CHAPTER 15 :

DISTRIBUTING
PRODUCTS
Achmad Chaidir
Danyafatima Hasnuagi Zen
Fathurrachman Ellias Agfata
 marketing
intermediaries
Organizations that assist in
moving goods and services
from producers to businesses
(B2B) and from businesses to
consumers (B2C).
channel of distribution
A whole set of marketing
intermediaries, such as agents,
brokers, wholesalers, and
retailers, that join together to
transport and store goods in
their path (or channel) from
producers to consumers.
agents/brokers
Marketing intermediaries who
bring buyers and sellers
together and assist in
negotiating an exchange but
don’t take title to the goods.

wholesaler retailer
A marketing intermediary that An organization that sells to
sells to other organizations. ultimate consumers.

LO 15-1 Explain the concept of marketing channels

and their value.
The Value versus the Cost of Intermediaries Why Marketing Needs Intermediaries
LO.15.2 THE UTILITIES CREATED BY
INTERMEDIARIES
Adding value to products by information utility
making them available when Adding value to products by
opening two-way flows of
time utility they’re needed.
information between marketing
participants.
service utility
Adding value by providing fast,
Adding value to products by friendly service during and after
Place utility having them where people the sale and by teaching
want them. customers how to best use
products over time.

possession Doing whatever is necessary to

utility transfer ownership from one
party to another, including
providing credit, delivery,
installation, guarantees, and
follow-up service.
 WHOLESALE INTERMEDIARIES

• The difference is this: A retail sale is the • Rack Jobbers -- Furnish racks or
shelves of merchandise such as music
sale of goods and services to consumers and magazines for retailers for display
for their personal use. A wholesale sale • Merchant Wholesalers -- and sell them on consignment.
is the sale of goods and services to Independently owned firms that take • Cash-and-Carry Wholesalers --
businesses and institutions, like schools title to the goods they handle. There Serve mostly smaller retailers with a
or hospitals, for use in the business, or to are two types: limited assortment of products.
wholesalers or retailers for resale. • Drop Shippers -- Take orders from
• Full-service wholesalers perform retailers and other wholesalers and
all distribution functions. have the merchandise shipped from
producer to buyer.
• Limited-function wholesalers
perform only selected distribution
functions.

• Agents generally maintain long-term relationships with the

clients they represent.
• Brokers usually represent clients on a temporary basis.
 RETAIL INTERMEDIARIES

RETAIL INTERMEDIARIES STRATEGIES

• Intensive Distribution -- Puts products into as
many retail outlets as possible.
• Selective Distribution -- Uses only a preferred
group of the available retailers in an area.
• Exclusive Distribution -- The use of only one retail
outlet in a given geographic area.
 ONLINE RETAILING AND OTHER NON
STORE RETAILING

• online retailing Selling goods and • Direct selling Selling to consumers in

services to ultimate customers (e.g., you their homes or where they work.
and me) over the Internet.
• Multi level marketing
• Telemarketing The sale of goods and
• direct marketing Any activity that
services by telephone.
directly links manufacturers or
• Vending Machines, Kiosks, Carts, intermediaries with the ultimate
and Pop-Ups consumer.
  Coorporate Distribution
all of the organizations in the channel of
distribution are owned by one firm.
 Contractual Distribution
BULDING
COOPERATION IN members are bound to cooperate
through contractual agreements.
CHANNEL SYSTEM
1. Franchise
2. Wholesaler-sponsored chains
3. Retail cooperatives
  Administered Distribution
producers manage all of the marketing
functions at the retail level.
 Supply Chain
The sequence of linked activities that
BUILDING must be performed by various
COOPERATION IN organizations to move goods from the
CHANNEL SYSTEM sources of raw materials to ultimate
consumers.
 LOGISTICS
 planning, implementing, and controlling the physical flow of materials, final goods,
and related information from points of origin to points of consumption to meet
customer requirements at a profit.
 Inbound logistics brings raw materials, packaging, other goods and services, and
information from suppliers to producers.
 Materials handling , the moving of goods from warehouses to the factory floor and
to various workstations.
 Outbound logistics manages the flow of finished products and information to
business buyers and ultimate consumers (people like you and me).
 Reverse logistics brings goods back to the manufacturer because of defects or for
recycling materials.
  rail (for heavy shipments within the
country or between bordering
countries);
 trucks (for getting goods directly to
various consumers);
transportation  ships (for slow, inexpensive movement
modes of goods, often internationally);
 pipelines (for moving water, oil, and
other such goods);
 airplanes (for shipping goods quickly).
 intermodal shipping
Intermodal shipping uses multiple
modes of transportation—truck, air, water,
rail—to complete a single long-distance
movement of freight.
 Warehouses
A storage warehouse stores products for
a relatively long time.
Distribution warehouses are used to
gather and redistribute products.
 CHAPTER 16 : USING
EFFECTIVE
PROMOTIONS
LO 16-1 Identify the new and traditional tools that make up the promotion
mix.
LO 16-2 Contrast the advantages and disadvantages of various advertising
media, including the Internet and social media.
LO 16-3 Illustrate the steps of the B2B and B2C selling processes.
LO 16-4 Describe the role of the public relations department, and show
how publicity fits in that role.
LO 16-5 Assess the effectiveness of various forms of sales promotion,
including sampling.
LO 16-6 Show how word of mouth, viral marketing, blogging, podcasting,
e-mail marketing, and mobile marketing work.
 promotion mix
The combination of
promotional tools an
organization uses.
 integrated marketing
communication (IMC)
A technique that combines all
the promotional tools into one
comprehensive, unified
promotional strategy.
ADVERTISING: INFORMING, PERSUADING, AND
REMINDING

■ advertising
Paid, nonpersonal
communication through various
media by organizations and
individuals who are in some
way identified in the advertising
message.
ADVANTAGES AND
DISADVANTAGES OF VARIOUS
ADVERTISING MEDIA

interactive promotion
Promotion process that allows
marketers to go beyond a
monologue, where sellers try to
persuade buyers to buy things,
to a dialogue in which buyers
and sellers work together to
create mutually beneficial
exchange relationships.

product placement
Putting products into TV shows,
movies, and other media where
they will be seen.
infomercial
A full-length TV program
devoted exclusively to
promoting goods or services.
 PERSONAL SELLING

• Personal Selling -- The face-to-face

presentation and promotion of a product,
including the salesperson’s search for new Steps in the B2C selling process
prospects and follow-up service.

Steps in the selling process

• Prospect and qualify
• Pre-approach
• Approach
• Make a presentation
• Answer objections
• Close the sale
• Trial Close -- A statement or
question that moves the process
toward the purchase.
• Follow up
 PUBLIC RELATIONS

• Public Relations (PR) -- Evaluates • Publicity -- Any information about an

public attitudes, changes policies and individual, product or organization
procedures in response to the public, that’s distributed to the public through
and executes a program of action and
information to earn public understanding the media and is not paid for or
and acceptance. controlled by the seller.
• 3 steps of a good PR program:
• Listen to the public
• Change policies and procedures
• Inform people you’re responsive to their
needs
 SALES PROMOTIONS

• Sales Promotion -- The

promotional tool that stimulates
consumer purchasing and dealer
interest by means of short-term
activities.
Categories of Sales Promotions:
• B2B Sales Promotions
• Consumer Sales Promotions
PROMOTION TOOLS

• WORD OF MOUTH : INVOLVES PEOPLE TELLING OTHER PEOPLE ABOUT PRODUCTS

THEY’VE PURCHASED.
• VIRAL MARKETING : THE TERM NOW USED TO DESCRIBE EVERYTHING
FROM PAYING CUSTOMERS TO SAY POSITIVE THINGS ON THE INTERNET TO
SETTING UP MULTILEVEL SELLING SCHEMES WHEREBY CONSUMERS GET
COMMISSIONS FOR DIRECTING FRIENDS TO SPECIFIC WEBSITES.
• SOCIAL NETWORKING : THE USE OF DEDICATED WEBSITES AND APPLICATIONS TO
INTERACT WITH OTHER USERS, OR TO FIND PEOPLE WITH SIMILAR INTERESTS TO
ONESELF.

• BLOGGING : WRITE ABOUT (AN EVENT, SITUATION, TOPIC, ETC.) IN A BLOG.

• PODCASTING : DISTRIBUTING AUDIO AND VIDEO PROGRAMS VIATHE INTERNET THAT LETS
USERS SUBSCRIBE TO A NUMBER OF FILES, ALSO KNOWN AS FEEDS, AND THEN HEAR OR
VIEW THE MATERIAL AT THE TIME THEY CHOOSE.
• E-MAIL PROMOTIONS
• MOBILE MARKETING
PROMOTIONAL STRATEGIES
• PUSH STRATEGY : THE PRODUCER USES ADVERTISING, PERSONAL SELLING, SALES
PROMOTION, AND ALL OTHE PROMOTIONAL TOOLS TO CONVINC WHOLESALERS AND
RETAILERS TO STOCK AND SELL MERCHANDISE.
• PULL STRATEGY :
HEAVY ADVERTISING AND SALES PROMOTION EFFORTS ARE
DIRECTED TOWARD CONSUMERS SO THAT THEY’LL REQUEST THE PRODUCTS FROM
RETAILERS.