A supply chain encompasses the entire network of individuals, organizations,

resources, activities, and technology involved in creating and selling a

product. It begins with the delivery of raw materials from suppliers to
manufacturers and culminates in the delivery of the finished product to
consumers. The segment responsible for the product's journey from
manufacturer to consumer is known as the distribution channel. The primary
objective of SCM is to optimize the supply chain, which enhances product
manufacturing and distribution efficiency. This optimization not only leads to
overall cost reduction but also results in higher sales and improved customer
satisfaction.

Exclusive distribution involves limiting the availability of a product to a

select number of dealers, typically one or a few authorized retailers in a
given market. The primary goal of this distribution strategy is to maintain
greater control over how a brand is priced, displayed, and promoted.

Products that utilize exclusive distribution often benefit from higher markups
and enhanced brand equity due to their limited availability and perceived
exclusivity. This strategy can create a strong brand image and customer
loyalty among consumers who value prestige and uniqueness.

However, a significant disadvantage of exclusive distribution is the reduced

accessibility of the products to customers. Consumers may need to travel
considerable distances to find authorized dealers, which can limit market
reach and sales potential.

For example, OshKosh B’Gosh, a well-known upscale children’s apparel

brand, is exclusively distributed in the Philippines by Cinderella Marketing
Corporation. This exclusivity helps maintain the brand’s image while also
presenting challenges in terms of customer accessibility. Exclusive
distribution is a strategy where a manufacturer grants exclusive rights to one
or a limited number of distributors or retailers to sell its products in a specific
geographic area. This approach helps maintain a brand's prestige and control
over the distribution process. Here’s an example:

Example: Luxury Brands

Luxury Car Manufacturers (e.g., Ferrari)

Ferrari employs an exclusive distribution strategy by allowing only a select

number of dealerships to sell its vehicles. These dealerships are carefully
chosen based on their ability to represent the brand's image and provide a
high level of customer service. This exclusivity creates a sense of rarity and
luxury around the brand, appealing to high-end consumers who value
prestige and uniqueness.

Intensive distribution is a product distribution strategy commonly used for

fast-moving consumer goods (FMCGs) and convenience items. This approach
involves making a product available in as many retail outlets as possible,
ensuring maximum consumer access and convenience.

Example: Local Soft Drink Launch

When a local soft drink brand was launched to compete with lower-priced
competitors, the bottler implemented an extensive advertising campaign
emphasizing its low price of P7.00. However, many sari-sari stores (small
neighborhood shops in the Philippines) sold the product at P8.00, which was
higher than the suggested retail price (SRP). This discrepancy diminished the
company's efforts to capture market share from established brands, as
consumers were faced with higher prices than advertised.

Common Products in Intensive Distribution:

 Bottled Drinking Water

 Candy

 Snack Foods

Selective Distribution

Selective distribution is a product distribution strategy that falls between

exclusive and intensive distribution. This approach involves using more than
one, but not as many dealers as in intensive distribution, allowing for a
balanced level of manufacturer control and distributor independence.

Common Products in Selective Distribution:

 Canned Foods: Brands often choose specific retailers that align with
their target market.

 Seasonings: Certain specialty products may be distributed through

selected grocery stores or specialty shops.

 Personal Care Products: Many skincare and cosmetic brands utilize

selective distribution to enhance their brand image while ensuring
proper presentation.
Selective distribution strikes a balance between maximizing market reach
and maintaining brand integrity, making it an effective strategy for many
consumer goods.

The advertising message is sent to the intended customer through

a selected medium (e.g.

television or newspaper). The advertiser expects that the customer

(1) sees/hears the advertising message, (2) decodes/understands and
interprets the message accurately as intended, (3) remembers and/or recalls
the message, and (4) is affected by the message and responds by making a
purchase. However, barriers in message transmission may prevent the
customer from receiving or understanding the intention of the message.
For example, in television advertisements, the video signal and sound
reception may be poor, or there is background noise while the advertisement
is being aired. The purpose of promotions is to elicit a change in behaviour.
Getting people to buy your product, when previously they did not,
constitutes a change in behaviour. But the behavioural objective need not
be abrupt. Often, consumers first need to be primed in order to allow them
to collect positive feelings towards the product, before finally getting them to
actually purchase it.

Trade Promotions

Definition: Trade promotions are marketing strategies aimed at

intermediaries in the distribution channel, primarily retailers, wholesalers,
and distributors. Unlike consumer promotions that target end customers,
trade promotions focus on encouraging intermediaries to enhance their sales
efforts for specific products.

Common Types of Trade Promotions

 Buy One, Get One (10+1 Promotion): Retailers receive an extra

case of a product for every ten cases purchased. This tactic
encourages bulk buying and helps retailers increase their stock without
incurring additional costs.

 Free Store Signage: Manufacturers provide retailers with free

promotional materials, such as banners or shelf talkers, to promote
specific brands within the store. This helps increase brand visibility and
draw consumer attention.

 Contests and Incentives: Manufacturers often hold contests among

participating retailers, rewarding those who achieve the highest sales
 of a particular product within a designated timeframe. Prizes can
include cash bonuses, trips, or other incentives that motivate retailers
to sell more of the promoted product.

 Discounts and Allowances: Offering retailers price discounts or

promotional allowances can incentivize them to purchase larger
quantities, leading to increased sales.

Consumer Promotions

Definition: Consumer promotions are marketing initiatives designed to

encourage consumers to try, purchase, or remain loyal to a product or brand.
Unlike trade promotions, which target retailers and distributors, consumer
promotions focus directly on end users.

Common Types of Consumer Promotions

 Product Samples: Providing free samples allows consumers to try a

product without commitment. This strategy is especially effective for
food and beverage products, cosmetics, and new household items.

 Contests and Sweepstakes: Brands can engage consumers through

contests where participants can win prizes based on creativity, skill, or
luck. This not only incentivizes participation but also increases brand
awareness and engagement.

 Coupons: Coupons offer discounts or rebates on future purchases,

providing consumers with a financial incentive to try or repurchase a
product. Digital coupons, in particular, have become increasingly
popular in recent years.

 Raffles: Similar to contests, raffles involve consumers purchasing a

product or entry ticket for a chance to win a prize. This method can
create excitement around a product and encourage immediate
purchases.

 Loyalty Programs: Brands can implement loyalty programs that

reward customers for repeat purchases, often through points systems
that can be redeemed for discounts or free products.
  Instant Discounts: Offering immediate price reductions at the point
of sale can encourage consumers to make a purchase on the spot,
often leading to increased sales volume.

Advertising

Definition: Advertising is a marketing communication strategy that involves

any paid and public presentation of products, services, or ideas by an
identified sponsor through various media channels. It aims to reach a broad
audience to promote brand recognition, product awareness, and consumer
engagement.

Objectives of Advertising

The objectives of advertising can vary depending on the target audience, the
product or service being promoted, and the overall marketing strategy.
However, the most common objectives include:

1. To Build Awareness

o Objective: The primary aim of advertising is to create

awareness of a brand, product, or service among potential
consumers.

o Implementation: This can be achieved through various forms of

media, such as television, radio, print, digital ads, and social
media campaigns. Advertisers often utilize eye-catching visuals
and memorable taglines to capture attention.

o Example: A new snack brand may launch an advertising

campaign across multiple platforms to ensure that consumers
become familiar with the product and brand logo.

2. To Inform

o Objective: Advertising seeks to provide detailed information

about a product or service, educating consumers about its
features, benefits, and uses.

o Implementation: Informative ads often include product

specifications, comparisons, or demonstrations to help
consumers understand what sets the product apart from
competitors.
 o Example: A technology company might release ads that
highlight the innovative features of a new smartphone,
explaining how they enhance user experience and functionality.

3. To Persuade

o Objective: Advertising aims to influence consumer behavior by

persuading them to choose one brand over another or to take
specific actions, such as making a purchase.

o Implementation: Persuasive advertising often employs

emotional appeals, testimonials, or endorsements to connect
with consumers on a deeper level and build trust in the brand.

o Example: A skincare brand may use ads featuring testimonials

from satisfied customers or dermatologists, persuading potential
buyers that their products are effective and trustworthy.

4. To Remind

o Objective: Advertising serves to keep a brand or product top-of-

mind for consumers, reminding them of its existence and
encouraging repeat purchases.

o Implementation: Reminder advertising often focuses on

reinforcing brand messages through consistent branding, catchy
slogans, and reminders of special offers or seasonal promotions.

o Example: A beverage company might run ads during the

summer months to remind consumers of their refreshing drinks,
encouraging them to purchase again during warmer weather.

Brand Awareness

Definition: Brand awareness is the extent to which consumers are familiar

with the distinctive qualities, features, or image of a particular brand of
goods or services. It reflects how well a brand is recognized and recalled by
potential customers. High brand awareness indicates that consumers can
easily identify the brand in the marketplace, which can significantly influence
their purchasing decisions.

Advantages of High Brand Awareness

Achieving a high level of brand awareness provides several key advantages:

1. Learning Advantages
 o Influence on Brand Image: Higher brand awareness enhances
consumers’ ability to learn about the brand's characteristics and
values. This awareness influences the formation of associations
related to the brand, such as quality, reliability, or innovation.

o Strength of Associations: The more consumers are exposed to

a brand, the stronger and more positive their associations
become. This can lead to a favorable perception of the brand in
the long run.

o Example: A well-advertised brand like Coca-Cola often evokes

feelings of happiness and refreshment, contributing to a strong,
positive brand image.

2. Consideration Advantages

o Inclusion in Consideration Set: Brands that are well-known

are more likely to be included in consumers’ consideration sets—
the group of brands that a consumer actively considers when
making a purchase decision.

o Increased Likelihood of Purchase: When consumers

recognize a brand, they are more likely to evaluate it against
competitors and consider it for purchase, even if they have
limited information about the brand's specific attributes.

o Example: When shopping for laundry detergent, consumers

might automatically consider brands like Tide or Persil due to
their high levels of brand awareness, regardless of specific
product details.

3. Choice Advantage

o Impact on Decision-Making: High brand awareness can

significantly influence consumer choices among brands included
in their consideration set. Consumers may opt for a well-known
brand simply based on recognition, even without strong product
associations.

o Preference for Familiar Brands: Consumers often have a

preference for familiar brands because they perceive them as
safer or more reliable options, leading to easier purchasing
decisions.
 o Example: If a consumer is faced with two similar products—one
from a well-known brand and another from an unfamiliar brand—
they may choose the well-known option due to its recognition,
even if the quality or price is similar.

Importance of the Message

The message is the most critical component of an advertisement, as it

conveys the brand's value proposition and engages the target audience. The
message style and content can vary widely based on the advertising
objectives:

 Functional Messaging: Focuses on the practical benefits and

features of the product. It often includes data, demonstrations, and
logical appeals to inform consumers about how the product works or
why it is beneficial.

o Example: A deodorant advertisement launched in 2007 might

focus on its long-lasting formula, showcasing how it effectively
fights odor for up to 48 hours. This kind of messaging appeals to
consumers looking for reliable performance.

 Symbolic Messaging: Centers on the emotional and psychological

aspects of a product, highlighting how it can enhance the consumer's
identity or lifestyle. This type of messaging often features aspirational
imagery or testimonials that resonate with the audience's values.

o Example: A skincare product advertisement for a facial cream

aired in 2016 might showcase a before-and-after transformation
of a user’s skin, emphasizing the product's ability to enhance
beauty and confidence. This approach appeals to consumers'
desires for self-improvement and social acceptance.

 Experimental Messaging: Engages consumers through experiences

that evoke emotions, memories, or sensations. This type of advertising
often seeks to create a memorable moment or feeling associated with
the brand, enhancing brand recall.

o Example: An advertisement for a popular vitamin E product

might focus on the positive lifestyle changes associated with its
use, such as promoting healthy skin or overall well-being. The ad
may include vibrant visuals, engaging narratives, and relatable
scenarios that encourage consumers to associate the product
with a better quality of life.
Personal Selling

Definition: Personal selling is a direct communication process where an

individual salesperson engages with a client to sell a product, service, or
solution. This approach often involves face-to-face interactions, but it can
also occur over the phone or through digital platforms.

Characteristics of Personal Selling

1. Direct Interaction: Personal selling involves direct communication

between the salesperson and the client, allowing for tailored
presentations and immediate feedback.

2. Customized Approach: Salespeople can customize their pitch based

on the client's specific needs, preferences, and pain points, which
enhances the relevance of the offer.

3. Relationship Building: Personal selling emphasizes the importance

of building long-term relationships with clients. Successful salespeople
focus on understanding their clients' needs and providing ongoing
support.

4. Negotiation: Pricing and terms of the sale are often negotiated during
personal selling, making it a flexible method of promotion that can
accommodate client-specific requirements.

5. Complex Sales Process: Personal selling is particularly effective for

products and services that are technical, complex, or require
significant investment, as the salesperson can provide detailed
information and support.

Importance of Personal Selling in the Marketing Mix

1. Complex Products: Personal selling is essential for marketing

products or services that are highly technical, complex, or specialized.
Salespeople can explain intricate features and benefits that may not be
easily communicated through other marketing methods.

2. High-Value Transactions: For expensive products or services,

personal selling helps establish trust and confidence, as clients often
seek assurance before making significant financial commitments.

3. B2B Context: Personal selling is particularly vital in business-to-

business (B2B) transactions, where purchases are often made by
companies and institutions rather than individual consumers.
 Salespeople can engage with multiple stakeholders and address their
varying concerns.

4. Client Needs Understanding: The success of personal selling hinges

on the salesperson’s ability to understand and identify customer
needs. This understanding allows for more effective presentations and
solutions tailored to the client's requirements.

5. Building Long-Lasting Relationships: Personal selling fosters long-

term relationships between salespeople and clients, which can lead to
repeat business, referrals, and customer loyalty.

Publicity

Definition: Publicity refers to the dissemination of information by public

relations professionals with the goal of creating a favorable public image for
a client, whether an individual or an organization. Unlike paid advertising,
publicity is generally free and relies on media coverage to reach the
audience.

Purpose of Publicity

1. Creating a Positive Image: The primary aim of publicity is to

cultivate a favorable public perception of the client. This can help build
trust, credibility, and goodwill among target audiences.

2. Enhancing Visibility: Publicity increases awareness of the client’s

brand, products, or services, making them more recognizable to the
public. This can lead to increased interest and engagement.

3. Managing Reputation: Publicity is crucial for managing and

maintaining a positive reputation, especially during times of crisis or
negative media coverage. Effective publicity can mitigate damage and
restore public confidence.

4. Informing the Public: Publicity aims to educate the public about the
client’s initiatives, achievements, or events, providing valuable
information that may not otherwise be available.

Forms of Publicity

Publicity can take various forms, including:

1. Press Releases: Written statements distributed to media outlets to

announce newsworthy events, product launches, partnerships, or other
significant developments related to the client. Press releases are
 typically structured with a headline, dateline, body, and contact
information.

2. Media Kits: Comprehensive packages that include press releases,

background information, fact sheets, and multimedia materials
(photos, videos) designed to provide journalists with everything they
need to cover a story.

3. News Articles: Journalists may write articles based on press releases

or pitches from public relations professionals, providing coverage and
context about the client’s news.

4. Interviews and Features: Public relations professionals may arrange

interviews for clients with journalists or media outlets, allowing them to
share their insights, expertise, or personal stories.

5. Audio and Video Releases: These can include radio segments,

podcasts, or video news releases that convey information about the
client through different media formats, often designed to attract
attention and engage audiences.

6. Social Media Posts: Publicity can also extend to digital platforms,

where PR professionals create content that can be shared on social
media channels, enhancing visibility and interaction.

Public Relations (PR)

Definition: Public relations is the strategic management of communication

between an organization and its various publics—such as customers,
employees, investors, suppliers, and the general community—with the goal
of creating and maintaining goodwill and a positive image.

Purpose of Public Relations

1. Building Goodwill: The primary aim of PR is to foster a positive

relationship between the organization and its publics. This goodwill can
enhance trust and loyalty, which are essential for long-term success.

2. Managing Reputation: PR plays a crucial role in shaping and

maintaining the reputation of an organization or its brands. Effective
PR strategies can positively influence public perception, especially
during crises or negative events.

3. Influencing Opinion and Behavior: Through various communication

efforts, PR aims to shape how the public views the organization. This
 can lead to changes in behavior, such as increased customer loyalty or
improved employee morale.

4. Engagement with Stakeholders: PR facilitates ongoing

communication and engagement with stakeholders, allowing
organizations to understand their needs, concerns, and expectations
better.