U8 Flashcards
Distribution and promotion
What is distribution ?
Thats final link of company’s supply chain. That includes:
- getting right products to customers tr right time
- physical handling the goods
- warehousing
- distribution channel selection
- order fulfillment
What is AmE mom and pop stores ?
Small family owned stores
What is AmE malls ?
Large shopping centers
What is AmE parking lot ?
Large out of town where giant big-box stores surround the central car park
What are distribution trends ?
- move from mom and pop stores to malls
- parking lots
- more entertainment
- developing in-house brands as cheaper competition to name-brand goods
What does compose promotinal mix ?
- personal selling
- advertising
- public relations
- events
- sponsorship of sport teams and music bands
- endorsement by celebrities
- trade promotions to retilers
- others: product placements in films, word-of-month, viral marketing, guerilla marketing
Describe sales process
- Prospecting - identify potential customer
- Approach - connecting the prospect and prepare to sale interview
- Presentation - describing features of product
- Demonstration - give customer chance to see product in use
- Answering objections - get custoper chance to express doubts and stress benefits rather then features
- Closing - ask the prospect to buy, offer alternative product or special incentive
- Follow up - processing the order quickly and efficently
- Long term relationship - establish regular contact with the customer
What are flyers ?
Peace of paper given to people as advertising form
word-of-mouth
personal recommendations
viral marketing
online through social networking websites and friend emailing video clips
guerilla marketing
covers all nconvencional promotion techniques
Enumerate tools for developing customer relationship
- building brand identity which customer can relate to
- frequency programs
- forming community of buyers
- affinity marketing
- individualized advertising based on previous purchases
- co-marketing with another company
- using CRM software to give customer more personal experience
affinity marketing
attracting customers on the basis of their other interest, for example linking credit card to a favourite charity
Explain sales promotions
Internal: to generate enthusiasm amongst sales people and other customer-contact staff
B2B products: trade shows (trade fairs / exhibitions), portfolios of products fore salespeople, deals (eg price reduction), catalogues / brochures
Customers products: special offer (10% off for limited time), bonus (buy one get one free), coupons to cut out of magazine, free samples, in-store displays, catalogues / brochures, games and contests, promotionals items with an inspired logo, special events
Explain promotional mix
Sales promotions
Persolan selling
advertising
Public relations
Events
Sponsorship
Endorsments
Trade promotions to retailers
Others: product placement word of mouth, viral marketing, etc
Distribution channels
Direct distribution: from the producer or service provider straight to the consumer or business user
Use of the intermediary (middleman): one or more of agent / broker, distributor, wholesaler, retailer
Physical distribution
Warehousing, inventory control and materials handling
Customer service: order fulfilment, warranty and repair issues
Logistics: the work of planing and organizing the movement of materials, goods
Transportation: shipping
Retailing
Non-store retailing
Direct-response retailing: home delivery of goods ordered from catalogues
Internet retailing: online selling through virtual storefronts
Automatic merchandising: sales throuhg vending machines
Direct selling: sales peolple go door-to-door
Store retailing
Speciality store (eg. books, flowers)
Convenience store (eg basic goods, open unti late)
Discount store (very low prices)
Supermarket / Hypermarket
Department store (aimed to more market)
order fulfilment
Making sure that the customer get the right goods at right time