Marketing

Contractual Vertical Marketing Systems

(Independent) Different levels of production and or distribution. Franchise

Steps of Effective Marketing Communication

1. Identify the target audience 2. Determine the communication objectives 3. Design the message 4. Choose the media 5. Select the message source

Pull Strategy

A pull strategy involves motivating customers to seek out your brand in an active process. (Getting the customer to come to you.)

Push Strategy

A push promotional strategy involves taking the product directly to the customer via whatever means, ensuring the customer is aware of your brand at the point of purchase. (taking the product to the customer)

Tying Agreements

Agreements where the dealer must take most or all of the line. Ex. If you want to sell my product A, you also need to sell product B and C.

Types of Appeals -Emotional appeal

An attempt to stir up positive or negative emotions to motivate a purchase.

Advertising

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Promotional Tools -Advertising

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Horizontal Conflict

Between members of the same channel.

Market Share Objective and Advertising

Building or taking market share requires larger budgets & markets with heavy competition or high advertising clutter require larger budgets.

Benefits to Buyers

Can be customized. Opportunity for feedback. Good communication tool. Ex. Online bill pay

Intensive Distribution

Candy and toothpaste. Ex. Lower priced items, can be found anywhere.

Vertical Conflict

Conflict between members of different channel. ex. betweens rums of the suppliers (manufacture and transport)

Marketing Channel or Supply Chain Channel

Consists of firms that have partnered for their common good with each member playing a specialized role.

Owned Media

Control and versatility vs. little to no control over consumer response. (packaging)

Owned but Interactive Media

Controlled; moving beyond reach/exposure to engagement. (Kiosks)

Types of Appeals -Moral appeal

Directed at the audience's sense of right and proper.

Comparative Advertising

Directly or indirectly compares the brand with one or more other brands.

Narrowcasting

Focuses the message on the selected market segments

Persuasive Advertising

Important with increased competition to build selective demand.

Reminder Advertising

Important with mature products to help maintain customer relationships and keep customers thinking about the product.

Promotional Tools -Trade Promotion

Incentives for intermediaries to sell more of certain or product lines (Discounts)

Retail Organizational Structures -Retailer Cooperatives

Independent retailers-band together Ex. Ace

Objectives of Advertising

Inform-intro Persuade-growth stage Remind-maturity

Madison & Vine Product Placement

Intersection of Madison Ave and Hollywood, represents the merging of advertising and entertainment.

Publicity

Involves building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

Promotional Tools -Pubic Relations

Involves building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. (Sponsorships)

Promotional Tools -Direct Marketing

Involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships through the use of direct mail, telephone etc.

Exclusive Distribution

Luxury cars and prestige clothing. Ex. BMW have to be an authorized BMW dealer.

Supply Chain

Make & Sell View

Supply Chain Management

Managing upstream and downstream value-added flows of materials, final goods, and related information among supplies, the company, resellers, and final consumers.

Frequency

Measure of how many times the average person in the target market is exposed to the message.

Reach

Measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.

Earned Media

Mentions/stories about a brand. Brand reputation.

Product Lifecycle Stage

New products require larger budgets. Mature brands require lower budgets.

Future of Retailing

Non-store retailing, retail convergence, mega retailers, retail technology, global expansion, retail stores as communities.

Multichannel Distribution Systems

One or more routes, maximize efficiency/coverage.

Socially responsible marketing communication

Opened, honest, fair, and must maintain the relationship.

Forms of Direct Marketing

Personal Selling, Direct-mail, catalog, telephone, kiosk, online, etc.

Promotional Tools -Personal Selling

Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships. (Incentive Programs)

Downstream Partners

Processing the materials collected and during the upstream stage and into a finished product.

Impact

Qualitative value of a message exposure through a given medium.

Types of Appeals -Rational appeal

Relates to the audience's self interests. Try's to connect with consumers on the logical side.

Disintermediation

Removal of partners. Ex. Stop selling in stores, only online.

Upstream Partners

Searching for and extracting raw marterials

Retailer Marketing Decisions

Segmentation, targeting, differentiation, positioning, pricing, levels of service.

Retailing

Selling of products and services to end users.

Demand Chain

Sense and Respond View

Promotional Tools -Sales Promotion

Short-term incentives to encourage the purchase or sale of a product or service.

Supply Chain Intermediaries

Specialization, Expertise. -Transform products and provide feedback

Objectives of Advertising

Specific communication task to be accomplished with a specific target audience during a specific time

Retail Organizational Structures -Franchise Organizations

Systems and tools brand recognition Ex. McDonald's

Benefits to Sellers

Tool to build customer relationships, low cost, fast alternative to reach markets. etc.

Retail Organizational Structures -Corporate Chains

Two or more outlets. Size advantage. Economies of scale.

Contractual Horizontal Marketing Systems

Two stand-alone join forces. Similar to co-branding.

Informative Advertising

Used when introducing a new product category; the objective is to build primary demand.

Exclusive Dealing

When the seller requires that the sellers not handle competitor's products.

Exclusive Territorial Agreements

Where producer or seller limit territory. Ex. certain company only sells in a certain part of the country.

B2C2C Model

Word of mouth, Viral communication. Pepsi Facebook example.

Clear, consistent and compelling criteria for marketing communication

a.Consumers are better informed b. More communication c. Less mass marketing d. Changing communications technology

Guerilla Marketing

the use of unconventional innovative and low-cost marketing techniques designed to get consumers' attention in unusual ways. Ex. posters on the subway