2. Learning Outcomes
1. What is the nature and function of distribution (place)?
2. What is wholesaling, and what are the types of wholesalers?
3. What are the different kinds of retail operations?
4. How can supply-chain management increase efficiency and customer
satisfaction?
5. What is promotion, and what are the key elements of a promotional mix?
6. How are advertising media selected?
7. What is personal selling?
8. What are the goals of a sales promotion, and what are several types of sales
promotion?
9. How does public relations fit into the promotional mix?
10. What is social media, and how has it changed promotion?
11. What is e-commerce, and how does it affect promotion?
3. • Distribution (Place)
• Factor - manages acquisition or raw materials
• Products move from
• Producer or Manufacturer
• Business users & consumers
• Place
• Location selection
• Store layout
• Atmosphere
• Image building
• Location, inventory, transportation, logistics
8. Exhibit 12.4 How Distribution Channels Reduce the Number of
Transactions
Sorting –
• eggs sorted by grade &
size
Accumulating
• Merge several lines of
women's dresses from
different designers
Allocating
• Breaking similar
products into smaller
lots
• Tank load of milk
9. 1. What is the nature and function of distribution
(place)?
• CONCEPT CHECK
1. List and define the marketing intermediaries
that make up a distribution channel.
2. Provide an example of a strategic channel
alliance.
3. How do channels reduce the number of
transactions?
10.
11. The Coca Cola Supply Chain
• Large beverage companies like
Coca-Cola and Pepsico use a
very large and complex indirect
channel system to distribute
their drink products. The Coca-
Cola company has a very large
and complex channel
distribution system. After
studying the content in Section
12.1, and watching the video be
prepared to discuss the Coca
Cola supply chain.
12. The Coca Cola Supply Chain
1. Can you outline the indirect channel system based on the information in
the Section, the video and on the website?
2. Why would Coke or Pepsi choose to use an indirect system rather than
produce and distribute 100% of their products themselves?
3. What are the advantages and disadvantages Coke experiences from the
large and complex channel formed with their many bottling partners
around the globe?
13. 2. What is wholesaling, and what are the types of
wholesalers?
• CONCEPT CHECK
1. Define wholesaling, and describe what
wholesalers do.
2. Describe merchant wholesalers.
3. Explain the difference between agents and
brokers.
17. Retailing
• Review the material about retailing
covered in Section 12.3, paying
particular attention to Table
12.1. Based upon your own life
experience, would you agree with
the conclusions from the first
video that the examples in Table
12.1 of non-store retailing are in a
better position to grow their
operations than in-store retailers
such as department, specialty and
discount stores? Which of the in-
store organizations seem to you to
be in a stronger position for the
future?
18. Retailing
• View the second video, which in
2017 predicted 5 technologies that
would help retail enhance
operations to thrive in 2020. Have
you experienced or used any of
these 5 yourself? Some of these
may seem a bit futuristic, but do
you think they are likely to happen
soon, if not this year? For
example, Amazon announced in
March 2020 that they are planning
to sell their automated checkout
system to others:
19. Retailing
1. Can you describe these 5 technologies in a brief sentence or two?
Beacon
Facial Recognition
Robot Assistants
Smart Mirrors
Auto Checkout
20. 3. What are the different kinds of retail operations?
• CONCEPT CHECK
1. Describe at least five types of in-store
retailing and four forms of nonstore
retailing.
2. What factors most influence a retail store’s
atmosphere?
21. Goal of Supply
Chain
• Coordinate all activities of
supply-chain members
• Increase customer
satisfaction
• Totally customer driven
22. Service Distribution Channel
Location
• Company Headquarters
Layout of
area
• Interior – Dry Cleaners
Alternative
Locations
• Architect visiting client
Atmosphere
• Credibility
23. 4. How can supply-chain management increase
efficiency and customer satisfaction?
• CONCEPT CHECK
1. What is the goal of supply-chain
management?
2. What does it mean for a supply chain to be
customer driven?
3. How does distribution (place) differ for
services products?
24. Marketing Mix
Promotion
Ways that a
company may
inform, persuade,
remind a target
market about their
products/services
Product
Price
Promotion
Place
Target
Market
26. SALES PROMOTIONS
05 ● Designed for consumers or businesses
● Coupons, incentives, special offers, price reductions
SOCIAL MEDIA MARKETING
04 ● Paid & non-paid advertising, delivered through social media
● Variety of formats
DIRECT MARKETING
03
● Promotions sent directly to consumers
● Physical mail, email
● Incentives, catalogs, flyers, communications
PERSONAL SELLING
02
● Products promoted through endorsements and product
knowledge from a salesperson
● Customized for individual customers
ADVERTISING
01
● Paid announcements from an identified sponsor
● Broadcast, Print, Online
● Designed to be seen by large audiences
PUBLIC RELATIONS
06 ● Messaging through the use of media
● Pre-written stories, press releases
Types of Promotion
28. 5. What is promotion, and what are the key elements
of a promotional mix?
• CONCEPT CHECK
1. What is the objective of a promotional
campaign?
2. What is the promotional mix?
3. What are the features of an integrated
marketing communications campaign?
30. Do Super Bowl Ads really Work for Car Companies?
• As quoted in a recent USA
article, citing the The Hollywood
Reporter as the source, the cost
of a 30-second commercial
during the 2020 Super Bowl
is $5.6 million, up $400,000
from 2019. Review the material
in Section 12.6, then watch the
interview with Audi of
America’s Director of Marketing
Loren Angel on Bloomberg
Television's "In the Loop” show.
32. 6. How are advertising media selected?
• CONCEPT CHECK
1. How is technology impacting the way
advertisers reach their markets?
2. What are the two main factors that should
be considered when selecting advertising
media?
33. Exhibit 12.9 Steps in Making a Successful Sale
Qualifying Questions
Does the prospect
have a need for our
product?
Can the prospect
make the buying
decision?
Can the prospect
afford our product?
34. 7. What is personal selling?
• CONCEPT CHECK
1. What are the advantages of personal
selling?
2. Explain the selling process.
38. 8. What are the goals of a sales promotion, and
what are several types of sales promotion?
• CONCEPT CHECK
1. How does sales promotion differ from
advertising?
2. Describe several types of sales promotion.
39. Table 12.3 The Functions of a Public Relations Department
40. Advertising versus Publicity
• Read and study the material in
Section 12.9, paying particular
attention to Table
12.3. Afterwards, view the video,
which explains the differences
between advertising and public
relations (PR), also called publicity.
• You have already learned about
the various forms of paid
advertising. In the video, the
speaker, Christine Nicholson, calls
PR “earned media”.
41. Advertising versus Publicity
1. What do you think she meant by this?
2. Did it make sense to you when she claimed PR was worth three times
more than traditional forms of advertising?
3. There’s an old marketing saying for which the author is unknown:
Advertising is what you pay for, publicity is what you pray for. Can you
determine which of the following statements is likely to be advertising
and which is probably PR (publicity)?
42. 9. How does public relations fit into the promotional
mix?
• CONCEPT CHECK
1. How does public relations differ from
advertising?
2. Describe several types of publicity.
43.
44. 10. What is social media, and how has it changed
promotion?
• CONCEPT CHECK
1. How are companies embracing social media
as a way to connect with customers?
2. What has been the effect of social media on
traditional advertising?
