IMC Good Slides

7/28/2019 IMC Good Slides

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INTRODUCTION TO

MARKETING MANAGEMENT

Dr. Franck VIGNERON

CSUN College of Business & Economics

Review for Quiz 3

Chapters : 12, 13 14,15, and 17


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Chapter 13Distribution Channels and

Logistics Management


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What is a Distribution Channel?

A set of interdependent organizations

(intermediaries) involved in the

process of making a product orservice available for use or

consumption by the consumer or

business user.


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Contact

Financing

InformationRisk Taking

Promotion

MatchingNegotiation

PhysicalDistribution

Members of the marketing channel perform many key functions.

They are:

Distribution Channel Functions


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5M W J R

C

M W R C

M R C

M C

Channel 1

Channel 2

Channel 3

Channel 4

Channel Level

= Each Layer of Marketing Intermediaries that Perform Some Work inBringing the Product and its Ownership Closer to the Final Buyer.

Number of Channel Levels

Direct Channel

Indirect Channel


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Channel Behavior & Conflict

For the channel to perform well, each channel

members role must be specified and conflict

must be managed.

When this doesnt happen, conflict occurs:

Horizontal Conflict occurs among firms at the same

level of the channel, i.e retailer to retailer. Vertical Conflict occurs between different levels of the

same channel, i.e. wholesaler to retailer.


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Conventional Marketing Channel Vs.

a Vertical Marketing System

ConventionalMarketing

Channel

VerticalMarketing

System

Manufacturer

Retailer

Wholesaler

Manufacturer

Wholesaler

Retailer

Consumer Consumer


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Contractual

VMS

RetailerCooperatives

FranchiseOrganizations

Wholesaler SponsoredVoluntary Chain

Service-Firm-Sponsored

Franchise System

Manufacturer-Sponsored Wholesaler

Franchise System

Manufacturer-Sponsored RetailerFranchise System

Vertical MarketingSystems (VMS)

Corporate

VMS

Administered

VMS

Types of Vertical Marketing Systems

40% of

Retail

Sales

Ford + dealers Coca-Cola Hertz/Avis, McDo/Bking, H/R Inn


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Innovations in Marketing Systems

Horizontal MarketingSystem

Two or More Companies at

One Channel Level JoinTogether to Follow a New

Marketing Opportunity.

Example:

Banks in Grocery Stores

Competitors helping each other

E.g., Outside US Nstl sellingGeneral Mills cereals

Hybrid Marketing

System

A Single Firm Sets Up

Two or More Marketing

Channels to Reach One

or More Customer

Segments.

Example:Retailers, Catalogs, and

Sales Force


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1. Analyzing Consumer Service Needs

2. Setting Channel Objectives & Constraints

ExclusiveDistribution

SelectiveDistribution

IntensiveDistribution

3. Identifying Major Alternatives

4. Evaluating the Major Alternatives

5. Designing International Distribution Channels

Channel Design Decisions

Rolls-RoyceMaytagFast Moving C. G.

Review Economic, Control, and Adaptive Criteria


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Push and Pull Strategies

Producer Wholesalers Retailers Customers


Push Strategy

Pull Strategy

Push/Pull Strategies


Advertising and Promotion

Distribution Strategies


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InventoryWhen to order

How much to orderJust-in-time

CostsMinimize Costs of

Attaining Logistics

Objectives

WarehousingStorage

DistributionAutomated

Order ProcessingReceivedProcessedShipped

Logistics

FunctionsTransportation

Rail, Truck, Water,

Pipeline, Air,Intermodal

Major Logistics Functions


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Marketing Logistics

Involves planning, implementing, andcontrolling the physical flow of materials,final goods, and related information frompoints of origin to points of consumption tomeet customer requirements at profit.

INBOUND + OUTBOUND = Market Logistics

Supply Chain + value chain management


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RailNations largest carrier, cost-effectivefor shipping bulk products, piggyback

Truck

Flexible in routing & time schedules, efficientfor short-hauls of high value goodsWater

Low cost for shipping bulky, low-value,non perishable goods, slowest form

PipelineShip petroleum, natural gas, and chemicals

from sources to markets

AirHigh cost, ideal when speed is needed or

distance markets have to be reached

Transportation Modes


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1. Speed (door-to-door time)2. Dependability (meet

schedules)3. Availability (area served)

4. Costs (per ton-distance)

5. Flexibility

Checklist for ChoosingTransportation Modes

Choosing Transportation Modes

(ability to handlevarious products)


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INTRODUCTION TO

MARKETING MANAGEMENT

Dr. Franck VIGNERON

CSUN School of Business & Economics

Chapter 14

Distribution Strategies


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What is Retailing?

Includes all

the activities Involved inSelling Goods orServices Directly to FinalConsumers for Their

Personal, NonbusinessUse.

Retailers - those firms engaged primarily

in wholesaling activity.


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Product Assortment and Services

Decisions

Product AssortmentWidth and Depth of Assortment Quality of Products

Product Differentiation Strategies

Services MixKey Tool of Nonprice Competitionfor Setting One Store Apart From

AnotherStores Atmosphere

Physical LayoutFeel That Suits the Target Marketand Moves Customers to Buy


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Retail OrganizationsIndependent, Corporate, or

ContractualOwnership Organization

Amount of ServiceSelf-Service, Limited-Service and

Full-Service Retailer

Product LineDepth/Length and Breadth of the Product

Assortment

Relative PricesPricing Structure that is Used

by the Retailer

Classification of Retailing


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Breadth vs. Depth of

Merchandise Lines

Nike running shoes

Florsheim dress

shoes

Top Sider boat

shoes

Adidas tennis shoes

Amana

refrigerator

Sony TV sets

JVC videocassette

recorders

General Electric

dishwashers

Sharp microwave

ovens

Classical

Rock

Jazz

Country Western

Suits

Ties

Jackets

OvercoatsSocks

Shirts

Depth:

Number of

items within

each productline

Breadth: Number of different product lines

Shoes Appliances CDs Mens Clothing


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Specialty Stores

Department Stores

Supermarkets

Convenience Stores

SuperstoresDiscount Stores

Narrow Product Line, Deep Assortment i.e.The Limited or Athletes Foot

Wide Variety of Product Lines i.e. Clothing,

Home Furnishings, Saks Fifth AvenueWide Variety of Food, Laundry, & Household

Products i.e. KrogerLimited Line of High-Turnover Convenience

Goods i.e. 7-ElevenLarge Assortment of Routinely Purchased

Food & Nonfood Products i.e. Toys R UsStandard Merchandise at Lower Prices

i.e. Wal-Mart

Off-Price RetailersChanging Collection of Higher-Quality

Goods at a Reduced Price i.e. T.J. Maxx

Warehouse ClubsLimited Selection of Brand-Name Grocery

Items, Appliances, Etc. i.e. Sams Club

Classification of Retailing: Product Line

Store Description

E.g., + What is an Hypermarket?


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What is Wholesaling?

All the activities involved

in selling goods and services to

those buying for resale or

business use.

Wholesaler - those firms

engaged primarily in wholesaling

activity.

Wholesalers buy mostly fromproducers and sell mostly to:

Retailers,

Industrial consumers, and

Other wholesalers.


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WholesalerFunctions

Management

Services & Advice

Selling and

Promoting

MarketInformation

Buying andAssortment Building

Risk Bearing Bulk Breaking

Transportation

Financing Warehousing

Wholesalers are Often Better at Performing One or Moreof the Following Channel Functions:

Why are Wholesalers Used?


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Types of Wholesalers

Merchant WholesalerIndependently Owned

Business that Takes Title to theMerchandise it Handles.

Brokers/ AgentsThey Dont Take Title to

the Goods, and TheyPerform Only a Few

Functions.

Manufacturers Sales

Branches and OfficesWholesaling by Sellers orBuyers Themselves

Rather Than ThroughIndependentWholesalers.


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Consolidation within the Industry is Reducing # of Wholsalers

Distinction Between Large Retailers and Wholesalers Blurs

Wholesalers Will Continue to Increase the Services Provided

Wholesalers Are Beginning to Go Global

Trends in Wholesaling


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Chapter 15

Integrated Marketing

Communication Strategy


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Advertising

PR

Place(Distribution)

Personal

Selling

Product

Sales

Promotion

Promotion

Place

The Promotional Mix

Advertising Strategies

4Ps

Price

Direct

MKG


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Informative AdvertisingInform Consumers or

Build Primary Demand

i.e CD Players

Comparison AdvertisingCompares One Brand to

Another

i.e. Avis vs. Hertz

Persuasive AdvertisingBuild Selective Demand

i.e Sony CD Players

Reminder AdvertisingKeeps Consumers Thinking

About a Product

i.e. Coca-Cola

Advertising ObjectiveSpecific Communication TaskAccomplished with a Specific

TargetAudience

During a Specific Period ofTime

Setting Advertising Objectives


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Figure 9.3 Comprehensive

Communication Model

Sender

(Source)

Receiver

(Consumer)

Messag

e

Channel

(Medium

)Decodes

Feedback

Responds

Appropriately

?

Miscomprehends

?

Yes

Yes

No

No

Commercial

Non-ProfitIndividual

Formal vs.

Informal

Symbols

Pictures

Words

Images

Verbal vs. Nonverbal

1-sided vs. 2-sidedFactual vs. Emotional

Paid vs. Unpaid

Print, Broadcast, Electronic

Personal vs. Impersonal

Pretests to Ensure Message Will be Received

Posttests to Ensure Message Was Received

Selective

Exposure IndividualsTarget Audience

Intermediary Audience

Unintended Audiences Mediated by:

Involvement

Mood

Experience

Personal Charac.


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Step 1. Identifying the Target Audience

Step 2. Determining the Communication ObjectivesBuyer Readiness Stages

Purchase

Conviction

Preference

Liking

Knowledge

Awareness

Steps in Developing Effective Communication


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Step 3. Designing a Message

Message ContentRational Appeals

Emotional AppealsMoral Appeals Message StructureDraw Conclusions

Argument TypeArgument Order

Message FormatHeadline, Illustration,

Copy, & ColorBody Language

Steps in Developing Effective Communication

AIDA model.1). Get attention 2). Hold interest

3). Arouse desire 4). Obtain action

Appeals


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Appeal - the creative attempt to motivate

consumers toward some form of activity,

or to influence attitudes toward a product or service

Rational appeal -a focus toward the consumers

practical utility oriented needs

Emotional appeal -a focus on psychological

rather than utility needs

(all appeals can be positive or negative

and should be meaningful, distinctive,

and believable to be effective)

Humor ComparativeFear Sex Ego

Oriented

Appeals

Advertising Strategies+ Morale Appeal:Social causes & Human Rights


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Structure & Format

The marketing communicator needs astrong structure and format for themessage.

1). Three structure issues must beaddressed: a). Whether to draw a conclusion or leave it to the

audience.

b). Whether to present a one-sided argument or atwo-sided argument.

c). Whether to present the strongest argumentsfirst or last.


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Structure & Format (continuous)

2). The message format decides on the

headline, illustration, copy, and color.

3). To attract attention the advertiser canuse:

a). Novelty and contrast.

b). Eye-catching pictures and headlines.

c). Distinctive formats.

d). Message size and position.

e). Color, shape, and movement.


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Nonpersonal CommunicationChannels

Step 4. Choosing Media

Personal CommunicationChannels

Steps in Developing Effective

Communication


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Issues in Credibility

Credibility of Informal Sources

E.g., Word-of-mouth

Credibility of Formal Sources Differ. Between for profit vs nfp Org.

Credibility of Spokespersons and

Endorsers

Importance of perceived competency and expertise

Message Credibility

Past experience with organization

CREDIBILITY OF THE MEDIA CHANNELS


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CREDIBILITY OF THE MEDIA CHANNELS

SPONSORING VERSUS ADVERTISING

+ -

CREDIBILITY OF THE SOURCES

FOR-PROFIT Org. VERSUS NOT FOR PROFITOrg.

- +


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CREDIBILITY OF THE MEDIA CHANNELS IN

RELATION WITH THE SOURCES

FOR-PROFIT Org. VERSUS NOT FOR PROFIT Org.

SPONSORING

+ ++VERSUS

ADVERTISING

-- -


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Campaign Evaluation

Communication Effects

Is the Ad Communicating Well?

Advertising Program Evaluation

Sales Effects

Is the Ad Increasing Sales?


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AffordableBased on What the

Company Can Afford

Objective-and-TaskBased on DeterminingObjectives & Tasks, Then

Estimating Costs

Percentage of SalesBased on a Certain Percentageof Current or Forecasted Sales

Competitive-ParityBased on the CompetitorsPromotion Budget

One of the Hardest Marketing Decisions Facing aCompany is How Much to Spend on Promotion.

Setting the Total Promotion Budget


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Sales Promotion + PR

+ Advertising

Chapter 16

Dr. Franck Vigneron


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What is Sales Promotion ?

Sales Promotion is a Mass

Communication Technique ThatOffers Short-Term Incentives toEncourage Purchase or Sales of aProduct or Service.

Offers Reasons to Buy Now.

Stimulate earlier or strongermarket response.


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Sample

Coupons

Cash Refunds

Price Packs

Premiums

AdvertisingSpecialties

Trial amount of a product

Savings when purchasing specified

products

Refund of part of the purchase price

Reduced prices marked on the label orpackage

Goods offered free or low cost as anincentive to buy a product

Articles imprinted with an advertisersname given as gifts

Major Consumer Sales Promotion

Tools/1


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Patronage Rewards

Point-of-Purchase

Contests

Sweepstakes

Game

Cash or other rewards for the use of acertain product

Displays and demonstrations that takeplace at the point of sale

Consumers submit an entry to be judged

Consumers submit their names for adrawing

Presents consumers with something everytime they buy

Major Consumer Sales Promotion

Tools/2


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Trade-PromotionObjectives

Persuade Retailers orWholesalers to Carry a Brand

Give a Brand Shelf Space

Promote a Brand in

AdvertisingPush a Brand to Consumers

Major Trade Sales Promotion

Tools/1


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Tools/2

Trade-PromotionTools

Discountsa straight reduction in price onpurchases during a stated periodof time. Can be called price-off, off-invoice, or off-list.


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Tools/3

Promotional money paid by manufacturersto retailers who agree to feature themanufacturers products in some way.Forms include:

a). An advertising allowance compensates

retailers for advertising a product.

b). A display allowance compensates them forusing displays.

c). Manufacturers may offerfree goods, whichare extra cases of merchandise, to resellerswho buy a certain quantity or who feature a

certain flavor or size.

d). Manufacturers may give retailers freespecialty advertising items that carry thecompanys name (such as pens).

Allowances

Trade-PromotionTools


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Business-PromotionObjectives

Generate Business Leads

Stimulate Purchases

Reward Customers

Motivate Salespeople

Business-PromotionTools

Conventions

Trade Shows

Sales Contests

Major Business Sales Promotion

Tools


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Decide on the Size of the Incentive

Set Conditions for Participation

Evaluate the Program

Determine How to Promote andDistribute the Promotion Program

Determine the Length of the Program

Developing the Sales Promotion

Program


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What is Public Relations?

Public Relations Involves Building Good

Relations With the Companys VariousPublics by Obtaining Favorable Publicity,Building Up a Good Corporate Image,

and Handling or Heading OffUnfavorable Rumors, Stories, andEvents.


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Press Relations

Product Publicity

Public Affairs

Lobbying

Investor Relations

Development

Public Relations

Departments May

Perform Any of All

of the FollowingFunctions:

Major Public Relations Functions


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News

Speeches

SpecialEvents

WrittenMaterialsAudiovisual

Materials

CorporateIdentityMaterials

PublicService

Activities

Web Site

Major Public Relations Tools


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Setting Public Relations Objectives

Choosing the Public Relations Messagesand Vehicles

Implementing the Public Relations Plan

Evaluating Public Relations Results

Major Public Relations Decisions


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What is Advertising?

Advertising is Any Paid Form ofNonpersonal Presentation andPromotion of Ideas, Goods, or

Services by an Identified

Sponsor.


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Media Selection

Deciding on reach, frequency, and impact.

a). Reach is the percentage of people in the target

market exposed to an ad campaign during a given

period.

b). Frequency is the number oftimes the average

person in the target market is exposed to an

advertising message during a given period.

c). Media impact is the qualitative value of anexposure through a given medium.


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6 major advertising

media

Television

Radio

Magazines

Newspaper

Internet

And Outdoor (e.g., billboards)

Copy and Message Direct ion


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Motivational

Source

Motivation =Product

Performance

Perf. Is

representation ofproduct

Copy of Message

Centered on Product

1. Message on

Product

Perf. is + thanrepresentation

product

Copy of Message

Centered on Resultsfrom Product

Motivation =Association with

Product Universe

Copy of Message

Centered on Psyco

-socio of Product

2. Message on

Resultats

3. Message on

Universe


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Chapter 18

Competitive Strategies: Attracting,

Retaining, and Growing Customers


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Customer Relationship Marketing

Traditional marketing theory and practice have focused on

attracting new customers rather than retaining existing ones.

1). The move today, however, is toward re lat ionsh ip market ing--

creating,maintaining, and enhancing strong relationships withcustomers and other stakeholders.

2). Beyond designing strategies to attract new customers and

create transactions with them, companies are going all out to

retain current customers and build profitable, long-term

relationshipswith them.3). This new view is that marketing is the science and art of

finding, retaining, and growing profitable customers.


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Satisfaying the Needs

Retain Customer

By Maintaining Satisfaction

Create the Product

NEEDSSTAGES PRODUCTS

Identify

The needs

to Satisfy

Adapt and

Deliver

the Products

to The Right

Target


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Customer Delivered Value


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Customer Satisfaction

Expectations are Based onCustomers Past Buying Experiences,the Opinions of Friends, & Marketer

and Competitor Information andPromises.

Product FallsShort of

Expectations

Customer isDissatisfied

ProductMatches

Expectations

Customer isSatisfied

ProductExceeds

Expectations

Customer isHighly

SatisfiedorDelighted!


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Steps in Analyzing Competitors

Identifying thecompanyscompetitors

Assessing competitorsobjectives, strategies,strengths and weaknesses,

and reaction patternsSelecting whichcompetitors toattack or avoid

= BENCHMARKING


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Overall Cost

Leadership

Differentiation

Focus

Middle ofthe Road

Basic Competitive Strategies

Competitive Strategies: Value


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Competitive Strategies: Value

Disciplines

OperationalExcellence

Alaska Airlines

CustomerIntimacy

Ikea

ProductLeadership

intel

Companies GainLeadership Positions byDelivering Superior Value

to their CustomersThrough TheseStrategies:


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Competitive Marketing Strategies

Firms Competing in a Given Target Market Differ in theirObjectives and Resources so May Choose the Following

Forms:

Documents

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