BMGT350 Final Chp 13 18 21 22 Chapter 13 14 Distribution o Product success depends on Distribution to a variety of outlets Good Display location Efficient Restocking No Outage o Requires Strong Sales Force Company Sales Reps vs Agents or Brokers Sampling Factors influencing a Retailer s Decision to Carry a Product o Sales Profit Expectations Margins Sales Promotion Incentives Offered by Manufacturer Slotting Allowances fee paid to have shelf space Volume Discounts Display Allowances Other Trade Allowances o Relationship with Manufacturer o Exclusive Deals with Manufacturers o Shelf Inventory Space o Fit with Retailer s Target Customer Supply Chain Management o Supplier o Manufacturer o Wholesaler Distributor o Retailer o Consumer o Connected through Order processing inventory Management and Transportation Eye Glass Frame Supply Chain o Luxottica Group largest eyeglass frame maker in the world o Manufactures a variety of brands branding symbol increases price and differentiates o Retailers Lens Crafters Pearl Vision Sears Optical Target Optical Sunglass Hut Channel for Consumer Products o Direct Channel Producer to Consumer o Retail Channel Producer to Retailer to Consumer o Wholesaler Channel Producer to Wholesaler to Retailer to Consumer o Agent Broker Channel Producer to Agent to Wholesaler to Retailer to Consumer Factors Influencing Channel Structure o Size of Retailer Manufacturer o Type of Retailer Large Retail Chains often buy merchandise directly from Distribution Center is common for large retail chains Drugstores get their merchandise from Wholesalers o Product Factors Perishable goods should have shorter channel Longer channel for standardized goods o Degree of Marketing Control Desired by Manufacturer o Size of Manufacturer Agents and Brokers used if Manufacturer doesn t have a sales Channel for Business Products force o Direct Channel Producer to Business User o Direct Channel Producer to Government Institutional Buyer o Distributor Channel Producer to Distributor to Business User o Agent Broker Channel Producer to Agent Broker to Business User o Agent Broker Distributor Channel Producer to Agent Brokers to Distributors to Business Users Levels of Distribution o Intensive Objective Achieve Mass Market Selling Common for Convenience goods Number of Retailer Many ex M Ms candy o Selective Objective Work with Selected Retailers Common for goods consumers will spend time to find Several retailers o Exclusive ex Under Armour Objective Work for single retailer Common for speciality goods One retailer ex rollsroyce Social Dimensions of Channels Channel Power Chapter 15 Retail marketing strategy o Step 1 Define Select a Target Market o Step 2 Develop the Six P s The Retailing Mix 6 P s o Product Merchandising Mix o Place Location Demographics of target market Demographics of location o Promotion Advertising for retail stores o Price o Presentation o Personnel Employees and Sales associates Classifying Retailers Based on Product Mix Price o specialty stores convenience stores 7 11 Bath and Body Works narrow product assortment moderate to high prices o department store category killers Macy s Best Buy wider product assortment moderate to high prices o off price retailers TJ Maxx narrower product assortment lower prices o discount stores warehouse club stores Costco wider product assortment lower prices Presentation of the Retail Store o Designed to get customers target market to stay in store and spend money o Employee Appearance o Merchandise Density Presentation and Location o Type of Displays o Atmosphere music scents lighting flooring color schemes Personnel and Customer Service o Two Common Selling Techniques Trading Up Sales associate tries to convince customer to buy more expensive product Suggestion Selling Sales associate tries to sell a complementary product Grocery Retailing Strategies video links Trends in Retailing o M Commerce Mobile Selling Paying with Mobile devices o Social Media Retailing Facebook Retailers Target Moppers mobile shoppers o Showrooming when people use B M stores to view test products and then go home and purchase products online use store as showroom Strategies to combat Additional products online Free delivery to the store Price matching of web prices o Mannequin Cameras Cameras tracking customer behavior Adapting retail floor and merchandising based on shopper habits Chapter 16 and 22 Integrated Marketing Communication Promotion The Role of Promotion in the Marketing Mix o Promotion Tools Advertising Public Relations Sales Promotion Sales Reps personal selling Product Placement Social Media o Integrated Marketing Communications Coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer Public Relations Advertising Personal Selling Sales Promotion Public Relations o General Goals of Promotion Inform Remind and Persuade the Target Audience o The AIDA Concept Theory that proposes that marketers promotions must move consumers through a series of stages Attention Interest Desire Action o Factors Affecting Promotion Plan Nature of the product Business product vs Consumer Product business products involve personal selling but consumer is more advertising personal selling increases when cost or risk of buying a product increases Push vs Pull Strategy Target Market Factors Number of consumers of loyal where located Type of buying decision Routine vs Complex Decision Promotion Funds Available Stage in the PLC Product life Cycle o Stage in the Product Life Cycle Pre Intro Light Advertising publicity Goal Inform Introduction Heavy use of Advertising PR to build awareness sales promotion for trial sales reps for distribution Advertising and PR to build brand preference heavy sales Goal Inform Growth reps to gain distribution Goal Persuade Maturity Ads focus on persuading reminding Sales promotions used heavily to maintain loyalty keep from switching Goal Persuade Remind Decline Often decrease most promotional activity but possibly continued use of sales promotions Goal Remind Integrated Marketing Communications the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company communicates with a customer Integrates personal selling advertising sales promotions social media and public relations so that the message reaching the customer is the same
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