LSU MKT701 Module Five

Supply Chain

all the organizations that figure into any part of the process of producing, promoting, and delivering an offering to its user

Types of Channel Partners

the lines between wholesalers, retailers, and producers have begun to blur considerably Wholesalers obtain large quantities of products from producers, store them, and break them down into cases and other smaller units more convenient for retailers to buy, a process called "breaking bulk." merchant wholesalers brokers manufacturers' agents

Point-of-Purchase Promotion

- 70% of purchase decisions are made in-store. Thus, the opportunity to impact consumer's decisions at the time when they make them is very high. - prompt a sale, particularly impulse purchases that were unplanned by the consumer.

Direct Marketing

- target a specific set of customers - measure the return on investment (ROI) - test different strategies before implementing to all targeted consumers - can be personalized as a call for consumers to take action - very intrusive - consumers may ignore attempts to reach them. Qualifying Leads - verifies that a person has the ability and willingness to purchase - they have the power to make the purchase decision Telemarketing - expensive - effective for charitable organizations and different service firms and retailers, - IF the person called is an established customer. - some consumers have negative perceptions of telemarketers Direct Response - seeks to achieve behavioral objectives that focus on sales - The ad describing the product and the bonus package for a given price is the offer

Marketing Communications

- Advertising is just one element - Communicate the value and benefits of the offerings to current and potential customers in both business-to-business (B2B) and business-to-consumer (B2C) markets. - Integrated marketing communications (IMC) stress delivering one consistent message to customers through an organization's marketing communications that may span many different types of advertising media such as TV, radio, magazines, the Internet, social media, and mobile. - more than advertising and includes professional selling activities; sales promotion, publicity and sponsorship and event marketing - IMC can reduce cost and increase efficiency as it eliminates waste and redundancies in the marketing communications program - 360-degree branding approach typically relies far less heavily on mass media advertising, which also can yield cost savings - Newspaper advertising revenues in the US were 594.5 million dollars in 2015; revenues are expected to drop to 179.2 million in 2021. - Digital advertising accounted for 32.6% of advertising spending in 2015, compared to the 37.6% of ad spending that was used for TV advertising. - Personal selling, however, remains extremely important in Business-to-Business markets.

Trade Promotions

- B2B marketing - sales promotions are typically called trade promotions - targeted to channel members who conduct business or "trade" with other businesses or consumers -- trade shows, -- conventions, -- event marketing, -- trade allowances, -- cooperative advertising, -- training, -- special incentives such as extra money and prizes. Trade Shows - one of the most common types of sales promotions - 93 percent of attendees are influenced by what they see at the trade shows - Webinars are being used to reach businesses that may not be able to attend trade shows. Conventions and Meetings Sales Contests - focus on selling higher-profit or slow-moving products. Allowances - give channel partners different incentives to push a product. - advertising allowance (money) / cooperative advertising -- Display allowances are given specifically to retailers who agree to use point-of-purchase displays. Slotting allowances - unfortunate cost of doing business in the heavily competitive consumer goods industry. - a one-time fee paid on a per store basis that grants the manufacturer the right to sell a new product within that store Training Free Merchandise - push money, a cash incentive from the manufacturer to push a particular item.

What Sales People do for Marketing

- Communicate Market Feedback - win/loss analysis to improve each company's marketing and sales efforts - spend time with real customers - managing the collaboration in new product design is often the function of salespeople when products are customized Monitor the Competition

Contests, Games, and Sweepstakes

- Publisher's Clearing House Sweepstakes is one example - Monopoly Game run by McDonald's for many years is a good example of a game - gather data on participants - generate interest in the product and large numbers of participants - generating sales in the short-term - reinforce the brand's image, or in certain circumstances, contribute to building the brand's image.

Reverse Logistics

- broken or unusable products - scrap materials and other "junk" produced, such as packaging - run products and materials such as these backward through the supply chain to extract value from them - Patagonia developed a reverse logistics system for environmental reasons. After garments made by Patagonia are worn out, consumers can mail them to the company or return them to a Patagonia store. Patagonia then sends them to Japan to be recycled into usable fibers that are later made into new garments. - it can add to the cost of products - companies can recover up to 0.3 percent of their annual sales

The Business Environment and Technology

- can also affect the marketing channels chosen for products - Marketing today centers around developing customer relationships. The Internet is helping companies do this

Outsourced Salespeople

- can outsource part or all of the sales cycle Independent Agents - Salespeople who are not employees of the company. - set their own hours, determine their own activities, and for the most part, manage themselves - Typically, they are paid on a straight commission basis ...Sometimes, however, they receive base pay - often sell competing products from competing companies and are common in insurance markets manufacturer's representative - sells a manufacturer's product - don't sell competing products; rather, they sell complementary products—products that the same buyer wants to purchase - sells bathroom faucets for one manufacturer might sell bathroom towel rods and mirrors for another manufacturer. __________________ Advantages - gaining access to more buyers - have existing relationships with the buyers - possess key market information and understand competitors and their strategies - outsourcing can be less expensive Disadvantages - lack of control ____________________ Good marketing professionals pay attention to what the independent salespeople and organizations they work with are saying

Public Relations

- communication designed to help improve and promote an organization's image and products - most relevant for marketing communications is called brand-oriented publicity. - generating news releases about new products or improved brands, staging publicity events that may show up on the news, and host news conferences. - product placements are rarely considered news now, and have become fairly commonplace in TV shows and movies While PR departments prepare the annual report, deal with major crises, and may run the corporate branding or advertising campaign, brand-oriented publicity is specific to a particular offering or product line. As such, brand-oriented publicity is part of a company's IMC budget and falls within the integrated marketing communications strategy.

Loyalty Programs

- designed to get repeat business - part of a relationship marketing strategy -- frequent flier programs, hotel programs, Visa cards, and shopping cards for grocery stores, drugstores, PetSmart, and restaurants - potential to increase sales, - more importantly profits,

Demand Planning

- the process of estimating how much of a good or service customers will buy from you. If you're a producer of a product, this will affect not only the number of goods and services you must produce but also the materials you must purchase to make them. - lead times. - the amount of time it takes for a customer to receive a good or service once it's been ordered. Sourcing decisions—deciding which suppliers to use—are generally made periodically. Forecasting decisions must be made more frequently—sometimes daily. - Collaborative planning, forecasting, and replenishment (CPFR) is a practice whereby supply chain partners share information and coordinate their operations. - Walmart has developed a Web-based CPFR system called Retail Link. - trend is clearly toward more shared information, or -p supply chain visibility

Selling Strategies

- differ, depending on the type of relationship the buyer and seller either have or want to move toward script-based selling needs-satisfaction selling consultative selling strategic partnering. Script-Based Selling / canned - memorize and deliver sales pitches verbatim - works well when the needs of customers don't vary much - often used in telemarketing, for instance - Even if needs do vary, a script can provide a salesperson with a polished and professional description of how an offering meets each of their needs. Needs-Satisfaction Selling - asking questions to identify a buyer's problems and needs and then tailoring a sales pitch to satisfy those needs - works best if the needs of customers vary, but the products being offered are fairly standard - Neil Rackham, SPIN stands for situation questions, problem questions, implications, and needs-payoff Consultative Selling - key difference between the two is the degree to which a customized solution can be created - the seller uses special expertise to solve a complex problem to create a somewhat customized solution Strategic-Partner Selling - quality of the relationship - more involved than even consultative selling - both parties invest resources and share their expertise with each other to create solutions that jointly grow one another's businesses

Brokers / Agents

- don't purchase or take title to the products they sell. - limited to negotiating sales contracts for producers - clothing, furniture, food, and commodities such as lumber and steel - generally paid a commission for what they sell - Real Estate

Achieving Channel Cooperation Ethically

- emphasizing the benefits of working with your firm / "authorized sellers" - informational materials and case studies showing their partners how they can help boost their sales volumes and profits - sometimes retailers must convince the makers of products to do business with them instead of the other way around. - Producing marketing and promotional materials their channel partners can use for sales purposes can also facilitate cooperation among companies. - Educating your channel members' sales representatives is an extremely important part of facilitating cooperation, - Also, companies run sales contests to encourage their channel partners' sales forces to sell what they have to offer. - Offering your channel partners certain monetary incentives, such as discounts for selling your product, can help, too. What shouldn't you do when it comes to your channel partners? - Take them for granted - "stuff the channel," - Stuffing the channel occurs when, to meet its sales numbers, a company offers its channel partners deep discounts and unlimited returns to buy a lot of a product. - don't want to risk breaking the law or engage in unfair business practices when dealing with your channel partners. - resale price maintenance agreements. A resale price maintenance agreement is an agreement whereby a producer of a product restricts the price a retailer can charge for it. - Both large companies and small retail outlets have found themselves in court as a result of price maintenance agreements. - some states have outlawed them because they stifle competition. - safest bet for a manufacturer is to provide a "suggested retail price" to its channel partners.

Sponsorships and Event Marketing

- events, venues, or experiences and provide the opportunity to target specific groups of customers, often by lifestyle or interest. - growing importance of sponsorships and increasing levels of investment in this area are so critical for so many companies that it is often now considered to be nearly a separate component in the marketing communication mix.

Competing Products' Marketing Channels

- how your competitors sell their products can also affect your marketing channels. - you don't always have to choose the channels your competitors rely on, though - Netflix, Avon, Maybaline

Public Relations and Brand Publicity Efforts

- is broad - investor relations, media relations, crisis management, or corporate advertising - help to introduce a new product successfully - creating rapport with its customers - promote the firm's offering in a newsy manner - supplement its sales efforts - foreign markets -- ensure that product concepts are understood correctly - Brand-oriented publicity puts a positive spin on news stories related to the product. - "free" in the sense that the firm does not pay for airtime or the amount of page space used by a publication when a story is run - Credibility is a key benefit of publicity as publicity is usually perceived as more neutral and objective than advertising - main disadvantage -- marketer has little control over the final story that appears in media - whether the story appears in the media at all - variety of tools -- press releases -- feature articles -- staging publicity events / show up on the news or virally on the Internet -- product placements -- news conferences - press release is a news story written by an organization to promote a product, the organization, or a person such as an incoming CEO. - Doritos was a pioneer in using its own consumers to create content as part of a contest, and the term "user-generated content" was coined to describe this strategy.

Some of the Ins and Outs of Outsourcing

- loss of control—particularly when it comes to product quality and safety—is one of them. - loss of control of their technology - social responsibility and environmental sustainability companies exhibit regarding how they manage their supply chains - the time it takes for products to make their way to the United States and into the hands of consumers. - move the activities back in-house, which is a process called in sourcing

Customer Relationships

- operate along a continuum of intimacy or trust - maintaining relationships with market influencers who are not their customers transactional relationships; - B2B firms cannot survive solely on transactional relationships Functional relationships - buyer continues to purchase a product from a seller out of habit - MRO (maintenance, repair, and operations) - small price, quality, and services differences associated with the products. Affiliative selling relationships - buyer needs a significant amount of expertise that the seller can provide, and the buyer trusts the seller to do so in a fair manner - consultative selling strategic partnership - expand "the pie" for both parties - commitment is often likened to a marriage -Note that these types of relationships are not a process—not every relationship starts at the transactional level and moves through functional and affiliative to strategic. - Nor is it the goal to make every relationship a strategic partnership

Advertising

- paid promotion with an identified sponsor - reaches many people at one time - can be repeated many times - Super Bowl XLII cost $5 million (down from 5.5 million in 2017) and reached 103.4 million viewers (down from 111 million in 2017) - value of Super Bowl ads is debatable - probably do create brand awareness, water cooler talk, or goodwill towards the firm - increasing their spending on Hispanic advertising, particularly concerning Spanish-Language advertising. - increased by 63% among the top 500 advertisers - Hispanics represent a large growth market and are expected to be close - to 28.6% of the US population by 2060 2016 - Mobile ads accounted for 51% - search advertising (24%) - banner advertising (12%) - digital TV (7%) and other options... rich media and sponsorships (6%) Concerns 64% online ad blocking 71% data privacy 76% brand safety 78% ad fraud 82% viewability advertising as a whole has a few disadvantages - TV advertising and magazine advertising can be very expensive regarding total cost outlay. - struggle with determining the appropriate budget allocation, particularly as it is difficult to tie the results of many forms of advertising to sales - no easy formula or template that can be applied when trying to determine how much money to invest in each form of advertising - Assessing the results of the ad campaign can be difficult and costly - careful to avoid offending people -- through their choice of celebrity endorser -- ad phrasing -- Legal: charges of unfair competition, deceptive advertising, key regulation - Federal Trade Commission passed a regulation effective in 2010 that prohibits advertisers from changing the volume level of commercials on television

Sponsorships

- paying a fee to have your name associated with different things, such as the following: A particular venue A superstar's apparel An event A cause An educational workshop or information session A NASCAR vehicle (concerts, special broadcasts with minimal commercial interruption, the Olympics, etc.) expensive, they are growing in popularity - 50% ranked the ability of sponsored events and activities to create awareness or visibility as a 9 or 10 on extremely valuable. - high value -- increasing brand loyalty -- demonstrating social or community responsibility -- changing or reinforcing a brand image -- entertaining clients and prospects (in B2B selling). 70% - Sports 10% - Entertainment 9% - Causes 4% - Arts 4% - Festivals, fairs and annual events 3% - Associations, organizations, and memberships Key Elements product category exclusivity on-site signage right to use event logos, brand marks, and event content digitally or in other forms of marketing communication access to event mailing list, database, fan data, or audience information presence of your brand in digital, social and mobile media communications about the event tickets and hospitality during the event right to promote co-branded products and services

Advertising

- paying to disseminate a message that identifies a brand (product or service) or promoting an organization to many people at one time Direct marketing - involves the delivery of personalized and often interactive promotional materials to individual consumers - get consumers to take action

Inventory Control

- process of ensuring your firm has an adequate supply of products and - a wide enough assortment of them meet your customers' needs. - avoid stockouts. - Shrinkage is a term used to describe a reduction or loss in inventory due to shoplifting, employee theft, paperwork errors, or supplier fraud.

Professional Selling and Sales Management

- salespeople are expensive - Often, they are the most expensive element in a company's marketing strategy

Consumer Sales Promotions

- short-term incentives - coupons, contests, games, rebates, bonus buys, and mail-in premium offers - compliment advertising effort Sales promotions are often developed to get customers and potential customers to act quickly, to try new products, to make larger purchases and stock up on items (protecting consumers from competitor's promotions) and to make repeat purchases. In business-to-business marketing, trade-oriented sales promotions are typically called trade promotions because they are targeted to channel members who conduct business or trade with other channel members or ultimate consumers. Trade promotions include trade shows, allowances, co-op advertising, point-of-purchase displays, sales contests and other special incentives given to retailers to market particular products and services. Pampered Chef and Tastefully Simple have built their businesses primarily on the professional selling skills of their consultants. Professional selling is used more in business-to-business markets than in business-to-consumer markets. Wikimedia Commons - public domain.

Sales Promotions

- supplement a company's advertising, public relations, and professional selling efforts. - incentives for customers to buy products more quickly and make larger purchases. - economy is weak, sales promotions become even more popular for consumers and are used more frequently by organizations Consumer Sales Promotions - typically short-term oriented, meaning that they may run for a month or two at most. Sampling - product benefits must be realized immediately during or following the sampling process - expensive strategy, it is usually very effective for food products Coupons - stimulate purchase - can be used to accomplish other key objectives - should NOT be used when the goal is to enhance the image of the brand - The only sales promotion technique that can help with building a brand image is sweepstakes or contests; premiums can be used to reinforce an existing brand image. - India, the majority of coupons used are digital - US consumers and retailers are adopting digital coupons but at a slower rate. Three key factors are barriers to coupon usage. - Coupons expire too quickly before they can be used - Consumers can't find coupons for the specific brands they want to buy - It takes too long to find coupons - lengthening the expiration date is not really a good idea - effect is generally not long-term. Rebates - Rebate values are higher than coupons - historically required more effort on the part of the consumer to reap the benefit - rebates are very profitable for companies because most consumers forget to send in their rebates Premium - Something you get either for free or for a small shipping and handling charge with your proof of purchase (sales receipt or part of the package) Mail-in premiums require a certain number of proofs of purchase to be sent by mail with a small shipping and handling fee to obtain a premium.

What Marketing Does for Sales

Collateral is printed, or digital material salespeople use to support their message. - Salespeople use collateral to support their claims. - Brand awareness opens doors for salespeople. - lead management. -- closed-loop lead management - Marketing Improves Conversion Ratios by Scoring Leads - If the lead was generated at a trade show, then the salesperson should get the lead immediately - providing materials that help buyers make good decisions

Other Types of Sales Positions

Order Takers and Sales Support - do not actively solicit business - Order takers, though, close sales while sales support does not Order Takers - retail sales clerks and salespeople for distributors of products, - may work in a call center, taking customer sales calls over the phone or Internet when customers initiate contact - Such salespeople carry sales quotas and are expected to hit those sales numbers

AIDA

Attention Interest - discussing the specific benefits associated with the product's use or characteristics Desire - persuaded of the product's superiority and its specific ability to satisfy their particular needs Attention, interest, and desire are all communication-related objectives. Action - sample or "trial" the product is one of the best behavioral objectives - Once the product has been purchased, the focus may shift to promoting repurchases, or to stimulating positive word-of-mouth via reviews or shares.

What Salespeople Do

Creating value for their firms' customers Managing relationships Relaying customer and market information back to their organizations - demand for professional salespeople often outstrips supply Creating Value - understanding the needs of their customers and then created solutions to meet those needs. - salespeople can adapt the offering, or they can adapt how they present the offering so that it is easier for the client to understand and make the right decision. - creating value means making sales. Salespeople sell—that's the bulk of the value they deliver to their employers. - Salespeople aren't appropriate channels for companies in all situations, however. - Some purchases don't require the salesperson's expertise. Managing Relationships Gathering Information. - they are the first to learn about what competitors are doing

Effective Sales Management

Developing sales force objectives. - quotas - individual reps and the department as a whole have established objectives - objectives should be challenging yet achievable in light of the salesperson's abilities and factors that may influence the market Determining sales force size. Recruiting and training the sales force. Developing or adjusting the compensation system. - - - Straight salary plans are best used in limited circumstances, as they provide no incentive for salespeople to work hard. - Straight salary plans can be used for missionary sales reps, and for products that require extraordinary amounts of service before and after the sale - ales rep opens a new territory, firms often use a straight salary plan for a few months while the rep begins to make inroads into the market - Straight commission plans are often used in advertising sales, and when the selling function is outsourced to a 3rd party because customer service is taken care of by employees within the firm. - Many firms use a combination of both salary and commission, Controlling and evaluating the sales force

Marketing Channel Functions types

Disseminate Marketing Communications and Promote Brands - push strategy manufacturer convinces wholesalers, distributors, or retailers to sell its products - Consumers are informed via advertising and other promotions that the product is available for sale, but the main focus is to sell to intermediaries - it doesn't focus on the needs of the actual users of the products - pull strategy focuses on creating demand for a product among consumers so that businesses agree to sell the product. - A good example of an industry that utilizes both pull and push strategies is the pharmaceutical industry. Pharmaceutical companies promote their drugs to pharmacies and doctors, but they now also run ads designed to persuade individual consumers to ask their physicians about drugs that might benefit them. Sorting and Regrouping Products - break down large quantities of products into smaller units and provide an assortment of different products to businesses Storing and Managing Inventory - Some companies, including Walmart, put their suppliers in charge of their inventory Distributing Products Assume Ownership Risk and Extend Credit - no one channel member assumes all the ownership risk in a channel. - it is distributed among channel members depending on the contracts they have with one another and their free on board provisions Share Marketing and Other Information

Other PR Tools

Feature Articles - are full-length stories that are written in a more engaging style - specific purpose in mind - will focus on the repercussions or implications of a firm's action or on its economic impact Staging Publicity Events - publicity stunts have a bad reputation, but there have been some notable successes. - they often go horribly wrong. - "launch party" can help introduce a new product or brand. Product Placements - Typically, a company pays a fee to have one of its products placed in the movie or TV show But sometimes the company pays nothing if the product is needed for a show in some way or as part of the plot. - the cost of product placement can be less expensive than commercials might cost - now placing products in online videos, apps, video or online games, and books - number of product placements is expected to increase as consumers continue to skip commercials News Conferences - only hold news conferences to announce major events or to respond to a crisis facing the firm -- changes in leadership -- financial new -- new products -- charitable contributions -- mergers/acquisitions

Transportation

Logistics Trucks - Fast and fairly expensive. - amount of CO2 emitted by trucks is also high relative Water Slow Air - fastest way to ship goods. - can easily cost ten times as much to ship - growing faster than any other transportation mode, Railroads - ship heavy, bulky goods Lumber mills are an example - Speed and cost -- rail falls somewhere between truck and water transportation Pipelines - costly to build

Types of Sales Positions - Order Getters

Missionary Salespeople - Calls on people who make decisions about products but don't actually buy them - Business-to-business - Patients, not doctors, actually purchase the medication from a pharmacy once they have a prescription in hand Trade Salespeople - Calls on retailers and helps them display, advertise, and sell products to consumers. - may be responsible for physically stocking the product in the store. Prospectors - Find prospects or potential customers - primary job is to sell, but the activity that drives their success is prospecting - Many salespeople who sell to consumers would be considered prospectors, including salespeople such as insurance or financial services s Account Managers - Ongoing business with a customer who uses a product - identify lead users (people or organizations likely to use new, cutting-edge products)

Types of Sales Positions

Order Getters missionary salespeople trade salespeople prospectors account managers

Professional Selling

Professional selling is an interactive, paid approach to marketing that involves a buyer and a sales representative. The interaction between the two parties can occur in person, by telephone, or via another technology. Whatever medium is used, developing a relationship with the buyer is usually something the seller desires. Business-to-business marketers generally utilize professional selling more often than most business-to-consumer marketers. If you have ever attended a Pampered Chef party or purchased something from an Amway or Mary Kay representative, you've been exposed to professional selling at the consumer level.

Category Killers

Sells a high volume of a particular type of product PETCO and PetSmart

Logistics and Supply Chain

Sourcing - process of evaluating and hiring individual businesses to supply goods and services to your business. Procurement - actually purchasing those goods and services. Outsource - some of their transportation tasks to shippers such as Roadway and FedEx. Outsourcing work to companies abroad is called offshoring

Power in the Supply Chain

Strong channel partners often wield what's called channel power and are referred to as channel leaders, or channel captains. In the past, big manufacturers like Procter & Gamble and Dell often today, big retailers like Walmart and Target are commanding more channel power. Consumers are gaining marketing channel power, = you can use the Internet to find whatever product you want at the best price available and have it delivered when, where, and how you want. Channel Conflict - Vertical occurs between two different types of members in a channel with at least two members—say, a manufacturer and a retailer, or a wholesaler and manufacturer - are common - each channel member has its own goals - all channel members want to have low inventory levels but immediate access to more products - try to spell out details such as these in their contracts. - channel conflicts can also occur when manufacturers sell their products online Horizontal Conflict occurs between organizations of the same type—say, two manufacturers that each want a powerful wholesaler to carry only its products. - Horizontal conflict can be healthy because it's competition driven - it can create problems, too. Dumping - more difficult to handle - the practice of selling a large number of goods at a price too low to be economically justifiable in another country - made possible by government subsidies that allow the company to compete by price against other international competitors who must operate without government support, - can also occur due to other factors

Superstores

Superstores are also referred to as hypermarkets and supercenters.

Upcycling

TerraCycle is a company dedicated to extracting value from waste and using it to create new products—a process that's being called "upcycling."

Track and Trace Systems

The Chinese government is working toward that goal in conjunction with a Norwegian company called TraceTracker. TraceTracker is testing an online service that can identify and track each batch of every product that is merged in the global food chain, from raw ingredients to products on supermarket

Channel Selection Factors in the Distribution Strategy

Type of Customer how your customers want to buy products will have an impact on the channel you select Type of Product Channel Partner Capabilities

Channel Integration: Vertical and Horizontal Marketing Systems

Vertical marketing system - channel members formally agree to cooperate closely with one another. - can also be created by one channel member taking over the functions of another member; this is a form of disintermediation known as vertical integration Vertical integration can be forward, or downstream, as in the case of P&G just described - art of shaving / retail / salons Backward integration occurs when a company moves upstream in the supply chain—that is, toward the beginning. - An example occurred when Walmart bought McLane, a grocery warehousing, and distribution company. Franchises vertical marketing system. - They are used not only to lessen channel conflicts but also to penetrate markets. Horizontal marketing system - two companies at the same channel level—say, two manufacturers, two wholesalers, or two retailers—agree to cooperate with another to sell their products or to make the most of their marketing opportunities and is sometimes called horizontal integration. - Skype and the mobile-phone maker Nokia teaming up to put Skype's service on Nokia's phones.

Marketing Communications Mix

advertising (including direct marketing, digital, search, and social media marketing) sales promotions sponsorship and event marketing personal selling public relations & brand-related publicity

Just-in-Time Inventory Systems

contract with their suppliers to ship them inventory as they need it —and even sometimes manage their inventory for them—a practice called vendor-managed inventory (VMI)

Product Tracking

electronic product code (EPC) - similar to a barcode, only better, because the number on it is truly unique. - used to combat "fake" products or knockoffs, in the marketplace. - (RFID) tag emits radio signals that can record and track a shipment as it comes in and out of a facility trend is to use smaller warehouses - Warehousing products regionally, closer to consumers, can also help a company tailor its product selection to match the needs of customers in different regions better - Electronic data interchange (EDI) - electronic format that companies use to exchange business documents from computer to computer

channel members / partners

firms with which a company partners to actively promote and sell a product as it travels through its marketing channel are referred to by the firm as its

Marketing Channel Functions overall

impossible for a single firm in the marketing channel to perform every function perfectly Different organizations in a marketing channel are responsible for different value-adding activities\ "who does what" can vary, depending on what the channel members agree to in their contracts with one another

Factors That Affect a Product's Intensity of Distribution

intensive distribution strategy try to sell their products in as many outlets as possible - intensive distribution strategies are used for convenience offerings—products customers purchase on the spot without much shopping around selective distribution strategy involves selling products at select outlets in specific locations exclusive distribution strategy involves selling products through one or very few outlets

Merchant Wholesalers

take title to the goods distributors, dealers, and jobbers Full & Limited Service Limited-service wholesalers offer fewer services to their customers but lower prices. - Cash-and-carry wholesalers - Drop shippers - drop shippers take title to the goods, they don't take possession of them or handle them - Mail-order wholesalers - Truck jobbers (or truck wholesalers) store products, which are often highly perishable (e.g., fresh fish), on their trucks. - Rack jobbers sell specialty products, such as books, hosiery, and magazines that they display on their own racks in stores.

Channel Value / Utility

time form place ownership _______________ streamlining the number of transactions an organization must make

Marketing Communications Objectives

two types of objectives - communication-oriented objectives - and behavioral objectives Communication objectives - measurable outcomes - awareness, brand image, perceptions, and other consumer-related thoughts and feelings. - is challenging - must engage in research to determine existing levels of awareness, existing perceptions of the level of quality, or existing levels of other communications objectives that can only be quantified by marketing research. - Advertising campaigns that focus solely on communication outcomes are becoming virtually extinct - marketing communications strategy should impact behaviors that culminate in a sale Behavioral objectives - measure specific actions a consumer might take as they move forward through the buying process - AIDA objectives relate to attention, interest, desire, and action.