MK

Distribution Strategies

Methods to transfer products from producers/manufacturers to end consumers.

Marketing Channels

A set of Interdependent organizations that facilitate product transfer from producers to consumers.

Producer

Anyone who creates or originates products.

Manufacturer

An entity that transforms raw materials into finished products.

Source of competitive advantage

Examples include Walmart’s Distribution Center, Amazon’s Shipping times, and Apple's efficiencies.

Direct Channel Set-Up

A distribution method with no intermediaries, such as buying honey directly from a farm.

People in Channels

Producer/Manufacturer, Wholesaler/Distributor, Retailer, Agent/Broker, Consumer

Indirect Channel Set-Up

A distribution system involving intermediaries, like retailers such as Amazon.

Wholesaler vs. Retailer

Wholesalers sell to retailers in bulk; retailers sell individual units to customers.

Agents/Brokers

Intermediaries that facilitate transactions but do not hold title of ownership.

Why Share Profits with Intermediaries?

To benefit from specialization, efficiency, and reduced transactional complexity.

Other benefits from Intermediaries

Overcome discrepancies in quality, discrepancies of assortment, temporal discrepancy (time), and spatial discrepancy.

Non-store retailing

Sales conducted without physical storefronts, such as online or automated vending.

Technology-Oriented Retailing

Using AI/tech to enhance customer experience

Franchising

A business arrangement where a licensee operates a business under the franchiser's brand.

Distribution Intensity: Intensive Distribution

A distribution strategy that saturates the market; products are available in many locations.

Distribution Intensity: Selective Distribution

A distribution strategy where products are available at select retailers.

Distribution Intensity: Exclusive Distribution

A distribution strategy limiting availability to one major retailer, typical for luxury brands.

Channel Relationships

The nature of interactions between entities in distribution, which can be arm's length, cooperative, or integrated.

B2B

Business-to-business interactions in distribution channels.

B2C

Business-to-consumer interactions in distribution channels.

Transactional Functions

Channel tasks related to promotion, negotiation, and risk management.

Logistical Functions

Channel tasks involving the physical distribution, storage, and sorting of products.

Facilitating Functions

Supportive channel tasks such as research and finance.

Social Dimensions of Channel Relationships

Aspects like power, control, and leadership that affect entity interactions.

Asymmetric Relationships

Unequal power dynamics in partnerships, where one party dominates.

Symmetric Relationships

Equal power dynamics between parties leading to compromise.

Advertising through mediums

Various channels for promotional communication including social media, TV, and print.

IMC: Integrated Marketing Communication

A unified approach to communicate with the market using multiple promotional tools.

Sales Promotion

Short-term incentives designed to spur sales through tactics like coupons and samples.

Push vs. Pull Strategy

Push influences intermediaries; Pull targets end customers.

Social Media/Digital Marketing

Utilizing digital channels for promotional efforts, including SEO and social media.

Big Data

Extensive data sets that businesses analyze to reveal patterns, trends, and insights.

Search-Engine Optimization (SEO)

The process of optimizing web content to rank higher in search engine results, such as paid search or organic search.

Contextual Advertising

Ads tailored to the surrounding content, increasing relevance and engagement.

Emerging Technologies in Marketing

Eye-Tracking Technology, Augmented Reality (AR), which layers digital over the physical world (Meta Glasses), and Virtual Reality (VR), which is fully digital.

Corporate Social Responsibility

Business practices involving initiatives that benefit society such as donations.

Ethics in Marketing

The principles governing conduct concerning moral principles in business such as company code of conduct.

Global Marketing Strategies

Approaches for marketing across different countries, adapting to cultural nuances.

Advertising & IMC 

Social Media, Billboards, Newspapers, TV, Radio, Digital Apps, and Product Placement

Advantages of Advertising

Reach: Commercials reach millions, Low cost per contact

Disadvantages of Advertising

Total cost is high, may be poorly targeted

Public Relations (PR)

Unpaid, indirect, “earned media,” mass communication that has more credibility than advertising, Tampa Bay Times

Personal Selling

One-to-one selling and an example such as a car salesperson showing cards

Super Bowl Example

Cost: $4 million, 100 million viewers, low cost per contact + mass communication

Communication Process

Sender → Encoding → Message/Channel → Decoding → Receiver

AIDA Model

Attention → Interest → Desire → Action

EX: “I see it, I like it, I want it, I got it.”

How tools match AIDA

Advertising/PR: Attention & Interest, Sales Promotion/Personal Selling: Desire & Action

Types of Buying Decision

Routine: Advertising, Sales Promotion, Complex: Advertising, PR, Moderate: Personal Selling

Slotting Fees

Paying retailers for premium shelf placement; EX: Coca-Cola at eye level 

Comparative Advertising

Comparing your brand directly to another, EX, Pepsi vs. Coca-Cola taste test (1980s)

Surrogate Advertising

Selling benefits, not attributes: “Sell the sizzle, not the steak.” EX: Audi Key, ad focus on comfort, safety

Common Advertising Appeals

Emotion, Fear, vanity, quality, humor, sex appeal, convenience, admiration, monetary

Types of Stores

Department stores, specialty stores, convenience stores, supermarkets, discount stores, warehouse clubs

Product Assortments

Width: Number of Product lines, Depth: Number of Products in each line, EX: CVS has wide but shallow assortment

Role of Promotion in Marketing Mix

Promotion communicates value and persuades customers

Promotion Mix

Advertising, Public Relations (PR), Sales Promotion, Personal Selling

Marketing Communication

How marketing messages are created, delivered, decoded

Goals and Tasks of Promotion

Inform, Persuade, Remind, and Connect

Factors Affecting Choice of Promotional Mix

Budget, Product Characteristics, Market Characteristics, Stage of buying process

Product Life Cycle & Promotional Mix

Intro: Heavy Advertising → Growth: PR + Advertising → Maturity: Sales Promotion → Decline: Minimal Promotion

Target Market Characteristics

Younger Markets → Social Media, Older Markets → TV, Print

Foreign Corrupt Practice Act (FCPA)

U.S. Companies cannot engage in bribery abroad even if legal locally, such as child labor

Individualism vs Collectivism

EX: U.S. (individual) and Asia (Collectivist)

Power Distance Index (PDI)

U.S. Low PDI → flatter hierarchy, High PDI → Desire for luxury goods

Uncertainty Avoidance Index (UAI)

U.S. (LOW) vs China (High due to stability preference)

Role of Culture, Values, Beliefs

Influences preferences (spicy vs. non-spicy soups) or Influences legal norms (alcohol in McDonald’s abroad)

Standardization vs. Adaptation

Uniform strategy: Same product globally and Adaptive: Tastes + requirements differ (Coke tastes different in each country)

Countertrade

Non-monetary exchange, Example: GE being paid in rubber/palm oil

Native Advertising

Ads that blend naturally into platform content, Examples: Pepsi x Buzzfeed

Golden Triangle

Top-left area of a Google search that receives the most attention

Artificial Intelligence

Originated in the 1950s as a concept, then in the 1990s, Companies like IBM advanced it

Applications of AI Tools in Marketing

Customer service (chatbots), Personalization and recommendations (Amazon), Content creation (visuals, text), Dynamic pricing, Segmentation (clustering)

Sensory Marketing

Visual (Colors), Auditory (Music), Olfactory (Scent), Haptics (Touch), and Gustatory (Taste)

Effects of Sensory Marketing

Shapes perception, Influences purchase behavior. Enhances brand experience

Marketing Implications

Strategically selecting sensory elements to match brand identity and creating emotional connections through the senses