Page 399 - Introduction to Business

CHAPTER 10 Developing the Promotion and Distribution Mixes 373

Portfolio Projects

Exploring Your Own Case in Point Starting Your Own Business
This chapter discusses four aspects of the promotion This chapter provides information you need to know to
mix: advertising, sales promotion, personal selling, and effectively promote and distribute your products and
publicity. You were also introduced to channels of dis- services. Use the concepts contained in this chapter to
tribution and logistics, the two major components of a deal with the following concerns.
company’s distribution mix. By answering the following 1. Develop an overall promotion budget and a
questions, you will gain a better understanding about budget for each of the promotion options (adver-
the promotion and distribution operations of your tising, sales promotion, personal selling, and pub-
selected company. licity) you will be using. Decide how many promo-
1. What type of promotion does your company tional dollars should be allocated for each product
emphasize? Does it vary by product or service? Can or service.
you tell how much your selected company spends 2. Determine what advertising media you want to
on promotion? Does the company reveal specific use. What major appeals will you use to promote
expenditures for advertising, sales promotion, per- your products or services?
sonal selling, and publicity?
3. Decide where you will store your inventory—at
2. Does your company employ a specific public rela- home or in a warehouse. How much inventory will
tions firm? If so, can you tell what it does for your you want to carry? How will you ship your prod-
company? ucts to your customers?
3. What channels of distribution does your company
use? Do these channels appear to vary depending
on the type of product or service?
4. What modes of transportation does your company
use? Can you tell what the company’s total logistics
costs are?

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