Essential Concepts in Marketing Channels and Publicity
Public Relations and Distribution Channels
Community Involvement in Public Relations
Community involvement is a form of public relations. It can range from:
- Sponsoring a children’s soccer team.
- Underwriting the costs of charity events.
- Loaning an executive to run a charitable organization.
Defining the Marketing Channel
A marketing channel is a system designed to close numerous gaps between the manufacturer and users of products.
Agents in the Business Marketing Channel
Agents operate within the business marketing channel. Their key characteristics are:
- They do not take the title of the goods they sell.
- They promote products, develop new accounts, and take orders.
Merchant Wholesalers and Industrial Distributors
These intermediaries take the title of the merchandise they handle.
Selective Service Intermediaries (Limited-Function Wholesalers)
A selective service intermediary is a limited-function wholesaler. They typically offer only one or two services from the full list of wholesaler functions.
Advertising and Media Selection
Key Considerations for Market Messaging: Access, Costs, and Quality
- Access: How much does it cost to access the target market?
- Costs: What is the overall budget for message delivery?
- Quality: What level of quality do you want to use to send the message?
Magazines with Controlled Circulation
Controlled circulation refers to distribution only to qualified readers. These magazines are distributed free to individuals who meet specific criteria, meaning:
- Readers play at least an influential role in the buying process.
- Very few readers will be non-payers for the advertised products, ensuring high relevance for advertisers.
Selecting an Industrial Magazine for Advertising
Three key concepts to consider when selecting an industrial magazine:
- Editorial Authority: Who writes the editorial content?
- Competitive Presence: What other companies advertise their products there?
- Audience Profile (Controlled Circulation): If it is a controlled circulation magazine, who are the executives (and companies) who receive these magazines for free?
Publicity and Trade Show Strategies
Publicity: A Component of Public Relations
Publicity is the generation of news about a person, product, or organization that appears in broadcast or electronic media. A key characteristic is that there is no charge for publicity (it is free).
Publicity is typically composed of two kinds: News Releases and Press Agentry.
News Release
A news release is a brief memo or report containing timely news information, such as the announcement of a new product, an award, or a change in management.
Press Agentry
Press agentry involves the planning and staging of an event specifically to generate publicity. For example, hosting a press party at a trade show and demonstrating a new product would be considered press agentry.
Types of Trade Shows
Trade shows are generally categorized into three basic kinds:
- Industry trade shows (B2B)
- Consumer trade shows (B2C)
- Trade shows that cater to both industries and consumers
Within these categories, shows can be further classified by scope and focus:
- Verticals and Horizontals
- Geographic scope (Regionals, Nationals, States, Foreign Countries)
- Organizers (Producers, specific fields of work, or government entities)
Attendees and Buying Influence at Trade Shows
- General Audience Visitors: Individuals with no immediate buying purpose (e.g., students, job seekers, competitors, members of the press, or regular consumers).
- Net Buying Influences: Visitors who have direct influence in the buying process for the specific products exhibited.
- Total Buying Plans: Visitors who are planning to buy exhibited products within the next 12 months.