10-28-09
Cooperative Chains – retailers
 Small businesses cannot get the discount on their own; they have to go into a co-op
Voluntary Chains – warehouses
 Joint together to get bargaining power to give discounts to their retailers
Types of Wholesalers:
1. Merchants – buys and owns (handles and houses, therefore they have high overhead costs)
products from various manufacturers
a. Drop shipper – drops the shipment where it will be used
b. Truck wholesalers
c. Rack jobber – delivers and inventories product
2. Agent – has nothing to do with the product; brings buyers and sellers together for a fee
a. Does not touch, house, or transport products
Promotion
Critiques:
 Wasted dollars
 Critical of message; a lot of exaggeration
 Makes us materialistic
 Marketing to a young audience (5 yrs and younger)
Promotion = Communication = to make the message common (a friend)
 Personal selling – one-on-one
 Mass Advertising
 Publicity
o Does not promote the product; promotes marketer
o Can be positive of negative – media hears and comes, press release (information you
give permission for)
o Purpose = good will/positive image
 Sales Promotion
o Time stipulation (beg. – end.)
o Carrot
o Group directed
What groups can a sales promotion be directed to?
Limited time = Excitement
1. Sales people that work for the manufacturer (need incentive)
2. Middleman/Retailer
3. Consumers – time stipulation; price
a. Market penetration – existing customer
b. Market development – new customers
*If there is no time stipulation it is not sales promotion
Examples of Sales Promotion Activities
Aimed at Final Consumers or
Users
 Contests
 Coupons
 Aisle displays
 Samples
 Trade shows
 Point-of-Purchase
materials
 Banners and streamers
 Frequent buyer program
 Sponsored events
Aimed at Wholesalers or
Retailers
 Price deals
 Promotion allowances
 Sales contests
 Calendars
 Gifts
 Trade shows
 Meetings
 Catalogs
 Merchandising aids
 Videos
Aimed at Company’s own Sales
Force
 Contests
 Bonuses
 Meetings
 Portfolios
 Displays
 Sales aids
 Training materials