Effective Communication and Distribution Strategies

Posted on Feb 10, 2025 in Economy

Communication

The set of activities aimed at increasing sales seeks to highlight the product, enhance corporate image, and encourage purchases. This is performed using different communication techniques:

  • Advertising
  • Sales Promotion
  • Personal Selling
  • Public Relations
  • Merchandising

Advertising

Transmitting a message to inform about a product, on one hand, and later persuade the consumer to purchase it through a communication medium.

  • Mailing: More personalized.
  • Advertising Campaign: Usually performed by advertising agencies based on defined objectives.

Aspects to consider:

  1. Objective
  2. Geographic scope
  3. Target audience
  4. Most appropriate communication media
  5. Budget

Advertising must be based on the following principles:

  1. Attract attention: Involving a surprise or contrast; something lively or unexpected.
  2. Arouse consumer interest and maintain it.
  3. Be easily remembered.
  4. Create the desire to have the product.
  5. Provoke a response by buying.

Promotion

Trying to increase the sales of a product in a timely manner and for a short period. Examples: 2×1 offers, second item at a lower price, complimentary gifts, etc. They are mainly used in consumer products, food, chemicals, etc.

Sales Staff

Used when there must be direct contact between buyer and seller (e.g., cars, houses, Thermomix, etc.). It involves an individual message and immediate, concrete, and important training and motivation of the seller.

Public Relations (PR)

All activities that aim to create or maintain the company’s image. All areas of the company must work in line with this. Types of activities:

  • Collaboration with charities
  • Organization of fairs and exhibitions
  • Conferences
  • Sponsorship of events/equipment
  • Financing of concerts
  • Awards
  • Creation of foundations

Merchandising

The set of means used in a point of sale to attract attention and encourage customer purchases. Special importance is placed on locations where the seller is less important, and the product must sell itself.

Distribution

Determining the suitable point of sale for the product or service and the most appropriate processes and channels for the product to reach the consumer.

Intermediaries

The greater the number of intermediaries, the longer the channel and the higher the final price of the product, as each intermediary adds a profit margin.

Functions:

  • Facilitate the distribution of the product with fewer operations than if purchases had to be made from each manufacturer to each retailer.
  • Provide funding for producers as they can recover their costs even before the final consumer purchases the product.

Types:

  • Wholesale: Buy from manufacturers directly or through retailers’ representatives and sell in large quantities (wholesale). They can be general, selling all sorts of products in different markets, or specialized in a particular product or market.
  • Retailers: Sell the product to the end consumer (at retail). They concentrate a large variety of products to facilitate the purchase for the consumer. They can be of different types: convenience stores, hypermarkets, shopping malls, etc.