Ch. 13, 15, 16 Marketing Notes from Class

usually ship by:

• trains

• planes

• trucks

trucks are

flexible and can go anywhere.

trains are

consistent

planes are

fast but cannot carry a lot.

Agents…

do not buy the product, but they facilitate.

merchants…

buy the product and then resells it. the merchant owns the product.

dual channel of distribution

• could sell the product by themselves

• could sell to a wholesaler/retailer

who does a wholesaler sell to?

other wholesalers and retailers.

pushing strategy

means getting anyone above a consumer to buy more products. EX wholesaler/manufacturer getting retail stores to buy more quantity.

pull strategy

retailer and/or manufacturer pulling the consumer to buy more. EX Ford manufacturer advertising to buy a car and visit a local dealership

negotiations in a push or pull strategy

through discounts or better credit terms.

what factors determine a channel of distribution?

• the costumer ( type of customer)

• the distance

• the competition

• how many dollar sales am i going to sell?

• quantity customers buy

• size of the product

marketing communication

• advertising

• sales promotion

• personal selling

• public relations (always saying something positive)

main factor of marketing communication

get the message to customers.

why advertise?

• want more sales/product

• advertise something the business does for the community

• promote the company’s good doings

competitive advantage

unique aspects about the product that makes it different.

publicity isn’t always

positive.

nosie

any discrepencies in the process of communication. EX language barrier, environmental noise.

inter-personal communication

face-to-face

when is advertising effective compared to sales force?

advertising reaches many people in a short amount of time, sales people would take too ling and it is costly.

reach

the maximum exposure of the product. (advertising has the most)

waste

the percentage of the audience that has no interest in the product ebing promoted. (more of this with advertising)

frequency

how often foes someone see that message. (someone could lose interest and tune it out if they see it too much)

clutter

any type of interference in the message. (EX billboard after billboard )

4 ways to advertise

• fact

• fear

• humor

• comaprison

fact

we don’t do this because not many people conduct their own research on the product, there are more outer-directed customers, they look at what their friends are doing.

fear

you will remember it buy less likely to watch it.

humor

gets old fast and expensive.

comparison

bad because customer could focus on the other product instead of yours.

sales promotions are

good attention-getters, but customers only tend to be loyal when the discount is there.

rebates

only 25% of people redeem with their coupons.

inform

happens in the introduction stage of the PLC

persuade

growth stage of PLC

remind

maturity and decline stage of PLC

promotional mix

• Advertising.

• Public relations or publicity.

• Sales promotion.

• Direct marketing.

• Personal selling.

AIDA model

• attention

• interest

• desire

• action

what effects the promotional mix?

• nature of the product

• target market characteristics (EX are you selling to government or average customer)

• type of buying decision

• available funds

• push and pull strategies

the effects of advertising on customers

• change someone’s attitude

• inform them about rpoducts and influence them

• reinforce attitudes toward brands

• the way consumers rank a brand’s attributes

institutional advertising

designed to enhance the company’s image rather than promote the product.

products advertising

shows the benefits of a specific good or service.