MEDIA SERVICES IN MARKETING

2.1 INTRODUCTION

A marketing channel is a system that ensures the distribution of the product from
the producer to the consumers by passing it through multiple levels. This is also
said a channel of distribution.

This is an important tool for the management and is essential for developing a
product and strategic marketing strategy.

A product goes into the market through multiple marketing channels. The process
of going from a product from the manufacturer to the retailer is called
distribution channels. And, the marketing channel is generally called a
distribution method of products, under which a company can easily transfer their
goods from one person to another through multiple mediums.

To understand this concept in a better way, let’s take an example.

Lay’s is India’s most popular potato chips brand, and we can easily purchase it a
packet of Lay's from any of our next-door grocery stores. But do you have any
idea how the packets of Lay’s reach every part of India, even to the villages?

All this has become possible because of the marketing channels. Lay’s has a
limited number of manufacturing units in our country. With the right set of
marketing channels, the product reaches the depots located in different states.
From these depots, it is transferred to the C&F agents and from there it reaches
the distributors located in various cities.

The distributors sell the product to the wholesalers and finally, the retailers sell it
to the customers. And this is who the one packet of Lay’s chips reaches to its end
consumer from the manufacturing unit.

Marketing channels of a business play a key role. The success of a manufacturer's

business actually depends on its distribution channels. But with so many different
options, you can easily get overwhelmed.

When you go for any strategy, you always want to make sure that you spend your
time and money on the most impactful channels and tactics. But, without proper
knowledge of what will work best for your business, it is easy to let your fear and
confusion stop you from starting.

A marketing channel consists of the people, organizations, and activities

necessary to transfer the ownership of goods from the point of production to the
point of consumption. It is the way products get to the end-user, the consumer;
and is also known as a distribution channel. A marketing channel is a useful tool
for management, and is crucial to creating an effective and well-planned
marketing strategy.

Another less known form of the marketing channel is the Dual Distribution
channel. This channel is a less traditional form that allows the manufacturer or
wholesaler to reach the end-user by using more than one distribution channel.
The producer can simultaneously reach the consumer through a direct market,
such as a website, or sell to another company or retailer that will reach the
consumer through another channel, i.e., a store. An example of this type of
channel would be franchising.

Well, here is some good news, choosing marketing channels does not have to be
rocket science.

TYPES OF MARKETING CHANNELS

1. Direct selling
Direct selling is a marketing channel that involves a professional
communicating directly with potential clients. Typically, these interactions
happen one at a time and may work best for smaller businesses. Direct
selling often includes marketing to people you know. This marketing
channel may have fewer expenses for the business since you don't need to
pay for advertising space, distribution costs or other types of marketing
materials. Because of these reduced costs, you may receive a higher
overall profit from a successful product sale. This is a communication
marketing channel.

2. Catalog direct
Catalog direct is a marketing channel where a potential customer browses
through a printed or digital catalog. A catalog may include prices, product
descriptions or images of the options. The viewer then selects the products
they want from the catalog and places an order. This channel can eliminate
the need to interact with a potential customer face-to-face. It also
provides the customer the opportunity to choose from a wide range of
options. The catalog direct method may work if you sell a variety of
different products and want to give the customer some options. This is a
communication marketing channel.

3. Network marketing
Similar to direct selling, network marketing is a channel where sellers use
their personal networks to make sales. For example, they might market a
product on their personal social media to alert their family and friends to
the product. This type of marketing channel focuses on informing people
about the product and making a sale directly to them through information,
photos or your testimony of the product's utility. Networking marketing is
another representation of a communication marketing channel.

4. Value-added resale
This marketing channel may purchase a product and add value to it before
reselling it to its target audience. For example, if a company sells custom
bookshelves, they may purchase premade bookshelves from a wholesaler
before remodeling each unit to meet a customer's needs. By adding value
to the original product, the company can market its items as unique,
valuable and desirable to the customer. This marketing channel is
distributive since it relates to how the product appears to customers.

5. Digital advertisements
This communication marketing channel includes a variety of digital
platforms that you might use to promote your products or services. Your
company might sell products through a website, using this site to market
to a particular audience. Other digital advertisement channels include
advertisement space on social media platforms or other websites or using
your own social media platforms to market to your specific following.
Based on the specific method you use, digital marketing may include a cost
to your business. This marketing channel is common and highly effective.

6. Events
An event may serve as a marketing channel, as they allow marketers to
communicate with potential customers in a unique context. You might
host an event that has a specific purpose, such as promoting a new line of
products. It's important to ensure that these events provide the
opportunity for customers to ask questions about the product, understand
its value and potentially make a purchase. The events themselves require
marketing so that people know the location, time and other logistics of the
event itself. A marketing event is both a communication and distribution
 marketing channel since customers may purchase a product while
attending.

7. SEO marketing
SEO, or search engine optimization, refers to the results that a potential
customer sees when they search for something online. As a marketing
channel, it's important to optimize the search engine results page since
this can lead to higher traffic to your company's website. There are a
variety of strategies that relate to SEO marketing and the specific
strategies you implement depend on your target audience, your product
and your sales goals.

8. Email marketing
Another type of communication marketing channel is email marketing.
This channel refers to promotional emails sent to a target audience that
contains a specific message. A marketing email may include information
about an upcoming sale, a new product release or changes to a familiar
product. Email marketing can help companies provide specific information
across a range of email messages, which provide unique opportunities for
marketing professionals.

9. Indirect marketing
Indirect marketing incorporates several channels to effectively deliver a
product to a consumer. Opposite to direct marketing, where a
manufacturer sells directly to a customer, indirect marketing uses multiple
participants. For example, a manufacturer may sell to a retailer. Then, the
retailer displays the product in their shop, where a customer sees it and
decides to make a purchase.

FUNCTIONS OF MARKETING CHANNELS

Consumers today are empowered with an incredible amount of information, allowing
them to thoroughly research their purchases before contacting a business. In fact, most
people decide to buy before talking to a sales professional, Web services company Market
8 reported. This paradigm shift between buyers and sellers has forced businesses to
change their approach to marketing. New media helps online businesses:

• Gather customer data: New media helps companies gather far more detail about
their target customers. By using sophisticated programs like customer relationship
management systems, businesses can collect information about their best
customers and use it to nurture long-term relationships.

• Build relationships: Since most customers guide themselves through the sales
process, companies need to establish a relationships with them before they are
ready to buy. Businesses use tools like social media to interact with people on a
personal level, sharing information and experiences in a way that humanizes the
brand.

• Know when to sell: People are inundated with advertisements all day long.
Studies have shown that the average person sees 5,000 ads or more every day
according to market research firm SJ Insights, resulting in a certain amount of “ad
blindness” among users browsing the Internet. How can your business stand out
when the entire world is clambering for attention? Sometimes the solution is to
stop promoting your brand and focus instead on people and their needs. Knowing
when and how often to send out a sales message is component to new media
marketing success.

FACTORS OF MARKETING CHANNELS

Some of the factors to consider while selecting channels of distribution are as
follows: (i) Product (ii) Market (iii) Middlemen (iv) Company (v) Marketing
Environment (vi) Competitors (vii) Customer Characteristics (viii) Channel
Compensation.
We have to consider the following factors for the selection of channel of
distribution:

(i) Product:
Perishable goods need speedy movement and shorter route of distribution. For
durable and standardized goods, longer and diversified channel may be
necessary. Whereas, for custom made product, direct distribution to consumer or
industrial user may be desirable.

Also, for technical product requiring specialized selling and serving talent, we
have the shortest channel. Products of high unit value are sold directly by
travelling sales force and not through middlemen.

(ii) Market:
(a) For consumer market, retailer is essential whereas in business market we can
eliminate retailing.

(b) For large market size, we have many channels, whereas, for small market size
direct selling may be profitable.
(c) For highly concentrated market, direct selling is preferred whereas for widely
scattered and diffused markets, we have many channels of distribution.

(d) Size and average frequency of customer’s orders also influence the channel
decision. In the sale of food products, we need both wholesaler and retailer.

Customer and dealer analysis will provide information on the number, type,
location, buying habits of consumers and dealers in this case can also influence
the choice of channels. For example, desire for credit, demand for personal
service, amount and time and efforts a customer is willing to spend-are all
important factors in channels choice.

(iii) Middlemen:
(a) Middlemen who can provide wanted marketing services will be given first
preference.

(b) The middlemen who can offer maximum co-operation in promotional services
are also preferred.

(c) The channel generating the largest sales volume at lower unit cost is given top
priority.

(iv) Company:
(a) The company’s size determines the size of the market, the size of its larger
accounts and its ability to set middlemen’s co-operation. A large company may
have shorter channel.

(b) The company’s product-mix influences the pattern of channels. The broader
the product- line, the shorter will be the channel.

If the product-mix has greater specialization, the company can favor selective or
exclusive dealership.

(c) A company with substantial financial resources may not rely on middlemen
and can afford to reduce the levels of distribution. A financially weak company
has to depend on middlemen.

(d) New companies rely heavily on middlemen due to lack of experience.

(e) A company desiring to exercise greater control over channel will prefer a
shorter channel as it will facilitate better co-ordination, communication and
control.

(f) Heavy advertising and sale promotion can motivate middlemen in the
promotional campaign. In such cases, a longer chain of distribution is profitable.

Thus, quantity and quality of marketing services provided by the company can
influence the channel choice directly.

(v) Marketing Environment:

During recession or depression, shorter and cheaper channel is preferred. During
prosperity, we have a wider choice of channel alternatives. The distribution of
perishable goods even in distant markets becomes a reality due to cold storage
facilities in transport and warehousing. Hence, this leads to expanded role of
intermediaries in the distribution of perishable goods.

(vi) Competitors:
Marketers closely watch the channels used by rivals. Many a time, similar
channels may be desirables to bring about distribution of a company’s products.
Sometimes, marketers deliberately avoid channels used by competitors. For
example, company may by-pass retail store channel (used by rivals) and adopt
door-to-door sales (where there is no competition).

(vii) Customer Characteristics:

This refers to geographical distribution, frequency of purchase, average quantity
of purchase and numbers of prospective customers.

(viii) Channel Compensation:

This involves cost-benefit analysis. Major elements of distribution cost apart from
channel compensation are transportation, warehousing, storage insurance,
material handling distribution personnel’s compensation and interest on
inventory carried at different selling points. Distribution Cost Analysis is a fast
growing and perhaps the most rewarding area in marketing cost analysis and
control.

2.2 OBJECTIVE OF THE STUDY

The objective of this study is to know how different media helps in marketing different
products and services. The goals of marketing is to create awareness, get people to try
products, provide information, keep loyal customers, increase use of a product, identify
potential customers, and even teach clients about potential services.
It has been pointed out that communication is the basis of all marketing effort. In fact, it
involves much in addition to the stimulation of sales. Moreover, most marketing
communications are promotional. It is not enough merely to communicate. Ideas must be
convincing so that action (purchase) would follow. In other words, distribution of
information should be capable of producing marketing results. A good product, an
efficient channel, and appropriate price are not enough by themselves.
 Communication and convincing elements should supplement to offer contrasts to the
efforts ‘of competitors. It may even be stated that the competitive characteristics of
promotion defines its vital role in marketing strategy. Communication is a necessary
element in everyday and in every walk of life. People communicate for many reasons. A
dynamic society cannot be there without sufficient modes of communication. Members of
the society seek amusement, ask help, give help, provide information, all through some
form of communication developed over centuries. Promotion is the mode of
communication adopted by business community for achieving certain specific objectives.
From the point of view of a seller such communications may become necessary to modify
consumer behaviour and thoughts and/or to reinforce existing behaviour of consumers.

Thus, the objectives of media marketing are as under:

(i) To provide information to prospective customers about the availability, features and
uses of products.

(ii) To stimulate demand by creating awareness and interest among customers,

(iii) To differentiate a product from competitive products by creating brand loyalty,

(iv) To stabilize sales by highlighting the utility of the product.

3.1 COMPANY PROFILE

STARBUCKS
Starbucks Corporation is an American multinational chain of coffeehouses and roastery
reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain.

As of November 2021, the company had 33,833 stores in 80 countries,

15,444 of which were located in the United States. Out of Starbucks' U.S.-
based stores, over 8,900 are company-operated, while the remainder are
licensed.
In 2021–2022, votes to join Starbucks unions were successful at multiple
Starbucks locations, including in cities such as Seattle, Buffalo, Rochester,
Ithaca, Kansas City and Manhattan.
The rise of the second wave of coffee culture is generally attributed to
Starbucks, which introduced a wider variety of coffee experiences.
 Starbucks serves hot and cold drinks, whole-bean coffee, micro-
ground instant coffee, espresso, caffe latte, full and loose-leaf teas,
juices, Frappuccino beverages, pastries, and snacks. Some offerings are
seasonal, or specific to the locality of the store. Depending on the country,
most locations provide free Wi-Fi internet access.

Marketing strategies of Starbucks :

Initially, Starbucks’ marketing mix in India was segmenting consumer markets on
a socio-economic basis. Concentrating on working professionals and their need
for a soothing workspace. Starbucks also segments its market on a geographic and
demographic basis by setting up the stores where they can find their target
audience mentioned above. Most companies enter a new market by focusing on a
single segment, and if they happen to achieve some success, branch out into more
segments. Starbucks did the same and now caters to teenagers and young adults as
well, by developing its product range and social media marketing presence.
Starbucks’ marketing mix has helped the brand develop a unique market position
for its products, where it’s about the brand’s overall differentiated experience.
They have positioned themselves as a highly reputed brand.
The company’s marketing mix, to target the modern, tech-savvy generation, has
also grown the use of digital technology as well as social media for promotions
and customer engagement.

E-Digital Expansion
One of Starbucks’ key priorities is to expand its digital interactions with
customers. To do so, it is implementing new ways to attract digitally registered
customers beyond the rewards program. For example, the coffee chain is offering
mobile order services and leveraging Wi-Fi sign-ins at its brick-and-mortar stores.
 Starbucks Social Media Strategy
Most people are familiar with Starbucks on social media. The company’s many
social media accounts are known for their distinctive branding, interactive posts,
and visually pleasing content. The diverse range of content includes recipes,
photography, articles and features. But there’s more than meets the eye. The
stream of content can be broken down into a series of campaigns geared at
creating a greater sense of brand awareness and community.
 Starbucks Product-based Marketing
Campaigns
Starbucks focuses on promoting unique and fan-favorite beverages. The brand
knows how popular their flagship items are, but more importantly, they know their
audience craves this kind of content. They’ve even created social accounts for
customers’ favourites -Pumpkin Spiced Latte and Frappuccino- where they push
relevant and relatable memes to their die-hard audience. This is also where user-
generated content (UGC) comes in. Consumer images of the more
Instagrammable products, such as the Unicorn Frappuccino, are often selected to
be re-shared via the official channels and also used in influencer campaigns.
 2.Starbucks Corporate Social Responsibility-
based campaign
Starbucks uses social change as a marketing tool, positioning itself as open-
minded and inclusive. One example is the #ExtraShotOfPride campaign that
supports the LGBT+ community.
• Community-based campaigns

#
RedCupArt campaign

Another facet of Starbucks’ digital strategy is its emphasis on highlighting

individuals and communities. Take a look at the #RedCupArt campaign, which
not only increases engagement but also provides them with a library of UGC
content. They use storytelling to show acts of courage and kindness in American
communities, localizing the content. Starbucks puts in conscious efforts to
humanize the company by sharing stories on their account which highlights the
employees who play an essential role especially when consumers are distrustful of
big brands. This sense of community also makes online coffee content social, very
similar to how they practically invented the modern coffeehouse culture back in
the day.
Festive Marketing
Starbucks has also initiated a new seasonal whole-bean coffee,
#StarbucksDiwaliBlend, for their consumers across the country and select global
markets. The latest exquisite blend is hand-picked and sourced from Tata Estates
in Karnataka and Tamil Nadu. Starbucks Diwali Blend is intended as a tribute to
the region’s rich and cultural coffee heritage and expertise.
It launched the #SketchTheBlend campaign where customers have to share their
creativity on the Diwali Blend cup and sleeve and could win 5 free beverages.
 W
e now thoroughly understand the various strategies that comprehensively
contribute to their top-notch marketing. Let’s dive deeper and analyse their overall
digital presence.

Starbucks Digital Marketing Presence

Starbucks knows its audience is technologically advanced, which makes it
imperative for them to have a strong digital marketing strategy. It’s clear how
Starbucks prefers marketing on platforms where they have two-way
communication instead of platforms like print and television which is more of
one-way communication.
Instagram – 248K+ followers
Facebook – 1.1M+ likes
Twitter – 161K+ followers
Starbucks posts daily on its social media handles and comes up with challenges and games to engage its
customers and increase its fan base
The posts and engagement are consistent through all platforms and believe in creating an experience as
compared to just a promotion channel
The recent Flipkart Starbucks twitter battle was an example of how active and fun
a brand like Starbucks is and shows exactly why the brand is sought after with its
target audience, especially the millennials. Outside of campaigns, they show
numerous images on their platforms of friends and family enjoying drinks of
Starbucks coffee together, interspersed with high-quality content that promotes
seasonal products. By doing this, Starbucks has integrated itself into consumers’
social life.
Marketing During Covid-19
We are all aware of how suddenly the Covid-19 pandemic took over the world.
All businesses, globally, were hit overnight. And had to figure out how to sustain
themselves in these unprecedented times. The pandemic definitely impacted the
Indian market heavily but Starbucks constantly improvised to mitigate the
economic impact. A case study in itself, these were the steps taken by the coffee
giant during the pandemic which proves why it’s the most valued –

Expansion
CEO Navin Gurnaney announced that they are launching drive-thrus to encourage
people to engage with them, and home delivery to make sure they are connected
with their customers during the pandemic. The first drive-thru was at Ambala
Chandigarh Expressway in Zirakpur. They have also launched their app –
Starbucks India App so that customers can easily navigate and purchase their
offerings.
Starbucks Social Media Campaigns.
#ReconnectWithStarbucks campaign
Starbucks launched its social media campaign in 2 phases. The first phase was
where they asked their customers to share their ways of reconnecting amidst the
pandemic and share their favourite Starbucks memory on their personal Instagram
handles with the hashtag #ReconnectWithStarbucks.
In the second phase- “Half Cup Full”- they asked their customers to comment on
their favourite beverage on the post. They then sent these customers voice notes of
baristas hollering the customers’ names along with their favourite beverage to
remind them of the famous in-store experience.
This was a great campaign as it not only reminded the people of all the good
memories with Starbucks but also made them feel important and valued.

#StarbucksAtHome and #StarbucksDance

Starbucks launched 1 litre of freshly brewed beverages that could be bought via
take-away or ordering through Swiggy and Zomato. 7 flavours were launched at
the price of Rs.550 per bottle.
To promote the same, Starbucks launched the #StarbucksDance challenge where it
asked its customers to shoot a dance video with the drink and upload them on their
personal stories. They promised a year of free Starbucks for the winner.

Strategic Alliances to enhance the experience

and reach
Signature Merchandise launch with Flipkart
The pandemic caused a great shift in how people shop and also encouraged people
to shop for home-grown products as compared to imported or foreign-based
products. Starbucks used this shift to partner with Flipkart, to launch Starbucks
Signature Merchandise on the online platform. The product range included custom
mugs, tumblers, cold cups, and more. Customers can also soon order coffee
brewing equipment from the comfort of their own homes. Starbucks operated in
12 cities only and hence, this was a strategic move to reach out to customers pan
India at their homes during the pandemic while taking advantage of the growing
dependence on E-Commerce

Standup Comedy Festival

Starbucks recently announced the #StarbucksComedyFestival where few lucky
customers can win a free invitation to the comedy festival. The lucky codes would
be present on the customer’s invoice. With a popular line-up of hosts like Sapan
Verma, Azeem Banatwalla and Rahul Subramanian, customers will now be
enthusiastic to shop more at Starbucks and stand a chance to win the invitation.