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Chapter02
This document discusses key aspects of integrated marketing communications (IMC) and the marketing process. It covers topics like Under Armour's success factors, the marketing and promotions process model, target marketing, market segmentation, positioning strategies, the 4 P's of marketing (product, price, place, promotion), and how IMC brings all promotional activities together. The goal of IMC is to create seamless messaging across all touchpoints with customers.
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Chapter02
- 1. The Role ofIMC in the Marketing Process 2 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
- 2. Under Armour ProtectsIts House
- 3. Under Armour ProtectsIts House • Keys to Under Armour’s success –Niche markets –Strong product positioning –Unique brand identity –Strong brand reputation
- 4. Marketing and PromotionsProcess Model Product decisions Pricing decisions Channel-of-distribution decisions Opportunity analysis Competitive analysis Target marketing Identifying markets Market segmentation Selecting a target market Positioning through marketing strategies Promotional decisions • Advertising • Direct marketing • Interactive marketing • Sales promotion • Publicity and public relations • Personal selling Ultimate consumer • Consumers • Businesses Promotion to final buyer Internet/ Interactive Promotion to trade Resellers Purchase
- 5. Marketing to aLifestyle
- 6. Padres Pitch tothe Fans *Click outside of the video screen to advance to the next slide
- 7. The Target MarketingProcess IIddeennttiiffyy mmaarrkkeettss wwiitthh uunnffuullffiilllleedd nneeeeddss DDeetteerrmmiinnee mmaarrkkeett sseeggmmeennttaattiioonn SSeelleecctt mmaarrkkeett ttoo ttaarrggeett PPoossiittiioonn tthhrroouugghh mmaarrkkeettiinngg ssttrraatteeggiieess
- 8. A Product forEvery Market Segment
- 9. The Marketing SegmentationProcess Find ways to group consumers Find ways to group consumers according to their needs according to their needs Find ways to group marketing actions Find ways to group marketing actions available to the organization available to the organization Develop a market/product grid to relate the market Develop a market/product grid to relate the market segments to the firm’s products and actions segments to the firm’s products and actions Select the product segments toward which the Select the product segments toward which the firm will direct its marketing actions firm will direct its marketing actions Take marketing actions Take marketing actions ttoo rreeaacchh ttaarrggeett sseeggmmeennttss
- 10. What do NASCAR,Coors, and Unilever know?
- 11. Bases for Segmentation DDeemmooggrraapphhiicc BBeehhaavviioorr OOuuttlleett TTyyppee BBeenneeffiittss PPssyycchhooggrraapphhiicc Customer Characteristics GGeeooggrraapphhiicc Customer Characteristics SSoocciiooeeccoonnoommiicc Buying Buying Situation UUssaaggee Situation AAwwaarreenneessss
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- 13.
- 14. Psychographic Segmentation •Dividing the market on the basis of – Personality –Values – Lifestyle • VALS lifestyle segmentation – Eight lifestyles with distinctive attitudes, behaviors, and decision-making patterns –Combined with estimate of the resources on which the consumer can draw
- 15. Behavioristic Segmentation Usage Buying Loyalties Responses
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- 17. PRIZM Cluster Profiles HIGH $ LOW
- 18. Test Your Knowledge The key factor in communicating information about a brand and differentiating it from competitors is: A) Its perceived price differential B) Its integrated promotional strategy C) The market positioning strategy assigned it by the manufacturer D) Its distribution intensity E) The benefits the brand offers
- 19. Selecting a TargetMarket Determine how many segments to enter Determine which segments have the greatest potential
- 20. Market Positioning Fittingthe product or service to one or more segments of the broad market in such a way as to set it apart from the competition
- 21. Developing a PositioningStrategy What position do we have now? What position do we have now? Do we have the money to do the Do we have the money to do the job? job? What position do we want to own? What position do we want to own? From whom From whom must we win this must we win this position? position? Does our creative Does our creative strategy match it? strategy match it? Do we have the tenacity to stay Do we have the tenacity to stay with it? with it? The Position
- 22. Positioning Strategies AAttttrriibbuutteessaanndd BBeenneeffiittss?? PPrriiccee oorr QQuuaalliittyy?? UUssee oorr AApppplliiccaattiioonn?? PPrroodduucctt CCllaassss?? PPrroodduucctt UUsseerr?? CCoommppeettiittoorr?? CCuullttuurraall SSyymmbboollss?? How should we position?
- 23. Positioning by Useor Application
- 24. Developing a PositioningPlatform 11.. IIddeennttiiffyy tthhee ccoommppeettiittoorrss 22.. AAsssseessss ppeerrcceeppttiioonnss ooff tthheemm 33.. DDeetteerrmmiinnee tthheeiirr ppoossiittiioonnss 44.. AAnnaallyyzzee ccoonnssuummeerr pprreeffeerreenncceess 55.. MMaakkee tthhee ppoossiittiioonniinngg ddeecciissiioonn 66.. MMoonniittoorr tthhee ppoossiittiioonn
- 25. Making the PositioningDecision Is the current position strategy Is the current position strategy working? working? Is the segmentation Is the segmentation strategy appropriate? strategy appropriate? Are there sufficient Are there sufficient resources to resources to communicate the communicate the position? position? How strong is the How strong is the competition? competition? The The Checklist Checklist
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- 27. Branding and ProductNames • Brand names often communicate attributes and meaning –Safeguard – I Can’t Believe It’s Not Butter! – Easy-Off –Arrid –Spic and Span
- 28. Branding and PackagingAre Linked PPrroodduucctt DDeecciissiioonnss BBRRAANNDDIINNGG Brand name commun-icates attributes and meaning Brand name commun-icates attributes and meaning Advertising creates and maintains brand equity Advertising creates and maintains brand equity PPAACCKKAAGGIINNGG Has become increasingly important Has become increasingly important Often customers’ Often customers’ first first exposure to product exposure to product
- 29. A Package isMore than a Container
- 30. Pricing Decisions Whatconsumers give up to purchase a product or service What consumers give up to purchase a product or service TTiimmee PPrriiccee VVaarriiaabbllee MMeennttaall aaccttiivviittyy BBeehhaavviioorraall eeffffoorrtt Factors the firm must Factors the firm must consider consider CCoossttss DDeemmaanndd CCoommppeettiittiioonn PPeerrcceeiivveedd vvaalluuee
- 31. Relating Price toAds and Promotion Price must be consistent with perceptions of the product Price must be consistent with perceptions of the product Higher prices communicate higher Higher prices communicate higher product quality product quality Lower prices reflect bargain or Lower prices reflect bargain or “value” perceptions “value” perceptions Price, advertising and distribution Price, advertising and distribution be unified in be unified in identifying product position identifying product position Pricing Pricing Considerations Considerations A product positioned as high quality while carrying a lower price than competitors will confuse customers A product positioned as high quality while carrying a lower price than competitors will confuse customers
- 32. When Price isNot an Issue
- 33. Distribution Channel Decisions SSeelleeccttiinngg MMaannaaggiinngg MMoottiivvaattiinngg Distribution Channel Decisions
- 34. Distribution Intermediaries Distribution Channel Intermediaries BBrrookkeerrss DDiissttrriibbuuttoorrss WWhhoolleessaalleerrss RReettaaiilleerrss
- 35. Promotional Strategy: Pushor Pull? PPuusshh PPoolliiccyy PPrroodduucceerr WWhhoolleessaalleerr RReettaaiilleerr CCoonnssuummeerr Information Flow PPuullll PPoolliiccyy PPrroodduucceerr WWhhoolleessaalleerr RReettaaiilleerr CCoonnssuummeerr
- 36. Test Your Knowledge An ad in a publication aimed at veterinarians explains why they should recommend Eukanuba cat food to the owners of the cats they treat. This is an example of: A) Consumer advertising B) A promotional pull strategy C) A harvesting strategy D) A consumer promotion E) A promotional push strategy
Editor's Notes
- #3 Relation to textThis slide relates to pages 39 and 40 of the text, “Under Armour Shows How to Protect Its House.” Summary OverviewThis slide shows the dynamic, in-your-face marketing style of Under Armour, as well as one of its memorable, trademark slogans. Use of this slide This slide can be used as part of a discussion about the audience to which the ad is directed, it’s effectiveness, and the elements used therein. It can also be a lead-in to a discussion about how marketing strategies influence the role of promotion and how promotional decisions must be coordinated with other areas of the marketing mix.
- #4 Relation to textThis slide relates to pages 39 and 40 of the text, “Under Armour Shows How to Protect Its House.” Summary OverviewThis slide presents the keys to Under Armour’s success. Use of this slideThis slide can be used when discussing the meteoric rise of Under Armour, and how the founder went from selling compression clothing out of the trunk of his car to over $600 million in sales in just 11 years. He began by focusing on niche markets that the big boys over looked. Then he enlisted the help of well-known athletes and tag lines (We must protect this house, I think they hear us coming) to make his commercials memorable. The company then expanded into complimentary lines, such as football cleats and training shoes. IMC efforts are growing along with sales… Web site, TV commercials, event sponsorship, and partnerships with companies such as ESPN.
- #5 Relation to textThis slide relates to material on pp. 41-21 of the text and Figure 2-1. Summary OverviewThis model is a framework for analyzing how promotion fits into an organization’s marketing strategy and programs. The model consists of four major components, which will appear one at a time as the slide is clicked: Marketing strategy and Analysis Target Marketing Process Marketing Planning Program Development (includes the promotional mix) Target Market The marketing process begins with the development of a marketing strategy and analysis, during which the company decides the product or service areas and particular markets where it wants to compete. The company must then coordinate the various elements of the marketing mix into a cohesive marketing program that will reach the target market effectively. Note that the promotion program is directed to both the ultimate consumer and the “trade” members or resellers that distribute the company’s products. Use of this slideThis slide can be used to provide an overview of a firm’s marketing process and how promotion fits into the program. You might provide a brief discussion of each stage of the marketing process shown in this model.
- #6 Relation to textThis slide relates to material on pp. 41-46 and Exhibits 2-1 and 2-3. Summary OverviewThis slide shows print ads for Coach sunglasses and eco-friendly Simple shoes. Each ad targets a particular segment of the market. Relation to textThis slide can be used to show how companies today are capitalizing on marketing opportunities. For example, sunglasses to the fashion conscious, and shoes to those who are concerned with the environment. A market is rarely seen as one large, homogeneous group of customers. Rather, it consists of many heterogeneous groups, or segments. Marketing must be tailored to the needs and demands of the desired segments.
- #7 Relation to textThis slide relates to the information in IMC Perspective 2-1, on pages 44 and 45 of the text. Summary OverviewThis commercial for the San Diego Padres features Padres CEO Sandy Alderson, appealing to fans to come on out to the ballpark, preferably by buying season tickets. Use of this slideThis commercial is another example of how companies and organizations use marketing strategies to reach the market they have identified and targeted.
- #8 Relation to the textThis slide relates to material on pp. 46 - 61 the text and Figure 2-2. Summary OverviewThe process by which marketers develop different marketing strategies to satisfy different customer needs is called target marketing. The basic steps of this process are shown on this slide. These include: Identify markets with unfulfilled needs – this isolates consumers with similar lifestyles, needs, and wants Determine market segmentation – dividing a market into distinct groups that have common needs and will respond similarly to a marketing action. Select a market to target – determining how many segments to enter, and which segments offer the most potential. Position through marketing strategies – the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningful apart from competition. Use of this slideThis slide can be used to introduce the target marketing process and provide a brief description of each step.
- #9 Relation to textThis slide relates to the material on pp. 47-53 and Exhibit 2-5. Summary OverviewThis slide for Grupo Modelo shows how they compete in a variety of segments with a variety of products, varying the marketing mix with each. The different types of beer offered by Grupo Modelo appeal to a different sets of needs, such as tastes, lifestyle, image, and even waistlines. Use of slideThis slide can be used to show how marketers identify, and then meet the needs of, customers with differing lifestyles, tastes, demographics, or images.
- #10 Relation to textThis slide relates to the material on pp. 47-49. Summary OverviewThe markets segmentation process involves five distinct steps: Find ways to group customers according to their needs Find ways to group the marketing actions – usually the products offered Develop a market/product grid to relate the market segments to the firm’s products and actions Select the product segments toward which the firm directs its marketing actions Take marketing actions to reach target segments. Use of this slideThis slide can be used to provide an overview of market segmentation and the steps involved in this process.
- #11 Relation to textThis slide relates to IMC Perspective 2-2 on page 48. Summary OverviewThis slide shows that companies are becoming more aware of the Hispanic market, and are developing more marketing products in Spanish, as shown in this website. Use of this slideUse this slide to explain that NASCAR, Coors, and Unilever know that the untapped Hispanic market is the place to be. The Hispanic share of U.S. households will nearly double by 2050, as will their spending power. In general, Hispanics are more open and responsive to advertising than the general public. They are also less critical, and are more likely to respond to direct marketing efforts.
- #12 Relation to text This slide relates to material in Figure 2-4 on page 50. Summary Overview There are a number of methods that are available for segmenting markets. These methods can be broken into two broad categories based on customer characteristics and aspects of the buying situation. Segmentation based on customer characteristics includes: Geographic segmentation divides markets by geographic locations such as nations, states, regions, or cities. Demographic segmentation divides markets based on demographic variables such as gender, age, education, race, and life stage. Socioeconomic segmentation divides markets based on socioeconomic variables such as income, education, and occupation. Psychographic segmentation divides markets based on personality values or lifestyle. SRI’s VALS 2 is a popular approach to lifestyle segmentation Segmentation based on the buying situation includes: Behavioral segmentation divides a market into groups according to their level of involvement with and purchase behavior toward a product or service. Outlet types segments a market based on the type of store where a product is sold, such as convenience, supermarket, mass merchandiser, specialty Benefit segmentation divides markets on the basis of the specific benefits or outcomes consumers want from a product or service. Awareness segmentation is based on the product knowledge of the consumer. Usage segmentation classifies customers based on their level of use of a product or service. Use of this slide This slide can be used to provide an overview of various approaches used by marketers in segmenting markets on the basis of customer characteristics and buying situations.
- #13 Relation to textThis slide relates to Exhibit 2-6 on page 49. Summary OverviewThis slide shows an example of an ad targeted to a specific geographic region. Use of this slideThis slide can be used to discuss geographic unit segmentation. These units may include nations, state, counties, or even neighborhood. Big Red is just one of the regional soft drink “cult” brands, along with Cheerwine (the Carolinas), Vernors (Michigan), and Moxie (New England). Big Red is a cult brand in Texas.
- #14 Relation to textThis slide relates to page 51 of the text, which discusses demographic segmentation. Summary OverviewThis slide shows a Home Depot advertisement, which is targeted at women. Use of this slideUse this slide to introduce demographic segmentation, in which the market is divided on the basis of age, sex, family size, education, income, or social class. Secret deodorant and the Lady Schick shaver are products that have been successful by using sex as a basis for segmentation.
- #15 Relation to textThis slide relates to pp. 51-52 of the text, which discusses psychographic segmentation. Summary OverviewThis slide presents an overview of psychographic market segmentation. Use of this slideUse this slide to introduce the topic of psychographic segmentation, which means dividing the market on the basis of personality, values, and/or lifestyles. While there is some disagreement as to whether personality is a useful basis for segmentation, many consider lifestyle an effective criterion. The determination of lifestyle is based on an analysis of the activities, interests, and opinions (AIOs) of consumers. For example, the target market for the Hummer is described as “highly adventurist, entrepreneurial, and free-spirited achievers.”
- #16 Relation to textThis slide relates to the section on behavioristic segmentation of the market, which is presented on page 52. Summary OverviewThis slide shows how the key factors that are considered when a market is behavioristically segmented. Use of this slideUse this slide to introduce behavioristic segmentation, which means to divide consumers into groups according to the usage, loyalties, or buying responses. Produce or brand usage, degree of use, and/or brand loyalty are combined with demographic and/or psychographic criteria to develop profiles of market segments. These profiles serve as the basis for promotional strategies, which are designed to attract nonpurchasers who have similar characteristics.
- #17 Relation to textThis slide relates to Benefit Segmentation, is found on page 52 of the text, and Figure 2-10. Summary OverviewThis ad offers a benefit to those who wish to fight gingivitis. Use of this slideUse this slide to introduce the concept of benefit segmentation, which means that consumers are generally trying to satisfy specific needs and/or wants and select products accordingly. For example, some consumers want a toothpaste with fluoride (Crest, Colgate); others prefer one that freshens their breath (Close-Up, Aqua-Fresh) or reduces plaque (Viadent).
- #18 Relation to textThis slide relates to material on p. 53, The Process of Segmenting a Market, and Exhibit 2-11. Summary OverviewThis slide shows examples of PRIZM clusters developed by Claritas. Claritas provides demographic and psychographic profiles of geographic areas as small as census track, block group, or zip code +4. Use of the slideThis slide can be used to demonstrate how a number of companies now offer research services to help marketing managers define their markets and develop strategies targeting them. Users of the system include such companies as Ace Hardware, Alamo Car Rental, and GMAC Services.
- #19 Ans: C
- #20 Relation to textThis slide relates to the section on “Selecting a Target Market,” which is found on page 55 and 56 of the text. Summary OverviewThis slide presents the two steps that must be performed to select a target market. Use of this slideUse this slide when discussing the next phase of the marketing process… determining how many market segments to enter, and which of these segments offer the greatest potential. Three market coverage options are available: Undifferentiated marketing ignores segment differences and offers just one product or service to the entire market. Differentiated marketing involves marketing in a number of segments, but developing separate marketing strategies for each. Concentrated marketing involves selecting, and trying to capture a large share of, a single segment.
- #21 Relation to textThis slide relates to the information about Market Positioning found on page 56 of the text. Summary OverviewThis slide presents a definition of “market positioning” and the two approaches that can be taken to achieve it… consumer or competition. Use of this slideUse this slide to begin a discussion about marketing positioning, and whether the positioning strategy chosen should focus on the consumer or the competition. Both approaches involve linking product benefits to consumer needs. However, a consumer approach links the product to the benefits a consumer will derive from using it, or creates a favorable brand image. A competition approach positions the product by comparing it and the benefits it offers to those of a competing product.
- #22 Relation to textThis slide relates to material on pp. 53-55, which discusses positioning. Summary OverviewPositioning is an important part of the strategic marketing process. To create a position for a product or service, positioning gurus Al Ries and Jack Trout suggest that marketers consider the six basic questions. (click slide to bring up the questions) Use of this slideThis slide can be used to introduce the process of developing a positioning strategy. Answering these six questions before proceeding with the positioning strategy will establish a clear understanding of the company’s current situation and where it wants to go.
- #23 Relation to textThis slide relates to material on pp. 57-58 of the text. Summary OverviewA number of positioning strategies might be used by marketers, including the following: Attributes/Benefits – setting the brand apart from competition using specific characteristics or benefits offered. Marketers attempt to identify salient benefits which are those that are important to customers in their purchase decisions Price/Quality – using price as characteristic of the brand. High quality/image pricing can be used as well as value pricing which reflects a very competitive price. Use/Application – associate the brand with a specific use. This approach can also be effective way to expand usage of a product. Product Class – competition can come from outside the product class whereby a product is positioned against another product category Product User – associating a brand with a type of person or group that uses a product or service. Competitor – positioning a company or brand against a competitor. Often another form of positioning is used as well to differentiate the brand. Cultural Symbols – use symbols that have acquired cultural meaning and associating a brand with these symbols to differentiate it from competitors (e.g. Marlboro and the cowboy) Another positioning strategy (not shown on this slide) is repositioning. It involves altering or changing the position of a product or brand, and usually occurs because of stagnant or declining sales. Use of the slideThis slide can be used to explain the various approaches that can be used to position a brand and differentiate it from the competition.
- #24 Relation to textThis slide relates to the text found on page 57-58 and Exhibit 2-18. Summary OverviewThis slide shows an Arm & Hammer baking soda ad that demonstrates numerous product uses. Use of this slideUse this slide to help students visualize how a company would position a product by use or application.
- #25 Relation to textThis slide relates to material on pp. 59-61 of the text. Summary OverviewThis slide provides an overview of the six steps involved in the development of a positioning platform: Identify the Competitors – requires broad thinking and considering all likely competitors. Competitors can be from other product classes. Assess Perceptions of Competitors – Once competitors are defined, it must be decided how they are perceived by consumers. Market research is used to assess which attributes are important in the decision process. Determine Their Positions – what are our competitors’ positions, as well as ours, in relation to important product or service attributes Analyze Consumer Preferences – what are consumers’ purchase motives and what attributes are important to them? Determining a consumer’s ideal brand or product is one way to assess this. Make Positioning Decision – going through the first four steps should lead to a decision regarding which position to assume in the marketplace. Monitor the Position – assessing how well the position is being maintained in the marketplace Use of slideThis slide can be used to discuss the process by which a company develops a positioning strategy. It should be noted that the process includes a thorough understanding of the current situation and extensive market research is often used to provide the needed information.
- #26 Relation to textThis slide relates to material on pp. 60-61 of the text. Summary OverviewIn making a final decision regarding positioning, marketers must make some subjective judgments. Some questions a marketer should answer before a final decision is made are included on this slide. Use of the slideThis slide can be used to discuss important issues marketers must consider when they are making positioning decisions.
- #27 Relation to textThis slide relates to material on p. 62 and Exhibit 2-23 of the text. Summary OverviewThis slide shows a GAP ad for designer clothing. For many products, strong symbolic features and social and psychological meaning may be more important than functional utility. Designer clothes are a good example of a product where advertising plays an important role in developing an image for the brand, particularly among teenagers and young adults. Use of this slideThis slide can be used to show how advertising plays an important role in developing and maintaining the image of brands. It can also be used in a discussion of the concept of product symbolism, which refers to what a product or brand means to consumers and what they experience in purchasing and using it.
- #28 Relation to textThis slide relates to information on page 62 of the text. Summary OverviewThis slide presents some easily identified products: Safeguard (soap) I Can’t Believe It’s Not Butter! (margarine) Easy-Off (oven cleaner) Arrid (antiperspirant) Spic and Span (floor cleaner) Use of this slideUse this slide to introduce the importance of choosing a brand name, which should communicate the benefits of using the product or service, while at the same time creating images extending beyond the names themselves. La-Z-Boy is a good example.
- #29 Relation to textThis slide relates to material on pp. 59-60 of the text. Summary OverviewThis slide shows two important elements of product decisions - branding and packaging. Branding and packaging are very important in creating an image for a product and must be coordinated to present an image or position that extends beyond a product’s physical attributes. A brand name identifies a product or service and often communicates attributes and meaning. Brand equity refers to the intangible assets of added value or goodwill that results from the favorable image, impression, and consumer attachment to a company, brand name, or trademark. Packaging is an important part of brand’s identity. Traditionally, the package provided functional benefits such as economy, protection, and storage. However, the role of packaging has changed because of self-service in many stores and more buying decisions being made at the point-of-purchase. Use of this slideThis slide can be used to discuss two important product-related decisions which are branding and packaging. Many marketers rely on their brand name and packaging to communicate with consumers and help create a position and/or image.
- #30 Relation to textThis slide relates to material on pp. 62-64 and Exhibit 2-25 of the text. Summary OverviewThis slide shows an ad for Saks Fifth Avenue perfume. It is a good example of the importance of packaging in creating a distinct identity and brand image. Many companies view the package as an important way to communicate and create an impression of their brand in the mind of consumers. Use of this slideThis slide can be used to show the importance of packaging in creating brand identity and image. Packaging can be used to communicate, hold the consumer’s attention, and differentiate a brand from competitors.
- #31 Relation to textThis slide relates to material on page 64 of the text. Summary OverviewA firm must consider a number of factors in determining the price it charges for its product or service, including costs, demand factors, competition, and perceived value. The firm must also consider that the ultimate consumer is willing to give up to purchase the product or service Use of this slideThis slide can be used to explain pricing variables. Pricing must be coordinated with the other elements in the marketing mix to create an effective IMC program.
- #32 Relation to textThis slide relates to material on pp. 64-65 of the text. Summary OverviewThe price that a firm charges for a product or services must be consistent with it’s advertising and promotion campaigns. A number of pricing considerations are shown on this slide. It is important to point out that a product positioned as a high quality while carrying a lower price than competitors will confuse customers Use of this slideThis slide can be used to explain the role of pricing decisions in an IMC program. Pricing needs to be coordinated with the other elements in the marketing mix to create an effective IMC program.
- #33 Relation to textThis slide relates to material on pp. 64-65 and Exhibit 2-27 of the text. Summary OverviewThis slide is an ad for Porsche Design Audio, which reflects the higher cost and quality associated with the brand. Use of slideThis slide can be used to show an example of a brand that is sold on the basis of quality rather than price.
- #34 Relation to textThis slide refers to material on pp. 65-66 of the text. Summary OverviewDistribution decisions are among the most important made by marketers and often play a role in shaping the image of a company or brand. This slide shows various distribution channel decisions marketers must make including: Selecting the type of channels that will be used to distribute a product Managing the relationship with channel members Motivating channel members to stock and promote the company’s product Use of this slideThis slide can be used as part of a discussion of distribution channel decisions and how they must be coordinated with the other elements of the marketing mix.
- #35 Relation to textThis slide refers to material on pp. 65-66 of the text. Summary OverviewMarketing channel intermediaries are critical to the success of a company’s marketing program. Brokers, distributors, wholesalers, and retailers are all intermediaries or “middlemen” who are involved in the process of making a product or service available for use or consumption. Intermediaries are sometimes called resellers. Consistent with the product and pricing decisions, where the product is distributed sends a message. Selling a product at Neiman Marcus conveys a very different message than selling it at Wal-Mart. Use of this slideThis slide can be used to introduce the various marketing intermediaries and discuss the important role they play in the marketing process.
- #36 Relation to textThis slide refers to material on pp. 66-67 of the text. Summary OverviewA company can use either a push or pull marketing strategy. Programs designed to motivate the channel members, persuade them to stock merchandise, and promote a manufacturer’s products are part of a push strategy. A push strategy encourages resellers to order merchandise and push it through to their customers. A pull strategy involves spending money on advertising and sales promotion efforts directed toward the ultimate consumer. The goal of a pull strategy is to create demand among consumers and encourage them to request the product from the retailer. Use of this slideThis slide can be used to explain the concepts of a push versus pull promotional strategy. The choice of a strategy depends on a number of factors, including the company’s relations with the trade, its promotional budget, and demand for the firm’s products. Companies often use both of these strategies, with the emphasis changing as a product moves through its life cycle.
- #37 Ans: E