1.) The Marketing Mix:

Place Decisions

1.)

A. Outlets

B. Channels

C. Level of Coverage

D. Transportation

E. Stock Level

F. Control/Ownership

1.) Channels

2.) Marketing Channel

1.) Types of middlemen getting product from producer to consumer.

2.) Individuals and firms involved in getting a product or service to the ultimate consumer.

1.)

A. Transactional: Buying, selling, risk taking, reducing the number of transactions from manufacturer to consumer.

B. Logistical: Storing, assorting, warehousing, transporting (helps to avoid discrepencies).

C. Facilitating: Financing, repair & maintenance, store site selection, marketing information &research.

1.)

A. Quanitity discrepency: Consumers only want small amounts so manufacturer sells to wholesaler than so on til it gets to consumer.

B. Assortment Discrepency (Variety, or large assortment). Ex. Wholesaler buys from different manufacturers and sells various goods to retailers.

1.)

A. Whole Salers: Sell to other channel members.

B. Retailers: sell to ultimate consumer.

C. Manufacturer

D. Consumer

E. Agents/Brokers: Assist in selling of goods (does not own title). Ex. Real Estate Agent.

1.)

A. Corporate: Company owned channel of distribution.

B. Contractual: Channel Members obligations & responsibilities are spelled out in contracts. Ex. Franchises like gas stations (owner pays fee to larger company, i.e franchises).

C. Administered: Powerful member of the channel ("channel captain") directs channel functions. When they talk channel members listen. Ex. Proctor & Gamble (Manufacturer). Ex. Walmart (retailer).

1.) Franchising

A. Chain

B. Franchise

1.)

A. Business with 3 or more stores, separate outlets, with the same name, concept, style of service and system of operation.

i. Company owned and operated.

(EX. Red Lobster & Olive Garden owned by Darden Restaurants)

B. A chain that allows independent people to own/operate the business.

(EX. McDonald's=Franchisor

Individual owners= Franchisee)

1.) 2 Major Types of Franchises

1.)

A. Business Format Franchises: McDonald's, Subway (owner is buying into a system).

B. Product Franchises: Pepsi, Chevron, Dealerships (buying into a product).

1.)

A. Brand Recognition

B. Proven system/product/service.

C. Buying Power (strength in numbers)

D. Access to resources (legal, marketing, advertising)

E. Support (company field representatives sent to inspect stores).

1.)

A. may include support for site selection.

B. Standard Blue Prints.

C. Operations manual (how to book)

D. Training (on site or at training center)

E. Opening Help

1.)

A. 15-20 years.

B. Recarge fee when re-negotiating contract.

1.)

A. On going percent of sales (not percent of profits) paid by the franchisee to the franchisor.

1.)

A. National (EX subway= 3.5%)

B. Local (EX Subway=1%)

1.)

A. It's a marketing strategy: Target Market and Marketing mix proven.

1.)

A.

Exclusive----------Selective----------Intense

B.Intense: Sold in a variety of stores and different channels.

C.Selective: Sold in a few outles and channels.

D. Exclusive: Very Limited.

1.) Dual-Distribution and various strategies.

1.

A. A distribution system whereby more than one unique type of channel and'or channel strategy is used to sell a product.

i. Companies sell similar products, but to different markets, using different brand names.  (EX. Hallmark selling Ambassador cards in retail stores and Hallmark cards in Hallmark stores).

ii. Companies sell identical branded products through more than one channel.

(EX. Goodyear tires at Goodyear stores and other retailers)

1.)

A. Internet

B. Scrambled merchandising (placing certain products in non traditional stores, EX CD's being sold at Starbucks).

C. Piggy-Back Franchising (in which stores operated by one chain also sell the products of another franchised firm. Baskin-Robbins ice-cream counters, for example, can now be found in 15 Wendy's restaurants.)

D. Self-service

E. Extended Channels

F. Vending

1.)

A. Basic model of communication

B. Suggests communication is a shared meaning (i.e sender and reciever).

1.)

A. Involves at least two parties.

B. Individuals interpret communications differently.

C. Knowing/understanding the reciever's background and needs aids communication.

D. Feedback aids communication.

E. Communication is aided when the parties have similar "fields of experience."

F. Some noise in the process is inevitable.

1.)

A. To effectively communicate marketers must overcome noise.

B. Can occur at any stage (encoding, decoding, message, channel, feedback, etc.)

C. Simple rules to overcome noise are:

i. Know/understand your audience/customer. Don't insult their intelligence, but assume they are not intelligent.

ii. Make the ad attention-getting but simple (K.I.S.S)

iii. Monitor the effectiveness of the ad. Seek consumers' true responses to communication (quanitity of sales is often not a good measure of advertising effectiveness because the product could be a flop, could love your ads and not your product and vice-versa).

IV. Take control over the production process (make sure the ad says whay you intend it to say, EX. Spelling errors, wrong colors/actors/setting/information etc.)

1.)

A. Situation Analysis

B. Marketing Goals

C. Budget

D. Creative Recommendations

E. Media Recommendations

1.) 

A. Company Product History (stength, Weakness)
B. Product Evaluation (Strenght, Weakness)

C. Consumer Evaluation (opportunity)

i. What do they want? What do they think about your product?

D. Competitive Evaluation (threat)

E. Other forces/trends

1.)

A. Marketing Strategy (takes into account the four P's)

B. Marketing strategy leads into a promotional strategy (Advertising, sales promotion, public relations, personal/direct selling).

1.)

A. Media (cost of placing the ad)

B. Creative/production (cost of creating and producing the ads).

C. Research (a variety of costs before, during, and after the ad is produced and placed).

D. Miscellaneous (cost associated with travel, entertainment, consultants, etc.)

1.)

A. Bad strategy= Percentage of sales (national average is 3-5%)

i. Spend more when your successful, spend less when your not, does not make sense.

B. Objective-Task (good)

i. Spending based on what you hope to accomplish.

1.)

A. Advertising Objectives

B. Creative Execution

1.)

A. Starting Point (Benchmark)

B. Ending Point (goal)

C. Target Market

D. Time Period (this is when it is going to happen)

E. Measurement Technique (how do we know the promotion is successful?)

Example: Washington State University

A. We are a party school

B. We want to be prestigious

C. Kids with higher priority academics

D. Promotion should only be a year or two.

E. Base candidates on a 4.0 g.p.a scale and than rate how they are doing after their first couple years of college on the same scale.

1.)

A. Ad Copy

B. Headlines

C. Illustrations

D. Brandname/logo

E. Jingles

F. Spokesperson

G. Etc.

1.)
A. Media Objectives (reach & frequency)

B. Media Plans & Strategies (how the objectives can be reached).

1.) Reach

2.) Frequency

1.) The number of people you're trying to reach (from your target market) who are exposed to an ad 1 or more times.

2.) The average number of times a person in the target audience is exposed to an advertisement.

1.)

A. Media to Use (TV.Radio, Print, Internet, etc.)

B. Media Vehicles (Specified TV Programs, Magazine Titles, etc.)

C. How often should the ad be run.

D. Cost (Cost per thousand: CPM)

i. CPM= Media Cost (fee to run ad)/ Media audience size x 1000

1.)
A. Advertising

B. Sales Promotion

C. Public Relations

D. Direct and/or Personal Selling

E. Evaluation (Effectiveness measured)

1.)

A. Non-personal communication from an identified sponsor using mass media.

1.)

A. Incentives designed to build interest or encourage product purchase during a specific time period.

B. Consumer oriented promotions (coupons, price-offs, premium).

C. Trade Oriented (trade allowances, display allowances, etc.)

1.)

A. Communication Activities that create/maintain a positive image of a firm and its product.

EX. Press releases, special events

1.)

A. Direct interaction between a company representative and a customer (personal selling)

B. Efforts to gain a direct response from individual customers. (Direct)(EX. Mailbox marketing)

1.)

A. Growth Opportunity

B. Counter Adverse demographic (age, number of children born, etc).

C. Avoid/ Reduce competition

D. Extend a product's life cycle.

E. Enhance economics of scale (max potential reached in Amerca, expand overseas).

F. Dispose of Inventories.

G. Improve Profits.

1.)

A. Economic Conditions

B. Economic Infrastructure

C. Trade groups/restrictions

D. Consumer Income (average & distribution of)

E. Currency Exchange Rates

F. Political/ Legal Conditions

G. Cultural Factors (Language, Values, Customs, religion, family, food, etc.)

H. Ethnocentrism (our way is the right way. EX: America does not use the metric system).

1.) Classification of country:

A. 3rd world country: Less developed country. Agriculture based, attractive market for inexpensive products.

B. 2nd world: Developing countries. Shift from agriculture to industry.

C. 1st world: Wide range of economic and international markets (ex. AMERICA!).

1.)

A. Global (one size fits all)

EX. McDonald's

B. Customized (differentiated markets)

Global----------------------------Customized

(standardization)                 (Localization)          Single strategy                   Multiple strategies               for many countries

1.) 4 ways to Market Internationally

2.) Why would a company choose one over the other?

1.)

A. Exporting

B. Contracting
C. Joint Ventures

D. Direct Ownership/ Direct Investment

2.)

Exporting++++++++++Direct Investment

(Financial Commitment)

(Risk)

(Profit Potential)

1.)EX: Harley Davidson shipped over seas.

A. Indirect (through middlemen)

B. Direct (without middlemen)

1.)
A. Licensing (General Mills uses Yoplait name)

B. Franchising (McDonald's)

C. Subcontracting (local assembly and or manufacturing, EX: NIKE)

1.)

A. EX: Caterpillar's joint venture with a Russian company.

1.)

EX. Honda is located in Japan, but sets up company owned shops to manufacture cars in the United States.