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KINE 4430 - 2009
Marketing Class # 3
*PLACE – Distribution Strategy
*Social Marketing
* Sponsorship
Reviewing the Outputs
The outputs of the marketing plan process
Marketing Objectives & Strategy
Marketing Mix Elements
Product
Pricing
Place
Promotion
- Product types
- Product tangibility
- Product lifecycle
- New product development
- Price Elasticity (Sensitivity)
- Pricing strategies
(lifecycle/product type)
- Pricing policies
- Types of distribution
- Distribution strategies
(consumer & business)
- Types of promotion
- Promotional strategies
(consumer & business)
Analytic Tools:
• Research
• Balance & Gaps Assessment
• Measurement, Monitoring & Evaluation
Business Location Decision
•
Two major factors:
1. What your customer believes is the “best
location”
2. Your distribution channel—the method or
way in which a producer makes a product or
service available to the consumer
Distribution Channels
PRODUCER
Producer
Distributors
Retailers
Consumer
Segment
#1
Consumer
Segment
#2
Dealers
Business
Segment
#1
Business
Segment
#2
Distribution Strategy
• Your distribution strategy will depend on a
number of factors, such as:
Target Customer needs
Type of business
Product/service characteristics
Transportation costs
Competition
The “Best” Location
•A location filter or checklist will help you zero in on the “perfect” location
•Use a scale of 1 to 10 to rate the relative importance of each item on this
list. When you finish scoring, go back and note the high numbers
anything above 5.
___Local/municipal licensing
___Neighbourhood mix
___Competition
___Security, safety
___Labour pool
___Services
___Costs
___Ownership
___Property owner/landlord
___Past tenants
___Space
___Accessibility
___Professional advice
___Parking
___History of the property
___Physical visibility
___Life-cycle stage of the area
___Image
___Hours of operation
___Utilities
___Local zoning by-laws
___Taxes
___Approvals
___Transportation
___ Your target customers
Is Home the “Best” Place?
Potential
Advantages
 Low risk of expensive mistakes
 Opportunity to use household
resources
 Low overhead
 Gradual start-up and growth
 No commuting time or expense
 Tax advantages (with
deductions allowed for part of
the house)
 Relatively inexpensive way to
test a market
 Reduced child-care costs
 Increased quality time with
family
Potential
Disadvantages
 Isolation and lack of contact
with colleagues
 Increased family stress
 Need for self-discipline
 Local by-laws and regulations
 Less established or refined
image
 Conflict with neighbours
 Parking problems
Before You Sign Checklist
 Escape clause
 Option to renew
 Right to transfer
 Cost-of-living
 Percentage lease
 Floating rent sale
 Start-up buffer
 Improvement
 Restrictive covenants
 Maintenance
CAUSE OR SOCIAL MARKETING
Strengthens business relationships - customers & general public
Addresses social issues of concern to target market
Increases sales
Builds a Brand image
Lessons for Socially Responsible Companies
• What you sell is important: both the mission and the product
should be socially responsible
• Be proud to be in business: profit not a dirty word
• Make a solid commitment to change: business is natural
outgrowth of social entrepreneur’s values
• Focus on two bottom lines:
viable company + social mission
• Forget the hype: socially
responsible companies lead by doing
good deeds, not by promoting them
Source: Thea Singer, “Can Business Still Save the World?”
Inc., April 30, 2001, pp58-71; and MEC website, www.mec.ca
Environmentalism
• Environmentalism:
– An organized movement of concerned citizens and
government agencies
– To protect and improve people’s
living environment
• Environmental sustainability:
– Management approach
– Develop strategies that both
sustain the environment and
produce Company ‘s profits
Socially Responsible Marketing
• Enlightened marketing:
– A marketing philosophy that holds
– A company’s marketing should support the
– Best long-run performance of the
marketing system
• Five principles:
–
–
–
–
–
Consumer-oriented marketing
Innovative marketing
Value marketing
Sense-of-mission marketing
Societal marketing
Ethical Issues Associated with Marketing
• Marketing research:
– Invalid or unreliable research studies
– Invasion of consumer privacy, not
respecting confidentiality
– Disguising sales as research
– Failure to secure voluntary and informed
participation
– Competitive intelligence gathering
• Segmentation/target marketing:
– Redlining: discriminating against poor
or disadvantaged consumers
– Targeting inappropriate products to
vulnerable audiences
Ethical Issues Associated with Marketing
• Positioning:
– Making socially undesirable products more desirable
– Positioning on questionable benefits
• Product:
– Marketing unsafe products
– Product testing: on animals or insufficient
testing
– Marketing socially controversial products
• Packaging and labeling:
– Actual versus apparent size
– Misleading or inadequate information
– Excessive or environmentally-unfriendly
packaging
Ethical Issues Associated with Marketing
• Pricing:
–
–
–
–
Collusion with competitors
Negative option billing
Prejudice in negotiated prices
Price discrimination
• Advertising:
– Sex role stereotyping
– Dehumanizing images and
portraying people as
products
– Bait-and-switch advertising
Seller’s Versus Consumers’ Rights
Sellers’ rights:
– To introduce products of
different styles and sizes,
provided they are not
hazardous
– To set its own prices,
provided no discrimination
occurs
– To spend to promote the
product
– To use any product message,
provided it is not misleading
– To use buying incentives
Consumers’ rights:
–
–
–
–
–
–
–
To choose
To be informed
To safety
To be heard
To redress
To consumer education
To participate in marketplace
decision making
– To have access to basic
services
– To a sustainable environment
Canadian Marketing Association Code of Ethics
• Topics covered:
– Application and governing legislation
– Accuracy of representation
– Disclosure, comparisons, guarantees, and warranties
– Fulfillment practices
– Media-specific standards of
practice
– Product safety
– Marketing to children
– Protection of the environment
– Protection of personal privacy
– Enforcement procedures
Table 4.4
SPONSORSHIP MEDIUM
1ST AMPLIFY the Message
2nd AIM the Message
-marketers zero in on a “captured” TM
-minimizes inefficiencies of communication process
EFFECTIVE SPONSORSHIP
Serves 4 constituent groups
Business interest of Sponsoring Company
Best interests of Event & Participants
Positive impact on Sponsor’s direct
customers (dealers & retailers)
Benefit to Consumers who buy those products.
BUSINESS STRATEGIES & Sponsorship
1. Communicating
Sponsors communicate using sport as the communication medium
2. Targeting
Sponsorship effective for targeting clusters of consumers
3. Differentiating
“Image Enhancement” “Value Added” “Product Differentiation”
Gives Brand a unique & memorable attribute so it’s different from competitors
Villain Products – cigarette & alcohol use image enhancement
ADVANTAGES of SPONSORSHIP
1. CREATES IDENTITY
2. INCREASES SALES
3. PROMOTES business- to-business contacts
4. CONSTITUENT benefits
5. BUSINESS customers
“Interacting with consumers on an Emotional level”
Exposes people to product in environment encompassing their
lifestyle or aspiring lifestyle
OLYMPIC GAMES
SPONSORSHIP
•
•
•
•
One of world’s oldest & most respected Brands
Represents the best in amateur sport
Encourages global co-operation, peace & harmony
Captures spirit & enthusiasm of virtually every
nation
• Most recognized symbol (90% consumer
awareness)
Corporate Interests in the
Olympic Rings
•
•
•
•
•
•
Signature property
Community engagement
Employee engagement
Product/ service showcase
Media relations
Customer hospitality
Opportunities with Canadianhosted Games
As an emotional touch point, the Olympics
creates a unique set of circumstances for
companies to engage Canadians directly.
Vancouver Olympics 2010
Challenge is creating & sustaining high level of awareness
from the outset
Responsibilities of VANOC
To plan, organize, finance & stage the
2010 Winter Games
To protect the Olympic Brand in Canada
Has custodianship of Olympic & Paralympic Brands
The Olympic and Paralympic
Marks Act
Specifically protects Olympic Brand in
Canada (obligation to IOC)
Enables VANOC to protect exclusive rights
granted to its marketing partners
Ensures Canada is aligned with
International Community in granting special
protection for Olympic/Paralympic brand
THE EXCHANGE
• Official sponsors, licensees & government
partners significantly invest to ensure
successful staging of 2010 Winter Games
and funding to Canadian athletes
• Exclusive right to access marks, images, &
stories that make Olympic & Paralympic
Brand a sought after marketing tool
Ambush Marketing
Form of marketing used by certain
commercial bodies to capitalize on
“Goodwill of Olympic Movement” (+ the
Games & Athletes) without making the
financial investment required to secure
official sponsorship rights.
Protecting the Olympic Brand in
Canada
•
•
•
•
VANOC’s Infringement Assessment
Infringement of brand?
Misleading business association?
6 factors – factually accurate use, relevant use,
commercially neutral, undue prominence, use of
Olympic or Paralympic visuals, unauthorized
association