Marketing Promotion and Distribution Strategies

Posted on Feb 11, 2025 in Economy

Marketing Promotion and Distribution

Promotion: The use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship, and public relations to inform consumers and persuade them to buy.

Promotion Mix

The promotion mix includes various strategies:

Advertising

  • Persuasive Advertising: Tries to entice the customer to buy the product by informing them of the product’s benefits.
  • Informative Advertising: Provides the customer with information. Mostly done by the government.
  • Advertising Agencies: Give advice on the most effective way to promote. They are expensive but professional.

Sales Promotion

Special offers or deals for consumers to achieve short-term increases in sales.

  • Money-off Coupons: Customers receive coupons, or cut coupons out of newspapers or a product’s packaging, that enable them to buy the product next time at a reduced price.
  • Competitions: Buying the product allows the customer to take part in a chance to win a prize.
  • Discount Vouchers: A voucher (like a money-off coupon).
  • Free Gifts: A free product when you buy another product.
  • Point of Sales Materials: E.g., posters, display stands – ways of presenting the product in its best way or showing the customer that the product is there.
  • Loyalty Cards: E.g., Nectar and Air Miles; where customers earn points for buying certain goods or shopping at certain retailers – that can later be exchanged for money, goods, or other offers.

Personal Selling

Sales staff communicate with one consumer with the aim of selling the product and establishing a relationship.

Direct Mail

Sending information to potential customers. Mails can be sent to the junk email, and the business could gain a negative image.

Sponsorship

Payment by a company to the organizers of an event so that the company name becomes associated with the event.

Public Relations

Deliberate use of free publicity provided by newspapers, TV, and other media used to communicate with and achieve understanding by the public.

Branding

Branding is the strategy of differentiating products from those of competitors by creating an identifiable image.

Benefits of an effective brand identity:

  • Increases the chances of repeat purchases.
  • Differentiates the product from others.
  • Increases consumer loyalty.

Distribution

Distribution is how the business gets its products to the customers. It does this through four main distribution channels:

  • Wholesalers
  • Distributors / Sales Agents
  • Retailers
  • Direct

Wholesalers

Wholesalers “break bulk” – they buy in large quantities. This reduces transport costs to the manufacturer, and retailers can order in smaller amounts from wholesalers.

Agents

Agents provide a link between sellers and buyers. They are not employed by the company but sell the products or services for a commission.

Some businesses miss out on the wholesaler, especially large multiples such as supermarkets. They can order directly from the producer and then use their own system of distribution. The advantage for a producer is that they get greater control over the marketing of their product.

Other businesses use direct marketing as their key distribution channel. This is where they sell directly to the customer. The most common channels for direct marketing are:

  • Direct mail
  • E-mails
  • Mail-order catalogues
  • Telephone sales

Viral Marketing

Using social networking sites or SMS text messages to increase brand awareness or sell products.