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Distributing and
Promoting Product and
Services

Husna Candranurani Oktavia, S.E., M.Si

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Distribution is also known as “place” in terms of the 5Ps, key
The Nature and components of the marketing mix.

Functions of Distribution is efficiently managing the acquisition of

raw materials by the factory and the movement of products
from the producer or manufacturer to business-to-business
Distribution (Place) (B2B) users and consumers.

A supply chain is the system through which an

organization acquires raw material, produces products, and
delivers the products and services to its customers.

On their way from producers to end users and consumers,

products pass through a series of marketing entities known
as adistribution channel
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Marketing intermediaries are in the middle of the the
MARKETING distribution process, between the producer and the end user.

INTERMEDIARIES The following marketing intermediaries most often appear in

the distribution channel:
• Agents are sales representatives of manufacturers and
wholesalers, and brokers are entities that bring buyers and
sellers together.
• Industrial distributors are independent wholesalers that buy
related product lines from many manufacturers and sell them to
industrial users.
• Wholesalers are firms that sell finished goods to retailers,
manufacturers, and institutions (such as schools and hospitals).
• Retailers are firms that sell goods to consumers and to
industrial users for their own consumption.
03 Channels of Distribution for B2B and Consumer Products
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INTERNET

MAIL ORDER
Nontraditional
Channels
INFOMERCIA
L
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The Functions of Distribution Channels

 Channels Reduce the Number of Transactions

Channels make distribution simpler by reducing the number of transactions required to get a
product from the manufacturer to the consumer

 Channels Ease the Flow of Goods

Channels make distribution easier in several ways. The first by sorting, which consists of the
following:
• Sorting Out
• Accumulating
• Allocating
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Wholesaling
• Wholesalers are channel members that buy finished products from manufacturers and sell them
to retailers.
• Retailers in turn sell the products to consumers. Wholesalers also sell products to institutions,
such as manufacturers, schools, and hospitals, for use in performing their own missions.

Type of Wholesaler Intermediaries :

• Merchant Wholesalers, is an institution that buys goods from manufacturers and resells
them to businesses, government agencies, other wholesalers, or retailers. All merchant wholesalers
take title to the goods they sell.
• Agents and Brokers, agents and brokers simply facilitate the sale of a product from
producer to end user.
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Types of Retail Operations
Types of In-Store Retailing Description
Departement Store Houses many departments under one roof with each treated as a separate buying
center to achieve economies of buying, promotion, and contro
Specialty store Specializes in a category of merchandise and carries a complete assortment

Convenience store Offers convenience goods with long store hours and quick checkout

Supermarket Specializes in a wide assortment of food, with selfservice

Discount store Competes on the basis of low prices and high turnover; offers few services

Off-price retailer Sells at prices 25 percent or more below traditional department store prices in a
spartan environment
Factory outlet Owned by manufacturer; sells closeouts, factory seconds, and canceled orders
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Types of Retail Operations
Types of non-Store Description
Retailing
Vending machine Sells Merchandise by machine
Direct Selling Sells face to face, usually in the person’s home

Directresponse marketing Attempts to get immediate consumer sale through media advertising, catalogs,
pop-up ads, or direct mail

Home shopping networks Selling via cable television

Internet retailing (e-retailing) Selling over the internet
 PROMOTION STRATEGY
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Promotion is an attempt by marketers to inform, persuade, or remind consumers and B2B users to influence
their opinion or elicit a response. Most firms use some form of promotion.

Any promotional campaign may seek to achieve one or more of these goals:
1. Creating awareness: All too often, firms go out of business because people don’t know they exist or what they
do. Promotion through ads on social media platforms and local radio or television, coupons in local papers,
flyers, and so forth can create awareness of a new business or product.
2. Getting consumers to try products: Promotion is almost always used to get people to try a new product or to
get nonusers to try an existing product. Sometimes free samples are given away.
3. Providing information: Informative promotion is more common in the early stages of the product life cycle.
An informative promotion may explain what ingredients (for example, fiber) will do for a consumer’s health,
describe why the product is better (for example, high-definition television versus regular)
4. Keeping loyal customers: Promotion is also used to keep people from switching brands. Slogans such as
Campbell’s soupsare “M’m! M’m! Good!” and “IntelInside” remind consumers about the brand.
5. Increasing the amount and frequency of use: Promotion is often used to get people to use more of a product
and to use it more often.
6. Identifying target customers: Promotion helps find customers. One way to do this is to list a website as part
of the promotion.
7. Teaching the customer: For service products, it is often imperative to actually teach the potential client the
reasons for certain parts of a service. In services, the service providers work with customers to perform the
service.
 PROMOTIONAL MIX
10 The combination of traditional advertising, personal selling, sales promotion, public
relations, social media, and e-commerce used to promote a product is called the
promotional mix.
These are the elements of the promotional mix:
1. Traditional advertising: Any paid form of nonpersonal promotion by an identified sponsor that
is delivered through traditional media channels.
2. Personal selling: A face-to-face presentation to a prospective buyer.
3. Sales promotion: Marketing activities (other than personal selling, traditional advertising,
public relations, social media, and e-commerce) that stimulate consumer buying, including
coupons and samples, displays, shows and exhibitions, demonstrations, and other types of
selling efforts.
4. Public relations: The linking of organizational goals with key aspects of the public interest and
the development of programs designed to earn public understanding and acceptance.
5. Social media: The use of social media platforms such as Facebook, Twitter, Pinterest,
Instagram, and various blogs to generate “buzz” about a product or company.
6. E-commerce: The use of a company’s website to generate sales through online ordering,
information, interactive components such as games, and other elements of the website.
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The business world now relies on the internet for much of its
communications, marketing or otherwise. Almost all companies have
Facebook accounts, and individual leaders of companies have

Trends in Social separate individual accounts on Linked In, Twitter, Instagram, and
other social media sites.

Media Social media is a hugely powerful tool for marketers. It has it

challenges, though, because the platforms are constantly changing and
evolving. Also, the audiences being reached often read (or view) and
believe the messages seen on various social media platforms without
understanding the context of the message.