Distribution Channels, Advertising,&Promotion
Distribution Channels, Advertising,&Promotion MKTG 360
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This 7 page Class Notes was uploaded by Gabrielle Poggioli on Sunday March 29, 2015. The Class Notes belongs to MKTG 360 at Washington State University taught by Dr. Jeff Joireman in Spring2015. Since its upload, it has received 73 views. For similar materials see Marketing 360 in Marketing at Washington State University.
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Date Created: 03/29/15
Ch 15 Distribution Channels 0 Supply Chain Activities necessary to turn raw materials into goodsservices o Outsourcing is a concern 0 Make vs buy 0 Supply Chain Management Includes physical movement of and sharing of information aboutgoods 0 Channel of Distribution Bridge between producers and final consumers o eg Farmer gt Supplier gt Retailer gt Consumer 0 Direct Channel 0 producer gt consumer 0 Indirect Channel 0 firms or individuals help move the product 0 eg Amazon hires 50 thousand seasonal workers to shelve package and transport supplies Unordered items are stored in shelves in no particular order Once ordered items are scanned and placed on packaging assembly lines and stowed on a truck Functions of Distribution Channel 0 Provide time place and ownership utility 0 Provide physical distribution channels especially international channels due to cultural differences 0 eg McDonalds is located in multiple countries changing their recipes menu items and physical appearance to fit cultural expectations and preferences 0 Create efficiencies by reducing number of transactions 0 Breaking Bulk wholesalers and retailers buy in large quantities and sell in smaller quantities 0 Creating Assortments providing a variety of products in a single location Ethical Dilemmas 0 Slotting Allowances shelf space 0 Stores charging different brands more for shelf space Fact Shelf positions are actually deliberate More expensive products are placed at eye level while cheaper products are on lower shelves 0 Large companies pressure small companies Steps in Distribution Plan 1 Develop Distribution Objectives 2 Evaluate InternalExternal Environment Influences 3 Choose Distribution Strategy 0 Number of channel levels 0 Conventional members work independently o VMS members work together in different levels of chain 0 HMS members decide to work with other businesses at same levels of chain 0 Distributivelntensity 0 Intensive selling through all possible sources 0 Exclusive selling through single source 0 Selective selling through a few sources 4 Develop Distribution Tactics 0 Select channeling partners 0 longterm commitment 0 Managing channel 0 dominant firm controls the channel Logistics 0 Planning implementing and controlling movement of products in supply chain 7 Rights of Logistics 0 Product 0 Place 0 Price 0 Customer 0 Condition 0 Time 0 Quantity 5 Functions of Logistics 0 Order Processing 0 Warehousing 0 Materials Handling 0 Transportation 0 InventoryControl Key Terms Channel Intermediaries Firms or individuals such as wholesalers retailers etc that help move products from producer to consumer Disintermediation Decreasing number of parties in channel Retailers Firms that sell or deliver goods to consumers Reverse Logistics Sustainability practices 0 eg recycling product returns product recalls waste disposal Warehousing Storing goods in large quantities for easy access before selling Wholesalers Firms that handle the movement of products between manufacturer and retailer Ch 13 Advertising and Promotion Purpose 0 Build awareness 0 Make connections between consumer and product 0 Make a strong enough memory trace to appear in consideration set Advertising vs Promotion 0 Advertisements Geared toward changing attitudes 0 Promotions Geared toward changing behavior Advertising 0 Impersonal communication to a general audience 0 Types of advertising include retail and local consumer generated public service announcements Product Advertising 0 Pioneering 0 New product build interest to try at least once 0 Competitive 0 Growth stage 0 Buy ours vs theirs 0 Comparative 0 Compare 2 or more brands 0 Avoid false claims Steps in Advertising 1 Identify Target Audience 0 Understand consumer needs values and desires 2 Set Message and Budget Objectives 0 Inform persuade remind 3 Design Ads 0 Creative strategy 0 Unique selling proposition USP I eg quotMad Menquot Toasted cigarettes quottheirs are poisonous ours are toastedquot 4 Test Ads 0 Pretest sending the right message 0 Copy testing people are receiving understanding responding to ad receiver decodes the message 5 Choose Media Type and Schedule 0 Media Type 0 Aperture best timeplace to reach target market 0 Traditional media types I Know your target audience and what media they39re using Older generations use newspapers radio television more often Younger generations are more likely to use social media platforms and Internet 0 Advertising Exposure I Extent to which ad is shown 0 Impressions I Number of people that see ad 0 Reach I of people that see ad at least once 0 Frequency I Average number of times a person see ad 0 Gross Rating Points I Reach multiplied by Frequency 0 Schedule 0 Continuous everyday use 0 Flighted specific consistent o Pulsing continuous but increasing at strategic moments 0 Seasonal temporary occurrences for specific times 6 Evaluate Advertising 0 What do consumers recall What brands are remembered I Aided recall requires prompting I Unaided recall doesn39t require prompting WearOut Effect 0 Over Saturation 0 Repetitive ads desensitize audience to combat this companies make various spins of the same ad 0 eg quotGot Milkquot ads Sex 0 It sells 0 Has good perceptions 0 People want it 0 Evolutionary perspective people behave in ways that benefit survival 0 Women ovulating are more prone to wearing provocative clothing 0 Lap dancers who are ovulating get bigger tips 0 Subconscious behavior correlates with mate attraction goals 0 In mates men value attractiveness and women value status 0 Therefore in the presence of an attractive female heterosexual males will pay more attention to status products and want them more 0 eg Fiat ads feature Charlie Sheen driving a red and black Fiat sophisticated and exciting with beautiful women present Ad implies drive this car get laid Seeing this ad more men will want Fiats 0 Whether consumers are currently in a relationship may have effects on consumer awareness towards status products Archetypes 0 Associative networks universally known symbols 0 eg The quotBad Boyquot archetype devil may care cool and rugged breaks rules Brand Personality 0 Essence of a product through association to something else 0 eg Charlie Sheen and Fiat 0 Charlie Sheen represents Fiat Fiat becomes quotbad boyquot brand Archetypes in Advertising 0 Hidden underlying meanings o eg Pillsbury Doughboy I subtle reference to fertility I fluffy baked goods associated with maternal feelings quota bun in the ovenquot 0 eg Snakes I represent evil the devil temptation Slytherin etc o eg Blu Cigs I Uses rebel archetype I ads and actor portrayal mimic rebel characters such as Cool Hand Luke and James Dean imitating certain poses and styles End of Notes Fun Fact More Rubik39s Cubes have been sold in the world than iPhones
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