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