Chapter 13 - Retailing

Retailing - Activities involved in the sale of goods and services to final consumers for use.

E-Commerce has become a key factor in the retailing equation.

The Retailing Marketing Mix:

Site Location
Brand Identity
Atmophere
Merch assortment
Merch control
Marketing comms

Chapter 12 - Distribution and Supply Chain Management

Distribution and Supply Chain Management

Distribution includes all activities related to the transfer of goods and services from one business to another or a business to a consumer.

Distribution planning: A systematic decision making process regarding the physical movement and transfer of ownership of goods and services

An intermediary offers producers of goods and services the advantage of being able to make goods and services readily available to target markets

The Structure of Distribution can go from all or none of these depending on the channel length and width.

Manufacturer- Agent – Wholesaler- Retailer – Consumer

Distribution Channels and Competitive Advantage – New Channel strategies as a means of gaining competitive advantage

            Multi-Channeling : different kinds of intermediaries are used at the same level in the distribution channel

            Direct Marketing :

            Contract Marketing or business to business marketing

The factors considered when selecting a distribution channel

Product and Service Characteristics

Competition

Company Resources

            Intensive Distribution – product is available in the widest channel of dist

            Selective Distribution – a few outlets in a particular market

            Exclusive Distribution – only one outlet in a geographic location

Channel Relationships

Horizontal Conflict  and Vertical Conflict entails conflict that occurs what a channel member feels another member at the same level or a different level is engaging inappropriately

Channel Control has Manufacturer Control, Distributor Control, and Retailer Control.

Vertical Marketing System and Horizontal Marketing Systems

Chapter 11 - Price Management

Various Pricing Policies

Psychological Pricing:
Prestige Prices
Odd- Even Pricing
Customary Pricing
Price Lining
Unit Pricing

Promotional Pricing

Geographical Pricing

Flexible Pricing

Product - Mix Pricing

Source Pricing and Offering Discounts
Cash Discounts -
Quantity Discounts -

Trade Functional Discounts
- Slotting Allowances
- Off Invoice  Trade Allowances
- Performance Allowances

Seasonal Discounts
REBATES
Trade in Allowances
The dilemma of Discounts
The legalities of Discounts

Leasing as a Pricing Option : A lease is a contractual Agreement whereby a lessor, for a fee, agrees to rent an item to a lessee over a specified period of time.

Chapter 10 - Price Strategy and Determination

The importance of price in the development of the Marketing strategy

It is the combination of price and quality that attracts customers to the brand.
Price is defined as the exchange value of a good or service in the marketplace.

External and Internal Influences on Price

Nature of the market :
Whether it's Pure competition, Monopolistic competition, oligopoly, and monopoly

Consumer Demand for the Product:
Price elasticity of demand - small change in price results in a large change in volume.
Inelasticity of demand - a situation in which a price change does not have a significant impact on quantity purchased.

Channel Members

Production of Marketing Costs: 
How much does the product cost? Shipping, labour, packaging, manufacturing, freight....

Pricing Objectives Influence Price Decisions

Maximizing Profit - to achieve a high profit margin, a high return on investment, and a recovery of capital invested.
Maximizing Sales Volume - to increase the volume of sales each year

Establishing a Competitive Position
Above, Equal and Below Competition which is competitive pricing

PRICING METHODS

• Cost Based Pricing - Total costs plus desired profit determine the selling price 

1. Fixed Costed vs Variable costs
2. Full Cost Pricing
3. Target Pricing 
4. Break even Analysis

• Demand Based Pricing - What consumers are willing to pay determines the selling price
• Price Skimming 1. Backward Pricing 2. Forward Pricing
• Price Penetration - Establishing a low entry price to gain wide market acceptance quickly
• Competition Based Pricing - The position and the perception of the product relative to completive products determine the selling price.

Pricing and The Law

Ordinary Price Claims

Manufacturer's Suggested List Price

Double Ticketing and Bar Code Price Variances
Bait and Switch
Predatory Pricing
Price Fixing

Chapter 9 Product Management

Explain the different organizational structures used to manage brands

• Brand manager - responsible for implementation of effective marketing programs
• Category manager -responsible for developing and implementing marketing activity for ago of related products
• Target market management systems - different customer classes with different needs require different marketing strategies.
• Regional marketing systems - needs of customers in different geographical locations
• Continental and Global Marketing - seeking economies on a global scale

Describe the steps in the new product development

Idea Generation --> Screening ---> Concept Development and Product Testing ---> Business Analysis ---> Commercialization --> Test Market -->Product Development

Discuss Key decisions involved in managing current products

- Product modification decisions
- Product Mix Expansion Decisions
- Packaging and Brand Design Decisions
- Product Maintenance or Withdrawal decisions

The Product Life Cycle
Introduction to Growth to Mature to Extending Product Lifecycle to Decline Stage

Adoption: A series of stages a consumer passes through on the way to purchasing a product on a regular basis.
The 5 STEPS are: awareness, interest, evaluation, trial, and action.

Chapter 8 - Product Strategy

Total Product Concept and Product Mix

Included the physical item as well as the package, brand name, label, service guarantee, warranty, and image presented by the product.  The package of BENEFITS the buyer receives when he or she purchases a product.

Product Mix comprises the total range of products offered by a company
Product Line - products which are similar but differ in size, function or style
Product Line Width - Number of lines in the mix
Product Line Depth - Number of items in the line

Consumer and Industrial Goods are classified by the following:
Non durable goods
Durable goods - a tangible good that survives many uses

Consumer:
Convenience goods - frequently purchased - transactional
Shopping goods - consultative
Specialty goods - unique important and expensive

Industrial:
Capital items - used directly in production of another good or service
Installations - major capital items
accessory équipement

Parts and Materials are RAW, Processed, Component and Supply

BRAND Strategies

BRAND - name, term, symbol or design that identifies a good or service
BRAND NAME- part of the brand that can be vocalized
BRANDMARK - The logo
TRADEMARK - legal protection so that only the owner can use it
PATENT - legal provision that gives the manufacturer the sole right to a product, process or material

BRAND NAMES
National Brands
Individual Brand Strategies
Family Brand Strategy
Co-Branding
Private Label and Generic Branding
Licensed Brands
Cult Brands

Brand Equity is measured in 4 variables:
name awareness, a loyal customer base, perceived quality, and the brands association with a certain attribute

Chapter 7 - Strategic Marketing and Planning

A Marketing Plan
A plan that is short-term and specific, and combines both strategy and tactics.

Market planning : The analysis, planning, implementation, evaluation, and control of marketing initiatives in order to satisfy target market needs and organizational objectives

Key Elements of strategic business planning 

Objectives - Statements that outline the plan, the companies overall goals and takes direction from mission statement.

Strategies - Statements that outline how objectives will be achieved. Factor in marketing strength, degree of competition, financial resources, research and development capabilities.

• penetration strategies - agressive and progressive action. Growth is achieved by investing in existing business
• acquisition strategy - acquiring companies that represent attractive financial opportunities
• new product strategy -  investment in research and development for innovative products
• vertical and horizontal integration strategies - vertical owns n operates businesses at different levels of the channel of distribution, horizontal owns and operates several companies at the same level of distribution
• strategic alliance strategies - two firms combine strength in different areas and pursue a marketing venture
• divestment strategies - removing an entire division of a company through sale or liquidation

Execution - Action plan that outlines how the strategies are to be implemented

Marketing plans consider such matters as the marketing mix, target markets, and control and evaluation mechanisms that determine the effectiveness of the implemented strategies.

Corporate Planning
Mission statement - the purpose and philosophy of a company
Vision statement - the future of the company
Values statement - statements that reflect the company culture and priorities

A Typical Marketing Plan

SITUATIONAL ANALYSIS

External Influences - Economic trends, Social and Demographic trends, Tech

Market Analysis - Size, Growth, Seasonal, Consumer Data and Behaviour, Media, Segment analysis

Product Analysis - Sales Volume, Market Share, New Product Activity, Distribution, Communications

Competitive Analysis - Major competetors analyzed

SWOT Analysis - Factors that impact strategy like strengths, weaknesses, opportunities and threats.

PLAN SECTION

Positioning Strategy, Marketing Objective, Marketing Strategies, Target Market, Marketing Mix and Budget

Fundamental Marketing Strategies

The basic direction an organization takes:
Market Penetration: improving market position
Market Development : existing products to new target market
Product Development : new products or modifies existing products for current customers
Diversification : Invests ressources in a totally new direction

Marketing Control and Evaluation 

The process of measuring and evaluating the results of marketing strategies and plans. Taking corrective action to ensure that marketing objectives are attained.

REVIEW, REVIEW, REVIEW