ACCOUNTING STUDY PROGRAM

Name of the subject: Introduction to Business

Lecturer: Andrianantenaina Hajanirina B.Sc., B.A., M.M.
Name: Jessica Grasella Putri.
SIDN: 008202300100
Date: FRIDAY 1 DECEMBER 2023
Week: 13 MARKETING PROMOTING.

A. Application
1. Choose a new business or a company you like, then discuss distribution strategy it
adopts. How many level of channel it uses? Discuss the effect of the strategy on firms
expense, revenue and value. How efficient is the strategy?

Starbucks employs a three-level distribution strategy, including company-owned stores, licensed

stores, and retail partnerships. This approach impacts expenses, as company-owned stores
involve higher operational costs, while licensed stores and partnerships help manage expenses
and extend brand reach. The strategy positively influences revenue by providing a diverse market
presence. The overall efficiency lies in balancing brand control, market reach, and operational
costs effectively, contributing to Starbucks' success in catering to diverse consumer preferences.
2. Find a corporation you like and discuss its promotion strategy. How is the efficiency of
the promotion mix?

Starbucks implements a three-tier distribution strategy, encompassing company-owned stores,

licensed outlets, and retail partnerships. While company-owned stores contribute to higher
expenses, they ensure brand control. Licensed stores and partnerships help manage costs and
expand market reach, positively impacting revenue. The strategy's efficiency lies in its ability to
balance brand control, market presence, and operational costs, contributing to Starbucks' success
in reaching diverse consumer segments.

3. Suppose you want to create a new business, you want to sell the product, what type of
channel level do you adopt? Why?

For a new skincare business, a recommended strategy involves a multi-channel distribution

approach. This includes establishing company-owned stores or an online platform for direct
brand control, engaging in retail partnerships to extend product reach, and utilizing e-commerce
platforms to enhance online accessibility. This multi-channel strategy aims to cater to diverse
consumer preferences, maximize exposure, and adapt to various market conditions, fostering the
business's growth and success.

4. Discuss the promotion strategy of a firm you like, do it use pull or push strategy?
Illustrate and explain. Discuss the cost efficiency.

Apple employs a pull strategy in its promotion efforts, emphasizing creating consumer demand
through innovative marketing, building a strong brand image, and providing an immersive retail
experience. The strategy focuses on long-term benefits, fostering customer loyalty and a
premium market position. While initial costs are high, the direct sales model and brand control
contribute to cost efficiency and sustained success.

B. Book
Review & Critical Thinking Questions
Page 519
1. Discuss the advantages and disadvantages of direct channel distribution.
Direct channel distribution offers advantages such as brand control, direct customer
relationships, higher profit margins, marketing flexibility, and customization. However, it comes
with disadvantages including high initial costs, logistical challenges, limited market reach, the
risk of overemphasis on the brand, and potential competition with retail partners. The
appropriateness of a direct distribution strategy depends on the specific characteristics and goals
of the business.

3. Briefly summarize the factors that determine an optimal channel of distribution.

Determining the optimal channel of distribution involves considering factors such as product
characteristics, target market, company resources, competitive environment, regulatory
considerations, geographic factors, customer preferences, product lifecycle, channel partnerships,
and cost considerations. A comprehensive analysis of these factors enables businesses to design
an efficient and effective distribution strategy that aligns with their goals and market conditions.

6. How can marketing research determine the optimal type of dis tribution coverage for a
firm?"

Marketing research determines the optimal type of distribution coverage for a firm by providing
insights into customer preferences, market segmentation, competitor strategies, product
characteristics, geographic factors, cost-benefit analysis, and channel partner evaluation.
Through a comprehensive analysis of these factors, firms can tailor their distribution strategies to
align with customer expectations, industry norms, and cost-effectiveness, ensuring an optimal
and efficient distribution coverage that meets business objectives.

16. Why are Internet businesses likely to involve direct channel distribution?

Internet businesses often prefer direct channel distribution due to the global reach enabled by the
internet, allowing them to connect with customers worldwide. Direct distribution provides
businesses with direct customer interaction, cost efficiency by eliminating intermediaries, control
over the brand experience, data collection for personalization, the use of e-commerce platforms,
agility in adapting to market changes, and continuous availability for customers. These factors
collectively contribute to the success and competitiveness of internet businesses in the digital
landscape.

19. How do specialty stores differ from variety retail stores?

Specialty stores focus on a narrow range of products within a specific category, targeting a niche
market with a deep assortment and an emphasis on expertise and a unique shopping experience.
In contrast, variety retail stores offer a broad range of products across multiple categories,
targeting a diverse customer base with a broad but shallow assortment, prioritizing convenience,
and emphasizing affordability in the shopping experience.

Page 551
1. How can promotion be used when introducing a new product?

When introducing a new product, effective promotion is crucial. This involves a multi-faceted
approach, including advertising campaigns across various channels, public relations efforts to
secure media coverage, social media marketing for engagement and anticipation, influencer
collaborations for credibility, promotional events and giveaways for excitement, targeted email
campaigns for existing customers, point-of-sale promotions for physical retail, collaborations for
extended reach, loyalty programs for customer retention, and encouraging online reviews to
build trust. A well-coordinated promotional strategy helps create awareness, generate interest,
and drive initial sales for the new product.

3. You are planning to start a florist business in your hometown. Would you use media
advertising, nonmedia advertising, or both? Why?

To effectively promote a florist business in your hometown, a strategic combination of media

and non-media advertising is recommended. Media advertising through local newspapers and
radio helps reach a broad audience, while non-media strategies, such as participating in
community events, collaborating with local businesses, and utilizing bulletin boards, contribute
to a comprehensive and targeted approach. This balanced approach ensures a diverse reach and
consistent brand messaging, fostering community engagement and awareness for your florist
business.

4. Why do you think newspaper publishers use telemarketing to develop a customer base?

Newspaper publishers may use telemarketing to develop a customer base due to its effectiveness
in direct engagement, targeted outreach, relationship building, immediate feedback, overcoming
objections, customized offers, data collection, and adding a human touch to the subscription
process. Telemarketing provides an avenue for personalized interactions, allowing publishers to
tailor messages, address concerns, and gather valuable information, ultimately enhancing the
chances of acquiring new subscribers. It's crucial to balance telemarketing with other marketing
channels to ensure a well-rounded customer acquisition strategy.

19. Why might firms review the promotion budget after a particular promotion strategy
has been put in place?

Firms review the promotion budget after implementing a strategy to assess its effectiveness,
calculate return on investment, analyze market response, stay competitive, evaluate impact on
sales and revenue, consider consumer feedback, address unforeseen challenges, and adapt to
changes in the overall business strategy. This ongoing evaluation is crucial for optimizing
promotional efforts, ensuring cost-effectiveness, and making informed adjustments to future
campaigns.

Discussion Questions
Page 519
2. How can a firm use the Internet to enhance its degree of market coverage? How can it
use the Internet to accelerate the distribution process?

A firm can leverage the Internet to enhance market coverage by establishing e-commerce
platforms, utilizing digital marketing, expanding presence on online marketplaces, implementing
targeted content marketing, and optimizing global shipping solutions. To accelerate the
distribution process, the firm can use online ordering systems, inventory management software,
explore dropshipping partnerships, automate order processing, provide real-time tracking,
collaborate with efficient logistics partners, utilize digital communication channels, and ensure
mobile-friendly platforms. These strategies collectively contribute to increased accessibility,
streamlined processes, and improved customer experiences in the online marketplace.

6. Assume you are a retailer of very expensive jewelry. Would your products be more likely
to be sold in a chain or an independent retail outlet? Would your

For a retailer of very expensive jewelry, an independent retail outlet is more likely to be the
preferred distribution channel. The exclusivity and luxury associated with high-end jewelry align
well with the boutique atmosphere, personalized service, and curated selection that independent
outlets can provide. These outlets allow for better brand control, targeted marketing, and
customization opportunities, creating a shopping experience that resonates with the expectations
of customers seeking very expensive jewelry.

Page 552
1. As a sales manager in a new automobile dealership, what role would you play in the
company, and what would your responsibilities be?

As a Sales Manager in a new automobile dealership, your role involves leadership and oversight
of the sales operations. Key responsibilities include recruiting and training a high-performing
sales team, developing and implementing sales strategies, ensuring customer satisfaction,
managing inventory, optimizing sales processes, analyzing performance metrics, budgeting, and
maintaining compliance with legal and ethical guidelines. The role requires a strategic approach
to achieve sales targets, foster positive customer relationships, and contribute to the overall
success of the dealership.

4. Identify and explain the different types of promotion methods in the following examples:
a. Tiger Woods plays golf wearing Nike apparel.

a. Tiger Woods plays golf wearing Nike apparel:

Promotion Methods:

• Celebrity Endorsement: Tiger Woods, a renowned figure, serves as a celebrity endorser

for Nike by wearing their apparel during his golf games.
• Product Placement: The visibility of Nike apparel during golf games featuring Tiger
Woods is a form of product placement, promoting the brand through association with a well-
known athlete.

b. A local supermarket introduces a scratch-and-win ticket.

b. A local supermarket introduces a scratch-and-win ticket:

Promotion Methods:

• Sales Promotion: The scratch-and-win ticket is a form of sales promotion, providing

customers with an incentive to make purchases and engage with the supermarket.
• Gamification: Introducing a scratch-and-win game adds an element of gamification to the
shopping experience, making it more enjoyable and encouraging customer participation.

c. Assume that you are a college graduate. Your local college calls you, asking you to make
a donation for its capital funding program.

You, as a college graduate, receive a call asking for a donation for the college’s capital funding
program:

Promotion Methods:

• Direct Marketing: The phone call represents a form of direct marketing, as the college
directly contacts you to solicit a donation.
• Fundraising Campaign: The call is part of a fundraising campaign for the college’s
capital funding program, seeking financial support from alumni and graduates.
• Personal Selling: The phone call involves a personal selling approach, as the college
representative engages in direct communication to persuade you to make a donation.

10. Assume you are the marketing manager of a chewing gum producer. How can you use
marketing research to identify the most effective advertising strategy? How can you use
surveys to generate information on customer perception of the product?

As the marketing manager of a chewing gum producer, leveraging marketing research is crucial
to identifying the most effective advertising strategy. This involves conducting market
segmentation, analyzing competitor strategies, studying consumer behavior, understanding
media consumption patterns, testing advertising messages, and assessing the ROI of various
channels. Additionally, surveys play a vital role in gathering customer perception information,
covering aspects such as brand image, packaging, flavor preferences, purchase motivations,
loyalty, and channel preferences. The insights obtained from these research efforts inform the
development of targeted advertising campaigns and enhance overall brand positioning in the
competitive gum market.