3.3.4 (Promotion) Making marketing decisions: Number of Outlets. Flashcards
Outline the methods to expand the number of outlets a business has.
Promotional campaigns.
Providing extra facilities or attractive displays.
Offering high profit margins to retailers.
Paying generous commission to sales staff.
Increasing brand variety.
Getting sole brand deals.
Investigating alternative outlets.
Outline promotional campaigns as a method of expanding the number of outlets.
Persuade retailers to stock a product by advertisements in trade magazines. Promotions aimed at consumers may increase demand and persuade a shopkeeper to either stock that product or lose customers.
Outline providing extra facilities or attractive displays as a method of expanding the number of outlets.
Saved space is seen as more attractive by customers. Preferred by both retailers and customers.
Outline offering high profit margins as a method of expanding the number of outlets.
Retailers want to use their space as effectively as possible. Supermarkets have been persuaded to devote more space to non-food items - make higher profit margins.
Outline paying generous commission to sales staff as a method of expanding the number of outlets.
Gives the sales fore incentive to persuade retailers that they should stock the product.
Commission is a percentage of the order that they secure from the retailer.
Outline getting sole brand deals as a method of expanding the number of outlets.
In some trades, producers try to secure a deal to sell only their version if a product. By giving discounts for bulk buying, companies such as Pepsi for example, may persuade a pub to make Pepsi the only cola drink served. Unlikely for supermarkets - customers may go elsewhere.
Outline investigating alternative outlets as a method of expanding the number of outlets.
Discovering new retailers or methods of selling can increase sales.
