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MT 219 Marketing
Unit Seven
Marilyn Radu, Instructor
Marketing Channels, Direct
Marketing and Integrated Marketing
Communications
Note: This seminar will be
recorded by the instructor.
Review of Unit 6
• How did Unit 6 go? Questions or concerns?
• Instructor suggestions for Unit 7
• How is the Research Project for Unit 7 coming?
• Additional questions?
Our Topics for This Week
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Channel importance, functions, types, and coverage
Physical Distribution
The Role of Direct Marketing
Integrated Marketing Communications (IMC)
Important Definitions
• Marketing Channel – A group of individuals and
organizations directing products from producers to
customers
• Marketing Intermediary – a middleman linking
producers to other middlemen or ultimate consumers
through contracts or purchase/resale- Includes retailers
What is Supply Chain Management?
• Long term partnerships among marketing
channel members that reduce inefficiencies,
costs, and redundancies. They also develop
innovative approaches to satisfy customers.
• Emphasis is on stability for customers
Why do we need channels?
• Channels create utility (What is utility?)
time- Available when needed
place- Available where you need it
possession- Accessible when needed
form-Available in the form you want- ie. Bulk-breaking.
• Channels make exchanges more efficient
Types of Channels
• Producer - Consumer (no intermediary)
• Producer - Retailer - Consumer
• Producer – Wholesaler – Retailer – Consumer
• Producer-agent/broker – Wholesaler-Retailer Consumer
Channel Issues
• Conflict - horizontal and vertical
• Leadership and Power- Concept of Channel Captain
• Integration
Coverage Intensity
• Intensive
• Selective
• Exclusive
Physical Distribution
• Order Processing
• Inventory Management
• Materials Handling
• Warehousing
• Transportation
Direct Marketing
The use of telecommunications and
nonpersonal media to introduce products
to consumers, who then can purchase
them via mail, telephone, or the Internet.
Catalog Marketing
• A type of marketing in which an organization provides a
catalog from which customers place orders by mail,
telephone, or Internet.
- J.C. Penney
- The Sharper Image
- Victoria’s Secret
• Are the online sites that sell products also catalogs?
Direct Response Marketing
A type of marketing that occurs when a retailer
advertises a product and makes it available through
mail, inbound telephone or internet orders.
- 1-800-Flowers
Telemarketing
• The performance of marketing-related activities by
telephone
Useful for sales lead generation, raising funds, and
gathering marketing data.
Outbound telemarketing
Consumer Rights and privacy issues
Television Home Shopping
A form of selling in which products are
presented to television viewers, who can buy
them by calling a toll-free number and paying
with a credit card.
Popularity of infomercials and QVC
Online Retailing
• Retailing that makes products available to buyers
through computer connections
• Growing in popularity
• Security remains an issue
Integrated Marketing Communications
• Assuring consistent messages through the coordination
of promotional efforts
• The objective is to generate maximum informational and
persuasive impact
• Generally, all four of the promotional mix are usedadvertising, personal selling, sales promotion and
publicity
The Role of Promotion
Communication to build and maintain
relationships by informing and persuading
one or more audiences (target segments)
This should be a coordinated effort that
offers synergy between the components
The Promotion Mix
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Personal Selling
Public Relations/Publicity
Sales Promotion
Advertising
The Communication Process
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Source
Coded Message
Medium of Transmission
Decoded Message
Receiver
• Noise- Reduce as much as
possible
• Feedback- Make sure you
listen to customers and valued
links in distribution chain
Promotion Objectives
• Create Awareness
• Stimulate Demand
- Primary
- Selective
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Encourage Trial
Identify Prospects
Retain Loyal Customers
Facilitate Reseller Support
Combat Competitive Promotional Efforts
Reduce Sales Fluctuations
Think RIP- Remind, inform and persuade
Any Questions?
Thank you for attending!
See you next week!