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Unit 4 of 4 · BBA Sem 3

Unit 4: Distribution & promotion

Marketing Management notes · PTU syllabus (BBA 302-18)

3 min read4 topics9 exam questions
On this page
  1. Unit summary
  2. Distribution channels
  3. Designing and managing channels
  4. Retailing and physical distribution
  5. The promotion mix and IMC
  6. Key terms
  7. Quick revision
  8. Important questions

Unit summary

A product must reach customers and they must know about it. This unit covers distribution channels and their design and management, retailing, physical distribution, the promotion mix, and integrated marketing communications.

After this unit you can

  • Explain types and levels of distribution channels
  • Explain channel design and management and retailing
  • Explain physical distribution
  • Explain the promotion mix and integrated marketing communications

PTU syllabus topics

  • Types of distribution channels
  • designing and managing marketing channels
  • retailing management
  • physical distribution
  • the promotion mix and its components
  • designing integrated marketing communications
ClassificationThe promotion mix
Promotion mix

  • Advertising

    Paid, mass, non-personal

  • Sales promotion

    Short-term incentives

  • Personal selling

    Face-to-face persuasion

  • Public relations

    Building goodwill and image

  • Direct and digital marketing

    Email, social media, targeted messages

1

Topic 1

Distribution channels

A distribution (marketing) channel is a set of interdependent organisations that make a product available to consumers.

ComparisonChannel levels
Structure
Example

Zero-level (direct)

Manufacturer → consumer

D2C websites, Amway

One-level

Manufacturer → retailer → consumer

Cars through dealers

Two-level

Manufacturer → wholesaler → retailer → consumer

FMCG products

Three-level

Manufacturer → agent → wholesaler → retailer → consumer

Rural FMCG distribution

Functions of intermediaries: information, promotion, contact, matching, negotiation, physical distribution, financing and risk-taking.

2

Topic 2

Designing and managing channels

ProcessChannel design decisions
  1. 1Analyse customer needs
  2. 2Set channel objectives
  3. 3Identify alternatives

    Types, number and responsibilities of intermediaries

  4. 4Evaluate alternatives

    Economic, control, adaptability

  5. 5Select and manage channel members

Intensity of distribution: intensive (soft drinks — everywhere), selective (electronics — chosen dealers) and exclusive (luxury brands — one dealer per area). Channel management includes selecting, motivating, evaluating members and managing channel conflict.

3

Topic 3

Retailing and physical distribution

Retailing is selling goods and services directly to final consumers. Formats: department stores, supermarkets, hypermarkets, convenience stores, speciality stores, discount stores, and non-store retailing (e-commerce, direct selling, vending). Physical distribution (logistics) moves goods from the producer to the customer: order processing, warehousing, inventory management and transportation. The goal is the right product, in the right place, at the right time, at the lowest cost.

4

Topic 4

The promotion mix and IMC

ClassificationThe promotion mix
Promotion

  • Advertising

    Paid, non-personal, mass reach

  • Personal selling

    Face-to-face persuasion

  • Sales promotion

    Short-term incentives: coupons, discounts, contests

  • Public relations

    Building goodwill and image

  • Direct and digital marketing

    Email, social media, targeted messages

Integrated marketing communications (IMC) coordinates all promotional tools so that they deliver a clear, consistent and compelling message about the company and its brands.

ProcessDesigning marketing communications
  1. 1

    Identify the target audience

  2. 2

    Set objectives

    Awareness, knowledge, liking, preference, conviction, purchase

  3. 3

    Design the message

    AIDA: attention, interest, desire, action

  4. 4

    Choose channels

  5. 5

    Set the budget

  6. 6

    Measure results

Key terms

Distribution channel
Organisations that make a product available to consumers
Intensive distribution
Stocking a product in as many outlets as possible
Retailing
Selling to final consumers
Physical distribution
Moving goods from producer to customer
IMC
Coordinating all promotion tools into one consistent message

Quick revision

  • Channel levels: zero, one, two, three.
  • Intensive, selective, exclusive distribution.
  • Promotion mix: advertising, personal selling, sales promotion, PR, direct/digital.
  • AIDA: attention, interest, desire, action.

Important exam questions

Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).

Short-answer questions

  1. Q1.What is a distribution channel?
  2. Q2.Differentiate between intensive and exclusive distribution.
  3. Q3.Name four retail formats.
  4. Q4.What is physical distribution?
  5. Q5.List the elements of the promotion mix.
  6. Q6.What is IMC?

Long-answer questions

  1. Q1.Explain the types and levels of distribution channels and the functions of intermediaries.
  2. Q2.Explain the process of designing and managing marketing channels.
  3. Q3.Explain the promotion mix and the steps in designing integrated marketing communications.

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