Transcript Document
MT 219 Marketing Unit Seven Marilyn Radu, Instructor Marketing Channels, Direct Marketing and Integrated Marketing Communications Note: This seminar will be recorded by the instructor. Review of Unit 6 • How did Unit 6 go? Questions or concerns? • Instructor suggestions for Unit 7 • How is the Research Project for Unit 7 coming? • Additional questions? Our Topics for This Week • • • • Channel importance, functions, types, and coverage Physical Distribution The Role of Direct Marketing Integrated Marketing Communications (IMC) Important Definitions • Marketing Channel – A group of individuals and organizations directing products from producers to customers • Marketing Intermediary – a middleman linking producers to other middlemen or ultimate consumers through contracts or purchase/resale- Includes retailers What is Supply Chain Management? • Long term partnerships among marketing channel members that reduce inefficiencies, costs, and redundancies. They also develop innovative approaches to satisfy customers. • Emphasis is on stability for customers Why do we need channels? • Channels create utility (What is utility?) time- Available when needed place- Available where you need it possession- Accessible when needed form-Available in the form you want- ie. Bulk-breaking. • Channels make exchanges more efficient Types of Channels • Producer - Consumer (no intermediary) • Producer - Retailer - Consumer • Producer – Wholesaler – Retailer – Consumer • Producer-agent/broker – Wholesaler-Retailer Consumer Channel Issues • Conflict - horizontal and vertical • Leadership and Power- Concept of Channel Captain • Integration Coverage Intensity • Intensive • Selective • Exclusive Physical Distribution • Order Processing • Inventory Management • Materials Handling • Warehousing • Transportation Direct Marketing The use of telecommunications and nonpersonal media to introduce products to consumers, who then can purchase them via mail, telephone, or the Internet. Catalog Marketing • A type of marketing in which an organization provides a catalog from which customers place orders by mail, telephone, or Internet. - J.C. Penney - The Sharper Image - Victoria’s Secret • Are the online sites that sell products also catalogs? Direct Response Marketing A type of marketing that occurs when a retailer advertises a product and makes it available through mail, inbound telephone or internet orders. - 1-800-Flowers Telemarketing • The performance of marketing-related activities by telephone Useful for sales lead generation, raising funds, and gathering marketing data. Outbound telemarketing Consumer Rights and privacy issues Television Home Shopping A form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a credit card. Popularity of infomercials and QVC Online Retailing • Retailing that makes products available to buyers through computer connections • Growing in popularity • Security remains an issue Integrated Marketing Communications • Assuring consistent messages through the coordination of promotional efforts • The objective is to generate maximum informational and persuasive impact • Generally, all four of the promotional mix are usedadvertising, personal selling, sales promotion and publicity The Role of Promotion Communication to build and maintain relationships by informing and persuading one or more audiences (target segments) This should be a coordinated effort that offers synergy between the components The Promotion Mix • • • • Personal Selling Public Relations/Publicity Sales Promotion Advertising The Communication Process • • • • • Source Coded Message Medium of Transmission Decoded Message Receiver • Noise- Reduce as much as possible • Feedback- Make sure you listen to customers and valued links in distribution chain Promotion Objectives • Create Awareness • Stimulate Demand - Primary - Selective • • • • • • • Encourage Trial Identify Prospects Retain Loyal Customers Facilitate Reseller Support Combat Competitive Promotional Efforts Reduce Sales Fluctuations Think RIP- Remind, inform and persuade Any Questions? Thank you for attending! See you next week!