©2007 prentice hall 11-1 distribution and customer communication chapter 11

©2007 Prentice Hall11-1

Distribution and Customer Communication

Chapter 11

Chapter 11 Objectives

After studying this chapter, you will be able to:• Explain what marketing intermediaries do and

list their seven primary functions• Explain how wholesalers and retailers function

as intermediaries• Discuss the key factors that influence channel

design and selection• Differentiate intensive, selective, and exclusive

distribution strategies

©2007 Prentice Hall11-2

Chapter 11 Objectives, cont.

• Identify the seven categories of customer communication

• Discuss the importance of integrated marketing communications

• Explain the purpose of defining a core marketing message

• Describe the use of social media in marketing communications

©2007 Prentice Hall11-3

Developing Distribution Strategies

©2007 Prentice Hall11-4

Distribution ChannelsDistribution Channels

IntermediariesIntermediaries

Strategies

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RetailersRetailers WholesalersWholesalers

Role of Intermediaries

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Gather AssortmentOf Goods

Gather AssortmentOf Goods

Transport and Store Products

Transport and Store Products

Assume RisksAssume Risks

Match Buyers And Sellers

Match Buyers And Sellers

Provide MarketInformation

Provide MarketInformation

Provide PromotionalAnd Sales Support

Provide PromotionalAnd Sales Support

Provide FinancingProvide Financing

Distribution Channels

©2007 Prentice Hall11-7

Consumer Goods and ServicesProducerProducer

ProducerProducer

ProducerProducer

ProducerProducer Agent/BrokerAgent/Broker

WholesalerWholesaler

WholesalerWholesaler

RetailerRetailer

RetailerRetailer

RetailerRetailer

ConsumerConsumer

ConsumerConsumer

ConsumerConsumer

ConsumerConsumer

Forces That Create Variety of Retail Formats

©2007 Prentice Hall11-8

Wheel of RetailingWheel of Retailing

Scrambled Merchandising

Scrambled Merchandising

Store-Based Retailing Formats

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Specialty StoreSpecialty Store

Category KillerCategory Killer

Department StoreDepartment Store

Discount StoreDiscount Store

Non-Store Formats

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E-CommerceE-Commerce

Retail TheaterRetail Theater

Multi-channelRetailing

Multi-channelRetailing

Mail-Order FirmsMail-Order Firms

Distribution Mix

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Market Coverage

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Distribution

Convenience Goodsand Organizational Supplies

Expensive Technicalor Specialty Products

Intensive Selective Exclusive

Cost Factors

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SellingSelling

StorageStorage

DistributionDistribution

Control Issues

©2007 Prentice Hall11-15

How Goods AreHow Goods AreSold in the MarketplaceSold in the Marketplace

How Goods AreHow Goods AreSold in the MarketplaceSold in the Marketplace

ChannelChannelLengthLength

OverallOverallControlControl

LongerLongerShorterShorter

LessLessMoreMore

Channel Conflict

©2007 Prentice Hall11-16

Inadequate Product SupportInadequate Product SupportInadequate Product SupportInadequate Product Support

Too Many IntermediariesToo Many IntermediariesToo Many IntermediariesToo Many Intermediaries

Multiple Sales ChannelsMultiple Sales ChannelsMultiple Sales ChannelsMultiple Sales Channels

Managing Distribution

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WarehousingWarehousing

Materials HandlingMaterials Handling

Order ProcessingOrder Processing

Inventory ControlInventory Control

TransportationTransportation

Customer Communication Strategies

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Select CommunicationMix

Select CommunicationMix

Ethics, Etiquette andRegulations

Ethics, Etiquette andRegulations

Define Your MessageDefine Your Message

Decide on MarketApproach

Decide on MarketApproach

Set CommunicationGoals

Set CommunicationGoals

Setting Communication Goals

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InformingInformingInformingInforming RemindingRemindingRemindingRemindingPersuadingPersuadingPersuadingPersuading

Define Your Message

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Ideas to convey to target audience

Ideas to convey to target audience

Expand core messageExpand core message

Emotional appealEmotional appeal

Market Approach

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Communication Mix

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Personal sellingPersonal selling

AdvertisingAdvertising

Direct marketingDirect marketing

Sales promotionSales promotion

Public relationsPublic relations

Personal Selling

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ProspectingProspecting1

PreparingPreparing2

ApproachingApproaching3

PresentingPresenting4

HandlingObjections

HandlingObjections

5

ClosingClosing6

Following UpFollowing Up7

Advertising

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ProductProduct

InstitutionalInstitutional

SearchSearch

Online displayOnline display

Direct Marketing

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DirectDirectMailMail

DirectDirectMailMail

Tele-Tele-marketingmarketing

Tele-Tele-marketingmarketing

TargetTargetE-mailE-mailTargetTargetE-mailE-mail

Sales Promotion

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Public Relations

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CrisisCommunication

CrisisCommunication

News MediaNews Media

Social Media

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Word-of-mouthWord-of-mouth

WidgetsWidgets

Post-salescommunication

Post-salescommunication