available for
the consumer to buy. Distribution channels describe the flow of
products from the manufacturer to the consumer. You can better
appreciate this with an analogy of a river channel in which
products
are flowing to retail outlets and then to consumers. A
distribution
channel creates the economic utility of place. This means
having
the right product at the right place at the right time.
Types of Distribution Strategies
The first decision marketing managers need to make is related
to
their distribution strategy— whether it should be intensive,
selective, or exclusive.
Intensive Distribution Strategy
An intensive distribution strategy is one where a product is
made
available to any retailer willing to sell it. This strategy is often
used
for soft drinks, which are sold in any outlet that will keep them,
even in vending machines.
Selective Distribution Strategy
A selective distribution strategy, instead, is more restrictive by
requiring that retail outlets be suitable for selling a product—
for
example, television sets sold through electronic and mass

merchandisers.
Exclusive Strategy
Page 3 of 2
3
Week 4 L2
The last strategy is an exclusive strategy, in which a product is
sold
only through a dealer. Automobiles are a classic example of an
exclusive strategy—each brand has its own dealer network.
Marketing Channels
There are two basic types of marketing channels, conventional
channel systems and vertical marketing systems.
Vertical marketing systems are further subdivided into three
types:
the corporate vertical marketing system, the administered

vertical
marketing system, and the contractual vertical marketing
system.
Let’s discuss these channels in detail:
Conventional channel systems form the traditional model of
distribution channels. Each member of a marketing channel acts
independently, depending on his or her self-interest, and there
is
little cooperation between channel members. Conventional
marketing systems work well with intensive and selective
distribution strategies.
Vertical marketing systems are governed by cooperative
relationships. They, therefore, have an advantage over
conventional systems in that the members coordinate their
distribution strategy in order to achieve higher results. Vertical
marketing systems are used most often for selective and
exclusive
distribution strategies:
A corporate vertical marketing system is the most extreme form
of
a vertical marketing system. Here, a single firm owns all levels
of
Page 4 of 2

4
Week 4 L2
the distribution channel. A corporate vertical marketing system
is
used only with an exclusive distribution strategy because the
producer is also the retail outlet for the products.
An administered vertical marketing system is the weakest form
of
a vertical marketing system. There are no contracts governing it
but just an informal agreement that the different members of the
marketing channel will work together to implement their
strategy to
distribute goods to the target markets.
A contractual vertical marketing system is similar to a more
formal
vertical marketing system with contractual agreements between
the different members. The contracts spell out the duties of each
of
the members of the marketing channel.

SUO Discussion Rubric (80 Points) - Version 1.2
Course: MKT3010-Marketing Management SU01
Response
No Submission
0 points
Emerging (F-D: 1-27)
27 points
Satisfactory (C: 28-
31)
31 points
Proficient (B: 32-35)
35 points
Exemplary (A: 36-40)
40 points
Criterion Score
Quality of Initial
Posting
/ 40
No initial posting exists
to evaluate.
The information
provided is inaccurate,

not focused on the
assignment’s topic,
and/or does not
answer the question(s)
fully. Response
demonstrates
incomplete
understanding of the
topic and/or
inadequate
preparation.
The information
provided is accurate,
giving a basic
topic(s) covered. A
basic understanding is
when you are able to

describe the terms and
concepts covered.
Despite this basic
understanding, initial
posting may not
include complete
development of all
aspects of the
assignment.
The information
displaying a good
topic(s) covered. A
good understanding is
when you are able to
explain the terms and
topics covered. Initial

posting demonstrates
sincere reflection and
addresses most
aspects of the
assignment, although
all concepts may not
be fully developed.
The information
providing an in-depth,
well thought-out
topic(s) covered. An in-
depth understanding
provides an analysis of
the information,
synthesizing what is
learned from the

course/assigned
readings.
Participation
No Submission
0 points
13 points
16)
16 points
18 points
20 points
Criterion Score
Participation
No Submission
0 points
13 points
16)
16 points

18 points
20 points
Criterion Score
Participation in
Discussion
/ 20
No responses to other
classmates were
posted in this
discussion forum.
May include one or
more of the following:
*Comments to only
one other student's
post.
*Comments are not
substantive, such as

just one line or saying,
“Good job” or “I agree.
*Comments are off
topic.
Comments to two or
more classmates’ initial
posts but only on one
day of the week.
Comments are
substantive, meaning
they reflect and
expand on what the
other student wrote.
Comments to two or
posts on more than
one day. Comments
are substantive,

meaning they reflect
and expand on what
the other student
wrote.
Comments to two or
posts and to the
instructor's comment
(if applicable) on two
or more days.
Responses
demonstrate an
analysis of peers’
comments, building on
previous posts.
Comments extend and
deepen meaningful
conversation and may

include a follow-up
question.
Writing
No Submission
0 points
13 points
Satisfaction (C: 14-
16)
16 points
18 points
20 points
Criterion Score
Total / 80
Writing
No Submission
0 points
13 points
Satisfaction (C: 14-
16)

16 points
18 points
20 points
Criterion Score
Writing Mechanics
(Spelling,
Grammar, Citation
Style) and
Information
Literacy
/ 20
No postings for which
to evaluate language
and grammar exist.
Numerous issues in
any of the following:
grammar, mechanics,
spelling, use of slang,

and incomplete or
missing citations and
references. If required
for the assignment, did
not use course, text,
and/or outside
readings (where
relevant) to support
work.
Some spelling,
grammatical, and/or
structural errors are
present. Some errors in
formatting citations
and references are
present. If required for
the assignment, utilizes
sources to support

work for initial post
but not comments to
other students.
Sources include
course/text readings
but outside sources
(when relevant) include
non-
academic/authoritative
, such as Wikis and
.com resources.
Minor errors in
grammar, mechanics,
or spelling in the initial
posting are present.
Minor errors in
formatting citations
and references may

exist. If required for
the assignment, utilizes
sources to support
work for both the
initial post and some of
the comments to other
students. Sources
include course and text
readings as well as
outside sources (when
relevant) that are
academic and
authoritative (e.g.,
journal articles, other
text books, .gov Web
sites, professional
organization Web sites,
cases, statutes, or

administrative rules).
Minor to no errors
exist in grammar,
mechanics, or spelling
in both the initial post
and comments to
others. Formatting of
citations and
references is correct. If
required for the
assignment, utilizes
sources to support
work for both the
initial post and the
comments to other
students. Sources
include course and text
readings as well as

outside sources (when
relevant) that are
academic and
authoritative (e.g.,
journal articles, other
text books, .gov Web
sites, professional
organization Web sites,
cases, statutes, or
administrative rules).
Overall Score
No Submission
0 points minimum
There was no
submission for this
assignment.
Emerging (F to D Range)
1 point minimum

Satisfactory progress has not been
met on the competencies for this
assignment.
Satisfactory (C Range)
56 points minimum
Satisfactory progress has been
achieved on the competencies for
this assignment.
Proficient (B Range)
64 points minimum
Proficiency has been achieved
on the competencies for this
assignment.
Exemplary (A Range)
72 points minimum
The competencies for this
assignment have been
mastered.

Integrated Marketing Communications
Page 2 of 2
2
Week 4 L3
The integrated marketing communication approach is the latest
strategy used by marketing managers to promote their brand in
the
target market. The strategy basically combines the different
elements of the promotion mix under a common theme, which is
focused on a specific market. When all the elements of the
promotion mix send the same message, they reinforce each other

and the message in the minds of the target market. Check out
the
Case Study Below
Case Study: Wells Fargo
The goals of the integrated marketing communication strategy
should be based on the goals of the marketing plan. A
successful
and integrated marketing communication strategy weaves the
different elements of the promotion mix together in a way to
enable
the elements to support the marketing plan by communicating
the
attributes of the brand to the target market.
Advertising is the element of the promotion mix that usually has
the
greatest reach, so it should set the pace for the integrated
marketing communication strategy and the message it sends.
Wells Fargo wanted to send its target market a message
emphasizing the security and stability the bank provides its
customers. So it used a stagecoach as its corporate symbol in its
advertisements, which reminds the market of the fact that the
bank
has been in business since 1852, when it transported money in
strongboxes on stagecoaches. This sends a message of security
and stability, which is especially important, considering the
recent
economic problems.

of 2
3
Week 4 L3
Another element of an integrated marketing communication
strategy is interactive marketing. Today, all integrated
marketing
communication campaigns have Web sites that serve as an
anchor
for the campaign. Advertisements on the Internet link directly
to
these Web sites, which provide a vast depth of information on
the
brand. Often, consumers can purchase the goods or services
directly through this source.
Consider the Wells Fargo Web site, which enables the consumer
to open banking accounts and purchase other banking services.
Wells Fargo’s advertisements in press releases and other forms
of
communication carry or display the Web site clearly. In fact,
Wells

Fargo has a number of billboards showing only its stagecoach
and
Web address.
Public relations should be integrated into the strategy to
reinforce
the message.
Press releases made by Wells Fargo remind the public of its
long
history and strength as a bank. This serves to complement the
message sent by its advertisement. Wells Fargo also has replica
stagecoaches from the 1850s, which it sends around to fairs and
other public events to promote its brand by letting people take
pictures next to them or even ride in them.
Direct mail offerings need to include advertisements consistent
with the advertising campaign. Moreover, when the
organization’s
sales people are making their pitch, they too need to remind
their
customers of the main theme of the campaign.
Page 4 of 2

4
Week 4 L3
Finally, the integrated marketing communication strategy
should
include a sales promotion element. Coupons, special offers, and
sales should all be used in connection with the integrated
marketing communication campaign.
Often, Wells Fargo offers giveaways to people opening new
accounts or when they do their banking online.
Pricing and Methods of Price
Determination

Page 2 of 2
2
Pricing and Methods of Price Determination
Week 4 L1
Price is the second element of the marketing mix. The economic
function of price is to create possession utility. This means
when
consumers pay the price on a product, they gain possession of
the
product or the right to benefit from its use. Price is an important
element for marketing managers to remember when crafting a
marketing strategy.
The foundation of pricing is to first recover the cost of

producing a
product and delivering it to the customer. The ability of a firm
to
survive is based on its ability, over the long term, to recover the
costs of delivering a product to its target market. Products that
don’t cover their production and logistics costs will not last
long in a
competitive marketplace.
Beyond simple cost recovery, pricing also has a psychological
element. Customers tend to assume a higher price indicates
higher-quality products. If the products fail to provide the
expected
quality, customers will not buy them again.
Over the years, many different pricing methods have been
developed in marketing, and these may be broadly divided into
two
categories, posted pricing and individual bargaining pricing.
First, let’s learn about posted pricing.
Page 3 of 2

3
Week 4 L1
Posted pricing is the most common type of pricing. It is used as
the
most efficient means of accommodating a large number of
buyers
of standardized products, which have a known value.
Now, let’s learn about individual bargaining pricing.
Individual bargaining pricing is the opposite of posted pricing.
Traditionally, it is used with nonstandardized products, such as
automobiles or antiques, because of the variance in the
attributes
of the products as well as the needs of the individual consumer.
Two factors commonly affect pricing decisions. Usually, the
decision to select a posted price versus a bargaining price is
based
on what is traditional for that product category. The second
factor
in developing a pricing strategy takes into account the
psychological aspects of pricing.
Bargaining pricing is traditional in the automobile industry. In
fact,
attempts to develop a posted-pricing strategy for automobiles

have
been unsuccessful. In contrast to bargaining pricing, common in
the automobile industry, posted pricing is traditional or
standard for
products such as soda pop.
Starbucks coffee has successfully made use of the psychological
aspects of pricing. By setting a price higher than the
competition’s
price, Starbucks is sending a message to its target market that
its
product is of a higher quality. The strategy used by
McDonald’s
coffee is, in essence, aimed at attracting those who like coffee
but
don’t want to pay the premium price of Starbucks. McDonald’s
Page 4 of 2
4
Week 4 L1
uses its product cost advantages to offer a more affordable
product.

Common Pricing Strategies
There are several pricing strategies that marketing managers can
select when creating their marketing mix. The most common
pricing strategies are going-rate pricing, target-return pricing,
standard markup pricing, perceived-value pricing, and value
pricing. The selection of a pricing strategy depends on what is
traditional in the target market.
Going-Rate Pricing
In this strategy, you set your price at the same level as your
competitor’s price. This strategy is generally used with products
that sell in mass markets, such as candy bars. It is also used
with
commodities for which prices are established by the markets in
those commodities. This is one of the most common strategies
used in marketing because it is the easiest.
Target-Return Pricing
In this strategy, marketing managers base the price on the
average
cost of the product plus a percentage to cover the rate of return
they require for their investment. This pricing is used most
commonly in regulated markets—for example, by utilities and
by
contractors selling goods to the government.
Standard Markup Pricing

of 2
5
Week 4 L1
In this strategy, retailers sell at a price that is a standard
percentage added to the price they pay to the manufacturers.
The
markup is generally based on tradition, and it needs to cover the
costs of the retail operation. This is a common practice because,
like going-rate pricing, it is easy to implement.
Perceived-Value Pricing
This strategy, also known as prestige pricing, is based on the
value
of the product as perceived by the customers. It is a strategy
used
for premium and luxury goods, where the price is part of the
attraction and is used to signal product quality.
Value Pricing

A successful value-pricing strategy requires solid research on
the
target market and the need the product meets. This is a difficult
strategy to implement since it requires knowledge of the value
of
the product to the target market.
The integrated marketing communication approach is the latest
strategy used by marketing managers to promote
their brand in the target market. The strategy basically
combines the different elements of the promotion mix under
a common theme, which is focused on a speci�c market. When
all the elements of the promotion mix send the same
message, they reinforce each other and the message in the minds
of the target market.
The goals of the integrated marketing communication strategy
should be based on the goals of the marketing plan. A
successful and integrated marketing communication strategy
weaves the different elements of the promotion mix
together in a way to enable the elements to support the
marketing plan by communicating the attributes of the
brand to the target market. Another element of an integrated
marketing communication strategy is interactive
marketing. Today, all integrated marketing communication
campaigns have Web sites that serve as an anchor for the

campaign. Advertisements on the Internet link directly to these
Web sites, which provide a vast depth of
information on the brand. Often, consumers can purchase the
goods or services directly through this source.
Public relations should be integrated into the strategy to
reinforce the message. Direct mail offerings need to
include advertisements consistent with the advertising
campaign. Moreover, when the organization's sales people
are making their pitch, they too need to remind their customers
of the main theme of the campaign. Finally, the
integrated marketing communication strategy should include a
sales promotion element. Coupons, special offers,
and sales should all be used in connection with the integrated
marketing communication campaign.
Failure to create an effective IMC strategy may result in the
derailment of other strategies in the marketing mix. For
example, if the IMC message does not successfully convey the
right core strategy—value proposition and
positioning—to the target market, diminishing perceptions of
the value of the product will creep into consumers'
minds. This situation will render the already established price
ineffective in pulling customers toward the brand. As
a result, distribution costs will be affected because the
intermediaries will demand higher slotting fees to carry the
product, not to mention the higher inventory and warehousing
costs because of unful�lled sales projections.
Additional Materials
View a Pdf Transcript of Integrated Marketing Communications
(media/transcripts/Week_1/SUO_MKT3010%20W4%20L3.pdf?
_&d2lSessionVal=YzlcjEFFEmH3BeMoJVuecqFOY&ou=83096
)

https://myclasses.southuniversity.edu/content/enforced/83096-
17097493/media/transcripts/Week_1/SUO_MKT3010%20W4%2
0L3.pdf?_&d2lSessionVal=YzlcjEFFEmH3BeMoJVuecqFOY&o
u=83096
When deciding on a distribution strategy, marketing managers
must decide whether it should be intensive,
selective, or exclusive.
Intensive Distribution Strategy - An intensive distribution
strategy is one where a product is made available to any
retailer willing to sell it.
This strategy is often used for soft drinks, which are sold in any
outlet that will keep them, even in vending machines.
Selective Distribution Strategy - A selective distribution
strategy, instead, is more restrictive by requiring that
retail outlets be suitable for selling a product—for example,
television sets sold through electronic and mass
merchandisers.
Exclusive Strategy - The last strategy is an exclusive strategy,
in which a product is sold only through a dealer.
Automobiles are a classic example of an exclusive strategy—
each brand has its own dealer network.
Marketing Channels
There are two basic types of marketing channels, conventional

channel systems and vertical marketing systems.
Vertical marketing systems are further subdivided into three
types: the corporate vertical marketing system, the
administered vertical marketing system, and the contractual
vertical marketing system.
Conventional channel systems form the traditional model of
distribution channels. Each member of a marketing
channel acts independently, depending on his or her self-
interest, and there is little cooperation between channel
members.
Conventional marketing systems work well with intensive and
selective distribution strategies.
Vertical marketing systems are governed by cooperative
relationships. They, therefore, have an advantage over
conventional systems in that the members coordinate their
distribution strategy in order to achieve higher results.
Vertical marketing systems are used most often for selective
and exclusive distribution strategies:
An organization's strategy is a road map that guides the
direction of the organization. In the military, the lack of a
strategy leads to a defeat in war; in business, the lack of a
strategy leads to corporate defeat. A good corporate
strategy is as important to the success of an organization as a
good military strategy is to the battle�eld commander.
It is an organization's core competency and strategy that will
determine how the organization will position itself.
An organization's core competency includes the things that the
organization does better than any other
organization. Part of the strategy development process is a
strengths, weaknesses, opportunities, and threats

(SWOT) analysis. A SWOT analysis is a careful study of an
organization's strengths and weaknesses (internal
assessments) and its opportunities and threats (external
assessments).
View a Pdf Transcript of Types of Distribution Strategies and
Marketing Channels
)
https://myclasses.southuniversity.edu/content/enforced/83096-
u=83096
Pricing Methods and Price Determination
The economic function of price is to create possession utility.
This means when consumers pay the price on a
product, they gain possession of the product or the right to
bene�t from its use. The foundation of pricing is to �rst
recover the cost of producing a product and delivering it to the
customer. Pricing also has a psychological element.
Customers tend to assume a higher price indicates higher-
quality products. If the products fail to provide the
expected quality, customers will not buy them again. Two
factors commonly affect pricing decisions. Usually, the
decision to select a posted price versus a bargaining price is
based on what is traditional for that product category.

The second factor in developing a pricing strategy takes into
account the psychological aspects of pricing. The most
common pricing strategies are going-rate pricing, target-return
pricing, standard markup pricing, perceived-value
pricing, and value pricing. The selection of a pricing strategy
depends on what is traditional in the target market.
Going-Rate Pricing -Set your price at the same level as your
competitor's price/ used with products that sell in mass
market.
Target-Return Pricing - Base the price on the average cost of
the product plus a percentage to cover the rate of
return they require for their investment /used most commonly in
regulated markets.
Standard Markup Pricing - Sell at a price that is a standard
percentage added to the price they pay to the
manufacturers / based on tradition.
Perceived-Value Pricing - Known as prestige pricing, is based
on the value of the product as perceived by the
customers / mainly premium and luxury goods.
Value Pricing – Requires solid research on the target market
and the need the product meets / requires knowledge
of the value of the product to the target market.
Of all the elements of the marketing mix, price is the only one
that allows the organization to generate immediate
revenues. All the other elements—product, place, and
distribution—are considered either investments or
expenditures for the organization. Regardless of the nature of a
product, its price and demand are closely related.
The value of a product and the quantity demanded are strongly
correlated. This is so because the value attached to

a product in�uences the consumer's willingness to buy the
product. So a consumer's perception of the value of a
product is a viable predictor of the quantity of the product that
will be in demand.
View a Pdf Transcript of Pricing Methods and Determination
)
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u=83096

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