POM Reviewers Finals: Module 9 - Distribution Strategies PDF

POM REVIEWERS~FINALS 1. Self-service retailers- Where customers pick up the items themselves and proceed to the counter to pay....

POM REVIEWERS~FINALS 1. Self-service retailers- Where customers pick up the items themselves and proceed to the counter to pay. 2. Limited-service retailers- Provide more sales assistance as they Module 9: Distribution Strategies carry more shopping goods that customers need information on. Distribution channels- In general, manufacturers do not sell their goods Department stores- Carry a wide variety of products lines. directly to the customers. Supermarkets- Are large, low-cost/high-volume stores designed to serve “A great product needs a good marketing channel” the customers’ need for groceries and household products. >Functions of Marketing Intermediaries that benefit the Convenience Stores- Are relatively small stores that are open 24/7 and manufacturers. carry high turnover convenience goods and ready-to-go food. 1. Product Promotion- A strategic process that uses marketing Superstores- Are much bigger than regular supermarkets and carry a large and advertising to increase awareness and interest in a product or assortment of groceries, nonfood items, and services. service. 2. Information Provider- A middlemen can help the Service Retailers- Are stores whose main products are manufacturers by giving them information about the customers. services such as salons, spas, hospitals, 3. Physical Distribution- Marketing function that involves the banks, airlines, cinemas, and the like. movement of goods from a producer to a customer. Discount Stores- Carry standard merchandise with lower margins and >Functions of Marketing Intermediaries that benefit the higher volumes. customers. 1. Matching demands and supplies- Balance between the Off-Price Retailers- Carry items at regular wholesale prices and accept quantity of goods and services being supplied and the quantity lower margins to keep prices down. being demanded. 2. Merchandising- The process of promoting and selling products. Warehouse Clubs- Carry grocery items, appliances, clothing, and other 3. Sales Promotion- A marketing strategy that uses temporary goods at big discounts to members who pay annual membership fees. incentives to increase sales, brand awareness, or customer loyalty. Green Retailing-As companies become more aware of their social responsibility, more retailers nowadays adapt environmentally sustainable Channel Level practices. - Each layer is called a channel level. - Intermediary levels indicates the length of a channel. Wholesaling- All the activities involved in selling goods and services - The channel level includes Direct Marketing Channels, where for resale or business use, or for further processing. sales take place between producer and customer, and Indirect Marketing Channels where producers tahe the help of retailers Merchant Wholesalers- Provide a full line of services such as carrying for the distribution of the product. stocks, maintaining a sales force, offering credit, making deliveries, and providing management assistance. Direct Marketing Channel - Has no intermediary levels because tha company directly sells to Choosing Intermediaries- Manufactures need retailers, wholesalers, and customers. other intermediaries to distribute their goods to the final consumer. Indirect Marketing Channel Motivating Intermediaries- Once a relationship has been established with - Has one or more intermediary levels. the intermediaries, companies must maintain a good partnership with them. - Manufacturer to Wholesaler to Retailer to Customer International Distribution Channels- Distributing products in other Supply Chain Management countries is a great challenge for companies. - Is the management of upstream and downstream value-added flows of materials, final goods, and related information among Module 10: Promotion Strategies suppliers, the company, resellers, and final consumers. The Communication Process- When you speak—whether to tell a story or Upstream- Ensure reliable supply of input materials. news, to persuade someone to do something, or to express your -These are the raw materials to send to the disagreement about something—you are employing the communication manufacturer process in order to deliver your message effectively. Downstream- Product delivery and customer satisfaction. - Distributions of product to final customer. Major Logistics Functions- Companies need to manage their logistics system effectively in order to minimize costs while attaining their objectives. Warehousing- Companies must make decisions on how to store their The Promotion Mix- Is composed of marketing elements such as goods, for how long, and how big of an area they need. advertising, public relations, sales promotions, direct marketing, and personal selling. Inventory Management- Proper inventory management ensures that there are enough stocks of goods given the demand for a period of time. Transportation- Truck, rail, water, pipeline, air, and the Internet can be used to send goods to the layers in the distribution channel. Retailing- All activities involved in selling products or services to final consumers for their personal or household use. >Types of retail operations- As long as stores cater to personal consumers, they are considered retailers. Promotion Mix Percentage of sales method -Advertising is a paid form of non-personal communication in audio or -is a financial forecasting tool that uses historical sales data to predict future visual form that promotes products (goods, services, ideas, or places) to financial performance. specific audience. -Sets the promotion budget at a certain percentage of current or projected -Public Relations builds good relations with the company’s various internal sales. and external publics by creating favorable publicity, building up a good corporate image, and addressing issues and events. Advertising- Persuading consumers to buy a product, especially if it is new, -Sales Promotions are short-term incentives created to encourage is a hard task for marketers. customers to purchase a product. -Direct Marketing is the direct communication with individual consumers Advertising Objectives- Before deciding to invest on advertising, via different channels to generate an action response and to build lasting marketers must first determine the advertising objective of the product relationships. based on its target market, positioning, and current place in the market. -Personal selling is the personal interaction between the sales personnel and the customers for the purpose of making a sale and building customer Informative Advertising- Is heavily used when introducing a new product relationships. or a new product category. It influences buyers to buy product by educating them about the product’s benefit. Integrated Marketing Communication-In this concept, marketers deliver one consistent and integrated message across all channels to ensure clear Persuasive Advertising- Builds brand preference and influences consumers comprehension of brand messages. to buy products, and sometimes to buy with urgency. Comparative Advertising- Is used to compare the benefits or the advantage of one brand over its competitors. Reminder Advertising- Is important for mature brands as it helps maintain customer relationships and keep consumers thinking about the brand. The Advertising Message- Companies are challenged to break through the advertising clutter with every message that they put out in the market. Message Execution- Is the actual execution of the creative concept in video, print, or radio format. Sponsorships- a financial or in-kind contribution to a person, organization, Advertising Media- In selecting advertising media to be used, companies or activity in exchange for commercial benefits must consider several factors such as reach, frequency, and impact. Social Media Marketing- is the practice of using social media platforms to Reach- Is a measure of the percentage in the target market that is exposed promote a brand, product, or service. to the ad campaign during a given period of time. Mobile marketing- is a multi-channel online marketing technique focused Frequency- Is a measure of how many times the target market is exposed to at reaching a specific audience on their smartphones, feature phones, the message. tablets, or any other related devices through websites, e-mail, SMS and MMS, social media, or mobile applications.[ Impact- Is the qualitative value of message exposure through a given exposure. Setting the Total Promotion Mix Budget- Companies need to determine how much to spend for all their promotional activities. Competitive parity method Public relations or PR- is used to build good relations with consumers, -is a budgeting strategy where a company matches its advertising and investors, media, and communities. marketing spending to that of its competitors. -Sets the promotion budget to match competitors’ spending. Public Relation Tools -Press Kit is a gift or token that is sent out to different media outlets that Objective and task method may contain product samples, a present related to the product, a CD or -is a budgeting strategy that links a marketing budget to specific objectives DVD of high-resolution images, and press release. and the costs of the tasks needed to achieve those objectives. -Press Release is a news article about updates, interesting stories, or -Sets the company’s promotions budget based on what it wants to anything that can be publicized about a brand or company. accomplish with the promotional activities. -Press Launch is an exclusive event where media members and press people get firsthand information about a product, before it is launched in the Market share method- dividing its total sales or revenues by the industry's market. total sales over a fiscal period. -Event and Event Sponsorships build good relations with the general public, especially if a product support a cause. Affordable method -Social Media Accounts also serve as a PR tool for a lot of brands -is a budgeting technique where a company allocates funds to advertising nowadays. based on what it believes it can afford after covering its other expenses. -Sets the promotion budget at the level that the company thinks it can Consumer Promotions- Final consumers are urged to purchase urgently to afford. boost sales of products in a short period of time. -Coupon is a certificate or a voucher that lets you buy something at a discounted price. -Premiums are prizes, gifts, or other special offers received when a consumer purchases a product. -Incentives are rewards or compensation given to consumers to encourage a desired action, such as making a purchase. -Product samples is an experiential marketing strategy used by businesses to introduce their products to potential customers. -Product placement is a marketing technique in which a product or service is showcased in some form of media. -Loyalty programs is a marketing approach that recognizes and rewards customers who purchase or engage with a brand on a recurring basis. -Point-of-Purchase displays is a marketing tool used in the retail industry to capture the attention of customers and influence their purchase decisions when they are ready to buy a product. Trade Promotions- Targeted toward retailers and wholesalers to increase orders, carry new items, buy ahead, or promote the company’s products and give them more shelf space. -Discounts a deduction from the usual cost of something, typically given for prompt or advance payment or to a special category of buyers. -Allowances are discounts or incentives given to retailers for purchasing and promoting the manufacturer's products. -Free goods are promotional items that can be given away for free or sold at a reduced price to a customer who meets certain conditions. -Push money a direct payment of money offered to the sales force of a reseller by a manufacturer to encourage greater efforts with a particular product or range. -Specialty advertising items also known as promotional merchandise, are products that are branded with a company's logo or slogan and given away to promote a brand, event, or corporate identity. Consumer promotions are offered in many ways to excite the customers and encourage purchase. Trade promotions come in the form of discounts, allowances, or free products upon purchase of a required number of products from the manufacturer. Business Promotions are activities that generate business leads, stimulate purchases, or reward customers. Sales Force Promotions are the salespeople that need motivation to sell more of a company’s products. Direct MarketingUses marketing efforts that connect them with selected consumers. Personal Selling is the interpersonal interaction between customers and salespeople to make sales and maintain customer relationships. Module 11: Global Marketing Digital Marketing the digital revolution is shaping the way marketing influences consumers. What is Global Marketing? Products that are available in the market will always need strategies to Paid, Owned, and Earned Media (POEM) is a digital content that create awareness, to promote them, and to encourage purchase among requires the use of a new marketing communications framework because it their customers—which is the function of marketing. can no longer be classified using traditional media breakdowns. Standardization vs. Adaption Is the extent to which a company uses the same marketing mix elements in another country market (standardization). -Demographic forces are the three factors that determine the population of a specific area. -Economic forces are factors such as monetary and fiscal policies, interest rate, employment, inflation rate, demographic changes, political changes, energy, security, and natural disasters. -Natural forces is the Earth's wide variety of natural resources such as Global Localization is a term that indicates that there is no “one size fits forests, agricultural products, marine products, minerals, water resources, all” etc. strategy when it comes to marketing products globally. -Technological forces include production techniques, information and communication resources, production, logistics, marketing, and Global Marketing Management Orientation a company adopts a e-commerce technologies. management style that suits the industry. -Political forces- These are all about how and to what degree a government intervenes in the economy. -Cultural forces are important to consider in marketing because they can influence consumer preferences, values, and behaviors. Political Environment- Each country has a political culture that reflects its government and legal system. Economic Environment- the world economy has become a dynamic force in fostering global trade. Social and Cultural Environment- The social and cultural environment presents the differences and similarities in the world’s different cultures. The Global Marketing Mix a company that wants to expand in an international market still makes decisions based on considerations of the marketing mix. Product Decisions- Consumer and industrial products are both available in the global market. Ethnocentric Orientation the management style that assumes that the home country is superior to the rest of the world is the ethnocentric orientation. Polycentric Orientation is the management’s belief or assumption that different countries where a company operates have unique needs and require different approaches. Regiocentric Orientation a company that chooses the regiocentric orientation regard the region as the relevant geographic unit. Geocentric Orientation in the geocentric orientation, the company views the world as one big potential market and creates integrated global strategies. Factors Affecting Global Marketing While global marketing enables companies to expand their business to reach a bigger customer base, there ae challenges that they have to face and address to succeed.