Marketing 6th Lecture

Value delivery network is a network composed of the company, suppliers, distributors and customers.

Marketing channel consists out of interdependent organisations that help to make a product (or service) available for use

Promotion is the act of finding and communicating with possible buyers.

When Matching, the offers are shaped and fitted dependent on the buyers needs

"Contact" is a way that cannel members add value

An agreement on price and other terms can be reached through Matching.

The channel level is a channel that has no intermediary levels.

Conventional distribution channel is a distribution channel structure in which producers, wholesalers and retailers act as a unified system.

Horizontal marketing system is a channel consisting of oner or more independent producers, that seek to maximiser their own profits, even if it is at the expense of profits for the system as a whole.

Vertical marketing system (VMS) is a channel arrangement where two or more companies join together in order to follow a new marketing opportunity.

Corporate VMS: a vertical marketing system that combines back-to-back stages of production under single ownership- yet the channel leadership is established through common ownership

Contractual VMS: independent firms at different levels of production and distribution join together though contracts.

Administered VMS: system that coordinates successive stages of production through the size and power of one of the parties (e.g. Walmart)

Multichannel Distribution System is a system in which a single firm sets up two or more marketing channels to reach one or more stroker segments.

Channel design decisions are evaluated by factors like customer needs, channel objectives and identifying major channel alternatives.

Major channel alternatives are price and color of a product.

Selective distribution: giving the product to only a limited number of dealers.

Marketing logistics: managing upstream and downstream value-added flows of good among the suppliers, company, resellers and final consumers.

Supply chain management: managing upstream and downstream value-added flows of good among the suppliers, company, resellers and final consumers.

Retailing includes all activities that are involved in selling goods or services for personal, nonbusiness use.

Retailer's are businesses whose sale come primarily from retailing

There are different types of retailers.

having self-service (e.g. self checkout) vs. full-service retailers is part of the criteria of the Amount of service

Possible examples for the Product line are speciality stores, departments stores and supermarkets.

Possible examples for Relative prices are franchise and voluntary chains

Possible examples for Organization would be discount stores and outlets

Pop-up Stores are a trend in retailing.

Wholesaling: All activities included in selling goods and services.

Wholesalers are primarily engaged in wholesaling activities.

Wholesalers buy mostly from retailers and sell to producers.

Many of the nation's largest and most important wholesalers are largely unknown to final customers.

Merchant wholesalers are independently owned but take title of the merchandise that it handles

A Broker is a wholesaler that does not take title to goods and brings buyers and sellers together as well as assets in negotiating.

An Agent is a wholesaler that checks if the goods are treated correctly.

Promotion Mix can also be called Marketing Communication Mix

Five Major Promotion tools are advertising, sales promotion, personal selling and public relations

Recent developments have been that the customers are better informed and empowered and a shift in both traditional and mass media has been prominent.

Promotion mix strategies include the Push as well as the pull strategy.

The push strategy "pushes" the product on to the customer.

The pull strategy waits for the demands of the customers as a marketing activity

The affordable method is per se the most expensive

Competitive-parity method sets the promotion budget at a certain percentage.

Percentage-of-sale method sets the promotion budget to match the competitors outlays.

Objective-and-task develops the promotion budget with 3 steps

The message strategy sets the notion for the message execution. It is the "big idea" that will make the advertisement especially memorable.

The message execution focusses on the approach, style, tone, and format used for executing the advertised message.

Strong impact comes with less control.

Building public relations are more expensive than advertising.

a salesperson is an individual that represents the company

salesforce links the company with its customers.

Consumer promotions boost short-term buying and involvement. They can also enhance long-term customer relationships.

Trade promotions objective is it to persuade resellers to carry their product.

public policy issues in direct and digital marketing are irritation, unfairness, deception and fraud as well as a invasion of consumer privacy

REVIEW QUESTIONS (1):
A distribution channel structure in which producers, wholesalers and retailers act as a unified system is called a vertical marketing system.

REVIEW QUESTIONS (2):
Retailing refers to all the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.

REVIEW QUESTIONS (3):
Advertising refers to a short-term incentives to encourage the purchase or sale of a product or service.

REVIEW QUESTIONS (3):
The affordable method in advertising budget setting refers to setting the budget in a way that it matches competitors outlays.