MARK 3001 Exam 4

Place & Marketing Channel Management

Marketing channel management adds value because it gets the products to consumers efficiently, quickly, and at a low cost

Importance of supply chain management with merchandise: it is produced and distributed

in the right quantities, to the right locations, at the right times

Supply chain

ALL the organizations that are part of producing, promoting, and delivering a service or product to its user

Marketing Channels

How supply chains are organized and managed

Key parties of the supply chain

Suppliers, Manufacturer, Wholesaler, Retailers

Suppliers

Sell raw materials

Manufacturers

Sell finished products

Wholesalers (the middle man)

Ship product around the country in distribution centers

Retailers

Buy from their local distribution center and sell to the customer

Distribution Center

facility for the storage and redistribution of goods to company stores

Fulfillment centers

Ship directly to individual customers

How efficient marketing channels add value

1) increases value for customers (costco making deals)

2) Retailers are more efficient and effective (lower stock promotes sales)

Inventory Management Systems

Tracks goods throughout stores, warehouses, and DCs

Just-in-time or Quick Response (QR) inventory systems

Ordering less merchandise on a more frequent basis. This ensures goods get delivered only when they are needed

Direct Marketing Channels

moving goods directly from manufacturer to consumer (e-com)

Indirect Marketing Channels

moving goods from manufacturer to one or more intermediaries to get to consumers

Under what circumstances might a manufacturer deliver directly to stores (flow 2) rather than to a distribution center (flow 1)?

1. Because the retailer demands it.

2. Because merchandise is bulky (furniture) or needs to be delivered daily (bread or tortillas)

What is the first step of information flow?

Scanning UPC into POS terminal, this sends the info to the corporate office

What is the fifth step of flow

Stores ordering more inventory from a distribution center

Sixth step of merchandise flow

Distribution centers ordering more supplies from the manufacturer

RFID

technology that can help merchandise flow. Tiny computer chip that can be placed on something (box, case, item, pallet, etc) that transmits information about the thing its on using a wireless scanner

Creative ways to get products to consumers

amazon lockers, curbside, ship to store for pickup

Integrated Marketing Communications

All aspects of marketing (advertising, promotion, public relations, etc) work toward a common goal. Takes the best of each communications medium and combines it to achieve the most effective marketing communications campaign possible.

Components of the communications process

Sender, Transmitter, Communications Channel, Receiver {Noise and feedback}

Noise in Com. Process

Competitive Messages that somewhat distract the consumer from your message

Decoding

How a consumer interprets a sender’s message. marketers cannot control how these messages are interpreted, but it is important for them to be aware how it may trigger a different reaction from different consumers.

AIDA

Awareness, Interest, Desire, Action

Awareness

Senders must gain the attention of the customers. Metrics include: aided recall when someone sees something and knows the brand and Top-of-mind awareness

Interest

Customer must further investigate a product or service

Desire

IMC messsages should move customers from “I like it” to “I want it”

Action

Consumer buys product or subscribes to service. These can be other day to day actions for consumers too, behavioral, attitude, and physical actions

Lagged Effect

A delayed response to a marketing communication campaign.

IMC Goal

Delivering the right message, to the right consumer, at the right time. Profiting long-term customer relationships.

Channels using IMC Strats.

Can be interactive or passive, and on or offline

Personal selling (Interactive and Offline)

two way communication between buyer and seller to influence buying decisions`

Sales promotions (Interactive and offline)

Contest/Samples, stimulate demand among different parts of the chain

Direct Marketing (Interactive and Online)

Example: mobile marketing. Communicating directly with target customers to generate response.

Advertising (Passive and On & Offline)

Effective way to create awareness and generate interest, placing announcements and persuasive messages

Public Relations

“free media” but it requires lots of work and personal relationships, PR team facilitates executive interviews on publications, news media, etc.

Press Releases

Partnerships with other companies AND IT GETS PUBLISHED IN NEWS OUTLETS

Mobile marketing (Direct and Online)

Ex: Geofencing ads for different restaurants

Online Marketing (Direct and online)

Biggest examples are websites, social media, blogs, and search ads

Websites

Very first thing you create as a brand, your goal is to educate or maybe even entertain consumers. E-commerce can be used to drive sales, educate customers, get them to sign up for your newsletter, or engage in customer service

Blogs

Critical for companies websites to have. They are easy to trip key words in the blog and make websites appear in searches. The more of these keywords your blog has the more your brand will be discovered.