Chapter 13 - 2 - How Typical Promotion Plans Are Blended...

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How Typical Promotion Plans Are Blended and Integrated LO 13.6 There is no one right blend There is no one right promotion blend for all situations. Each one must be developed as part of a marketing mix and should be designed to achieve the firm's promotion objectives in each marketing strategy. So let's take a closer look at typical promotion blends in different situations. Get a push in the channel with promotion to intermediaries When a channel of distribution involves intermediaries, their cooperation can be crucial to the success of the overall marketing strategy. Pushing (a product through a channel) means using normal promotion effort—personal selling, advertising, and sales promotion—to help sell the whole marketing mix to possible channel members. This approach emphasizes the importance of securing the wholehearted cooperation of channel members to promote the product in the channel and to the final user. Promotion to intermediaries emphasizes personal selling and sales promotion Producers usually take on much of the responsibility for the pushing effort in the channel. However, wholesalers often handle at least some of the promotion to retailers. Similarly, retailers often handle promotion in their local markets. The overall effort is most likely to be effective when all of the individual messages are carefully integrated. Salespeople handle most of the important communication with wholesalers and retailers. These clients don't want empty promises. They want to know what they can expect in return for their cooperation and help. A salesperson can answer questions about what promotion will be directed toward the final consumer, each channel member's part in marketing the product, and important details on pricing, markups, promotion assistance, and allowances. A salesperson can also help the firm determine when it should adjust its marketing mix from one intermediary to another.
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Green Mountain Coffee uses both push and pull to support its coffees. Green Mountain's website and membership program promote a “Deal of the Week” directly to consumers. The ad on the right targets purchasing agents at grocery stores, letting them know that Green Mountain's family of brands will bring volume and profits to their stores. Page 360 When suppliers offer similar products and compete for attention and shelf space, intermediaries usually pay attention to the one with the best profit potential. So sales promotions targeted at intermediaries usually focus on short-term arrangements that will improve the intermediary's profits. For example, a soft-drink bottler might offer a convenience store a free case of drinks with each two cases it buys. The free case improves the store's profit margin on the whole purchase.
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