Key Concepts in Marketing and Distribution Channels

Value delivery network

All the partners involved in effectively distributing a product.

Upstream

Refers to suppliers and production inputs.

Downstream

Involves distributors, retailers, and customers.

Intermediary

They reduce the number of transactions and improve efficiency between buyers and sellers.

Direct channels

Have no intermediaries.

Indirect channels

Include intermediaries like retailers or wholesalers.

Channel length

The number of intermediary levels between producer and consumer.

Channel conflicts

Disagreements among marketing channel members on roles, goals, or rewards.

Horizontal conflict

Conflict among members at the same channel level, like competing retailers.

Vertical conflict

Conflict between different levels of the same channel, like a producer and a retailer.

Disintermediation

The removal of intermediaries in a supply chain, often replaced by direct-to-consumer approaches.

Intensive distribution

A strategy to place products in as many outlets as possible, common for convenience goods.

Selective distribution

Using a limited number of outlets to sell a product, common for shopping goods.

Exclusive distribution

Giving a limited number of dealers exclusive rights to distribute a product in a specific area.

Shopper marketing

Marketing that targets shoppers at the point of sale to convert them into buyers.

Omnichannel marketing

Creating a seamless customer experience across all shopping channels.

Category killer

A large store that dominates a product category and drives smaller competitors out of business.

Service levels in retailing

Self-service, limited-service, and full-service retailers.

Product line types in retailing

Specialty stores, department stores, supermarkets, convenience stores, and superstores.

Direct marketing

Direct communication with consumers to generate a response or transaction, such as email or infomercials.

Digital marketing

Allows consumer interaction and co-creation via social media and online platforms.

Types of media in promotion

Paid, owned, and earned media.

Paid media

Media exposure that a company pays for, like ads.

Owned media

Content and platforms the company controls, like its website.

Earned media

Publicity gained through customer word-of-mouth or media coverage.

Integrated Marketing Communications (IMC)

Coordinating promotional tools to present a unified brand message.

Push Promotion Strategy

Encourages intermediaries to sell.

Pull Promotion Strategy

Generates consumer demand to 'pull' the product through the channel.

Affordable Method of Budgeting

Spending what remains after other expenses are paid.

Percentage-of-Sales Method

Setting the budget as a percentage of past or forecasted sales.

Competitive Parity Budgeting

Setting a budget to match competitors' spending.

Objective-and-Task Method

Budgeting based on specific objectives, tasks required, and associated costs.

Informative Advertising

Advertising meant to inform or educate consumers about a product.

Persuasive Advertising

Advertising that aims to build brand preference and influence emotions.

Reminder Advertising

Advertising designed to remind consumers of a product or brand.

Media Reach

The number of unique people exposed to an ad during a given period.

Media Frequency

The average number of times an individual sees an ad in a set period.

Advertising Execution Styles

Slice of life, lifestyle, fantasy, mood/image, musical, personality symbol, technical expertise, scientific evidence, testimonial/endorsement, demonstration.

Native Advertising

Paid content that mimics the format and tone of the platform it appears on.

Types of Marketing Emails

Promotional, transactional, and newsletters.

Permission-Based Marketing

Sending promotional content only to people who have opted in.

Spam in Email Marketing

Unsolicited and unwanted email messages.

Media Timing in Advertising

Planning when to show ads: continuity, pulsing, and flighting.

Continuity in Media Timing

Maintaining a consistent ad presence over time.

Pulsing in Media Timing

Continuous ad presence with occasional intensity bursts.

Flighting in Media Timing

Running ads only during specific, strategic periods.

Return on Advertising Investment Calculation

(Net return from advertising) / (Cost of advertising investment).

Account Management in Marketing Agency

Acts as the liaison between the client and the agency throughout the campaign.

Difference Between Digital and Traditional Media

Digital media is internet-connected and interactive; traditional media is not, though lines are blurring.

PR Tools Used to Generate Publicity

News, events, written materials, audiovisuals, corporate identity materials, and public service activities.

Ways to Generate Public Relations

Press relations, lobbying, investor relations, product publicity, and public affairs.