Week 9

Channel
Management
and IMC
An undifferentiated product
An undifferentiated product
A monopoly

Thanks Jack
Marketing Channel
Management
Roles within the chain;

Raw goods suppliers

Manufacturers

Wholesalers

Distribution/Warehousing

Retailers
Marketing Channel
Management
Add value… and costs!

Wouldn’t it be easier (cheaper) to do direct?

Marketing Channel
Management
Channel members impact other members

Ownership of warehouses/distributions centres

Wholesalers
Retailers
Private groups – Toll

Connected through information

Out of stocks/over stocks
Designing
Marketing
Channels
•Direct marketing channel

•
Designing Marketing Channels

Indirect marketing channel

Managing Channel Conflict
Channels work best when there is no conflict
Vertical channel conflict
Managing Channel Conflict
Managing vertical channels – conflicts driven by
power
Reward power – Dan Murphy's offers incentives CUB to adhere

Coercive Power – Dan Murphy's disincentives/penalties to CUB

Referent power – CUB may have to have an association with

Dan Murphy’s so they can access other retailers

Expertise Power – Dan Murphy’s can impact on range

Information power – Dan Murphy’s holds the cards

Legitimate power – Dan Murphy’s affects contractual control

Managing Strategic Alliances
Within most channel relationships – parties are
seeking to gain from one another
Strategic alliances, strategic relationships or partnering
relationships – a common, mutually beneficial goal.

Open communication
Common goals
Interdependence
Credible commitments
The Flow of Goods
Distribution Centre versus Direct to Store

Perishable products
The Flow of Goods
Just in Time (JIT)

Also known as Quick Response (QR)

Benefits
Reduced lead time, low (zero) inventory, greater availability

Costs
Information, transport – empty trucks, location, frequency of
deliveries
What is retail?

Retail comes from the Old French word tailler, which means
"to cut off, clip, pare, divide" in terms of tailoring (1365).

It was first recorded as a noun with the meaning of a "sale in

small quantities" in 1433 (from the Middle French retail,
"piece cut off, shred, scrap, paring").
Choosing Retail Partners

Channel structure

Vertical versus Horizontal marketing

Concession
Choosing Retail Partners

Customer Expectations

Customers would expect to find certain products in certain

retailers – this helps you determine your retail partners
Choosing Retail Partners

Distribution intensity

Intensive – Consumables, everywhere

Exclusive – One retailer or geographic territory

Selective – A few select retailers

Growth of Multi-channel and
Omi-channel
20% purchase on
Smartphones
Growth of Multi-channel and
Omi-channel

Benefits

More range, less space

Personalisation

Expanded market
presence
What are we looking at today?

Learning Objectives

• Identify the components of the communication process

• Explain the four Steps – AIDA Model
• Describe various communication channels
• Describe the steps in an advertising campaign
• Identify three objectives of advertising
• Describe the ways advertisers appeal to consumers
• Identify various types media
• Describe the elements of the Public Relations Tool Kit
• Describe the types of sales promotions
The Communication Process
The Communication Process

The Sender
The company selling or launching a product

The Transmitter
The marketing, advertising or public relations firm employed
to carry the message to market.

Encoding
Converting the senders' message into meaningful verbal or
visual content.

Most important that the message is received and

understood.
The Communication Process

Encoding

Problem:

I want a comfortable zone

I’m stuck in a stressful day.
The Communication Process

Encoding

Problem:

I want a safe and stable truck

The truck pumps all times.
The Communication Process
The Communication Channel

Newspapers
Magazines
Television
Online
Billboards

The Receiver
The target market
The Communication Process
Noise
Lack of understanding, lack of clarity in the message, poor
choice of channel, lack of relevance… just wrong
The Communication Process
Feedback
An opportunity for the receiver to provide the sender with
feedback about the message.
The AIDA Model

Communication of the message is

complex

Marketers need to understand how

marketing communication works

The ‘Think-Feel-Do’ Model is general,

i.e. it doesn’t work for impulse
purchases
The AIDA Model
Awareness

Most importantly, you need to gain the attention of your

customer.

Brand awareness is about a customers ability of recognise or

recall a brand.

Think of a brand of smartphone

The AIDA Model
Interest
After awareness, markets must create interest; trailers,
teaser campaigns
The AIDA Model
Desire
After interest, subsequent messages need to move the
consumer from “I like it” to “I want it”.
The AIDA Model
Action
The final bit… get them buying.
Elements of an IMC Strategy
Elements of an IMC Strategy
Advertising

Most visible element – the

placement of messages or
announcements in ‘time’ or ‘space’.
https://www.ueh.edu.vn/
As we wrap up…

• Can you identify the components of the communication

process
• Are you able to explain the four Steps – AIDA Model
• Can you describe various communication channels
• Can you describe the steps in an advertising campaign
• Are you able to identify three objectives of advertising
• Can you describe the ways advertisers appeal to consumers
• Please identify various types media
• Can you describe the elements of the Public Relations Tool
Kit
• Are you able to define the types of sales promotions