Notes 3 Flashcards
Distribution channels
The path a product follows from manufacturers to consumers
Direct channel
From manufacturer to consumer
Online or apple store
Cheaper
Indirect channel
Manufacturers. Marketing intermediaries. Consumer
More convenient
Allows focus
Dual
When u do both direct and indirect
Channel conflict
When u sell direct and indirect and compete with yourself
Ways to stop: keep price the same and give channel partners exclusive products
Channel length
How long the chain of intermediaries is
How many times a product changes hands
Anticipatory inventory
Guess how much u sell
Response inventory
Every time something is bought another is ordered
Merchant
60%. Take products then sell them assume a lot of risk
Matchmakers
40%. Finds customer for the company then buys product and delivers
2 types of matchmakers
Agent: pair with specific company
To sell their goods
Broker: sells specific product to people helps people choose from a lot of different brands
Verticals integration
When one channel starts to overtake other parts of the chain
Backward VI
When distributor becomes manufacturers
Frontward VI
When a distributor overtakes a retailer
Intensive
Can be found anywhere
Like gum
Exclusive
Have to travel not common
Rolls Royce dealer
Selective
In between
Olive Garden
Direct response
Commercial adds
Say call right now limited time offer infomercial
Brand advertising
A man shoots basketball then says Nike just do it. No direct call to buy
E commerce
Digital version of direct marketing
Timeline of marketing media
Book Periodical Radio Tv Internet Smart phone
Service marketing
More important to brand a service than a product because services are intangible
90% of jobs are services in developed countries
Include hidden sector
Furniture also install replace repair
Types of services
Rental (cars hotel ski’s)
Repair (insurance plumbing lawn)
Personal services (schools, speech coach, physical trainer)
GDP
The value of all the work done in a country
Cues
Stan vs. Bob
Sheetz cleans trucks
Business to business
When business’s buy from business’s Biggest buyers Microsoft Staples fedex General Electric Visa Insurance 50% b to b sales done online
Main focus of b to b marketing
Consumers focus on products business focus on vendors
Most important is delivery
B to b promotion
Search engine
Personal selling advertising in trade journals
Derived demand
Industrial demand derived from consumer demand
Accelerator principle
When consumers don’t want a product it takes out a lot of people
International marketing
Pros: higher profit, reputation, Econ, product life cycle curve, market opportunities and saturation
Cons: laws, changing product, different culture, languages confusion, currency diff, diff needs, government stability, tariffs violence
Ethnocentric
Stay in ur country not international
International
One or two other countries
Multinational
Geo centric company that targets the whole world
May require product adaptation or promotional adaptation. Or dual adaptation
Transplant means you change nothing
Exchange rate
Import: like when dollar is weak
Export: likes when dollar weak
BRICA
Brazil Russian India China Africa
B-O-P
Bottom of pyramid
Cadbury small chocolate pieces in India
OUDA loop
Observation. Understand. Decision. Action
- Law of leadership
It is better to be first than to be better
- Law of category
If you can’t be first find a way to be first
- Law of the mind
It’s better to be first into the mind the first in the market place
Ex iPod vs nomad
Law of perception
Marketing is a battle of perception not products
5 law of focus
Better to do one thing excellently then 1000 marginally
Later vs sun
6 law of division
Over time product categories divide. 800 different types of milk
They call for special brands
7 law of extinction
When u are tempted to extend the line don’t
Brand extension confuses line canabalism
8 Law of inoculation
Realtor tells Powell’s about leaky roof b4 they go and see it tells them they will fix it so they don’t freak out. Do the same w/ product! Loreal says they r expensive
9 law of success:
success leads to arrogance to failure. First fat foolish failure
10 the law of illusion
Marketing is not common sense, often counter intuitive. 90% of new products fail
