Distribution Strategies
This identifies the different methods through
which products are made to reach the customers.
ZERO Level – Company sell direct to the customers. In other words this is called Direct Marketing.
One
Level – Company sells to the customers through one intermediary. (eg: Newdale yogurt sold in Cargills)
Two
Level – Products are made to reach the customers through two intermediaries.(eg: Anchor milk powder sold through whole sellers and retailers)
N Level
– Products are made to reach customers through more than two intermediaries.
Promotion Mix
Promotion is an important part of marketing mix of a business
enterprise. Once a product is developed, its price is determined the next
problem comes to its sale i.e., creating demand for the product. It requires
promotional activities.
The activities are technique which brings the special characteristics of the
product and of the producer to the knowledge of prospective customers.
Promotion is a process of communication involving information, persuasion, and
influence.
The term 'selling' is often used synonymously with promotion. But promotion is
wider that selling. Selling is concerned only with the transfer of title in
goods to the purchaser, whereas promotion includes techniques stimulating
demand. These techniques include advertising, salesmanship or personal selling
and other methods of stimulation demand.
Advertising and sales promotion techniques are indirect and
non-personal whereas personal selling or salesmanship is a direct and personal
technique. All these techniques, however, should be integrated with the
marketing objective of the enterprise. The salesmen can report about the
different advertising and other promotional appeals as they are in close touch
with the consumer public and market conditions.
Promotion is essentially the sales efforts of a business
enterprise and includes the function of informing, persuading and influencing
the purchase decision of the existing the prospective consumers with the object
of increasing sales volume and profits. Promotion is the efforts of the seller
to sell the product effectively. Promotion is the communication with the
customers to pursue them to buy the product. It is the duty of the marketing
manager to choose the communication media and blend them into an effective
promotion programmed. These are more than one type of tools used to
promote sales. The combination of these tools with a view to maintain and
create sales is known as promotion mix.
Promotion mix is the name given to the combination of methods used in
communicating with customers. There are four tools of promotion mix.
Advertisement, Personal selling, Publicity and Sales promotion. These are
called elements of promotion mix.
“Manel Bakery” uses banners to introduce their new products
and promotions to attract customers. When during the World cup season they gave
an opportunity to their customers to watch the matches on a big screen.
To attract more customers in weekends evening to organized event
for new evening bands to live perform in front of their bakery.
“Manel Bakery” marketing people get together and once a month they
are going for their customers residencies to introduce their new products as
well as to collect new ideas from them.
Packaging the products of the company in on attracting manner and
innovating ways to make it more popular.”Manel Bakery” marketing people
introduced a new bags for package their bakery products when customer take away
to their houses. It’s very colorful and recyclable bag.
Certain modern types if promotion come up;
01) Product placement –
including a product in a film or on music, video
Eg: “Audi” car in “transporter -03”
02) Viral Marketing – This
is where the organization will create a video which is attract and post it on
the internet, Then people will share with each other and send the links to one
another through which many people get to know about it.
Eg: “EKCHO” clothing and air force “one” tagged video campaign.
03) Ambush Marketing -
This is where the organization will plant its company products and logos in
particular situations and where there is a very high attention and focus by the
customers.
(Eg:
“Mathaka mandira” song and Elephant house Cream Soda)
04) Guerilla Marketing – This refers to innovative and uncommon marketing
tricks which are usually carries out by small organisation with limited
promotional budget.
(Eg: “CALGARY FARMERS” hanging fresh apples on tress during winter
seasons).
Creating a marketing campaign
The following steps must be followed when carrying out a marketing
campaign.
i)
Define the product or service that is being promoted.
ii)
Identify the target market and the target group that is being focused on.
iii)Select the different
media that will be used for the promotions.
iv) For each selected
media develop different communication strategies.
Information Technology can also be used for promotional campaigns.
a) To create attractive
promotional materials.
b) To distribute
promotional materials via e-mail and internet.
c) To carry out market
research about geographical areas before the promotions.
Price Mix
The price you set for your offering plays a large role in its
marketability. This is the only element of the 4 P’s is the only revenue
generating component. Pricing for offerings that are more commonly available in
the market is more elastic,
meaning that unit sales will go up or down more responsively in response to
price changes.
By contrast, those products that have a generally more limited availability in
the market (but with strong demand) are more inelastic, meaning that price
changes will not affect unit sales very much. The price elasticity of your
offering can be determined through various market testing techniques. All
Discounts, Credit policies & Prices fall under this Mix.
I.
Competitive – ensuring that the price of a product closely matched
with the competitors.
II. Cost Plus – Regardless the
competition pricing an organization will add profit margin on top
its cost and charge.
III. Penetration – Charging a low
price when entering a new market. (Eg:
“AIRTEL” Rs.2/= per minute when the time of entering to Sri Lankan market.
IV. Predatory – Organization
reducing prices so that new entrance find it difficult to survive in the market.
V. Premium – This is where
very high prices will be charge to maintain the brand image.
(Eg: Tag Heuer)
VI. Price Skimming –
Organization charging very high prices at the beginning and later when
competition came up with similar products reducing the prices.
VII. Selective category
(differential pricing) – An organization charging different pricing for
different categories of product.
(Eg: :Johnny Walker)
VIII. Selective consumer group
– Senior Citizens been charges a lower price
in super markets.
IX.
Selective Peak – When products reach maturity they will be add at
a
lower price.
(Eg: “BATA” stock clearance sale)
X. Loss leader – Giving the
core product or the main product at a low price but charging high prices from
other related products.
(
Eg: shaving razor are sold at a low price. But the blades, aftershave gel are
expensive
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