marketing exam 3

marketing channels are: 

how goods get from you to customers

2 questions in marketing channels

1. direct vs. indirect marketing channels

2. online vs. brick-and-mortar

3 things that flow through marketing channels

1. goods

2. money

3. information

supply chain management ensures:

merchandise is produced and distributed:

• in the right quantities

• to the right locations

• at the right times

flow of information

• more important than ever bc of big data, machine learning, and AI

• firms can inflect sales by gathering & processing as much data as possible

difference b/w vertical & horizontal channels

vertical:

• when members of the same marketing channel disagree

horizontal: 

• when members at the same level of a marketing channel disagree

quick response (QR) inventory systems

less merchandise on a more frequent basis

• firms such as Zara, Forever 21, & Shein

demanding forecast

trying to gauge what people are going to want, how much of it they’re going to want, where they are

• firms like Shein & Amazon

major application of big data

3 pluses of supply chains as a source of value

1. follow trends

2. adapt to market events

3. physically move goods & services

retailing def

selling of goods & services to consumer end users in retail settings (in person & online)

retailing

where you sell has a huge influence on how much people buy

• retail environment changes consumer behavior

where you sell says a lot about who you are

• just as people infer quality from price, they infer quality from the retail environment

the retail environment can build the brand

• generate examples of a retail environment that builds its brand

advantages physical stores have (3)

1. logistically easier & cheaper on the firm (shipping costs are high)

2. brings existing customers in:

• allows customers to gain more information on the product

• greater assortment

• have more data than ever to root traffic & customer location

3. creates new customers:

• foot traffic

• people who come in for something else

• creates online sales

• build customer relationships

drawbacks of physical stores (2)

1. stores must carry inventory which can get “stuck”

2. can be expensive (rent, paying employees)

establishing a relationship with retailers

1. choosing retailing partners

2. identifying types of retailers

3. developing a retail strategy

4. managing an omnichannel strategy

1. choosing retailing partners

you want to choose a retail partner that:

1. gets you in front of your target customers

2. aligns with your brand identity

3. is a good partner for your firm

• provides you w/ information you need to do your job well

• is clear about its needs

types of distribution intensities (3)

• intensive: puts products in as many places as possible

• exclusive: grants exclusive geographic territories

• selective: relies on a few selected retail customers in a territory

psychology of retailing

choice overload

• when customers are presented with too many options, they may feel overwhelmed & avoid making decisions

• KEY TAKEAWAY: monitor your retailers

affective contagion

• being in a good retail environment makes your product seem good

• KEY TAKEAWAY: your retailer should enhance your product

mental accounting

• consumers compartmentalize money in different “mental accounts” (entertainment, necessities) & treat money differently based on the purpose

• beer at the grocery store = groceries, & should feel expensive. beer at a bar = eating out, can be pricier

• KEY TAKEAWAY: your retailing choice can impact your pricing

mere exposure effect

• more frequently consumers see a product, the more they tend to like it

• mere exposure can happen through repeated advertising, store displays, & product placements, subtly increasing the attractiveness of brand over time

• KEY TAKEAWAY: being everywhere aint bad

7 Ps in developing a retail strategy

1. product: is it high quality? low quality? when do people want it? what does it go well with? what does it substitute?

2. price: what price does your product command? how different will that price be depending on the retailer you choose?

3. place: where do you want your product to be, physically speaking? sunscreen can be sold at the grocery store for one price, but at the beach for another

4. promotion: can you capitalize on retailer’s promotional strategies? is there any retailer that will be an automatic promotion for you?

5. presentation: lighting, color, & music are used to highlight merchandise & create a mood that will attract the store’s target markets

6. personnel: well-trained sales personnel can influence the sale at the point of purchase

7. processes: value added actions taken to get a good or service to a customer

omnichannel marketing

customer-centric approach in which all channels are integrated so the customer has a unified & consistent experience whether they are at a physical store, using an app, or on a website

integrated marketing communications

• is a set of business practices that facilitate consistent messaging across channels & produce a unified brand experience for customers

• focuses on creating a consistent & positive experience for customers every time they encounter or interact w/ a brand

communication process

IMC is a game of telephone

• different receivers decode identical messages differently 

• senders adjust messages according to the advertising medium & receivers’ traits 

• goal: communicate how your brand is differentiated in a relatable & memorable way

AIDA model

1. consumers must be aware of you to choose you

2. interest: whether the customer wants to further investigate the product/service

3. desire: how do you move consumers from i like it to i want it

4. the ultimate goal of any form of communications is to drive the receiver to action 

• purchase is the most common

IMC channels

can refer to either how a product gets to a consumer

• factory → warehouse → store → person → versus factory → person

OR all of the different ways that you can communicate with your customers

• advertising, PR, sales promotion, direct marketing, salespeople, websites, social media, content marketing

advertising: paid media

• placement of messages purchased by business firms, nonprofit organizations, gov agencies, individuals

• tv ads, radio ads, social media ads, display ads, billboards any time you pay someone to show your message

sales promotion

• can be targeted at either the end user consumers or channel members

• can target many different objectives

• sales promotions can negatively impact perceived quality & value

direct marketing

• communicating directly with target customers to generate a response or transaction

• growing element of IMC

• improvements in database technology have contributed to the rapid growth

• ability to carefully target consumers

• includes email, direct mail, & mobile marketing

digital marketing (examples)

• website

• email

• social media

• search + search ads

• ai + genAI

• display ads

public relations: owned → earned media

PR: professional maintanance of a favorable public image by a company, other organization, or a famous person

involves managing communications & relationships to achieve various objectives such as:

• building & maintaining a positive image of the firm

• handling unfavorable stories or events

• maintaining positive relationships with the media

common PR tools:

1. cause-related marketing

2. event sponsorship

3. donations

4. advertising

content marketing: earned media

content marketing can:

• communicate trends

• announce special events creating positive word-of-mouth

• connect customers

• allow the company to respond to customers

• encourage customers to develop a long-term relationship with the company

content is linked closely to social media, which has allowed communication b/w firms & customers to increase

setting & allocating the IMC budget

• rule-of-thumb methods (top down)

• objective-&-task method (bottom up)

IMC takeaway

• everything is marketing

• as a consumer: dont forget it

• as a marketer: use it

common IMC KPIs

traditional media

• frequency

• reach

• gross rating points (GRP)

web-based media

• web-tracking software

paid, owned, & earned media

• paid: any time you pay someone to show your message to consumers

• owned: any time you use channels that you own to show your message to consumers

• earned: any time someone else organically talks about you

what is advertising

a paid form of communication delivered through media designed to inform, persuade, or entertain

*most visible & manipulable form of marketing communications

• visibility: you can get ads everywhere — all you need is some money

• manipulability: you can easily scale up your ads, we have a very robust advertising ecosystem

many actions take place before an ad is seen by the target audience

planning + executing an ad campaign checklist (6)

1. identify target market

2. set ad’s objective

3. determine budget

4. select message

5. evaluate media

6. evaluate impact

identify target market + objectives

target market:

• conduct research to identify target audience & the most relevant message

• information is used to set the tone & to select the media

• remember STP: you want a market that is substantial, identifiable, reachable, profitable, & responsive

objectives:

• are derived from the overall objectives of the marketing program

informative vs. persuasive advertising

informative: creates & builds brand awareness, or awareness of a specific product attribute

persuasive: generally occurs when competition is intense, or can be used to reposition an established brand

ads can have different focuses

product-focused: advertisements inform, persuade, or remind consumers about a product or service

institutional advertisements: promote a company, corporation, business, institution

public service advertising (PSA): broadcasters must devote a specific amount of free airtime to PSAs

rational vs. emotional appeals

rational = trying to convince someone through arguments

emotional = trying to convince someone through emotions

choice of media is critical

• for your ad to be the most effective, it must confront consumers at the right time, in the right place, with the right message

• getting this right is hard — you must understand your target market’s media use habits

mass & niche media

mass:

• ideal for reaching large, anonymous audiences

• include outdoor/billboards, newspapers, magazines, radio, television

niche:

• more focused

• reach narrower segments

• target unique demographics or interests

• HGTV, TransWorld Skateboarding, Popstar! Magazine

timing is everything — waste not

• continuous runs steadily throughout the year

• flighting is implemented in spurts

• pulsing combines continuous and flighting with a base schedule with increased intensity during certain periods

goals of digital marketing (8)

• inform

• engage

• build brand equity

• create buzz

• gain consideration

• stimulate trial

• sell

• support nondigital forms of media

3 types of media

1. paid

2. owned

3. earned

major forms of paid media within digital (2)

1. paid search

• AKA search ads, PPC, SEM

• seen by customers when they’re searching on Google for a product

• paid search is a huge percent of total digital spend (you only pay when you click)

2. display ads

• display advertising = advertising on websites

• can include text, images, flash, video, & audio

types of display ads (5)

1. rich media: interactive media that exhibit dynamic motion

2. banners: most common — people see 1700 banner ads per month

3. retargeting: when you visit a site but dont make a purchase and they follow you to subsequent websites

4. native: when the ad blends into the content

5. rapid change: due to privacy concerns, browsers are phasing out 3rd party cookies

paid social media

• “boosting” organic posts vs. running actual ads

• similar to display, native

• instagram, x, facebook, tiktok, snapchat

• significant concerns: privacy, mental health, efficacy/ROI

affiliates

• affiliates or influencers: people who get paid for online referrals that lead to sales

• usually professional or semi-professional bloggers who earn a lot of traffic

• they usually get paid per sale

• they either cut deals with the companies one on one, or go through affiliate networks

owned media

the equivalent of a personal account for a company

• websites

• email

• social media accounts

• whitepapers

• webinars

search engine optimization (SEO)

1. keywords

2. content

3. “goodness”

earned media

what others are saying about you

• news sites

• reviews & review sites

• other people’s social

• news clips

why do ads go viral

emotions → watching

• surprise

• joy

• humor

self-interest → sharing

• improve my reputation

design ads with both audiences in mind

research shows that if sharing an ad benefits the sender as much as the advertiser, the ad might go viral

conscious marketing

1. recognition of marketing’s “greater purpose”

• is this real? are we just flattering ourselves?

2. consideration of stakeholders & their interdependence

3. the presence of conscious leadership, creating a corporate culture

4. the understanding that decisions should have an ethical basis

• doing the right thing is the dominant strategy in the long term

marketing’s greater purpose

corporate social responsibility (CSR): describes the voluntary actions taken by a company to address the ethical, social, & environmental impacts of its business operations and the concerns of its stakeholders

• entails: ethical, social, & environmental performance

corporate sociopolitical activism (CSA or CSPA): describes voluntary actions by a company to advance a specific sociopolitical cause

why engage in CSR

cynical view:

• all a big marketing ploy

• firms dont care about anyone but themselves

• all just a way to sell more widgets & get people to look the other way when we do bad stuff

optimistic view:

• firms really want to help people

• comprised of well-intentioned employees who want to make the world a better place

responsibilities to employees & customers

employees:

• ensure a safe working environment free of threats to their physical safety, health, or well-being

• pay them reasonably well

• keep them happy

• this helps your firm: employee retention is huge

customers:

• act quickly to shifts & trends to meet customer needs

• ensure all products are safe & reliable

• do no deceive them

• this helps marketing: trusting happy customers are important

environment

• sustainability is a special category that combines considerations of all stakeholders

• greenwashing

ethical frameworks (4)

1. deontology

• duties, principles, & obligations

• based on rules & actions

2. utilitarianism

• greatest good for the highest number

• based on outcomes

3. virtue ethics

• virtue = virtuous acts

• “virtue is as virtue does”

4. categorical imperative

1. deontology

• deontological notions of justice, rights, duties, imply things just are right as wrong, permissible or punishable

• these are the words of law, as much as words of ethics

• RULE based & ACTION

• mindset of a judge

2. utlitarianism

consequence-based (not as interested in the actions)

3. virtue ethics

may, initially be identified as emphasizing the virtues or moral character, in contrast to the approach that emphasizes duties or rules (deontology) or that emphasizes the consequences of actions (consequentialism)

4. categorical imperative

• when we try to stop people acting in some way, a good question is often: what if everybody did that? the test is sometimes called a universalization test

• if the answer is that something would go especially wrong if everybody did taht, then we are supposed to feel badly about doing it