MT 219 Marketing Unit SevenMarilyn 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 used- advertising, 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!