quality grades.
– Marketing information and research: Providing
information to customers and suppliers, including
competitive conditions and trends
Factors Affecting Channel Choice
Market Factors
• Nature of the market: Elastic and Inelastic.
• In case of industrial goods, he can sell directly
because buyers are concentrated in few places.
• Number of Companies: In case if buyers are
limited in number, the manufacturer can
directly sell to them.
• If consumers are scattered the manufacturers
should go for larger channel.
Product Factor
• Unit Value of the Product: Lower the value of the
product longer will be the channel. Eg:
Matchboxes, salt, etc.
• Perishability: the shortest channel. Eg: Fruits,
Vegetables, Milk, etc.
• Nature of Product: If the product is highly technical
in nature, the manufacturer sells it to the buyers.
Eg: Computers, because such products require
before & after sales services.
• Consumer goods, which are technical in nature he
may appoint sales agent. Eg: Motor Vehicle, TV, etc.
Company Factors:
• Finance: If the company is financially sound, it
can sell its products directly to its consumers
by maintaining its own warehouse, retail
shops, etc.
• Management Capability: If the management
is capable of handling the distribution
function efficiently, it can prefer a shorter
channel.
Typical marketing channels
Channel Management Decision
• Selecting Channel Members
• Motivating Channel Members.
• Evaluating Channel Members.
• Modifying Channel Arrangements
COOPT
• It may refer to the process of adding members
to an elite group at the discretion of members
of the body, usually to manage opposition and
so maintain the stability of the group.
Designing a physical Distribution System
Designing a physical Distribution System:
Functions
• Customer service,
• Inventory Management,
• Materials Management,
• Packaging,
• Order processing, and
• Transportation and logistics.
Steps in Designing a Physical Distribution System
Step 1 − Defining distribution objective and
services required for product distribution
Step 2 − Articulating customer requirement
Step 3 − Comparing the strategy with market
competitors
• Step 4 − Managing the cost of distribution to
decrease cost without compromising on the
quality of service
Step 5 − Building physical distribution system
that is flexible for implementation of changes,
if required
Components of a Physical Distribution System
– Planning of physical distribution system
– Storage planning in plant
– Logistics
– Warehousing on field
– Receiving
– Handling
– Sub distribution of product
– Management of inventory at various levels
– Execution of order
– Accounting transactions
– Communication at different levels
• Promotions- Marketing communications-
Integrated Marketing Communications (IMC)-
communication objectives, steps in developing
effective communication.
• Advertising: Advertising Objectives,
Advertising Budget, Advertising Copy, AIDA
model, Traditional Vs Modern Media- Online
and Mobile Advertising, social media for
Advertising. Push-pull strategies of promotion.
Promotions
• Promotion encompasses al the tools in the
marketing mix whose major role is persuasive
communication.
• Promotion includes advertising, personal
selling, sales promotion, other selling tools.
• Concerned with demand generation,
positioning.
• Marketing communications are messages and
related media used to communicate with a
market.
Events
PR and Publicity by FB
The terms lesbian, gay, bisexual, transgender, and questioning (LGBTQ) describe distinct groups within the gay culture
CSR Tool of PR
Interactive Marketing
Word of Mouth Marketing
Personal Selling
Advertising
Sales Promotion
Advertising: ‘To turn the mind to’
• Defined as any paid form of non-personal
presentation and promotion of goods, services
and ideas by an identified sponsor.
Sponsor Medium
Target
Advertising Budget
Five M’s of Advertising
AIDA Model
Modern Media Vs Traditional Media
Text Ads
Online Display Ads
Online Banner Ads
Native ads
Video Ad
Email Ads
Social media Ads
Define Mobile Marketing
Mobile advertising
• Mobile advertising is a form of advertising via
mobile (wireless) phones or other mobile
devices.
• It is a subset of mobile marketing,
• Mobile advertising can take place as text ads
via SMS, or banner advertisements that
appear embedded in a mobile web site
Social media for advertising
Really Simple Syndication