Module 4

Developing marketing mix, channels and communication strategies

1 Siresha.N, Lecturer, Loyola College.

Components of marketing mix

Product Price

Place Promotion

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Marketing channels
set of interdependent organizations participating in the process of making a product or service available for the use or consumption .
It performs the work of moving the foods from

producer to consumer overcoming the time, place, possession gaps that separates goods from those who need or want them.
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Nature and importance

Ensures getting the right product to the right customer in the right place and at right time Directly affect the marketing decisions with the pricing aspect

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Functions of channel members

Information - gathering potential consumers Promotion stimulate purchasing Contact - develop repo Matching match to the needs Negotiation in terms of price and discounts
Physical distribution Financing Risk taking
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Types of marketing channels

a. Conventional or non-integrated channel
Manufacturer - consumer Manufacturer - retailer -consumer Manufacturer wholesaler retailer- consumer Manufacturer wholesaler - consumer

b. Non - Conventional or integrated channel

Vertical channel Horizontal channel
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Channel design management

1. Analyze consumer needs
Analyze target market

Delivery mean time Service required

2. Channel objective setting

In terms of target market Influenced by intermediaries, competitors, environment

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Channel design management

3. Identifying alternatives
Types of intermediaries

Companys sales force Manufacturing agency Industrial distribution No of intermediaries Intensive distribution Exclusive distribution Selective distribution
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Channel design management

4. Evaluate major alternatives
Satisfy long run objectives

Profitability Investment availability

5. Design international distribution channels

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Channel management decisions

1. Selecting channel members
Qualified market intermediaries Growth and profitability Investment available

2. Managing and motivating channel members

Partner relationship management (PRM)

3. Evaluating channel members

Inventory level Customer delivery time Treatment of damaged or lost goods
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Channel behavior and organization

Distribution channels are complex behavioral systems where channel members interact together to accomplish individual, company and channel

goals Understand , accept , coordinate and cooperate to

attain the overall objectives of the channel

11 Siresha.N, Lecturer, Loyola College.

Channel behavior and organization

Conventional distribution channel : A channel consisting

of one or more independent producers, wholesalers and retailers, each a separate business seeking to maximize its own profits even at the expense of profits for the system as
a whole Vertical marketing system: a distribution channel structure in which producers, wholesalers and retailers ac

as a unified system. One channel members owns the others, has contracts with them, or has so much power that they all cooperate.
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Channel behavior and organization`

Corporate VMS : A vertical marketing system that combines successive stages of production and distribution under single ownership channel leadership is established

through common ownership Contractual VMS : a vertical marketing system in which independent firm at different level of production and
distribution join together through contract to obtain more economies or sales impact than they could achieve alone.
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Channel behavior and organization

Franchise organization: a contractual vertical marketing system in which a channel member, called franchisor

links several stages in the production and distribution Horizontal marketing system : a channel arrangement in which two or more companies at one level join together to
follow a new marketing opportunity Multichannel distribution system : a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segment
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Channel conflict
Disagreement among the channel members on the goals and roles about who should do what and for what rewards
Horizontal conflict occurring at same level of the channel Vertical conflict - occurring between the members of the same channel

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Marketing communication Mix

Advertising : Paid form of non personal presentation Sales promotion : short term incentives to encourage purchases
Personal selling : personal presentation by the firms sales force for the purpose of making sales Public relation: building good relations in terms of publicity and corporate image

Direct marketing : direct connections with carefully targeted individuals through DRTV, emails, internet etc.
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Integrated Marketing communication

Carefully integrating and coordinating the companys
many communication channels to deliver a consistent, clear and compelling message about the organization and its products is IMC

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Need for Integrated Marketing communication

Serve changing consumers

Changing marketing strategies which focus on micro markets

Sweeping changes in communication technology Shift towards richer mix of media and communication

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Communication Process

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Steps in developing effective Marketing communication

1. Identifying target audience e
Clarification of target audience

2. Determining the communication objectives

Check with buyers readiness stages

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3. Designing message

Steps in developing effective Marketing communication

Attention Interest Desire Action

Message content : and social appeals

with Rational, Emotional, Moral

Message structure : whether to draw conclusion or leave to the audience and whether its one sided argument or a two sided argument

Message format : catchy pictures, colors, movement, font etc..

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Steps in developing effective Marketing communication

4. Choosing media
Personal communication channels Word of mouth , buzz marketing Non personal communication channels Through media

5. Message source : who is giving in the message 6. Collecting feedback

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Setting the total promotional budget and mix

1. Setting the total promotional budget
Affordable method Percentage sales method Competitive parity method

Objective and task method

2. Shaping the overall promotion mix

Nature of promotional tool

Promotional mix strategies
Push strategy

Pull strategy
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Setting the total promotional budget and mix

3. Integrating the promotion mix
Stat with customer s

Analyze trends- internal and external- that can affect the companys ability to do business Audit the pockets of communications spending throughout the organization Team up in communication planning
Create compatible themes, tones and quality across all communication media Create performance measures that are shared by all communication elements Appoint director responsible for the companys persuasive communication efforts
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THE END
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