ntroduction to Marketing - Session 3 at ITM, Mumbai. Includes: Promotion and Advertising • Promotional activities o Trade shows, sponsorship, trade-fairs, contests, coupon programme, community projects • Advertising o TV, radio, trade magazines, direct mailing, billboards, packaging, internet • Public Relations o Relationships with media, customer’s community, public speaking, research • Personal Selling o B2B and B2C • Marketing Accessories Brochures, newsletters, fliers, give-aways Pricing and Distribution  Price is unique among the 4 Ps in that it directly affects the company’s revenues and profits.  Pricing is both a science and an art  Pricing seems to be the one “P” that has been dramatically affected by the use of the Internet Pricing and Distribution • Cost based pricing • Value based pricing • Premium pricing • Discount / promotional pricing • Price Skimming • Psychological pricing • Geographic pricing • Product line pricing

1. Introduction to Marketing
Week 3
NANDA KISHORE SETHURAMAN
ITM SEPTEMBER 2012

2. Agenda
 Promotion and Advertising  Pricing and Distribution
 Promotional activities  Cost based pricing
 Trade shows, sponsorship, trade-  Value based pricing
fairs, contests, coupon  Premium pricing
programme, community projects  Discount / promotional pricing
 Advertising  Price Skimming
 TV, radio, trade magazines, direct  Psychological pricing
mailing, billboards, packaging,
internet
 Geographic pricing
 Public Relations
 Product line pricing
 Relationships with media,
customer’s community, public
speaking, research
 Personal Selling
 B2B and B2C
 Marketing Accessories
 Brochures, newsletters, fliers,
give-aways

3. Promotion & Advertising

4. Learning Goals
 Discuss how integrated marketing communications relates
to a firm’s overall promotion strategy.
 Explain promotional mix and outline the objectives of
promotion.
 Summarize the different types of advertising and
advertising media.
 Outline the roles of sales promotion, personal selling, and
public relations.
 Describe pushing and pulling promotional strategies.
 Discuss the major ethical issues involved in promotion.

5. Promotions – What is it?
Promotion is the function of
informing, persuading, and
influencing a purchase decision.
Integrated marketing
communications (IMC) Coordination
of all promotional activities—media
advertising, direct mail, personal
selling, sales promotion, and public
relations—to produce a unified
customer-focused message.

6. Integrated Marketing Communications
Must take a broad view and plan for all form of
customer contact.
Create unified personality and message for the good,
service, or brand.
Elements include personal selling, advertising, sales
promotion, publicity, and public relations.

7. Promotional Mix
Promotional mix Combination of personal and
nonpersonal selling techniques designed to achieve
promotional objectives.
 Personal selling Interpersonal promotional process involving a
seller’s face-to-face presentation to a prospective buyer.
 Nonpersonal selling Advertising, sales promotion, direct
marketing, and public relations.

8. Components of Promotional Mix

9. Objectives of Promotional Strategy

10. Objectives of Promotional Strategy
Providing Information
 Major portion of advertising provides information about a product.
Differentiating a Product
 Communicate to buyers meaningful distinctions about the attributes,
price, quality, or use of a good or service.
Increasing Sales
 Most common objective of a promotional strategy.
Stabilizing Sales
 Stable sales evens out the production cycle, reduces some
management and production costs, and simplifies financial,
purchasing, and marketing planning.
Accentuating the Product’s Value
 Explaining hidden benefits of ownership.

11. Promotional Planning
Product placement Marketers pay placement fees to
have their products showcased in various media,
ranging from newspapers and magazines to
television and movies.
Guerilla marketing Innovative, low-cost marketing
efforts designed to get consumers’ attention in
unusual ways.

12. Advertising
 Advertising Paid nonpersonal communication delivered
through various media and designed to inform, persuade,
or remind members of a particular audience.
 Consumers receive 3,500 to 5,000 marketing messages
each day.
 Types of Advertising
 Product advertising Messages designed to sell a particular good or service.
 Institutional advertising – Messages that promote concepts, ideas,
philosophies, or goodwill for industries, companies, organizations, or
government entities.
 Cause advertising – Form of institutional messaging that promotes a specific
viewpoint on a public issue as a way to influence public opinion and the
legislative process

13. Advertising and the Product Life Cycle
 Informative advertising – Used to build initial demand for
a product in the introductory phase of the product life cycle.
 Persuasive advertising – Attempts to improve the
competitive status of a product, institution, or concept,
usually in the growth and maturity stages of the product life
cycle.
 Comparative advertising – Compares products directly with their
competitors either by name or by inference.
 Reminder-oriented advertising – Appears in the late
maturity or decline stages of the product life cycle to
maintain awareness of the importance and usefulness of a
product.

14. Advertising and the Product Life Cycle
Entertain emind
R
Convince
Attract
Attention

15. Advertising and the Product Life Cycle
•Only few brands available in its •High involvement / High Risk
High
space • Can’t afford to make mistakes
• Includes existing users also
• Promiscuous users
• Ex: Durables / Hospitals
• The job of Advertising is to • The job of Advertising is to
Involvement
‘ENTERTAIN’ ‘CONVINCE’
• Marketing Paradigm: FEEL / DO / • Marketing Paradigm: LEARN / FEEL /
FEEL DO
•Commoditised Brands •Commoditised Brands
• Predominantly speaking to ‘Own Past • Experienced by ‘New Brands’ entering
Users an existing market
• The job of Advertising is to ‘REMIND’ • Talks predominantly to ‘New users’
• Marketing Paradigm: DO / FEEL / DO only
• The job of Advertising is to ‘ATTRACT
Low
ATTENTION’
• Marketing Paradigm: LEARN / DO /
FEEL
Low Brand Risk High

16. Vehicles
 Television  Direct Mail
 Largest reach  High per person cost, but can be
 Large variety of channels with carefully targeted and highly
varied interests effective.
 Expensive  Outdoor Advertising
 Newspapers  Requires brief messages.
 Short life span  Online and Interactive
 Possibility to localize Advertising
 Easy to coordinate with other  Experts predict sales from online
promotional efforts. advertising will double in 2012.
 Radio  Virals – Kolaveridi?
 Latest entrant (after a hiatus)
 Low cost
 Car commuters – captive audience
 Sometimes Intrusive
 Magazines
 Including Consumer publications
and trade journals.

17. More Vehicles…
Sponsorship
 Providing funds for a sporting or cultural event in exchange for
a direct association with the event.
 Benefits: Exposure to target audience and association with
image of the event.
Other Media Options
 Marketers look for novel ways to reach customers.
 Examples: infomercials, ATM receipts, directory advertising

18. SALES PROMOTION
Sales promotion Nonpersonal
marketing activities other than
advertising, personal selling,
and public relations that
stimulate consumer
purchasing and dealer
effectiveness.

19. Consumer-Oriented Promotions
Premiums, Coupons, Rebates, Samples
 Two of every five promotion dollars are spent on premiums, items
given free or at reduced price with the purchase of another product.
 Coupons attract new customers but focus on price rather than brand
loyalty.
 Rebates increase purchase rates, promote multiple purchases, and
reward product users.
 Three of every four consumers who receive a sample will try it
Games, Contest, and Sweepstakes
 Often used to introduce new goods and attract new customers.
 Subject to legal restrictions.
Specialty Advertising
 Gift of useful merchandise carrying the name, logo, or slogan
of an organization.

20. Trade-Oriented Promotions
Sales promotion geared to marketing intermediaries
rather than to consumers.
 Encourage retailers in several ways:
 To stock new products.
 To continue carrying existing ones.
 To promote both new and existing products effectively to
consumers.
 Point-of-purchase (POP) advertising Displays or
demonstrations that promote products when and where
consumers buy them, such as in retail stores.
 Promote goods and services at trade shows

21. PERSONAL SELLING
A person-to-person promotional presentation to a
potential buyer.
Usually used under four conditions:
 Customers are relatively few in number and geographically
concentrated.
 The product is technically complex, involves trade-ins, and
requires special handling.
 The product carries a relatively high price.
 It moves through direct-distribution channels.
 Example: Selling to the government or military.

22. The Sales Process

23. Public Relations
Public organization’s communications and
relationships with its various audience.
 Helps a firm establish awareness of goods and services and
builds a positive image of them.
Publicity
 Publicity Stimulation of demand for a good, service, place,
idea, person, or organization by disseminating news or
obtaining favorable unpaid media presentations.
 Good publicity can promote a firm’s positive image
 Negative publicity can cause problems.

24. PROMOTIONAL STRATEGY
Pushing and Pulling Strategies
 Pushing strategy Relies on personal selling to market an item
to wholesalers and retailers in a company’s distribution
channels.
 Companies promote the product to members of the marketing
channel, not to end users.
 Pulling strategy Promote a product by generating consumer
demand for it, primarily through advertising and sales
promotion appeals.
 Potential buyers will request that their suppliers—retailers or local
distributors—carry the product, thereby pulling it through the
distribution channel.
 Most marketing situations require combinations of pushing
and pulling strategies, although the primary emphasis can
vary.

25. Pricing Strategies

26. Learning Goals
1. Identify and define the internal factors
affecting a firm’s pricing decisions
2. Identify and define the external factors
affecting pricing decisions, including the
impact of consumer perceptions of price and
value
3. Contrast the three general approaches to
setting prices

27. Definition
Price
 The amount of money charged for a product or service, or the
sum of the values that consumers exchange for the benefits of
having or using the product or service.
Rent Tuition • Bribe
Fee Fare • Salary
Rate Toll • Wage
Commission Premium • Interest
Assessment Retainer • Tax

28. Factors in Setting Price

29. Factors to Consider When Setting Price
 Market positioning influences
Internal Factors pricing strategy
 Other pricing objectives:
 Marketing objectives  Survival
 Marketing mix  Current profit maximization
 Market share leadership
strategies
 Product quality leadership
 Costs
 Organizational
considerations

30. Factors to Consider When Setting Price
Internal Factors  Pricing must be carefully
coordinated with the other
 Marketing objectives marketing mix elements
 Target costing is often used to
 Marketing mix
support product positioning
strategies strategies based on price
 Costs  Non-price positioning can also
 Organizational be used
considerations

31. Factors to Consider When Setting Price
Internal Factors  Types of costs:
 Variable
 Marketing objectives  Fixed
 Marketing mix  Total costs
 How costs vary at different
strategies
production levels will
 Costs
influence price setting
 Organizational  Experience (learning) curve
considerations affects price

32. Factors to Consider When Setting Price
 Who sets the price?
Internal Factors  Small companies: CEO or
top management
 Marketing objectives  Large companies: Divisional
 Marketing mix or product line managers
strategies  Price negotiation is common in
industrial settings where
 Costs
pricing departments may be
 Organizational created
considerations

33. Factors to Consider When Setting Price
 Types of markets
External Factors  Pure competition
 Monopolistic competition
 Nature of market and  Oligopolistic competition
demand  Pure monopoly
 Competitors’ costs,  Consumer perceptions of price
prices, and offers and value
 Price-demand relationship
 Other environmental
 Demand curve
elements
 Price elasticity of demand

34. Factors to Consider When Setting Price
 Consider competitors’ costs,
prices, and possible reactions
External Factors  Pricing strategy influences the
nature of competition
 Low-price low-margin
 Nature of market and
strategies inhibit competition
demand  High-price high-margin
 Competitors’ costs, strategies attract competition
prices, and offers  Benchmarking costs against the
 Other environmental competition is recommended
elements

35. Factors to Consider When Setting Price
External Factors  Economic conditions
 Affect production costs
 Affect buyer perceptions of
 Nature of market and
price and value
demand  Reseller reactions to prices
 Competitors’ costs, must be considered
prices, and offers  Government may restrict or
 Other environmental limit pricing options
 Social considerations may be
elements
taken into account

36. General Pricing Approaches
Cost-Based Pricing: Cost-Plus Pricing
 Adding a standard markup to cost
 Ignores demand and competition
 Popular pricing technique because:
 It simplifies the pricing process
 Price competition may be minimized
 It is perceived as more fair to both buyers and sellers

37. General Pricing Approaches
Cost-Based Pricing Example
- Variable costs: Rs.20 - Fixed costs: Rs.500,000
- Expected sales: 100,000 units - Desired Sales Markup: 20%
Variable Cost + Fixed Costs/Unit Sales = Unit Cost
Rs.20 + Rs.500,000/100,000 = Rs.25 per unit
Unit Cost/(1 – Desired Return on Sales) = Markup Price
Rs.25 / (1 - .20) = Rs.31.25

38. General Pricing Approaches
Cost-Based Pricing: Break-Even Analysis and
Target Profit Pricing
 Break-even charts show total cost and total revenues at
different levels of unit volume.
 The intersection of the total revenue and total cost curves
is the break-even point.
 Companies wishing to make a profit must exceed the
break-even unit volume.

39. Breakeven Analysis
Breakeven analysis Pricing technique used to determine the
minimum sales volume a product must generate at a
certain price level to cover all costs.
Finding the Breakeven Point

40. General Pricing Approaches
Value-Based Pricing:
 Uses buyers’ perceptions of value rather than seller’s
costs to set price.
 Measuring perceived value can be difficult.
 Consumer attitudes toward price and quality have shifted
during the last decade.
 Value pricing at the retail level
 Everyday low pricing (EDLP) vs. high-low pricing

41. General Pricing Approaches
Competition-Based Pricing:
 Also called going-rate pricing
 May price at the same level, above, or below the competition
 Bidding for jobs is another variation of competition-based
pricing
 Sealed bid pricing

42. Equilibrium Price: Supply = Demand
Price per flash drive/memory stick
Number of flash drives/memory sticks demanded

43. Elasticity of Demand
measure of the sensitivity of demand to changes in prices
Inelastic Demand Elastic Demand
Price
Price
Electricity Recreational
P2 P2 Vehicles
P1 P1
Q2 Q1 Quantity Q2 Q1
not price sensitive
Quantity
no real change in demand price sensitive - changes in demand

44. Marketing Strategy Over the Product Life Cycle
INTRODUCTION GROWTH MATURITY DECLINE
Marketing strategy Market development Increase market Defend market Maintain efficiency in
emphasis share share exploiting product
Pricing High price, unique Lower price Price at or below Set price to remain
strategy product / cover over time competition profitable or reduce
production costs to liquidate
Promotion Mount sales Appeal to Emphasize Reinforce loyal
Strategy promotion for mass market brand differences, customers; reduce
product awareness benefits & loyalty promotion costs
Place strategy Distribute through Build intensive Enlarge Be selective in
selective outlets network of distribution distribution, trim
outlets network unprofitable outlets

45. Alternative Pricing Strategies
Pricing Existing Products/Services - 3 options
 Pricing below market prices - Price wars
 EX: airlines, store brand vs. manufacturer’s brand
 Dumping
 Pricing above prevailing market prices for similar products
 EX: Sony – higher price = higher quality?
 Pricing at or near market prices

46. Alternative Pricing Strategies
Penetration Price Strategy
 Penetration
PRICE
 Low price  establish
product in the market
 Elastic demand; Predatory
Skimming Price Strategy pricing
 Skimming
PRICE
 High price; unique product;
appeal to early adopters;
Prestige pricing
 Recovering high R&D
Skimming > Penetration costs
PRICE
 Combination
 Move inventory; stimulate D;
extend product life

47. Penetration Pricing
Applies to large markets with elastic
demand, economies of scale, intense
competition

48. Pricing of iPhones

49. Market Skimming
Applies to new, distinctive
products, early in the PLC

50. Pricing Tactics
 Price Lining
 Setting a limited number of prices for certain categories of products
 Psychological Pricing
 Pricing to take advantage of the fact that consumers do not always
respond rationally to stated prices
 Discounting
 Price reductions offered as an incentive to purchase
 High tech Pricing: giving it away!

51. Captive Product Pricing
Gillette Fusion Manual Razor
Gillette Fusion Manual Razor
with cartridges

52. Price Adjustment Strategies
52
Strategies  Types of discounts
 Cash discount
 Quantity discount
 Discount / allowance
 Seasonal discount
 Segmented  Allowances
 Psychological  Trade-in allowances
 Promotional  Promotional allowances
 International

53. Seasonal Discounts
53

54. Bundling

55. (Mixed) Bundling
55

56. Price Adjustment Strategies
Strategies  Types of segmented pricing
strategies:
 Product-line pricing
 Discount / allowance  Location pricing
 Segmented  Time pricing
 Also called revenue or yield
 Psychological
management
 Promotional  Certain conditions must exist
 International for segmented pricing to be
effective

57. Segmented Pricing Effectiveness
 Market must be “segmentable”
 Segments must show different demand
 Pricing must be legal
 Costs of segmentation cannot exceed revenues earned
 Segmented pricing must reflect real differences in customers’
perceived value

58. Pricing a Product Line
High
Quality Toyota Camry
W1
Low
Toyota Corolla
Quality Altis
58

59. Time Pricing

60. Price Adjustment Strategies
Strategies  The price is used to say
something about the product.
 Price-quality relationship
 Discount / allowance  Reference prices
 Segmented  Differences as small as Re.1 can
be important
 Psychological  Numeric digits may have
 Promotional symbolic and visual qualities
that psychologically influence
 International the buyer

61. Psychological
Pricing

62. Psychological Pricing
Mercs can actually be
more important to
many people than
their spouses. That is
a price they are
willing to pay.
Luxury Car!

63. Price Adjustment Strategies
Strategies Temporarily pricing
products below the list
 Discount / allowance price or even below cost
 Segmented
 Contracts, Special-event
pricing
 Psychological  Cash rebates
 Promotional  Low-interest financing,
 International warranties
 Loss leaders

64. P Promotional Cellphone
R
O P
Pricing
64
M R
O I
T C
I I
O N
N G
A
L

65. No Promotional Pricing

66. Price Adjustment Strategies
66
Strategies  Prices charged in a specific
country depend on many
factors
 Discount / allowance  Economic conditions
 Segmented  Competitive situation
 Psychological  Laws / regulations
 Promotional  Distribution system
 Consumer perceptions
 International
 Corporate marketing objectives
 Cost considerations

67. India USA

68. Price Transparency

69. Select the appropriate pricing strategy.
Explain your choice.
 Wal-Mart launches a new range
of own-label soups.
 Cunard launches two new
cruise ships.
 A cable TV provider moves into
a new area and needs to
achieve a market share.
 Holiday Inns try to fill hotels
during winter weekends.
 Burger King introduces a new
range of value meals.
 Nokia launches a new
videophone.

70. What is the need for a Marketing Channel?
Many producers lack the financial resources to carry
out direct marketing
In some cases direct marketing simply is not feasible
Producers who do establish their own channels can
often earn a greater return by increasing their
investment in their main business

71. Role of Intermediaries
Greater efficiency in making goods available to
target markets.
Intermediaries provide
 Contacts
 Experience
 Specialization
 Scale of operation
Match supply and demand

72. What does a channel do?
Key functions include:
 Gather information about potential and current customers,
competitors, and others
 Develop and disseminate persuasive communications to
stimulate purchasing
 Reach agreements on price and other terms so that transfer of
ownership or possession can be effected
 Place orders with manufacturers
 Acquire funds to finance inventories at different levels in the
marketing channel
 Assume risk connected with carrying out channel work
 Provide for the successive storage and movement of physical
products
 Oversee actual transfer of ownership from one organization or
person to another

73. What does a channel do?
Breaking bulk
Reduce number of transactions and create bulk for
transport
Accessibility to markets
Provide specialist support service
M C M C
M C C
M I
M C M C

74. Channel intermediaries - Wholesalers
Break down ‘bulk’
 buys from producers and sell small quantities to retailers
Provides storage facilities
 reduces contact cost between producer and consumer
Wholesaler takes some of the marketing
responsibility e.g sales force, promotions

75. Wholesaling
Selling and promoting
Buying and assortment building
Bulk breaking
Warehousing
Transportation
Financing
Risk bearing
Market information
Management services and counseling

76. Wholesaler Marketing Decisions
Target Market
Product Assortment and Services
Price Decision
Promotion Decision
Place Decision

77. Channel intermediaries - Agents
Mainly used in international markets
Commission agent - does not take title of the goods.
Secures orders.
Stockist agent - hold ‘consignment’ stock
Control is difficult due to cultural differences
Training, motivation, etc are expensive

78. Channel intermediaries - Retailer
Much stronger personal relationship with the
consumer
Hold a variety of products
Offer consumers credit
Promote and merchandise products
Price the final product
Build retailer ‘brand’ in the high street

79. Types of Retailers
 Specialty Store:
 Narrow product line with a deep assortment.
 Department Store
 Several product lines with each line operated as a separate department
 Supermarket
 Relatively large, low-cost, low-margin, high volume, selfservice operation
 Convenience Store
 Relatively small store located near residential area
 Nonstore retailing
 Categories of nonstore retailing
 Direct selling
 Direct marketing
 Telemarketing
 Television direct-response marketing
 Electronic shopping
 Automatic vending
 Buying service
 Corporate Retailing

80. Retailing
Marketing Decisions
Target Market
Product Assortment and Procurement
 Breadth
 Depth
Product-differentiation Strategy Possibilities
 Feature exclusive national brands that are not available at competing
retailers
 Feature mostly private branded merchandise
 Feature blockbuster distinctive merchandise events
 Feature surprise or ever-changing merchandise
 Feature the latest or newest merchandise first
 Offer merchandise customizing services
 Offer a highly targeted assortment

81. Channel intermediaries - Internet
Sell to a geographically disperse market
Able to target and focus on specific segments
Relatively low set-up costs
Use of e-commerce technology (for payment,
shopping software, etc)
Paradigm shift in commerce and consumption

82. Six basic channel decisions
Direct or indirect channels
Single or multiple channels
Length of channel
Types of intermediaries
Number of intermediaries at each level
Which intermediaries? Avoid intrachannel conflict

83. Marketing Flows in the Channel

84. Channel-Design Decisions
Analyzing Consumer Service Needs
Analyzing Consumer Service Needs
Setting Channel Objectives & Constraints
Setting Channel Objectives & Constraints
Identifying Major Alternatives
Identifying Major Alternatives
Intensive
Intensive Selective
Selective Exclusive
Exclusive
Distribution
Distribution Distribution
Distribution Distribution
Distribution
Evaluating the Major Alternatives
Evaluating the Major Alternatives

85. The Value-Adds versus Costs of Different Channels

86. Channel Strategy
•Market factors •Intensive distribution •Conventional channels
•Buyer behavior, •use of all available markets •Independence of channel
geographical concentration (e.g. cigarettes) members, little or no control
of customers •Selective distribution (e.g. pricing, brand image)
•Producer factors •use of a limited number of •Franchise operation
•Available resources outlets in a geographical •Legal contract in which
product mix offered area (e.g. computers) producer and channel
•Product factors •Exclusive distribution intermediaries agree each a
•Product size, bulky or •only one intermediary is member’s rights and
difficult to handle? used in a geographic area obligations
•Competitive factors (e.g. cars sold by only one •Channel ownership
•Competitor’s control over dealer in each town) •By purchasing retail outlets,
traditional distribution producers control their
channels) purchasing, production and
marketing activities

87. CHANNEL MANAGEMENT

88. Channel Behavior and Conflict
The channel will be most effective when:
 Each member is assigned tasks it can do best.
 All members cooperate to attain overall channel goals and
satisfy the target market.
Focus on individual goals leads to conflict
 Horizontal Conflict occurs among firms at the same level of the
channel.
 Vertical Conflict occurs between different levels of the same
channel.

89. Channel Management Decisions
Selecting
Selecting
FEEDBACK
Motivating
Motivating
Evaluating
Evaluating

90. Logistics
Involves entire supply chain
Increasing importance of logistics
 Effective logistics is becoming a key to winning and keeping
customers
 Logistics is a major cost element for most companies
 The explosion in product variety has created a need for
improved logistics management
 Information technology has created opportunities for major
gains in distribution efficiency

91. Goals of Logistics system
Provide a Targeted Level of Customer Service at
the Least Cost.
Maximize Profits, Not Sales.
Higher Distribution Costs/ Higher
Customer Service Levels
Lower Distribution Costs/ Lower
Customer Service Levels

92. Logistics Functions
Order Processing
Warehousing
Inventory Management
Transportation
Design system to minimize costs of attaining
objectives

93. Transportation Modes
Rail
Rail
Nation’s largest carrier, cost-effective
Nation’s largest carrier, cost-effective
for shipping bulk products, piggyback
for shipping bulk products, piggyback
Truck
Truck
Flexible in routing & time schedules, efficient
Flexible in routing & time schedules, efficient
for short-hauls of high value goods
for short-hauls of high value goods
Water
Water
Low cost for shipping bulky, low-value
Low cost for shipping bulky, low-value
goods, slowest form
goods, slowest form
Pipeline
Pipeline
Ship petroleum, natural gas, and chemicals
Ship petroleum, natural gas, and chemicals
from sources to markets
from sources to markets
Air
Air
High cost, ideal when speed is needed or to
High cost, ideal when speed is needed or to
ship high-value, low-bulk items
ship high-value, low-bulk items

94. Selection consideration
Market segment - must know the specific
segment and target customer
Changes during plc - different channels are
exploited at various stages of plc
Producer-distributor fit - their policies,
strategies and image
Qualification assessment - experience and
track record must be established
Distributor training and support

95. End of Day 3