MKTG 301 Distribution Channel influence Push and pull Vertical marketing systems VMS Administration systems Where does an 800 lb gorilla sleep Wherever he wants Channel captains like walmart are 8 000 lb gorillas From the standpoint of the manufacturer strong companies can be come channel captains and exert power and influence in channels Someone is always calling the shots retailers wholesalers manufacturers etc can reward and punish Contractual systems creation of formal agreements in formal agreements Fees royalties etc in exchange for franchise agreements and brand conformity Ex car dealerships The quality of the formal agreement counts More professional than administrative systems Corporate systems relies on ownership Ex corporate buyouts What does a company own Absolute control Promotion Integrated marketing communication Is what we re doing in promotion truly integrated marketing communication Most marketing relies on multiple methods These all have di erent roles to play the strength of one can o set the weakness of the other Synergy Major promotion methods 1 2 3 4 Advertising Personal Selling Sales promotion Public relations Major promotion objectives You should never have a promotion campaign with no objectives 1 Exposure You should always have an exposure objective A measure of reach x frequency What is the size of our audience What percentage of a target audience do you want to reach How many times do you reach your target audience frequency Looking in sheer dollars every dollar you spend in frequency is one less dollar spent on reach and vice versa How much frequency do you need for your objective Reach is more important overall and more of your budget should go to it 2 Awareness You should also always have awareness What do you want the audience to be aware of Store location products for sale benefits over competitors etc 3 Attitude A lot of companies have an attitude objective Attitudes are predispositions to behave in a certain way toward an object An object might be a brand like vcu or a product like milk Everyone has predispositions to behave in a certain way toward objects around us Ex Got Milk was created to change people s attitude toward milk 1 If you look at the components of attitude one component of attitude is going to be what we call the cognitive component This is defined by knowledge and beliefs Ex milk is good for you 2 A ective component deals with feelings and emotions liking and disliking Ex a lot of people thought milk was dull and boring or comforting and soothing 3 Behavior component do they use milk for drinking or cooking 4 Tra c Inquiry 5 Sales getting sales IF you have a bad product or bad distribution or price a good promotional campaign can not fix that Sources 1 Commercial sources bias communication Advertising and personal selling often fit here Comes directly from the company These should not be the only sources of promotion because they can create credibility problems 2 Public sources what are people saying about your brand 3 Personal opinion leaders your family your friends etc Word of mouth recommendations for a product or brand Micro level social influences 4 Experiential the test drive Letting students tour VCU samples test driving cars etc Let people experience your product Hierarchy of e ects Short cut version This refers to a sequence we move through as we become persuaded AIDA Attention Awareness Interest where you develop positive attitudes for a product Desire Action a purchase A I D A Advertising Publicity Building the foundation Sales promotion Personal selling Finishing the house Use your di erent methods strategically How does truly integrated marketing use the points Advertising Planning 1 Situation analysis strengths weaknesses opportunities and threats Using advertising to address the situation 2 Objectives 3 Strategy 1 Message strategy 1 A positioning approach carving out a distinct share of mind Listerine is the first brand of mouthwash that comes to mind when you think of mouthwash It s intrinsic Best position This can be done by attribute or user type Use occasion product class by competitor comparison risky price and quality Pick the one that is the most important for your product 2 Message format execution style Mood problem solution demonstration slice of life news format fantasy animation