MKT 327 Introduction to Marketing 1st Edition Lecture 20 Channels of Marketing Outline of Last Lecture A. Mass communications: roles in value creationI. AdvertisingII. Sales promotionIII. Basic sales: promotion decisionsIV. Publicity/ sponsorshipV. Social mediaVI. Personal sellingVII. Types of personal sellingVIII. Evaluation of personal sellingIX. Sales managementOutline of Current Lecture B. Essence of marketing X. Physical connection XI. Marketing channels XII. Importance of channels XIII. Coordinating marketing mix/ managing channelXIV. Market discrepanciesXV. Universal marketing functionsXVI. Channel decisions XVII. Channel criteria Current Lecture1) Essence of marketinga) Build connections and relationshipsb) And use them as a stage for creating valuec) And capturing value (sales)2) Physical connection a) Channels b) Marketing distribution channelThese 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.i) A set of interdependent organizations working collectively to making a product or service available for purchase (1) Excludes from value chain all organizations ONLY involved in transport or supplyii) The most fundamental way an organization physically comes into contact with a customer is through the product. A customer can’t physically get their hands on a product or service though without a DISTRIBUTION CHANNEL(1) Channel decisions create time and place utility; and possession utility(a) Intermediaries can also create symbolic and experiential value 3) Marketing channelsa) Directi) Manufacturerii) Customer b) Indirecti) Manufacturerii) Retailer iii) Or wholesaler  retaileriv) Or wholesaler  jobber  retailerv) Customer c) Reversei) Indirect or directii) Consumeriii) Manufacturer 4) Importance of channels a) “Our selections are often made for us” – Devil Wears Prada example b) Address market discrepanciesc) Efficient performance of universal marketing functions 5) Coordinating marketing mix/ managing channela) Push strategyi) Focus on selling ii) To tradeiii) Trusting consumersiv) Buy what’s available b) Pull strategyi) Focus on sellingii) To consumeriii) Trusting tradeiv) Carry what’s demanded6) Market discrepancies a) Discrepancy in time b) Discrepancy in placec) Discrepancy in assortment and allocation 7) Universal marketing functionsa) Transactionali) Buying and sellingii) Risk taking b) Logisticali) Transporting and storageii) Standardization and assortingiii) Making and breaking bulkc) Facilitatingi) Communicationii) Grading iii) Financing 8) Channel decisionsa) Channel organizationsi) Specifies the legal structure between members of a distribution channel and consequently the extent of administrative control and coordination ii) Conventional iii) Vertical (1) Corporate (2) Administered (3) Contractual (a) Wholesale sponsored(b) Franchise(i) Manufacturer sponsored retail(ii) Service sponsored retail(iii) Manufacturer sponsored wholesale(iv) Service sponsored (c) Retail sponsored b) Channel structurec) Channel intensityd) Channel member selectione) Channel management f) Supply chain decisionsi) Logistics(1) Transportation(2) Warehousing(3) Materials handlingii) Inventory managementiii) Order processing iv) Customer service v) Total cost conceptvi) Customer relationships (CRM)vii) Congruence 9) Channel criteria a) Cost b) Conflictc) Coveraged) Controle) Connectivity (impact on