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1. MARKETING DISCUSSIONS 1
Marketing Discussions

2. MARKETING DISCUSSIONS 2
Discussion #1
The modern market in any area is overwhelmed with offerings. In other words, a
customer can choose from a number of propositions and channels of distribution
(ReferenceForBusiness.com, 2000). Today, we can purchase goods in so many ways that
sometimes we are confused by this variety of choices. The following channels are available
for the distribution of nearly any product on the Australian market (Rosenbloom, 2004):
1. Manufacturers -> consumer (through Internet directly).
2. Manufacturers -> TV shopping -> customer.
3. Manufacturers -> own stores (showroom) -> customer.
4. Manufacturers -> retailer (supermarket, electronic stores) -> customer.
5. Manufacturers -> wholesaler -> retailer -> customer.
Before reviewing the channels, we are to evaluate briefly each phase (stages 1-3) of
making channel design decision before actually creating one (stage 4). Thus, stage 1 is about
recognizing the need for a channel design decision: in our case, we have a new product that
needs to be distributed over the new channels because the old ones will not provide necessary
return. Therefore, we need to create a new channel to sell a new product. It will allow us to
consider all peculiarities of the new product to distribute it with maximum efficiency.
Stage 2 addresses to the need to determine distribution objectives and align them with
marketing and general objectives of our enterprise. Therefore, our distribution objectives are
as follows: to attract potential customers via the appropriate distribution channel; to set
competitive price; to gain competitive advantage, offering the product exclusively; and to
maximize sales and gain market share. As we can see, these objectives are aligned with the
major goal to promote Personal Mini GPS Tracker on the Australian market as new exclusive
but rather affordable solution.
Finally, stage 3 specifies the distribution tasks. We have specified the distribution
tasks for our case as follows: it is necessary to evaluate the market in terms of understanding
the target audience of buyers (protection of the child/elderly/disabled/pet etc.; personnel
management; vehicle/equipment tracking; etc.); develop promotion campaign (the Internet,
local stores show rooms, etc.); create appropriate storage for at least minimal stock; develop
brochures and promotional banners with main features of the device; develop the appropriate
price to compete with rivals; develop the appropriate order processing procedure; arrange
logistics and payment methods; guarantee warranty service; organize return procedure and
repairs, if necessary. Completion of this stage provides us with a plan of further actions that
we are to perform on stage 4 – the development of possible alternative channel structures.

3. MARKETING DISCUSSIONS 3
Discussion #2
Now, let us review briefly each of the items, stated on the first page. Goods can be
sold directly from a manufacturer to a customer over the Internet, eliminating such
expenditures as offices, showrooms, warehouses, logistics, etc. This is one of the most
advanced channels of distribution now. It has numerous advantages: the price is usually lower
than in stores; customers can choose from different Internet stores at a time; there are no
physical (geographical) boundaries that could mitigate the freedom of choice for customers; it
is very convenient because online shopping can be performed from any device with a web
browser, supporting internet connection; the products can be compared online to review
characteristics and make the justified choice; etc. (Dent, 2008).
However, there are disadvantages as well. They are as follows: customers cannot
physically assess goods (clothes or shoes, for example); the level of trust to the Internet stores
is rather low because it has to be earned first – retail stores do not have this problem in such
scale; return to the internet store can be rather difficult, especially if it is located abroad;
shipping can be a rather expensive and time consuming procedure; internet frauds are rather
common these days as well; etc. Regardless of the disadvantages, it is the most perspective
channel today (Dent, 2008).
The second channel is TV shopping. This channel is much older than internet sales
however, it has proved its efficiency. Goods are sold over the phone, advertising them with
help of specialized TV shows (Dent, 2008). The advantages of such channels are clear:
products can be presented the best way possible – salespersons show how they work, their
advantages and features; the prices are lower than in stores; the audience of such
presentations is tremendous; etc. Among the disadvantages the following can be outlined:
higher prices comparing to the internet stores (expenditures for time in TV) and a rather
specific range of goods (those are for domestic use only).
Now, we are to evaluate a less exotic and advanced channel – own stores
(showrooms). This channel is one of the most common one of the past and still present today
as one of the main distribution channels. The advantages are obvious: people can come and
evaluate goods with their own hands, eyes, hear, etc.; showrooms usually present specific
goods at one time, like cars, gadgets, etc. (of one brand or group of goods); etc. (Dent, 2008).
The disadvantages are the higher prices comparing to the previous channels and a
limited range of goods. This channel is perfect for the first presentation of goods in the region
or country because showrooms specializes on some particular groups of products and able to
present them in the best way possible (Rosenbloom, 2004).
As for the channel retailer – customer, it is probably the most commonly used channel
for products’ distribution these days. The prices are moderate or high; people can choose
goods from the vast variety of choices; there are no special places or presentations of the
products from retailers. It is a usual store that anyone can visit to purchase the product he is
interested in (Dent, 2008).
Finally, the chain wholesaler – retailer – customer is used rather common as well. The
prices are higher than in previous cases due to the increased number of interested parties in
the chain before a customer. However, this channel has worked for a long time already and is
suitable for almost any group of products (Rosenbloom, 2004; Dent, 2008).

4. MARKETING DISCUSSIONS 4
Discussion #3
Advertising is the driving force for any business. This is one of the main approaches
in marketing. Companies have always used several ways of advertising their goods and/or
services since the very beginning of developing trade relations. First traders used their voice
to attract people to their goods. The most successful traders figured out, that loud sounds and
rapid speech, with various tricks like ‘you should have it’ or ‘this thing looks really good on
you’, made people believe their words. The development of technology brought new
opportunities to advertising. Ads in papers and later on television became very popular
among people of business at any level.
Usual means of advertising can be used for advertising and eventually selling the
goods and services, which could be interesting for most people. The promotion and
advertising of such products is widely available, so anybody, including children, is able to
have access to the promotional and advertising materials. Thus, these materials must not
contain any information in text and/or graphics, which might be inappropriate. Porn and
violence, racism and other potentially unacceptable content cannot be used in advertising of
any kind. The public morale has strict boundaries and marketers as well as advertisers must
keep their efforts to sell something in these boundaries.
Marketing approaches commonly use television, papers, and advertising panels on
literally anything from buildings to buses. These methods easily can be controlled, censored
and forbidden, if necessary, in case of some inappropriate content. Such public advertising
and promotion is aimed to attract our attention to the products and/or services, but we always
have a choice. We can watch commercials, we can read ads in papers and we are free not to
do it. Common sources of advertising give us one very important thing: Freedom of choice.
They cannot try to attract our attention without our knowledge.
Nowadays, when the Internet is available practically for everyone, marketing
approaches became slightly different than before. Web based advertising and promotion can
be sent to any device with access to the Internet. We are not able to perform web surfing
without annoying pop-up windows with various irrelevant content. People all over the world
receive tons of spam emails every second. Spyware sneaks to our computers and it spies on
us to show more targeted advertising. This is a modern reality for every individual. This
information reality is based on new web based marketing approaches.
The content of online advertising cannot be controlled. Thus, we get information of
any kind to our network devices, such as computers, mobile phones and others. This
information may contain anything from porn to violence and many other unpleasant and even
unacceptable kinds of information. Spam emails are sent to millions of computers every day
without any permission or desire from the receiving side. Spam filters in email boxes become
more sophisticated. However we get mad and angry because of all this rubbish that appears
on our computers. Companies believe that such advertising methods can attract more
customers, but these emails, usually, invoke anger instead of interest.
Children use computers everyday as well as adults. They also have access to all this
unacceptable content, like porn ads in the Web that pop up without any notification or
something like it. The moral impact of such content can be huge. Young people are not
supposed to see porn, violence and other adult content until their mind is ready for this.
Uncontrolled spreading of information and inappropriate advertising methods might be the
reason of psychological disorders among children and sensitive people. This is the worst side
of web based marketing approaches.
The other side is connected with constant pressure caused by various ads, text
messages and pop-up windows. Marketers use these modern channels of advertising without
any sense of measure. They, practically, make us want something, that we really do not need

5. MARKETING DISCUSSIONS 5
or want to purchase. The consequences of such purchases usually look like frustration and
total disappointment, feeling of being deceived. These feelings are the most common thing as
a result of the annoying advertisement. The moral impact of such approaches can be
substantial, because all these spam emails, annoying advertisement of useless things and
other inappropriate methods of attracting attention make us angry, irritable, and unsatisfied.

6. MARKETING DISCUSSIONS 6
Discussion #4
The importance of advertising and public relations in promoting new products or
services on some particular market is hard to over evaluate. These two industries are the
driving forces for any processes, connected with trading. They use different methods and
have certain advantages as well as disadvantages. Advertising is good because of these
reasons: Control over the ad content, an ad’s long shelf life, a comparatively free writing
style, target audience and others. Public relations do not have all these advantages so the
above mentioned pluses of advertising can be called disadvantages of PR and vice versa.
However public relations are advantageous because this is a free spreading of information
about a product/service; customers do not perceive PR information as subjective and paid-
for-opinion reviews, for example. Advertising is really beneficial to be used for promoting
well-known products/services like new Mercedes or pizza delivery. Public relations can give
an advantage, when something new like iPhone or Google Wave, for example, is released to
the market.
The Internet provided absolutely new area for promoting products/services and began
to play one of the main roles in the integrated marketing communications program (IMC) of
any company. This is a powerful tool that can be used to reach certain audiences. The Internet
can be used to execute the various elements of the promotional mix, which consists of
advertising, sales promotion, public relations, direct marketing and personal selling. Websites
became an excellent place for ads; various news services in the network make public relations
very effective; sales promotion can be met on millions of pages like electronic coupons,
discounts etc. Such companies as Google, Apple, Microsoft and others, who understand the
importance of such medium as the Internet, have been using it in their IMC programs very
successfully for many years. Traditional media like papers, magazines, television
commercials or billboards lose their share of the advertising and public relations market
because of the unique feature of the Internet – an unlimited variety of information that can be
used to reach any particular category of customers.

7. MARKETING DISCUSSIONS 7
References
Duncan, A. (n.d.). 10 Differences Between Advertising and Public Relations. Retrieved from:
http://advertising.about.com/od/careersource/a/10advpr.htm
Dent, J. (2008). Distribution Channels: Understanding and Managing Channels to Market.
London, UK: Kogan Page Publishers.
ReferenceForBusiness.com (2000). Distribution Channels. Retrieved from:
http://www.referenceforbusiness.com/small/Di-Eq/Distribution-Channels.html
Reference for Business (n.d.). MARKETING COMMUNICATION. Encyclopedia of
Business, 2nd ed. Retrieved from:
http://www.referenceforbusiness.com/management/Log-Mar/Marketing-
Communication.html
Rosenbloom, B. (2004). Marketing Channels: A Management View. Boston, MA: Cengage
Learning.