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National Markets. Because of a high costs of operating a national sales force,

many companies have established telemarketing staffs. By combining telemarketing with a catalog or other educational product literature, small companies can sell their products nationally & compete against much larger companies.

International Markets. Small companies can’t afford to establish international offices in order to conduct businesses. Even sending sales representatives overseas is expensive. Thus, many small companies have combined telemarketing with direct mail in order to expand internationally.
Small businesses often depend on an interesting or unusual sign to attract new customers.

Small Business Sales Promotions

Small companies use the same sales promotion incentives that larger companies use. The difference is that larger firms tend to use more coupons, POP displays, & sales contests. Smaller firms rely on premiums & special sales, since coupons & sales contests are more expensive & difficult to manage.

Small Business Publicity

Publicity is very important to small businesses with local markets.
Small firms often have an easier time getting local publicity than do national firms. Readers of local papers like to read about local companies, so local papers like to write about such businesses. But fierce competition for coverage in national & international publications limits the access small businesses have to those markets.

Distributing Goods & Services

In selecting a distribution mix for getting its products to customers, a firm may use any or all of six distribution channels. The first four are aimed at consumers & the last two at industrial customers.
Channel 1 involves a direct sale to the consumer. Channel 2 includes a retailer. Channel 3 also includes one wholesaler, while Channel 4 includes an agent or broker before the wholesaler. Distribution strategies include intensive, exclusive, & selective distribution.

Wholesalers act as distribution intermediaries, extending credit & storing, repackaging, & delivering the product to other members of the distribution channel. Full-service, & limited-service, merchant wholesalers differ in the number of distribution functions they offer. Agents & brokers never take legal possession of the product.

Retailing involves direct interaction with the final consumer. The major types of retail stores are department, specialty, bargain, convenience, supermarkets, & hypermarkets. (Like in Moscow.) They differ in terms of size, services, & product type they offer, & product pricing. Some retailing also takes place without stores, through the use of catalogs, vending machines, & video marketing. According to the wheel of retailing, conventional retailers are periodically Displaced by low-priced innovative retailers, who then become more conventional & subject to displacement.

Distribution ultimately depends on physically getting the product to the buyer. Physical distribution includes customer-service operations such as order processing. It also includes warehousing & transportation of products. Warehouses may be public or private & may be used for long-term storage or serve as distribution centers. Costs of warehousing include inventory control & materials handling.

Truck, plane, railroad, water, & pipeline transportation differ in cost, availability, reliability of delivery, & speed. Air is the fastest but most expensive. Water carriers are the slowest, but least expensive.
Most products are moved by truck at some point. Transportation in any form may be supplied by common carriers, freight forwarders, contract carriers, or private carriers.

Developing & Pricing Products

Products are a firm’s reason for being, their features offer benefits to buyers, whose purchases are the source of business profits. In developing products, marketers must take into account whether their market is individual consumers or other firms. Marketers must also recognize that buyers will pay less for & worry less about the exact nature of convenience goods than about shopping & specialty goods. In industrial markets, expensive items are generally less expensive & more rapidly consumed than are capital items.

The seven stages of product development are development the ideas, screening, concept testing, business analysis, prototype development, test marketing, & commercialization. Very few ideas for new products survive to the commercialization stage.

When new products are launched, they have a life cycle that begins with their introduction & progresses through stages of growth, maturity, & decline Revenues rise through the early growth period; sales rise through the late maturity period. In terms of the growth -share matrix, this progression appears as a product moves from questions mark to star to cash cow to dog.

Each product is given a visible identity by its brand & the way it is packaged & labeled. National, licensed & private brands are developed to create brand loyalty. Packaging provides an attractive container & advertises the product. The label informs the consumer of the package contents. The pricing of the product will determine its business success, depending on the business objectives that are being sought. Profit maximization, market share, & other business objectives may be relevant to the pricing decision. Economic theory, cost-oriented pricing, & break-even analysis are tan used as tools in determine prices.

Pricing also involves choices of a basic pricing strategy can be used for new products. Existing products may be priced at, above, or below prevailing prices for similar products, depending on the other elements in the marketing mix. Within a firm’s pricing strategies, managers set prices using tactics such as price lining, psychological pricing, & discounting.

PLAN

1. Promotional Objectives, Strategies, & Tools
. Promotional Objectives
. Promotional Strategies
. Picking the Right Tools for the Promotional Mix
5. Advertising Promotions
. Advertising Strategies
. Advertising Media
. Types Advertising
. Advertising to Specific Markets
. Regulation of Advertising
11. Personal Selling Promotions
. Types of Personal Selling Situations
. Personal Selling Tasks
. The Personal Selling Process
15. Sales Promotions
. Types of Sales Promotions
17. Publicity & Public Relations Promotions
. Small-Business Advertising
. Small-Business Personal Selling
. Small-Business Sales Promotions
. Small-Business Publicity
22. Distributing Goods & Services
23. Developing & Pricing Products

MANAGING MARKETING

(Promoting Goods & Services)

To Dr. Zavadovskiy by Goubanova Galina

Marketing

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