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Chapter 13 Student

Week 11 Agenda

  • Recap of distribution personas

  • Discussion of Chapter 13

What is a Marketing Channel?

  • Definition: A marketing channel is a set of interdependent organizations involved in making a product or service available for use or consumption.

  • Composition: Involves multiple entities, not just one firm. Each member of the channel is dependent on others.

  • Process: Managing a marketing channel is an ongoing process.

Key Entities in Marketing Channels

  • Channel Captain: A prime mover in establishing and maintaining channel links.

  • Main Entities:

    • Manufacturers

    • Intermediaries: Includes wholesalers and retailers.

    • End-users: Both business customers and consumers.

Major Types of Distribution Channels

  • Structure: The visualization shows relationships: Manufacturer ➔ Wholesaler ➔ Retailer ➔ End User.

  • Flow: Multiple paths demonstrating direct and indirect routes to the end consumer.

How Intermediaries Help

  • Specialization and Division of Labor: Streamlining processes by assigning tasks to specialists.

    • Increases efficiency and allows manufacturers to focus on economies of scale.

  • Overcoming Discrepancies: Addressing differences in quantity, assortment, and spatial distribution.

    • Ensures the right quantities are available to consumers.

  • Providing Contact Efficiency: Intermediaries reduce the number of contacts needed to complete transactions.

Value Addition by Channel Members

  • Functions of Channel Members:

    • Provide information

    • Promotion of products

    • Contact and relationship building

    • Matching products with consumer demands

    • Negotiation

    • Physical distribution

    • Financing

    • Risk-taking

    • After-sales support

Types of Intermediaries

  • Retailers: Sell products directly to consumers.

  • Wholesalers: Sell to those buying for resale or business use.

    • Various types include merchant wholesalers and distributors.

  • Agents and Brokers:

    • Agents perform specific functions without taking title to goods.

    • Brokers specialize by product line or customer type, facilitating transactions without ownership.

  • Drop Shippers and Rack Jobbers:

    • Drop shippers relay orders without holding inventory.

    • Rack jobbers manage products within a retail space.

Distribution Intensity Examples

  • Intensive Distribution: Widely available products.

  • Exclusive Distribution: Limited through specific channels.

  • Selective Distribution: Products available through a few intermediaries.

  • Example Businesses:

    • Langara College Bookstore

    • Various online and physical retail shops.

Retailing Trends and Developments

  • New Retail Forms and Retail Convergence: Integration of multiple retail formats, such as pop-up stores and omni-channel retailing.

  • Green Retailing: Adoption of sustainable practices to attract customers and reduce costs, addressing potential greenwashing concerns.

Marketing Communications Chapter 13

  • Learning Objectives:

    • Role of promotion in the marketing mix

    • Application of communication processes

    • Understanding the elements of integrated marketing communications (IMC)

    • AIDA concept

    • Factors affecting the promotional mix

The Role of Promotion in Marketing Mix

  • Functions: Inform, persuade, remind, connect.

  • Integrated Marketing Communications: Combination of all promotional elements into a coherent strategy.

Goals of Marketing Communications (Marcom)

  • Overlapping Goals:

    • Inform

    • Connect

    • Persuade

    • Engage

    • Remind

Promotion Mix

  • Tools Used:

    • Advertising

    • Sales Promotion

    • Public Relations

    • Personal Selling

    • Direct Response

    • Online Marketing

Advertising

  • Definition: Paid communication by marketers to inform consumers, influencing beliefs and attitudes.

  • Traditional vs New Media:

    • Traditional includes TV, radio, print.

    • New includes online platforms, social media, and interactive promotions.

  • Benefits: Wide reach at low cost per exposure; multiple message repetitions.

  • Limitations: Impersonal nature and high costs for some media types.

Public Relations

  • Purpose: Earn public understanding and acceptance through strategic communication.

  • Major PR Tools: News releases, events, written and audiovisual materials.

  • Differences: Traditional PR is one-way communication while modern PR focuses on relationships and two-way communication.

  • Benefits: Enhances credibility and reaches those resistant to advertising.

  • Limitations: Often reactive rather than proactive.

Sales Promotion

  • Definition: Short-term incentives to stimulate demand, targeting consumers, trade customers, or employees.

  • Examples: Free samples, contests, coupons, etc.

  • Notable Event: Chinese Singles' Day vs U.S. Cyber Week, showcasing significant sales impacts.

Personal Selling

  • Communication: Involves direct interaction between buyer and seller, aimed at persuasion.

  • Evolution: Relationship-oriented approaches replacing traditional sales methods.

Promotional Strategies

  • Push vs Pull Strategies: Unique approaches to motivate sales at different tiers of the marketing channel.

Digital Marketing

  • Definition: Building customer relationships through online activities.

  • Benefits over Traditional Marketing: Allows for micro-targeting, flexible engagement, and cost-effective analytics.

AIDA Model**

  • Stages:

    • Attention: Capture consumer interest.

    • Interest: Generate interest in the product.

    • Desire: Foster a favorable disposition towards the product.

    • Action: Encourage purchase intention.

Questions?

  • Open for discussion about the content covered in this presentation.