-time\gap between when something is produced vs when it is consumed -intermediaries overcome this by providing the means to bring the product to the end consumer

-produce is a very volatile type of good as in it goes bad and sours rather quickly

-spatial discrepancy

-gap between where something is made vs where it is bought

-intermediaries close the geographical distance in this situation

-product made in Japan can be consumed in the US via a retailer like a car dealership -intermediaries aid in overcoming these discrepancies by offering the variety and accessible quantities for end consumers

-specific functions performed by intermediaries -transactional functions

-negotiating

-risk taking

-promotions

-logistical functions

-physical storing

-physical sorting

-physical distribution

-facilitating functions

-researching

-financing

Distribution intensity

-intensive distribution

-when you saturate the market with your presence

-get a product but not go too far; not too much effort

-firms are not choosy with where a customer can access their products

-can get anywhere + everywhere -selective distribution

-available but not everywhere; firms are a bit picky

-firms are choosy with where their products are available

-exclusive distribution

-available at only one retailer; not easily accessible

-firms are very limited with where products are available

Factors influencing strategy of distribution intensity

-market factors

-type of customers a firm has

-broad target market = intensive distribution

-small target market = exclusive distribution

-selective distribution is the middle ground

-condition of market (recession vs economic growth)

-product factors

-type of product a firm sells

-low priced product = intensive distribution

-profits made from quantity sold

-used for frequently consumed products

-higher priced product = more exclusive distribution

-selective distribution is the middle ground

-producer factors

-what kind of image a firm wants

-how much control you want over each location of your firm

-not prestigious = intensive distribution

-prestigious = exclusive distribution

Channel relationships

-apply for any b2b transaction

-parallels human (romantic) relationships sometimes -arms-length

-formal relationship

-small independent stores\start-ups

-some interaction but not regularly

-cooperative relationship

-contracts and regular interactions

-interactions regularly but casual

-small independent businesses have this

-integrated relationships

-similar to getting married

-firms have access to each other's financial assets\other databases

-bonded relationship

-social dimensions of channel relationships -power

-entity has the capacity to influence someone's actions

-if entity has something someone wants, power is owned by the entity

-if someone can reward you, they have power over you

-if someone can punish you, they have power over you

-if you have emotional attachment to someone, they have power over you -control

-exerting power to influence behavior

-leadership

-entity with the most power typically takes the leadership position

-conflict

-arise when different entities have differing goals\objectives

-ways to resolve conflict

-whichever entity has more power has conflicts resolved in their favor

-compromise can be made

-parting of ways can be another way of resolving conflicts

Real world examples Vlasic vs walmart

-outcome = lowered their prices as walmart had power due to profits primarily being from walmart's market Nike vs footlocker

-outcome = nike didn't lower prices at footlocker and footlocker wanted to keep the rev from nike's sales so they backed off

P&G vs Walmart

-outcome = power was equally distributed here so they kinda went back and forth before returning to an integrated relationship after rev suffered American Airlines vs expedia

-outcome = power equally distributed and parted ways briefly before returning to a relationship with one another

Type of retailers

-small independent retailers in the us in the 50s-60s (mom & pop store)

-chain stores\corporate stores dominate the retail world today

-types of retail stores

-department stores

-macy's

-dillard's

-has different sections for each category of items

-moderate service level

-assortment is high

-prices moderate-high

-specialty stores

-running store

-specialize in one type of product category

-sports store

-autozone

-shoes

-high service level (level 3 customer service)

-assortment is limited\low

-prices higher side

-supermarkets

-sells primarily food\produce\necessities

-service level low\moderate

-assortment high

-price depends on which supermarket but usually not super high (low\moderate) -convenience stores

-7eleven

-extended hours

-gas station stores

-snacks

-service level low

-assortment is moderate

-prices tend to be higher

-drug stores

-sells pharmaceutical products

-heavily regulated

-type of specialty store

-service level high

-assortment = low\narrow

-price = moderate\high

Type of retailers cont.

-warehouse clubs

-costco, sam's club, bjs

-membership required

-service level low

-assortment = high

-price per unit = low (but in bulk) -discount stores

-lower priced stores with cheaper versions of more expensive products

-dollar tree, thrift stores

-assortment = moderate\high

-price = low

-service = low -off-price retailers

-tjmaxx, ross, home goods, burlington, marshals

-used for overflow units that don't sell at name brands

-assortment moderate

-service level = low

-price = moderate-low

-restaurants

-assortment = narrow

-service = dependent on type of restaurant

-fast food = low

-fancier restaurant = high

-prices = dependent on type of restaurant

-fast food = low -hybrid

-stores that check multiple boxes

-target, walmart

-walgreens, cvs

-fancier restaurant = high

-hypermarkets

-walmart = closest to a hyper market concept

-a retail store where they sell everything; one store for everything

-higher the price, higher the service; conversely, lower the price, lower the service

Non-store retailing

-automatic vending

-not new but being used in different ways

-usually for food\beverages

-but in other countries personal products can be sold via vending machines in order to maintain anonymity and convenience (condoms, laxatives, etc)

-cheap to operate

-alternative modes

-electronic retailing

-started in South Korea, order online and pick up later or guests were give a scanner and they would scan the items they want

-works like a cashierless whole foods

-more efficient in time

-people tend to buy more

-requires less space

-less theft

-less customer service and it shelving isn't needed

Franchising

-when someone opens up a retail store\space with permission from a parent company and they operate under strict regulations as well as share profits with the parent company

-for retail sector -franchisor

-helps with details\supplying\vendors

-brand name

-less risk

-broad expertise -franchisee

-benefit of the brand name

-more risk

-brings local expertise

-benefits from legal protections in some cases

-hotels

-restaurants

Licensing

-for manufacturing

-when a brand puts their name on items made by another brand

-Luxotica makes glasses and brands like RayBan, Armani, etc, put their names on those items

IMC – Integrated Marketing Communication

-promotion mix elements = marketing communication

-advertising

-promotion of a firm's product

-paid form of mass communication that is indirect (via a medium)

-public relations (PR)

-non-paid form of communication

-sales promotion

-incentive to spur purchase

-free samples

-coupons

-trial options

-personal selling

-customized presentation (often one-on-one) communication directly

-for b2b transactions this happens as a presentation is usually required

-for big purchases (car sales)

SBDC = Small business double up corporated

70% advertising is online

Advertising

-advantage

-potentially reach a large audience -cost per contact is low

-cost per contact = cost per person reached via the ad

-disadvantage

-total cost can be high

-super bowl ad

-cost = 5 mil

-100 mil people viewing

-cost per contact = $0.05 -advertising vs pr

-control (advertising has more control and pr is higher risk from less control)

-credibility (pr has higher credibility but less control)

Marketing (advertising) communication process

-sender

-company who is doing the advertising -encoding

-the decisions that are made about the type of positioning the company wants

-company puts in elements that speak to what their overall message is saying

-medium

-how it is distributed (youtube, website, newspaper, etc) -decoding

-how the message is received

-happens unconsciously -receiver

-the target customer\whoever sees the ad -noise

-potential distraction

-anything that interrupts how the end consumer would interpret the overall message

-can be literally background noise

-not always background noise -broad objectives

-informing = explaining what the product is and how it works and reaching consumers

-introductory phase

-early growth phase

-persuading = showing benefits in a firm’s favor\convincing someone to switch to another brand or product

-growth phase

-maturity phase

-reminding = bringing customer’s attention back to your product\showing product favorably -maturity

AIDA

-hierachy of cognitive stages consumers go through when making a purchase -attention -> interest -> desire -> action

-ariana grande 7 rings lyrics

-advertising, PR = at attention stage

-sales promotion = at interest stage

-personal selling = desire stage and action stage

-routine purchase (b2c) = works with advertising and sales promotion

-between routine and complex = somewhat expensive but not very expensive; advertising and pr works well for this

-complex (b2b) = personal selling works best

Advertising

-push and pull strategies

-pull = targets end customers

-push = when a firm tries to influence the intermediaries

-most firms do both push and pull strategies when advertising

-stocking\slotting fees = give money to retailers so that they will have their products on their shelves

-comparative advertising = when you compare your brand to another brand -legal in the US

-any claim has to be objectively and independently verified by another party

-should also have scientific evidence to support the claim

-banned in most countries

Advertising cont'd

-'sell the sizzle, not the steak'

-sell the appeal\outcome, not the actual food\item

-highlight benefits instead of attributes of a product -common advertising appeals

-emotions

-fun

-enjoyable experiences

-disney

-convenience\ease -fear

-home protection companies -monetary benefits\savings

-walmart

-humor

-sex

-drain commercial

-social marketing

-feel good

-helps connection with brand; brand loyalty

Socially responsible marketing

-cause related marketing -ethics

-study of what is right or wrong

-used in business circles

-governing principles for conduct -morals

-norms and rules that develop due to culture

-develop over time -legal

-when something is approved by law

-illegal to bribe

-changes depending on the country you're in

-ethical\moral decisions making criteria

-social consensus

-potential consequences

-probability of harm

-foreign corrupt practices act (FCPA)

-under the Foreign Corrupt Practices Act (FCPA), it is unlawful for a U.S. person or company to offer, pay, or promise to pay money or anything of value to any foreign official for the purpose of obtaining or retaining business.

-if its legal in other countries, it is still unlawful in the US but the US does not have jurisdiction over local companies in other countries.

-turnkey projects

-a way to get around FCPA wherein an American company pays a local company a lump sum amount of money and doesn't ask questions about how their contract goals were completed

-a form of contracting; don't ask don't tell type contracts

-businesses can claim not having knowledge of how things happened because they didn't know and therefore didn't do anything wrong

-corporate social responsibility (CSR)

-firms undertaking activities with a social wellbeing outcome in mind

-greenwashing

-the practice of deceptively portraying a product, policy, or activity as more environmentally friendly than it really is, often through exaggerated or misleading claims.

Global marketing; International marketing -marketing in multiple countries

-uncontrollable factors are multiplied when more countries are in play -cultural factors come into play

-protectionism

-tariffs = tax on imports

-encourages domestic production for products

-imports make foreign products more expensive

-can induce inflation

-quota systems

-currency restrictions

-currency exchange rates are different across different countries

-US does not have exchange rate restrictions -dumping

-allegations against other countries with wto

-illegal by wto

-when a firm sells below production cost in a foreign country

-made possible by subsidies

-cost = $5, sold @ $4, gov subsidy = $2, profit is gained by this technique

-by giving subsidies, the health of the foreign exchange rate is aided -world trade organization (wto) -GATT before WTO

-General agreement on trade; established after WWI and was replaced by WTO

-countertrade

-when multiple parties exchange something of value

1/2

-aka exchange of goods instead of monetary compensation

-bartering

-happens in international marketing Global marketing strategy

-standardization = when you sell the same products the same way all around the world

-adaptation (product, promotion\positioning, price, place (distribution))

-if there’s a different model of a product sold anywhere else it is not standardized -most companies adapt their products and marketing depending on the country -why adaptation?

-consumer preferences can vary

-cultural differences

-norms vary

-legal restrictions are different depending on where you are -terrain

Culture

-belief and values that guide thought processes and actions

-usually based at a group\community level and passed from one generation to another (sometimes change along the way)

Beliefs

-convictions\what you hold to be true

-not necessarily rational

Values

-individualism\collectivism

-US high in individualism

-most of Asia and some other countries are high in collectivism -power distance index (PDI) = degree of hierarchy in society

-US least PDI

-some Asian countries are high in PDI (honorary practices, titles, language, etc) -countries with English as a primary language have low PDI; conversely, countries with other languages tend to have higher PDI just due to their language

-luxury products are highly admired in countries with high PDI. They’re seen as a status symbol.

-uncertainty avoidance index (UAI) = captures what extent society is accepting of risk\uncertainty

-places built on immigration are more accepting of risk

Global marketing: international marketing cont'd

-uncertainty avoidance index (UAI) = captures what extent society is accepting of risk\uncertainty (attitude towards change\risk\uncertainty)

-places built on immigration are more accepting of risk -lower numbers mean a society is better about change

-apple; steve jobs being fired by someone he recruited and then coming back after starting another firm

-relevant for new technology\innovations

-hofstede

Digital marketing

-internet

-web 1.0

-started in the mid 90s; rise of internet and ecommerce

-start of the world wide web

-created by the military in the 70s

-web 2.0

-early to mid 2000s

-emergence of collaborative systems

-rise of social media and social interactions

-content being produced by users

-web 3.0

-late 2000s to mid 2010s

-rise of smartphones and mobile apps

-internet of things (IoT)

-mobile internet browsers

-smart lights\home accessories\appliances\cars

-bluetooth (wireless connections)

-emergence of big data

-web 4.0

-since mid 2010

-artificial intelligence (AI)

-quantum computers

-augmented reality (AR) -big data

-tradeoffs

-privacy concerns; perception of creepiness; growing backlash

-no exposure to new ideas

-benefits

-enhanced personalized products\experiences -value co-creation

-offer something of value based on customer data

-some things that you like\watch often\skip\etc, you will get more of what you enjoy and less of what you don't

-can also track purchase\other behavior

-all consumer data can be used by firms in order to see demand and tailor marketing to each individual

-search engine optimization (SEO)

-most ad spending goes towards online presence

-process of gaining ranks in search results -paid search

-sponsored rank

-done via bidding for a rank

-lawyers spend a lot on ad optimization

-organic search

-not paid for

-website design so google is more likely to pick it up

-native advertising

-when a firm's ad blends in with the website and other content

-consumers let their guard down to interact with the ad as blunt explicit ads tend to raise concern for consumers

-golden triangle

-top left side of the search engine map -contextual ads

-ads match the website topic

-ex. Car website will likely have car part ads or other ads about cars -retargeting

-when the same ads are shown across multiple websites

-morphing display

-firms have different versions of the ad and a consumer's preferences determines the ad they receive

Artificial intelligence (AI) -ai

-concept launched in the 50s

-technology wasn't ready until recently to get the concept more developed

-evolved a lot in the last 20 years

-machine learning algorithm that has the ability to learn on its own -marriage between human cognition and computer science (machines mimicking human thought processes\behavior)

-machines being able to accomplish tasks in smart\autonomous manner

-evolves with additional data

-non ai

-uses rules based algorithms

-cannot deviate from rules implemented in the program

-cannot change drastically the way humans can

-machine learning (ML)

-subset of AI

-process of making computers learn and think\act like humans through data feeding

-learning used to make predictions

-supervised machine learning

-when the machine learns off of data as its given

-done it in a structured way

-data has been collected a very specific way and the reactions are given to the machine

-unsupervised machine learning

-when the machine learns on its own as data is given or without any active human intervention

-if interacting with chatgpt and a human corrects it, that would be unsupervised learning

-generative ai (GAI; gen ai)

-can generate stuff like pictures

-generative adversarial networks (GANs)

-neural network

-foundations for generative ai models

-based off how the brain works

-used for creating and synthesizing content

-trained using computer languages (python or c++) -generative pre-trained transformer (GPT)

-large language models

-uses deep learning to come up with interactions

-can interact like normal human beings

-no programming knowledge necessary -generative diffusion model (GDM)

-used for image synthesis

-geometric deep learning (GDL); deep learning (DL)

-when you teach the machine so that it will learn in greater depth

-neural network with multiple layers

-ai agents

-ai tools that are designed to help human beings with specific tasks

-chatbots

-ai assistants

-customer service agents

-ai companions

-agentic ai

-building up on ai agent concept but also developing memory, goals, and higher adaptability

-ai and marketing

-improvement of customer service

-in terms of wait time and satisfaction

-product design

-overall improvement of marketing and advertising campaigns

-more effective marketing analytics

Computer vision

-when machines try to gather visual information from the internet -steps of computer vision

-image acquisition

-done digitally through websites -image processing

-determines what kind of analysis is necessary -feature extraction

-shape -size

-colors

-patterns

-object recognition and classification

-scene understanding

-image segmentation

Synthetic samples

-best on a small scale before taken larger

-ai can be used to analyze data

-synthetic samples refer to artificially generated data that mimics real-world consumer responses or behaviors. These samples are created using AI or other algorithms, allowing marketers to explore potential scenarios, train models, and gain insights without relying solely on traditional survey methods or human panels

Unstructured data

-social media comments

Deeptext = Meta's ai tool for analyzing posted words

Deepface = Meta's ai tool for pictures

Netflix = recommendations

Amazon = to determine prices

Digital Marketing

-social media

-any digital platform\tool that facilitates conversations and interactions real-time -instagram, facebook, snapchat, linkedin, tiktok, etc

-digital media communication -owned media

-media that you directly control

-your personal instagram or a firm's personal media