MARK 3321 1st Edition Lecture 11 Outline of Last Lecture I Individual Brands vs Family Brands II Functions of Packaging III Labeling IV UPCs V Product Warranties VI Categories of New Products VII New Product Development Process VIII Categories of Adopters IX Product Characteristics X 4 Stages of Product Life Cycle XI Importance of Services XII How Services differ from Goods XIII Components of Service Quality XIV Service Strategy XV Relationship Marketing in Services Outline of Current Lecture I Nonprofit Organization Marketing II Target Markers for Nonprofits III Marketing Channels IV Specialization and Division of Labor V Channel Intermediaries VI Channel Functions performed by Intermediaries VII Making Channel Strategy Decisions VIII Types of Channel Relationships IX Channel Power Control and Leadership X Channel Conflict and Partnering XI Classification of Ownership XII Non store Retailing XIII Retail Marketing Strategy Current Lecture CH 12 Services and Nonprofit Organization Marketing continued Nonprofit Organization Marketing These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute o Nonprofit organization An organization that exists to achieve some goal other than the usual business goals of profit market share or return on investment Target Markets for Nonprofits o Apathetic or strongly opposed targets o Pressure to adopt undifferentiated segmentation o Complementary positioning CH 14 Marketing Channels and Retailing Marketing Channels Channel of distribution o A set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer Specialization and Division of Labor o Creates greater efficiency o Provides lower production costs o Create time place form and exchange utility Channel intermediaries o Retailer o Merchant wholesaler o An institution that buys goods from manufacturers takes title to goods stores them and resells and ships them Agents and brokers A channel intermediary that sells mainly to customers Wholesaling intermediaries who facilitate the sale of a product by representing channel members Channel Functions performed by Intermediaries o Transactional functions o Contacting promoting Logistical functions Transporting o Storing Sorting Facilitating functions Researching Financing Making Channel Strategy Decisions o o Factors affecting Channel Choice Market factors Product factors Producer factors Level of distribution intensity Intensive distribution Selling to any organization that will accept it Ex markers diapers Selective distribution Selling to a few organizations in a small geographic area Ex Godiva chocolates industrial carpeting Exclusive distribution Selling to one organization in a particular geographic area Ex jaguar cars cat tractors Types of Channel Relationships o Arm s Length Relationship Benefits Fulfills a one time or unique need Low involvement risk Hazards Parties unable to develop relationships Low trust level o Cooperative Relationship Benefits Formal contract without capital investment long term commitment happy medium Hazards o Integrated Relationships Benefits Closely bonded relationship Explicitly defined relationships Hazards High capital investment Any failure could affect every channel member Channel Power Control and Leadership o Channel Power o o A channel member s capacity to control or influence the behavior of other channel members Channel Control A situation that occurs when one marketing channel member intentionally affects another member s behavior Channel Leader channel captain Some parties may need more relationship definition A member of a marketing channel that exercises authority power over the activities of other members Channel Conflict and Partnering o o Channel conflict A clash of goals and methods between distribution channel members Horizontal vs vertical conflict Channel Partnering Channel cooperation Classification of Ownership o Independent retailers o o Owned and operated by individuals but licensed by a larger supporting organization Non store Retailing o Automatic vending o Direct retailing Mary Kay o Direct marketing Telemarketing Direct mail Catalogs and mail order Shop at home TV networks Online retailing e tailing New Developments in Retailing o M commerce Owned and operated as a group by a single organization Franchises Owned by a single person or partnership and not part of a larger retail institution Chain stores The joint effort of all channel members to create a channel that serves customers and creates a competitive advantage The ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services Retail marketing strategy o Define a target market o Choose a retailing mix