Marketing Exam 3 Notes Typed PDF

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third unit marketing 305 notes
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Marketing Unit 3 Notes Marketing Channels and Supply Chains  

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Placement o #1 goal: get the right product to the right customer at the right place and time Marketing Channel o Individuals and firms involved in the process of making a product/service available for use by consumers or industrial users o Consumer marketing channels  Producer  customer (direct: farmers market)  Producer  retailer (new car)  Producer  wholesaler  retailer  customer o Business Marketing Channels  Producer  business customer (IBM) (most common)  Producer  industrial distributor  business customer (desktop comp)  Producer  agent  business customer (cleaning supplies) o Intermediaries  Facilitates the meeting of producers’ products with consumers  #1 priority: increase efficiencies  Reduce # of transactions to get product from producer to consumer  Frequently critical when product has many sales  Functions  Transactional o Buying product in anticipation of demand  Logistical o Move product from A to B fastest way possible o Ex: store credit cards o Electronic Marketing Channels  Internet has changed product availability  Products lend themselves to online channels  Business products, MRO’s  Long tail: the preference minority (unusual products)  Travel services  Non-perishable/ standardized items Supply Chain o A sequence of firms that perform activities required to create and deliver a good or service to consumers or industrial users o Management: the integration of logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to customers o Time = money***

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 Product needs to move through supply chain very quickly Channel choice and management o Many factors  Target market coverage (intensive, etc.)  Environmental (alcohol, prescription drugs, etc.)(highly regulated)  Buyer requirements  “where does customer expect to find products?”  Profit (pick largest profit margin) Different distribution/channel choice/distribution intensity o Intensive: widely available product, convenience products, low-ticket items, selfselected o Selective: shopping products, higher tickets, some sale support o Exclusive: one outlet per contractual market Channel relationship and conflict o Conflicts  Horizontal (Apple v Samsung)  Vertical (2 different levels of market channel) o Disintermediation  Coach from Macy’s to coach stores o Profit distribution disagreements o Channel captains (run the rules) (Apple  Verizon) Legal Issues o Tying agreement (illegal)  Must buy this MacBook in order to get an iPhone o Dual distribution  Sell directly to customer for cheap o Exclusive dealing  Can’t carry product A if you want product B Good Promotions o Answer the question “what is in it for me?” Promotional objectives o Move customer closer to purchase *** o Retain customers o Acquiring new customers o Brand lif  Keeping brand fresh and up to date o Create a customer engagement channel (website) o Creating community (jeep) o Product trial (samples) Promotion and the PLC – objectives o Introduction – to inform, increase primary demand o Growth – solidify distribution o Maturity – remind and maintain customers (face lif)

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o Decline – none Integrated marketing communications o Designated market communications program that coordinates all promotional activities to provide a consistent message The promotional paradox o The more the marketer controls the message, the less likely the audience is to believe it Promotional evolution o Line between content and promotion is increasingly blurred o Promotion becoming a pull experience (inbound) o Increasingly, marketers are incorporating the second screen into their promotional strategy New communication model – customer initiated o Customer decides to look for info o Choose channel (google/amazon) o Select topic/search o Receive messages from source o Customer potentially acts Basic approaches to promotion o Paid v unpaid o Inbound v outbound Elements of promotional mix o Advertising o Personal selling o Public relations o Direct/mobile/social – digital o Sales promotional Advertising o Can be out/inbound, paid o Any paid form of non-personal communication about an organization’s goods, services, or idea by an identifier sponsor o Can be transmitted through a variety of mass media o High degree of control by a marketer o Costly, but cheap on per-capita basis o Not a lot of immediate feedback o Difficult to measure effectiveness o Choices: digital, print, broadcast o Basic types:  Institutional: advertising the organization as a whole  Advocacy: about behavior (vote, seatbelt)  Product ad: promoting an item Personal Selling o Inbound or outbound, paid

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o The 2-way flow of communication between a buyer and seller designed to influence a purchase decision o Uses business to business promotion, high $$$ o Very targeted audience o Rich channel, immediate feedback, flexible o Expensive on a per-contact basis Sales Promotion o Outbound, paid o Short-term inducement of value offered to arouse interest in buying a good/service o Ex: contests, rebates, sales, coupons, sampling o Encourages product trial o Common among easily substitutable goods Public Relations o Paid and unpaid, in and outbound o Paid, mass: communication management that seeks to influence the feelings, opinions or beliefs held by the customers, stockholders, suppliers, employees, and publics about their products and services o Unpaid. Consumer to consumer promotion, blogs, reviews, word of mouth, publicity o Can be positive or negative o Word of mouth = most powerful o Marketer sponsored WOM  Incentivized profitable customers with WOM programs  Referred customers more profitable  Referred customers have better retention rates Factors that affect Promotional Allocation o Which element do you select? o Budgetary constraints o Convenience, consumer vs. business goods o PLC o Target market access, size Selecting the appropriate mix elements o Objectives o High/low ticket items o Product life cycle o Push vs. pull Promotion – the dark side o Creates demand for unnecessary products o False claims (exaggerated) o Creates demand for dangerous products (alcohol) o Promotion increases prices

Using social/digital media  User-generated content o User = marketer or customer o Various forms of online content that are publicly available o Example: videos, posts, tweets  Objectives o Tells a good story o Engages customers o Only have a few seconds to grab attention o Connect customers so they share your content (WOM is more credible)  Specific goal o #1 gather customer info to increase promotional effectiveness o Increase customer loyalty o Create brand community o Collect detailed info o Monitor feedback o Content is king  6 basic tools o Website (price, hours, location) (info) o Email o Social: snapchat, Instagram, twitter  Online media users submit comments, photos, and videos o Search engine: google o Mobile: apps (purchase) o SMS  2 different kinds of digital media o Owned: website, SMS o Earned: digital WOM, shares, RT’s  4 business models of the digital economy o Margin disruption  Dollar shave club, warby parker o Supply/demand match o Relaxation of time and space  Online courses o Collaborative consumption  Uber, air BnB o Key to success: a clear, strong, value proposition o Not mutually exclusive  Successful digital marketers o Reduce friction in:  Search  Evaluation (reviews)

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 Purchase ***Mobile’s #1 advantage is proximity optimization, augmented reality, amplifies WOM 4 Principle of Mobile o Snacking (swiping): constant o Smaller real estate footprint o Location aware o Unique form of payment: through one channel SMS program o Short messaging services o 90% of messages are read within 3 minutes o 98% open rate o 68% of phone users check their texts o Add gifs or photos to increase interaction o Retail  Driving people in-store with sales o Restaurant  Daily specials, happy hour o Travel  Upgrades, flights o Financial  Fraud alerts, balances Disadvantages of digital o Loss of control o Hidden costs How is digital success measured (KPI’s)? o Number of users o Number of shares o Fans o Page views o Page bounces o Organize visitors...