Marketing Management - Ho Chi Minh City College of Construction Part 2

+ Managed VMS: P&G can curb undue cooperation from retailers on merchandise displays, shelf space, promotion, and pricing policies.

2. The development of horizontal marketing systems (HMS)

Two or more businesses at the same channel level join together to pursue a new marketing opportunity.

For example: Banks in supermarkets.

3. The development of multi-channel marketing systems

An independent business forms two or more marketing channels to reach one or more customer segments.

Examples: Retail channels, catalogs and sales force.

V. BEHAVIOR OF THE CHANNEL

1. Conflict and competition

Three types of conflict in distribution channels:

- Horizontal conflict: between members at the same level in the same distribution channel.

- Vertical conflict: conflict between different levels within the same distribution channel.

- Multi-channel conflict: the manufacturer sets up two or more channels that compete with each other in selling to the same market.

2. Causes of channel conflict

- Conflicting goals.

- Roles and authorities are unclear.

- Difference in perception.

- The middleman depends too much on the producer.

3. Handling channel conflicts

- Accept the ultimate goal.

- Exchange between two or more levels of the channel.

- Elect to the advisory board and board of directors.

- Use diplomacy, mediation or arbitration.

CHAPTER XI: MARKETING STRATEGY

I. NEEDS FOR PROMOTION

Through promotion a business combines its many communication channels to deliver clear, consistent, and persuasive messages about the organization and its products and services.

II. MARKETING TOOLS

Promotion

Direct Marketing

Personal selling

Public Relations

1. Advertising

a) Definition:

Advertising is the presentation of a standardized commercial message simultaneously to a large number of widely dispersed people through mass media.

b) Advertising decision:

Major advertising decisions:

Decide on the message:

- Message strategy.

- Implement the message.

Budget decision:

- Affordable.

- Percentage of sales.

- Competitive equality.

- Goals and missions.

Strategy Evaluation:

- Media impact.

- Sales impact.

Building goals:

- Communication goals.

- Sales target.

Decide on the means:

- Range and frequency of impact.

- Main means.

- Special vehicles.

- Media duration.

c) Advertising objectives:

- Provide information:

Tell the market about the new product.

Tell the new benefits of the product.

Information about price changes.

Explain how to use the product and how it works.

Describe the appropriate services.

Correct bad product impressions.

Reduce customer concerns.

Building image for business.

- Informational advertising is strongly formed in the introduction stage to create initial demand. It can introduce the market to a new product, to a new use of a product, or to a change in price.

- Convince:

Build your favorite brand.

Promote switching to your business brand.

Change customer perception.

Persuade customers to buy products immediately.

Convince customers to try it.

- Persuasive advertising is necessary and very important in the competitive stage to create brand preference or persuade customers to buy immediately. Persuasive advertising can use the comparative format.

For example, Toyota compared its Lexus to the German Mercedes in terms of both price and quality (how quiet the engine was). Comparative advertising is also widely used for deodorants, toothpaste, alcohol, and painkillers.

- Remind:

Remind customers about products they may need in the near future.

Remind customers where to buy products.

Make customers remember forever in mind.

Keep your customers' attention.

- Reminder advertising is very important in the maturity (saturation) stage of a product to remind customers to always remember it first, remind them of where they first bought it, remind them of where they bought it, etc.

Example: Coca-Cola.

d) Building an advertising budget:

Factors to consider when building a budget:

What stage of the life cycle is the product in?

Market share and terms of use.

Compete.

Advertising frequency.

Product differentiation.

e) Advertising message:

- Create advertising messages:

Attractiveness

- Meaning

- Reliable

- Distinctive

Message design

Message content

- Reasonableness.

- Express emotions.

- Show ethics.

Message structure

- Draw conclusions.

- Controversial genre.

- Order of dispute.

Message format

- Title

- Illustration

- Copy

- Color

- Silent language

Attention

Interest

Desire

Action

Maybe you are interested!

Plan your message strategy

(General message communicated to customers)

Message Development (Focus on Customer Benefits)

Creative Concept

"Big idea"

(Imagination or text or a combination of both)

- Structure:

The effectiveness of advertising depends largely on the structure of the message. First, whether to give a clear conclusion or leave it to the customer to draw their own conclusions.

Drawing conclusions is often more effective.

Second, should the argument be presented in a linear or bilinear manner? The linear style is usually more effective.

Third, place your strongest argument at the beginning or end of your message.

- Form:

In print advertising, the marketer must decide on the headline, copy, and colors. Attention-grabbing techniques include uniqueness and contrast, catchy headlines, attractive format, and appropriate message size and placement. The message must be credible, likable, and inspire complete trust in the consumer.

There needs to be a style, a tone, and a proper presentation to get the message across.

If the message is conveyed on television, the presenter must pay attention to facial expressions, gestures, clothing, posture and hairstyle. It is possible to create a scene, a style or an artistic image with beauty, love, nature, purity….

- Implement the message:

Turn your “big idea” into a real ad copy that captures the attention and interest of your target market.

Can be presented in many different styles:

Professional evidence: describes the business's level of expertise or experience in making the product.

Scientific evidence: survey results or scientific evidence showing that the product is preferred or superior to similar products.

Expert opinion.

Personal icon: create a character as an icon for the product.

Music: have one or more characters sing a song about the product.

Part of life : shows one or more people using the product in a normal setting.

Lifestyle: shows how well the product fits into a lifestyle.

Quirky, unique: creating novelty through imagination around product use.

Mood or image: building an evocative mood or image around a product for the viewer to feel.

f) Advertising media:

- TV, Radio, newspapers, movies, posters, billboards, billboards, ...

- Packaging, labeling.

- Publications.

- Other media: phone directory, display, ...

2. Promotion

a) Concept:

Sales promotion is a mass communication technique that provides a short-term incentive to stimulate the purchase or sale of a product or service.

b) Market trends and rapid development of promotions:

- Promotions grow rapidly for the following reasons:

Consumers are increasingly willing to negotiate.

Businesses face increasingly fierce competition.

Advertising effectiveness is declining.

Product managers are always under great pressure to increase current sales.

- Promotions are expressed in many forms: promotions for consumers, promotions for organizations, promotions for intermediary channels or promotions for sales forces.

c) Objective:

- Attract new users and encourage product reuse.

- Introduce new products and how to use the products.

- Against competitive activities.

- Pricing, display or commercial support.

- Take advantage of seasonal and regional advantages.

- Lead to large-scale contracts.

- Reduce inventory.

- Expand or strengthen the distribution system.

- Motivate agents, intermediaries, sales force.

d) Push and pull strategy:

- Push strategy:

Manufacturer

Broker

Client

Product Delivery Product Request

Marketing efforts

Push strategy requires the business to advertise and promote well to the traders to push the product through the distribution intermediaries. The manufacturer actively advertises the product to the wholesalers, the wholesalers actively advertise to the retailers, the retailers actively advertise to the consumers to push the goods to them.

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- Pull strategy:

Manufacturer

Guest Broker

Pull strategies require high promotional expenditures and aggressive consumer promotion to create demand. If effective, consumers will ask retailers for the product, retailers will ask wholesalers, wholesalers will ask manufacturers.

Some small firms that produce industrial goods use only a push strategy. Some firms use only a pull strategy. Most large firms use a combination of push and pull.

For example, Procter & Gamble uses mass media advertising to attract customers for its products and then uses a large sales force and trade promotions to push the products through marketing intermediaries.

e) Promotional tools:

- Promotional tools for consumers:

Marketing Management - Ho Chi Minh City College of Construction Part 2 - 6

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