Chapter 12 & 14 Flashcards
Multi-Channel Distribution
Manufacturer sells directly to customers and also sells though indirect distribution channels like retailers.
Push marketing vs. Pull Marketing
PUSH MARKETING
Manufacturer uses promotional efforts directed at retailers to convince them to carry the manufacturer’s product
PULL MARKETING
Manufacturers uses promotional efforts directed at customers to create demand and convince retailers to carry their product
What is Distribution Intensity? What are the three levels it’s commonly divided into?
The # of channel members to use at each level of the supply chain
INTENSIVE DISTRIBUTION
Get products into as many outlets as possible (PepsiCo, P&G, Kraft, etc.)
SELECTIVE DISTRIBUTION
Uses few selected customers in a territory to maintain a particular image and control flow of merchandise
EXCLUSIVE DISTRIBUTION
Granting exclusive geographic territories to one or few retailers. Helps maintain certain image and protects margins of retailers.
Administered Vertical Marketing System
A supply chain system in which there is no common ownership and no contractual relationship, but the dominant channel member controls the channel relationship.
Contractual Vertical Marketing System
Independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination and to reduce conflict.
Strategic Relationship (AKA Partnering Relationship)
Supply chain members are committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial
Electronic Data Interchange (EDI)
The computer-to-computer exchange of business documents from a retailer to a vendor and back. In addition to sales data, purchase orders, invoices, and data about returned merchandise can be transmitted back and forth.
Vendor Managed Inventory (VMI)
Approach for improving marketing channel efficiency in which the manufacturer is responsible for maintaining the retailer’s inventory levels in each of its stores
Just-in-time (JIT) inventory systems [AKA Quick-Response (QR) ]
inventory management systems designed to deliver less merchandise on a more frequent basis than traditional inventory systems. The firm gets the merchandise “just in time” for it to be used in the manufacture of another product or for sale when the customer wants it.
The Communication Process
SENDER:
Firm
TRANSMITTER:
Creative department or marketing agency
COMMUNICATIONS CHANNEL:
The medium that carries the message (ex. print, broadcast, the Internet)
RECEIVER DECODES MESSAGE
Person who reads, hears, or sees and processes the information contained in the message or advertisement
FEEDBACK LOOP
Allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly.
Steps in Planning an IMC Campaign
1) IDENTIFY TARGET AUDIENCE
2) SET OBJECTIVES
3) DETERMINE BUDGET
4) CONVEY MESSAGE
5) EVALUATE AND SELECT MEDIA
6) CREATE COMMUNICATION
7) ASSESS IMPACT
Media Planning
Process of evaluating and selecting the media mix—the combination of the media used and the frequency of advertising in each medium—that will deliver a clear, consistent, compelling message to the intended audience
What are the three types of advertising schedules?
CONTINUOUS
Runs steadily throughout the year
FLIGHTING
Implemented in spurts, with periods of heavy advertising followed by periods of no advertising
PULSING
Combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods.
What is the formula for Gross Rating Points (GRP)? What is the value used for?
GRP = Reach × Frequency
- Marketing communications managers usually state their media objectives in terms of (GRP)
Impressions
Number of times the ad appears in front of a user
Often used with Click-Through Rate (CTR)
