1. Welcome to Marketing Principles WEEK 8
PowerPoint to accompany:

2. Chapter 10 Placement: Customer Value Fulfilment
PowerPoint to accompany:

3. Lecture Outline/Schedule
1.Activity
2.Distribution
Just as a reminder….

4. Divide into two groups Group A and Group B Placement Decisions….
Uncover two brands of the same product….have a discussion on what distribution strategies are appropriate

5. Placement Decision…. Group A…here is your product..
What is your distribution strategy for this high quality high priced product?
5 mins discussion in sub groups of 6..group leaders confer and come to consensus..2mins
Uncover two brands of the same product….have a discussion on what distribution strategies are appropriate

6. Placement Decision…. Group B ….here is your product
What is your distribution strategy for this no frills low priced product?
5 mins discussion in sub groups of 6..group leaders confer and come to consensus..2mins
….have a discussion on what distribution strategies are appropriate…discussion how segmentation and pricing and product quality are all integrated into a distribution strategy

7. Key Weekly marketing..Branding highlights
Apple launches new iPhone 5

8. Video on marketing channels and logistics
Select a version of the video to play:
Kotler_PoM_5e_ubd.wmv
For Windows or
Kotler_PoM_5e_ubd.mp4
For Mac
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9. Placement: Customer value fulfilment
Learning objectives
Objective 1 Describe the nature of marketing logistics network management and how marketing channels add value
Objective 2 Describe the nature of marketing channels and how they organise to perform their marketing channel work
Objective 3 Discuss traditional and online store retailing, their marketing decisions, and the different ways of classifying stores, and describe retailing trends and developments
Objective 4 Compare and contrast the different types of wholesalers, and their marketing decisions, and discuss wholesaling trends
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10. The nature of marketing logistics network management
Marketing logistics networks
Marketing logistics network goals
Major logistics functions
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11. Marketing logistics networks
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12. The nature of marketing logistics network management Marketing logistics networks
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13. Marketing logistics network goals
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14. Marketing logistics network goals
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15. Marketing logistics functions
Warehousing
Inventory management
Transportation
Logistics information management
Steve Allen/Getty Images Australia Pty Ltd
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16. The nature and importance of marketing channels
A marketing channel (or distribution channel) is a set of interdependent organisations involved in the process of making a product or service available to users
QR National
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17. How Marketing Channels Add Value (1)
Information—gathering and distributing
marketing research and intelligence.
Promotion—developing and spreading communications about an offer.
Contact—finding and communicating with prospective buyers.
Matching—shaping and fitting the offer to the buyer’s needs, including such activities as manufacturing, grading, assembling and packaging.
Relates to objective 3

18. How Marketing Channels Add Value (2)
Negotiation—reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred.
Physical distribution—transporting and storing goods.
Financing—acquiring and using funds to cover the costs of the channel work.
Risk taking—assuming the risks of carrying out the channel work.

19. Selecting channels
Distribution coverage – Channel selection may depend upon the nature of market coverage desired
Intensive distribution – Using as many wholesalers and retailers as possible
Selective distribution – Using only the best available per geographic area
Exclusive distribution – Selected intermediaries are given exclusive rights within a particular territory

20. Example of distribution channel
Buying medicines online: know the risks
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21. How marketing channel members add value
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22. How do manufacturers use online distributors for their products?
Discussion question
How do manufacturers use online distributors for their products?
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23. Number of channel levels
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24. Channels in the service sector
“The concept of marketing channels is not limited to the distribution of goods”
Courtesy VHA
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25. Channel behaviour and organisation
“Marketing channels are behavioural systems made up of real companies and people who interact to accomplish their individual and collective goals”
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26. Channel behaviour
Channel conflict is disagreement among marketing channel members on goals, roles, and rewards.
Horizontal conflict
Vertical conflict
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27. Channel organisation
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28. Channel organisation
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29. Discussion question
Metcash is an initiator of a wholesaler-sponsored voluntary chain. Why might independent retailers want to be part of such a chain? .
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30. Retailing Types of retailers
Self-service; Limited-service; Full-service
Amount of service
Speciality store; Combination store; Department store; Supermarkets; Convenience store; Mass merchants; Superstores; Hypermarkets
Product line
Chain stores; Corporate chain; Voluntary chain; Retailer cooperative
Organisational approach
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31. Australian David Jones Commercial 1984
Example of retailers
Australian David Jones Commercial 1984
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32. Example of retailers Bi-lo training video
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33. Retailer marketing decisions
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34. Wholesaling Functions
Selling and promoting
Buying and assortment building
Bulk breaking
Warehousing
Transportation
Financing
Risk bearing
Management services and advice
Market information
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35. Types of wholesalers Merchant wholesaler Full-service wholesaler
Limited-service wholesaler
Broker
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36. Example of wholesalers
Wholesale Urban Clothing 36
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37. Wholesaler marketing decisions
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38. Video on marketing channels and logistics
Select a version of the video to play:
Kotler_PoM_5e_nudie.wmv
For Windows or
Kotler_PoM_5e_nudie.mp4
For Mac
Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – /Kotler/POM/5e

39. Dimensions of the Service Environment
Ambient Conditions
Music (e.g, fast tempo and high volume increase arousal levels)
Scent (strong impact on mood, affect and evaluative responses, purchase intention and in-store behavior)
Colour (e.g, warm colors associated with elated mood states and arousal but also increase anxiety, cool colors reduce arousal but can elicit peacefulness and calm)

40. Impact of Music on Restaurant Diners
Restaurant Patron
Behavior
Fast-beat Music
Environment
Slow-beat Music Environment
Difference between
Slow and Fast-beat
Environments
Absolute Difference %
Difference
Consumer time spent at table
45min
56min
+11min
+24%
Spending on food
$55.12
$55.81
+$0.69
+1%
Spending on beverages
$21.62
$30.47
+$8.85
+41%
Total spending
$76.74
$86.28
+$9.54
+12%
Estimated gross margin
$48.62
$55.82
+$7.20
+15%
Source: Services Marketing Lovelock and Wirtz 2004

41. Common Associations and Human Responses to Colors
Degree of Warmth
Nature Symbol
Common Association and Human Responses to Color
Red
Warm
Earth
High energy and passion; can excite, stimulate, and increase arousal and blood pressures
Orange
Warmest
Sunset
Emotions, expressions, and warmth
Green
Cool
Grass and Trees
Nurturing, healing and unconditional love
Blue
Coolest
Sky and Ocean
Relaxation, serenity and loyalty
Source: Services Marketing Lovelock and Wirtz 2004

42. Atmospherics
Physical environment Physical evidence Store atmosphere Servicescape

43. Dimensions of ‘atmospherics’
Facility exterior Facility interior Other tangibles (business cards, stationery, billing statements, reports, employee appearance, uniforms, brochures) Store Space: Layout and Design Ambience Point of purchase and Decoration Social factors

44. Impact of Atmospherics on...
Time spent in a store
Amount of money spent in a store
Customer perceptions of quality
Customer intentions to purchase
Customer satisfaction
Employees’ behaviour and interactions

45. CargoMatic Loading and Unloading System Mobile - Milk products
Example of retailers
CargoMatic Loading and Unloading System Mobile - Milk products
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46. First Half Revision Marketing Orientations Environmental analysis
Marketing Research
Consumer & Business Behaviour
Segmentation, targeting & positioning
Product
Pricing
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48. Week 9 Key Concept Checklist
Reflect on the key concepts covered in this week’s learning module and ask any questions that you might have .
Marketing logistics networks
Marketing Distribution Channels
Distribution options
Role of distribution channels
Retailer and wholesale marketing decisions