Dollinger index

Marketing the New Venture 229

a celebrity endorses a product on television, the advertisement is attempting to pull the

viewer into contact with the retailer. A push systemputs the product in front of the cus-

tomer, making distribution aggressive and purchase convenient. Coca Cola uses one of

the most effective push strategies in the world. Intensive vending penetration and bot-

tler incentives (distribution activity) place most of the world’s population within easy

reach of a Coke.

Advertisingis “any paid form of nonpersonal presentation and promotion of ideas,

goods, or services by an identified sponsor.” According to Kelsey Group research, small

companies spend about $30 billion annually.^22 Ads can be placed on television or radio,

in newspapers and magazines, in the Yellow Pages, and so on. Consumers report that

when they look for information on local businesses, 61 percent turn to the Yellow Pages

first.^23 Infomercials (see Street Story 6.1), outdoor displays, direct mail, and novelties

are also forms of advertising. Because of the variety and complexity of forms and mes-

sages, it is difficult to generalize about advertising, but the following attributes are

notable:

1. Advertising is a public presentation. Its high visibility confers credibility on the
   product or service. Because it is delivered anonymously to a large group, it implies
   a certain standardization of the product.


2. An advertising message can be repeated over and over to impress itself on the con-
   sciousness and subconsciousness of the buyer. If one brand’s advertising is more
   embedded in the buyer’s consciousness (top-of-the-mind recall), that product has a
   clear advantage, especially for convenience goods and impulse shopping.


3. Advertising can not only inform and persuade but can also associate a product or
   service with other favorable images in the buyer’s mind. Through copy, artwork,
   sound, and music, advertising can influence the buyer’s mood.


4. The impersonality of advertising enables consumers to turn away, switch off, or
   ignore the venture’s messages without cost or obligation.^24

Producer Producer Producer Producer

Import-export

agent/broker

Industrial

supply

company

Industrial

supply

company

Industrial

supply

company

Regional

distributor

Regional

distributor

Purchasing

organization

Purchasing

organization

Purchasing

organization

Purchasing

organization

FIGURE 6.3 Channels of Distribution for Industrial Markets