2. Supply Chains
• Producing a product or service and making it available to
buyers requires building relationships not only with customers
but also with key suppliers and resellers in the company’s
supply chain.
• This supply chain consists of upstream and downstream
partners.
• Upstream from the company is the set of firms that supply
the raw materials, components, parts, information, finances,
and expertise needed to create a product or service.
• Downstream marketing channel partners, such as
wholesalers and retailers, form a vital link between the firm
and its customers.
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
3.
4. Mapping the Four Forces Affecting
Channel Strategy
V. Kasturi Rangan, Core Reading: Developing and Managing Channels of Distribution, HBP No. 8149 (Boston: Harvard Business School Publishing, 2015). Copying or posting is an
infringement of copyright.
5. Marketing channel (or distribution channel)—a set of interdependent organizations
that help make a product or service available for use or consumption by the
consumer or business user.
Some intermediaries—such as wholesalers and retailers—buy, take title to, and
resell the merchandise; they are called merchants.
.
Marketing Channels
Kotler, P., Keller, K.L., Brady, M., Goodman, M. & Hansen,T.(2019). Marketing Management, 4th European Edition, Pearson
6. Others—brokers, manufacturers’ representatives, sales agents—search for
customers and may negotiate on the producer’s behalf but do not take title to the
goods; they are called agents.
Still others—transportation companies, independent warehouses, banks, advertising
agencies—assist in the distribution process but neither take title to goods nor
negotiate purchases or sales; they are called facilitators.
Marketing Channels
Kotler, P., Keller, K.L., Brady, M., Goodman, M. & Hansen,T.(2019). Marketing Management, 4th European Edition, Pearson
7. Members of the marketing channel perform many key
functions. Some help to complete transactions:
• Information. Gathering and distributing information about
consumers, producers, and other actors and forces in the
marketing environment needed for planning and aiding
exchange.
Promotion. Developing and spreading persuasive
communications about an offer.
Contact. Finding and engaging customers and prospective
buyers. Increasing brand touchpoints
How Channel Members Add Value
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
8. Matching. Shaping offers to meet the buyer’s needs,
including activities such as manufacturing, grading,
assembling, and packaging.
• Negotiation. Reaching an agreement on price and other
terms such as optimized package (KIWI as an example) so
that ownership or possession can be transferred.
Others help to fulfill the completed transactions:
Physical and non-physical distribution. Transporting and
storing goods.
Financing. Acquiring and using funds to cover the costs of
the channel work.
Risk taking/sharing. Assuming the risks of carrying out the
channel work.
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
9. Number of Channel Levels
Companies can design their distribution channels to
make products and services available to customers in
different ways.
• Channel level : A layer of intermediaries that performs
some work in bringing the product and its ownership
closer to the final buyer.
1. Direct marketing channel A marketing channel
that has no intermediary levels.
2. Indirect marketing channel: A marketing channel
containing one or more intermediary levels.
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
11. Channel Behavior and Organization
Channel Conflict: Disagreements among marketing channel
members on goals, roles, and rewards—who should do what
and for what rewards.
Horizontal conflict occurs among firms at the same level of the
channel.
Vertical conflict, A vertical conflict is conflict that occurs
between two different types of members in a channel—say, a
manufacturer, an agent, a wholesaler, or a retailer.
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
12. Retailing
Retailers connect brands with consumers throughout the
buying process and at the point of purchase.
Online and mobile technologies have caused a massive shift
in how and where people buy.
Today’s consumers are increasingly omni-channel buyers,
who make little distinction between in-store and online
shopping and for whom the path to a retail purchase runs
across multiple channels
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
13. More than ever, consumers
are “mobile-first” shoppers
who begin—and sometimes
end—their buying processes.
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
14. Omni-channel Retailing
Omni-channel retailing: creating a seamless cross-channel
buying experience that integrates in store, online, and mobile
shopping.
Successful retailers of the future must adopt omni-channel
retailing, creating a seamless cross-channel buying
experience that integrates in-store, online, and mobile
shopping.
Multi-Channel vs. Omnichannel Marketing
Nike - Digital Retail Experience
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
16. • Companies must engage consumers
and communicate their value
propositions to customers, and what
they communicate should not be left to
chance.
• All communications must be planned
and blended into carefully integrated
programs.
• Just as good communication is
important in building and maintaining
any other kind of relationship, it is a
crucial element in a company’s efforts to
engage customers and build profitable
customer relationships.
17. A company’s total promotion mix—also called its marketing communications
mix— consists of the specific blend of advertising, public relations, personal
selling, sales promotion, and direct and digital marketing tools that the company
uses to (1) engage consumers, (2) persuasively communicate customer value &
raise awareness about its value offerings to promote brand and increase sales,
and (3) build customer relationships.
The Promotion Mix
17
18. Advertising
• Advertising - Any paid form of non-personal presentation and promotion
of ideas, goods, or services by an identified sponsor.
• Advertising is a good way to engage, inform, and persuade, whether the
purpose is to sell Coca-Cola worldwide, attract recruits to the armed forces,
or educate people in developing nations on how to lead healthier lives.
19. Advertising objective: A specific communication task to be accomplished with a specific
target audience during a specific period of time.
1. Informative advertising - is used heavily when introducing a new product category. In
this case, the objective is to build primary demand.
2. Persuasive advertising - Persuasive advertising becomes more important as
competition increases. Such advertising wants to engage customers and create brand
preference.
3. Reminder advertising - is important for mature products; it helps to maintain customer
relationships and keep consumers thinking about the product
Objectives of Advertising
20. PERSONAL SELLING
Personal Selling
• Personal customer interactions
by the firm’s sales force to
engage customers, make sales,
and build customer
relationships.
• Oldest form of promotion
• Costly
• Ability to build relationships
• High involvement products and
B2B
• Advantages
• Develop relationships
• Target the message
• Address customer concerns
21. Public relations - Activities designed to engage the company’s
various publics and build good relations with them.
PR may include any or all of the following functions:
• Press relations or press agency. Creating and placing
newsworthy information in the media to attract attention to a
person, product, or service.
• Product and brand publicity. Publicizing specific products and
brands.
Public Relations
22. •Public affairs. Building and maintaining national or local community
relationships.
• Lobbying. Building and maintaining relationships with legislators
and government officials to influence legislation and regulation.
• Investor relations. Maintaining relationships with shareholders and
others in the financial community.
• Development. Working with donors or members of nonprofit
organizations to gain financial or volunteer support.
Public Relations
23. Public
Relations
• Nonmarketing public relations - A company’s
messages about general management issues –
communicative positive image to stakeholders
• Marketing public relations (MPR) - Focused
public relations activities that directly support
marketing goals
• Publicity : Nonpersonal stimulation of demand
for a good by unpaid placement of significant
news Many consumers consider news stories
more credible than advertisements
• High degree of credibility
• HOWEVER, Negative messages are
uncontrollable
24. Direct and digital marketing: Engaging directly with
carefully targeted individual consumers and customer
communities to both obtain an immediate response and
build lasting customer relationships.
• Early direct marketers—catalog companies, direct
mailers, and telemarketers— gathered customer
names and sold goods mainly by mail and telephone.
• During the past decade, however, spurred by the
surge in internet usage and buying and by rapid
advances in digital technologies—from smartphones,
tablets, and other digital devices to the spate of
online social and mobile media—direct marketing
has undergone a dramatic transformation.
Direct and Digital Marketing
25. The Role of Digital Channels in a
Sample Purchasing Decision
Sunil Gupta and Joseph Davin, Core Reading: Digital Marketing, HBP No. 8224 (Boston: Harvard Business School Publishing, 2019).
Copying or posting is an infringement of copyright.
Source: Adapted with permission from “The Customer Journey to Online Purchase,” Google Inside AdWord, April 25, 2013, https://adwords.googleblog.com/2013/04/the-customer-
journey-to-online-purchase.html, accessed July 2019.
26. Sales Promotion
Short-term incentives to
encourage the purchase or
sale of a product or service.
• Advantages
• Encourages brand
switching
• Good for trialing new
products
• Easy to measure
• Disadvantages
• Most tools don’t
encourage brand
loyalty
27.
28. • The challenge is to bring it all together in an organized way. To that
end, most companies practice the concept of integrated marketing
communications (IMC).
• The company should carefully integrates its many communication
channels to deliver a clear, consistent, and compelling message
about the organization and its brands.
31. Marketers must think beyond immediate
customer satisfaction and business
performance toward sustainable strategies
that preserve the world for future
generations.
Responsible marketers must consider
whether their actions are sustainable in the
longer run.
Sustainable marketing calls for socially
and environmentally responsible actions
that meet the present needs of consumers
and businesses while also preserving or
enhancing the ability of future generations
to meet their needs.
Responsible Marketing
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
33. • For years, McDonald’s has
responded to sustainability
challenges by adding salads,
fruits, grilled chicken, low-fat
milk, and other healthy fare to
its menu.
• The company has also
sponsored major education
campaigns to help consumers
better understand the keys to
living balanced, active
lifestyles.
Being Responsible: The Case of McDonald’s
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
34. Social Criticisms of Marketing
Like most other human endeavors and activities, marketing has its flaws.
Social critics claim that certain marketing practices hurt individual
consumers, society as a whole, and other business firms.
Marketing’s Impact on Individual Consumers
High Prices
Deceptive Practices
High-Pressure Selling
Shoddy, Harmful, or Unsafe Products
Planned Obsolescence
Poor Service to Disadvantaged Consumers
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
35. Fast Fashion & Climate Change
• Fast Fashion : The quick turnover of fashion
trends and the move towards cheap, mass-
produced clothing - with new lines
constantly released.
• Producing clothes uses a lot of natural
resources and creates greenhouse gas
emissions which are responsible for climate
change.
• Overall, the fashion industry is responsible
for 8-10% of global emissions, according to
the UN - more than the aviation and
shipping combined.
(BBC, 2022): Fast fashion: How clothes are
linked to climate change
36. Advertising & Climate Disaster
• Overconsumption in general, encouraged by advertising, has
a climate and ecological impact.
• To confront the climate emergency, the amount we consume
needs to drop dramatically. Yet every day we’re told to
consume more. We all know about air pollution – but there’s a
kind of “brain pollution” produced by advertising that,
uncontrolled, fuels overconsumption.
• The Guardian (2021): The advertising industry is fueling
climate disaster, and it’s getting away with it
37. Dangerous Goods?
Poisons (such as rat
poisons and snail bait)
must include warnings in
raised red letters
May need directions for
safe handling and
storage
May need to include
the words “Keep out
of reach of children”
May need to provide
details of first aid action, if
the substance is consumed
39. Marketing’s Impact on Society as a Whole
• False Wants and Too Much Materialism
• Too Few Social Goods
• Cultural Pollution
Marketing’s Impact on Other Businesses
A company’s marketing practices can harm other companies
and reduce competition.
• Acquisitions of competitors,
• Marketing practices that create barriers to entry,
• Unfair competitive marketing practices
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
41. Sustainable Marketing Principles
A company’s marketing should be guided by five sustainable marketing principles:
Consumer-oriented marketing: A company should view and organize its
marketing activities from the consumer’s point of view.
Customer value marketing: A company should put most of its resources into
customer value–building marketing investments.
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
42. Sustainable Marketing Principles
Innovative marketing: A company
should seek real product and
marketing improvements.
Sense-of-mission marketing; A
company should define its mission in
broad social terms rather than
narrow product terms.
Societal marketing: A company
should make marketing decisions by
considering consumers’ wants, the
company’s requirements,
consumers’ long-run interests, and
society’s long-run interests.
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
43. These are the 10 greenest large companies of 2022, according to
Just Capital
44. Marketing Ethics
• Good ethics are a cornerstone of
sustainable marketing.
• In the long run, unethical
marketing harms customers and
society as a whole.
• It eventually damages a
company’s reputation and
effectiveness, jeopardizing its
very survival.
• Each company and marketing
manager must work out a
philosophy of socially
responsible and ethical behavior.
Kotler, P. & Armstrong, G. (2021), Principles of Marketing (18e) Pearson Education Limited.
45. 2023 Marketing Trends You Should Pay
Attention To
.
1. Influencer culture continues to rise
2. A reel is worth a thousand words
3. Take advantage of user-generated content.
4. Generative AI continues to disrupt, stay ahead of the curve
5. Email is still an efficient engagement method.
6. Direct mail continues to make an impact.
7. Combine strategies for an omni-channel approach
https://www.forbes.com/sites/forbestechcouncil/2023/02/28/2023-marketing-trends-you-
should-pay-attention-to/?sh=55028f5c4ba5