KINE 4430 2007 Marketing 3 class site posting

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KINE 4430 - 2007 Marketing Class # 3

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Reviewing the Outputs The outputs of the marketing plan process Types of distribution Distribution strategies (consumer & business) Types of promotion Promotional strategies (consumer & business) Price Elasticity (Sensitivity) Pricing strategies (lifecycle/product type) Pricing policies Product types Product tangibility Product lifecycle New product development Analytic Tools: Research Balance & Gaps Assessment Measurement, Monitoring & Evaluation Marketing Objectives & Strategy

Business Location: 

Business Location Your location decision will depend to a large extent on two major factors: What your customer believes is the “best location” Your distribution channel—the method or way in which a producer makes a product or service available to the consumer

Distribution Channels: 

Distribution Channels Two broad channel options: Direct distribution Indirect distribution

Direct Distribution: 

Direct Distribution Selling of goods and services directly to the consumer or end user. Two types of retailing channels: store non-store

Indirect Distribution: 

Indirect Distribution Wholesaling selling of products to retailers for resale to the end user Franchising a special kind of distribution system in which one company/individual (the franchisor) grants the right to sell its products/services to another company/individual (the franchisee)

Distribution Strategy: 

Distribution Strategy Your distribution strategy will depend on a number of factors, such as: Customer needs Type of business (B2C or B2B) Type of product/service Transportation costs Competition

The “Best” Location: 

The “Best” Location ___Local/municipal licensing ___Neighbourhood mix ___Competition ___Security, safety ___Labour pool ___Services ___Costs ___Ownership ___Property owner/landlord ___Past tenants ___Space ___Accessibility ___Professional advice ___Parking ___History of the property ___Physical visibility ___Life-cycle stage of the area ___Image ___Hours of operation ___Utilities ___Local zoning by-laws ___Taxes ___Approvals ___Transportation ___ Your target customers A location filter or checklist will help you zero in on the “perfect” location Use a scale of 1 to 10 to rate the relative importance of each item on this list. When you finish scoring, go back and note the high numbers anything above 5.

Is Home the “Best” Place?: 

Is Home the “Best” Place? Potential Disadvantages Potential Advantages Low risk of expensive mistakes Opportunity to use household resources Low overhead Gradual start-up and growth No commuting time or expense Tax advantages (with deductions allowed for part of the house) Relatively inexpensive way to test a market Reduced child-care costs Increased quality time with family Isolation and lack of contact with colleagues Increased family stress Need for self-discipline Local by-laws and regulations Less established or refined image Conflict with neighbours Parking problems

Sources of Information : 

Sources of Information Selected Secondary Sources of Location Information Census Market Research Handbook Statistics Canada catalogues Statistics Canada Web site Industry Canada Web site—Strategis Local and regional governments Local resource centre or library Potential suppliers Private research companies Commercial real estate agents

Sources of Information : 

Sources of Information Primary Sources of Location Information Finding the right location is a real opportunity to practice new-eyes research. Textbook examples of this type of research are Dry cleaning Gift store

Before You Sign Checklist: 

Before You Sign Checklist

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CAUSE OR SOCIAL MARKETING Strengthens business relationships - customers & general public Addresses social issues of concern to target market Increases sales Builds a Brand image

Lessons for Socially Responsible Companies: 

Lessons for Socially Responsible Companies What you sell is important: both the mission and the product should be socially responsible Be proud to be in business: profit not a dirty word Make a solid commitment to change: business is natural outgrowth of social entrepreneur’s values Focus on two bottom lines: viable company + social mission Forget the hype: socially responsible companies lead by doing good deeds, not by promoting them Source: Thea Singer, “Can Business Still Save the World?” Inc., April 30, 2001, pp58-71; and MEC website, www.mec.ca

Environmentalism: 

Environmentalism Environmentalism: An organized movement of concerned citizens and government agencies To protect and improve people’s living environment Environmental sustainability: Management approach Develop strategies that both sustain the environment and produce Company ‘s profits

Socially Responsible Marketing: 

Socially Responsible Marketing Enlightened marketing: A marketing philosophy that holds A company’s marketing should support the Best long-run performance of the marketing system Five principles: Consumer-oriented marketing Innovative marketing Value marketing Sense-of-mission marketing Societal marketing

Ethical Issues Associated with Marketing (Table 4.2): 

Ethical Issues Associated with Marketing (Table 4.2) Marketing research: Invalid or unreliable research studies Invasion of consumer privacy, not respecting confidentiality Disguising sales as research Failure to secure voluntary and informed participation Competitive intelligence gathering Segmentation/target marketing: Redlining: discriminating against poor or disadvantaged consumers Targeting inappropriate products to vulnerable audiences

Ethical Issues Associated with Marketing (Table 4.2): 

Ethical Issues Associated with Marketing (Table 4.2) Positioning: Making socially undesirable products more desirable Positioning on questionable benefits Product: Marketing unsafe products Product testing: on animals or insufficient testing Marketing socially controversial products Packaging and labeling: Actual versus apparent size Misleading or inadequate information Excessive or environmentally-unfriendly packaging

Ethical Issues Associated with Marketing (Table 4.2): 

Ethical Issues Associated with Marketing (Table 4.2) Pricing: Collusion with competitors Negative option billing Prejudice in negotiated prices Price discrimination Advertising: Sex role stereotyping Dehumanizing images and portraying people as products Bait-and-switch advertising

Seller’s Versus Consumers’ Rights: 

Seller’s Versus Consumers’ Rights Sellers’ rights: To introduce products of different styles and sizes, provided they are not hazardous To set its own prices, provided no discrimination occurs To spend to promote the product To use any product message, provided it is not misleading To use buying incentives Consumers’ rights: To choose To be informed To safety To be heard To redress To consumer education To participate in marketplace decision making To have access to basic services To a sustainable environment

Canadian Marketing Association Code of Ethics: 

Canadian Marketing Association Code of Ethics Topics covered: Application and governing legislation Accuracy of representation Disclosure, comparisons, guarantees, and warranties Fulfillment practices Media-specific standards of practice Product safety Marketing to children Protection of the environment Protection of personal privacy Enforcement procedures Table 4.4

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SPONSORSHIP MEDIUM 1ST AMPLIFY the Message enhances visibility of message, counteracts marketplace “info clutter” more noticeable to TM 2nd AIM the Message marketers zero in on a “captured” TM minimizes inefficiencies of communication process

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EFFECTIVE SPONSORSHIP Serves 4 constituent groups Business interest of Sponsoring Company Best interests of Event & Participants Positive impact on Sponsor’s direct customers (dealers & retailers) Benefit to Consumers who buy those products.

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BUSINESS STRATEGIES & Sponsorship 1. Communicating Sponsors communicate using sport as the communication medium 2. Targeting Sponsorship effective for targeting clusters of consumers 3. Differentiating “Image Enhancement” “Value Added” “Product Differentiation” Gives Brand a unique & memorable attribute so it’s different from competitors Villain Products – cigarette & alcohol use image enhancement

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ADVANTAGES of SPONSORSHIP 1. CREATES IDENTITY 2. INCREASES SALES 3. PROMOTES business- to-business contacts 4. CONSTITUENT benefits 5. BUSINESS customers “Interacting with consumers on an Emotional level” Exposes people to product in environment encompassing their lifestyle or aspiring lifestyle

OLYMPIC GAMES SPONSORSHIP: 

OLYMPIC GAMES SPONSORSHIP One of world’s oldest & most respected Brands Represents the best in amateur sport Encourages global co-operation, peace & harmony Captures spirit & enthusiasm of virtually every nation Most recognized symbol (90% consumer awareness)

Opportunities with Canadian-hosted Games: 

Opportunities with Canadian-hosted Games As an emotional touch point, the Olympics creates a unique set of circumstances for companies to engage Canadians directly. Vancouver Olympics 2010 Challenge is creating & sustaining high level of awareness from the outset

Corporate Interests in the Olympic Rings: 

Corporate Interests in the Olympic Rings Signature property Community engagement Employee engagement Product/ service showcase Media relations Customer hospitality

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IOC Olympics Sell TV rights “bundle” for 2010/2012 to Bell Globemedia for $153M (deal completed February 2005) $ goes to IOC and to Games organizing An Olympics every two years Cost of Olympics is “skyrocketing” - Ticket sales are down NBC Has TV rights to current “bundle” (2000 -2008) at a cost of $165M, ($76M for 2004/2006) Sells local broadcast rights Sells Advertising time to corporations (in USA) Local Businesses/ Advertisers Consumer/Spectator Main Issue: In USA, promised 20M viewers – getting 10M or less during some timeslots (av.=12.7M) American Idol 27M, Desperate Housewives 24M Viewers are typically male The Olympics Case Local Broadcasters Buys local broadcast rights (i.e. CBC/TSN $45M for 2008) Sell advertising to local corporation CBC ratings high in am but low in prime time (800,000-1.2m vs < 1.2m)