MARK 3321 1st Edition Lecture 11Outline of Last Lecture I. Individual Brands vs Family BrandsII. Functions of PackagingIII. LabelingIV. UPCsV. Product WarrantiesVI. Categories of New ProductsVII. New Product Development ProcessVIII. Categories of AdoptersIX. Product CharacteristicsX. 4 Stages of Product Life CycleXI. Importance of ServicesXII. How Services differ from GoodsXIII. Components of Service QualityXIV. Service StrategyXV. Relationship Marketing in ServicesOutline of Current Lecture I. Nonprofit Organization MarketingII. Target Markers for NonprofitsIII. Marketing Channels IV. Specialization and Division of LaborV. Channel IntermediariesVI. Channel Functions performed by IntermediariesVII. Making Channel Strategy DecisionsVIII. Types of Channel RelationshipsIX. Channel Power, Control, and LeadershipX. Channel Conflict and PartneringXI. Classification of OwnershipXII. Non-store RetailingXIII. Retail Marketing StrategyCurrent LectureCH 12 - Services and Nonprofit Organization Marketing (continued)- Nonprofit Organization MarketingThese 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 Nonprofitso Apathetic or strongly opposed targetso Pressure to adopt undifferentiated segmentationo Complementary positioningCH 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 Laboro Creates greater efficiencyo Provides lower production costso Create time, place, form, and exchange utility- Channel intermediarieso Retailer  A channel intermediary that sells mainly to customerso Merchant wholesaler An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships themo Agents and brokers Wholesaling intermediaries who facilitate the sale of a product by representing channel members- Channel Functions performed by Intermediarieso Transactional functions Contacting/promotingo Logistical functions Transporting Storing Sortingo Facilitating functions Researching Financing- Making Channel Strategy Decisionso Factors affecting Channel Choice Market factors Product factors Producer factorso 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 Relationshipso Arm’s Length Relationship Benefits- Fulfills a one time or unique need- Low involvement/risk Hazards- Parties unable to develop relationships- Low trust levelo Cooperative Relationship Benefits- Formal contract without capital investment/long-term commitment- “happy medium” Hazards- Some parties may need more relationship definitiono Integrated Relationships Benefits- Closely bonded relationship- Explicitly defined relationships Hazards- High capital investment- Any failure could affect every channel member- Channel Power, Control, and Leadershipo Channel Power A channel member’s capacity to control or influence the behavior of other channel memberso Channel Control A situation that occurs when one marketing channel member intentionally affects another member’s behavioro Channel Leader (channel captain) A member of a marketing channel that exercises authority/power over the activities of other members- Channel Conflict and Partneringo Channel conflict A clash of goals and methods between distribution channel members Horizontal vs vertical conflicto Channel Partnering (Channel cooperation) The joint effort of all channel members to create a channel that serves customers and creates a competitive advantage- Classification of Ownershipo Independent retailers Owned by a single person or partnership and not part of a larger retail institutiono Chain stores Owned and operated as a group by a single organizationo Franchises Owned and operated by individuals, but licensed by a larger supporting organization- Non-store Retailingo Automatic vendingo 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 Retailingo M-commerce The ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services- Retail marketing strategyo Define a target marketo Choose a retailing