Entrepreneurship Chapter 6 - Distribution, Promotion, and Selling

radio advertising

can be effective for small businesses and can easily select a station whose listeners share the same demographic as your target market. you can not visually show your product

CPM

cost per Mil

CPA

cost per action

Need satisfying

customers knowing exactly what they want and the fulfillment of their needs

Personal selling

direct communication between a prospective buyer and a sales representative in which the sales representative attempts to influence the prospective buyer in a purchase situation

personal selling

direct communication between a prospective buyer and a sales representative in which the sales representative attempts to influence the prospective buyer in a purchase situation

product storage and handling

efficient storage allows channel members to balance supply and demand of products, but adds to the cost of products and the risk that products may be damaged or stolen

self-promotion

giving away t-shirts and hats displaying your company's logo, distributing useful items with the name, telephone number, website, and logo

Physical distribution

includes storage, handling, and packaging of products within a channel of distribution

physical distribution

includes transportation, storage, handling, and packaging of products within a channel of distribution

Distribution

involves locations and methods used to make products available to customers

Direct channel

manufacturer to consumer

Advertising

paid form of communication sent out by a business about a product

Features

physical characteristics or capabilities of the product or service

Channels of distribution

routes that products and services take from the time they are produced to the time they are consumed

channels of distribution

routes that products and services take from the time they are produced to the time they are consumed

service businesses

sells their service directly to customers, have a direct channel of distribution because the production and consumption of a service happens at the same time

Types of advertising

television, radio, newspaper, telephone directory, direct-mail, magazine, outdoor, transit,

public relations

the act of establishing a favorable relationship with customers and the general public

benefits

the advantages that could result from those features

Supply Chain Management

the coordination of manufacturers, suppliers, and retailers working together to meet a customer need for a product or service

supply chain management

the coordination of manufacturers, suppliers, and retailers working together to meet a customer need for a product or service

Emotional buying decisions

the desire to have a product or service

rational buying decision

the logical reasoning of customers

intellectual property

the original, creative work of an artist or inventor and may include such things as songs, novels, artistic designs, and inventions

features

the physical characteristics or capabilities of the product/service

promotional mix

the strategy created by adopting a blend of some, if not all, of promotion techniques

visual marketing

the use of visual media to promote, sell, and distribute a product or service to a targeted audience

Indirect channel

uses intermediaries - people or businesses that move products between the manufacturer and the consumer

telemarketing

using the phone to market a product or service

problem resolution

when the customers need is not identified

online advertising

- a cost effective way for businesses to get information to potential customers - allows businesses to interact with customers through online chat rooms, blogs, and e-newsletters

Wallpaper Ad

- an ad that changed the background of the page bring viewed

transportation

- choices include airplane, pipeline, railroad, ship, truck, or a combination of methods - factors to consider include what you are shipping and where it is being shipped

Television Advertising

- comes in forms of commercials and paid advertising - can be too broad of an audience and too expensive

packaging

- designed to protect the product from the time it is produced until it is consumed - packaging requirements will vary depending on the product, the way it is shipped, and where it is being shipped - if the product during the distribution phase is not protected, it could be damaged or destroyed

newspaper advertisement

- inexpensive, targets a limited geographic area, reaches large numbers of people - audience may not have any interest, your ad will compete with others, and only a handful of people still read physical newspapers

retail businesses

- offer your products or services to customers in a convenient location during convenient hours - use catalogues, fliers, and other advertisements to reach customers who live outside the area

marketing mix- promotion

- takes many forms including advertising, publicity, personal selling, and sales promotion

Floating Ad

- type of online advertisement - ad that moves across the screen or floats above the page content

Banner Ad

- type of online advertisement - an image or animation displayed within a rectangular box across the top or down the side of a webpage

manufacturing businesses

- usually dont sell directly to customers - make their products and then sell the products to other businesses - uses all possible channels of distribution

manufacturer to wholesaler to retailer to consumer

-manufacturer sells large quantities to a wholesaler -wholesaler stores and sells smaller quantities to many retailers -lower production costs can lead to lower prices

Manufacturer to retailer to consumer

-sales force sells to goods to retailers -retailers sell goods to consumers -offers more sales opportunities

Trick Banner

A banner ad that looks like a dialog box with buttons, often appearing like an error message or an alert

Pop-up ad

A new window that opens in front of the current one, displaying an advertisement

advertising

A paid form of communication sent out by a business about a product or service; it keeps a product or service in the public's eye by creating a sense of awareness and helps the business convey a positive image

Types of Online Adversting

Banner Ad, Floating Ad, Wallpaper ad, Trick Banner, Pop-up ad

CPC

Cost per click

manufacturer to consumer

Sales methods may include: Internet, Direct Mail, Television, Shopping Channels. No intermediaries, Most cost-effective, Limited sales opportunities (no intermediaries involved)

manufacturer to agent to wholesaler to retailer to consumer

The manufacturer delegates the sales function to an agent, Frequently used in International Marketing

direct channel

a distribution channel that moves the product directly from the manufacturer to the consumer

indirect channel

a distribution channel that uses intermediaries, such as agents and wholesalers, to move products between the manufacturer and the consumer

pop-under ad

a new window that loads behind the current window and does not appear until the user closes one or more active windows

publicity

a nonpaid form of communication that calls attention to a business through media coverage

Publicity

a nonpaid form of communication that calls attention to your business through media coverage; can be positive or negative

rebate

a refund offered to people who purchase a product

Product Knowledge

a salesperson must have a thorough knowledge of the features and benefits of the product or service

press release

a written statement meant to inform the media of an event or product

Public relations

act of establishing a favorable relationship with customers and the general public

Benefits

advantages that could result from features

receiving goods to sell

all types of businesses must receive goods from suppliers; businesses need to obtain goods to sell and operate

Marketing Mix - Distribution

an important component of supply chain management that involves the locations and methods used to make products and services available to customers

distribution

an important component of supply chain management that involves the locations and methods used to make products and services available to customers

sales promotion

an incentive offered to customers in order to increase sales; examples include contests, free samples, rebates, coupons, special events, gift certificates, and frequent-buyer rewards

mass media

any means of communication that reaches very large numbers of people

emotional buying decisions

based on the desire to have a specific product or service

rational buying decisions

based on the logical reasoning of customers