Module 4 MM

MARKETING MANAGEMENT (22MBA15)
MODULE 4
Distribution and Promotion: Roles and purpose of Marketing Channels, Factors Affecting
Channel Choice, Channel Design, Channel Management Decision, Channel Conflict,
Designing a physical Distribution System. Promotions- Marketing communications- Integrated
Marketing Communications (IMC)-communication objectives, steps in developing effective
communication. Advertising: Advertising Objectives, Advertising Budget, Advertising Copy,
AIDA model, Traditional Vs Modern Media- Online and Mobile Advertising, social media for
Advertising. Push-pull strategies of promotion.
MARKETING CHANNELS MEANING
 A marketing channel is the people, organizations, and activities necessary to transfer the
ownership of goods from the point of production to the point of consumption. It is the way
products get to the end-user, the consumer; and is also known as a distribution channel. A
marketing channel is a useful tool for management and is crucial to creating an effective and
well-planned marketing strategy
 Creating a customer is a major task of marketing but delivering the goods to the customer so
created is the most critical task. Physical distribution is a marketing activity that concerns the
handling and the movement of goods. It is a major component of marketing mix and cost area
of business.
 It involves the coordination of activities to place the right quantity of right goods at the desired
Place and time. Like any other marketing mix component, physical distribution has two broad
objectives to attain, namely, consumer satisfaction and profit maximization. Physical
distribution is not only a cost but a powerful tool of competitive marketing.
 A channel of distribution is an organized network or system of agencies and institutions,

which, in combination, perform all the activities required to link producers with users and
users with producers to accomplish the marketing task.
MARKETING CHANNELS DEFINITION
 According to Phillip Kotler,” It is a set of independent organizations involved in the process

of making a product or service available for use or consumption.” Thus, a channel of
distribution is a path way directing the flow of goods and services from producers to
consumers composed of intermediaries through their functions and attainment of the mutual
objectives.
Prof. Ningambika G Meti Department of MBA, SVIT

 In the words of Phillip Kotler, “Physical distribution involves planning, implementing and
controlling the physical flow of materials, and final goods from the point of origin of use to
meet customer needs at a profit.”
PURPOSE OF MARKETING CHANNELS

 To ensure the proper availability of desired products
The major purpose of any distribution channel is to provide the desired product at the
desired marketplace. For this, organization first identity the relevant market place having
significant demand for the concerned products.
 To improve the sales outlook
In a particular retail store the sale of organizational products depends on its display. The
purpose of distribution channels is to arrange a proper display of organizational products
in the retail store so that the sales outlook of that particular retail store as well as
organization can be improved.
 To establish cooperation between distribution factors
Various factors affect the distributors system like, type of unit loads, delivery time limits,
order sixe, delivery access, handling aids or tools, nature of product handling etc. a strong
cooperation between these factors is required for efficient distribution.
 To achieve and maintain a level of service
Another purpose of distribution channels is to achieve and maintain a level of service
towards both customers and suppliers. This is important for the customers. They observe
the services performance of different suppliers so as to compare them and to determine
the future purchase decisions.
 To minimize logistics and total cost
Cost of production is included in the price of a given product. This cost is very important
for pricing. Therefore, distribution channels of an organization are focused to minimize
the logistics and total cost of the product. A particular cost reflected by selected
distribution channel must be evaluated in terms of type of product served and the required
service level.
 To collect accurate information
Another purpose of distribution channels is to collect accurate information. An efficient
distribution system requires sound flow of information. Sales trends, cost monitoring,
service levels, damage reports, inventory levels etc are helpful in getting required
information.
LEVLES OF CHANNELS
This indicates the number of intermediaries between the manufactures and consumers. Mainly
there are four channel levels. They are

1.Zero level channel: - Here the goods move directly from producer to consumer. That is, no
intermediary is involved. This channel is preferred by manufactures of industrial and consumer
durable goods
2.One level channel: In this case there will be one sales intermediary ie, retailer. This is the
most common channel in case of consumer durable such as textiles, shoes, ready garments etc.
3.Two level channel: This channel option has two intermediaries, namely wholesaler and
retailer. The companies producing consumer non durable items use this level.
4.Three level channel: This contains three intermediaries. Here goods move from manufacture
to agent to wholesalers to retailers to consumers. It is the longest indirect channel option that a
company has.
CHANNELS AVAILABLE FOR THE DISTRIBUTION OF CONSUMER GOODS.

Channels typically depends on the nature of the product, the target market, and the objectives of
the company. Here are some of the most common channels:
1. Direct distribution: In this channel, the manufacturer sells the products directly to the end
consumer. This can be done through a company-owned website, a retail store, or even door-
to-door sales.
2. Retail distribution: This channel involves selling products through a network of retail stores.
Retailers purchase products from the manufacturer or wholesaler and sell them to the end
consumer. Examples include department stores, supermarkets, and specialty stores.
3. Wholesale distribution: In this channel, the manufacturer sells the products to wholesalers,
who then sell the products to retailers. This is a common channel for products that are sold in
bulk, such as food and beverages.
4. Online distribution: This channel involves selling products online through a company-owned
website or through third-party e-commerce platforms like Amazon or eBay.
5. Direct mail distribution: This channel involves sending catalogs or other promotional
materials directly to consumers through the mail. Consumers can then place orders through
the mail, phone, or online.
6. Multi-level marketing: This channel involves selling products through a network of

independent distributors. The distributors earn a commission on the products they sell, as well
as on the sales made by the distributors they recruit.

7. Direct response distribution: In this channel, the manufacturer or distributor sells products
through infomercials, television ads, or other forms of direct marketing. Consumers can place
orders by phone or online.
FACTORS AFFECTING CHANNEL CHOICE
Factors Pertaining to the Product:

Keeping in view the nature, qualities and peculiarities of the product, could only the channel for
distribution be properly made. The following factors concerning the product, affect the selection
of the channel of distribution:
1. Price of the Product: The products of a lower price have a long chain of distributors. As
against it, the products having higher price have a smaller chain. Very often, the producer
himself has to sell the products to the consumers directly.
2. Perishability: The products which are of a perishable nature need lesser number of the
intermediaries or agents for their sale. Under this very rule, most of the eatables (food
items), and the bakery items are distributed only by the retail sellers.
3. Size and Weight: The size and weight of the products too affect the selection of the
middlemen. Generally, heavy industrial goods are distributed by the producers
themselves to the industrial consumers.
4. Technical Nature: Some products are of the nature that prior to their selling, the consumer
is required to be given proper instructions with regard to its consumption. In such a case
less of the middlemen arc) required to be used.
5. Goods Made to Order: The products that are manufactured as per the orders of the
customers could be sold directly and the standardized items could be sold off only by the
middlemen.
6. After-Sales Service: The products regarding which the after-sales service is to be provided
could be sold off either personally or through the authorized agents.
Factors pertaining to the Consumer or Market:
The following are the main elements concerned with the consumer or the market:
1. Number of Customers: If the number of customers is large, definitely the services of the
middlemen will have to be sought for. As against it, the products whose customers are

less in number are distributed by the manufacturer himself.
2. Expansion of the Consumers: The span over which are the customers of any commodity
spread over, also affects the selection of the channel of distribution. When the consumers
are spread through a small or limited sphere, the product is distributed by the producer
himself or his agent. As against it, the goods whose distributors are spread throughout the
whole country, for such distributors, services of wholesaler and the retailer are sought.
3. Size of the Order: When bulk supply orders are received from the consumers, the producer
himself takes up the responsibility for the supply of these goods. If the orders are received
piece- meal or in smaller quantities, for it the services of the wholesaler could be sought.
In this way, the size of the order also influences the selection of the channel of the
distribution.
4. Objective of Purchase: If the product is being purchased for the industrial use; its direct
sale is proper or justified. As against it, if the products are being purchased for the general
consumption, the products reach the consumers after passing innumerable hands.
5. Need of the Credit Facilities: If, for the sale of any product, it becomes necessary to grant
credit to any customer, it shall be helpful for the producer that for its distribution, the
services of the wholesaler and retailer businessmen be sought. In this way, the need of the
credit facilities too influences the selection of the channel of distribution.
C. Factors Pertaining to the Middlemen:
The following are the main factors concerned with the middlemen:
1. Services Provided by Middlemen: The selection of the middlemen is made keeping in

view their services. If some product is quite new and there is the need of its publicity and
promotion of sales, then instead of adopting the agency system, the work must be
entrusted to the representatives.
2. Scope or Possibilities of Quantity of Sales: The same channel should be selected by means
of which there is the possibility of more sales.
3. Attitude of Agents towards the Producers' Policies: The producers generally prefer to
select such middlemen who go by their policies. Very often when the distribution and
supply policies of the producers being disliked by the middlemen, the selection of
middlemen becomes quite limited.

4. Cost of Channel of Distribution: While selecting the channel of distribution, the cost of
distribution and the services provided by the middlemen or agents too must be kept into
consideration. The producers generally select the most economical channel.
D. Factors Pertaining to the Producer or Company:
The following factors, concerning the producer, affect the selection of the channel of distribution:
1. Level of Production: The manufacturers who are financially sound and are of a larger
category, are able to appoint the sales representatives in a larger number and thug could
distribute the commodities (products) in larger quantities. As against it, for the smaller
manufacturers, it becomes necessary to procure the services of the wholesellers and the
retail traders.
2. Financial Resources of the Company: From the financial point of view, the stronger
company needs less middlemen.
3. Managerial Competence and Experience: If some producer lacks in the necessary

managerial experience or proficiency, he will depend more upon the middlemen. The new
manufacturers in the beginning remain more dependent upon the middlemen.
E. Other Factors:
1. Distribution Channel of Competitors: While determining the channel of distribution, the

channels of distribution of the competitors too must be borne in mind.
2. Social Viewpoint: What is the attitude of society towards the distribution, this fact too
must be kept into consideration while selecting the middlemen.
3. Freedom of Altering: While selecting the agents, this fact too must be kept into mind that
in case of need, there must be the liberty of changing or replacing the agents (middlemen).
CHANNEL DESIGN
Channel design: Those decisions involving the development of new marketing channels where
none had existed before, or the modification of existing channels.
Channel design is presented as a decision faced by the marketer, and it includes either setting up
channels from scratch or modifying existing channels. This is sometimes referred to as
reengineering the channel and in practice is more common than setting up channels from scratch.

The term design implies that the marketer is consciously and actively allocating the distribution
tasks to develop an efficient channel, and the term selection means the actual selection of channel
members.
1. Defining the customer needs - In designing the market channel, the marketer must
understand the service output levels its target customer want. It is essential to capture
customer requirements while designing marketing channel.
It includes the following:
• Product information
• Product customization
• Product quality assurance
• Lot size
• Product variety
• Spatial convenience / availability
• Waiting and delivery time
• After sales service
• Logistics
When a marketer designs a marketing channel, he must understand the service output
levels desired by the target customers. Different customers have different levels of service
requirements. A high potential customer needs to be offered effective and professional
service backup, ensured availability of varied products compared to the low potential
customer. The marketing channel designer has to know at this stage itself that providing
superior service output means increased channel costs and higher prices for customers.
2. Defining the channel objective - The channel objective vary with product
characteristics:

• Perishable products require more direct marketing.

• Bulky products, such as building materials, require channels that minimize the shipping
distance and amount of handling
• Non- standard products, such as custom-built machinery and specialized business
forms, are sold directly by company sales representatives.
• High- unit- value products such as generators and turbines are often sold through a
company sales force rather than intermediaries.
Channel objectives are a part of and result from the company’s marketing objectives that need to
be stated in terms of targeted service output levels. Profit considerations and asset utilization
must be reflected in channel objectives and the resultant design. It should be the endeavor of the
channel members to minimize the total channel costs and still provide with the desired level of
service outputs. Channel objectives keep varying depending on the characteristics of the products.
For example, while a customized non-standard product requires company sales force to sell
directly, products like HVAC (Heating, Ventilation and Air-conditioning) are either sold by the
company or its franchised dealers.
3. Channel Alternative - A company looks at alternatives for its distribution channel after it has
decided on the targeted customers and the customer service deliverables it desires from its channel
partners to reach these customers. At the time of deciding the company will scan for:
Type of intermediaries
 Distributors or re-distribution stock list

 Carrying and forwarding agents
 Logistics service providers.
 Manufacturer’s agents, stock list, guarantors
 Financing agencies
 Wholesalers and semi wholesalers
 Retailers and service centers
4. Evaluation of Major Alternative - The major problem before the producer is to decide which
of the alternatives would be best satisfy the long term objectives of the firm taking in view the
factors which would affect the channel decision. For this purpose, each alternative must be
rated against economic; control and adequate criteria
There are several channel alternatives available to the industrial markets. They have to determine
the best among the alternatives by evaluating them based on the following criteria:
1. Economic Performance
2. Degree of control
3. Degree of adaptability of channel members
5. Ideal Channel Structure - With the completion of forgoing steps, the number of alternatives
would have narrowed down considerably. The firm must evaluate design and choose the best
among them.
CHANNEL MANAGEMENT DECISIONS
The term Channel Management is widely used in sales marketing parlance. It is defined as a
process where the company develops various marketing techniques as well as sales strategies
to reach the widest possible customer base. The channels are nothing but ways or outlets to
market and sell products. The ultimate aim of any organization is to develop a better
relationship between the customer and the product.
Channel management helps in developing a program for selling and servicing customers within
a specific channel. The aim is to streamline communication between a business and the
customer. To do this, you need to segment your channels according to the characteristics of
your customers: their needs, buying patterns, success factors, etc. and then customize a
program that includes goals, policies, products, sales, and marketing program (1). The goal of
channel management is to establish direct communication with customers in each channel. If
the company is able to effectively achieve this goal, the management will have a better idea
which marketing channel best suits that particular customer base. The techniques used in each
channel could be different, but the overall strategy must always brand the business consistently
throughout the communication
A business must determine what it wants out of each channel and also clearly define the
framework for each of those channels to produce desired results. Identifying the segment of
the population linked to each channel also helps to determine the best products to pitch to those
channels.
Steps in channel management decision
1. Selecting channel members
2. Training channel partners
3. Motivating channel members
4. Evaluating channel members
5. Modifying channel arrangements
CHANNEL CONFLICT
Meaning - Channel conflict occurs when manufacturers (brands) dis-intermediate their channel
partners, such as distributors, retailers, dealers, and sales representatives, by selling their products
directly to consumers through general marketing methods and/or over the Internet.

Refers to a Situation when a producer or supplier bypasses the normal channel of distribution and
sells directly to the end user. Selling over the internet while maintaining a physical distribution
network is an example of channel conflict. See also disintermediation.
The Channel Conflict arises when the channel partners such as manufacturer, wholesaler,
distributor, retailer, etc. compete against each other for the common sale with the same brand.
TYPES OF CHANNEL CONFLICT
1. Vertical channel conflict

2. Horizontal channel conflict
3. Multi channel conflict
1. Vertical Channel Conflict: This type of conflict arises between the different levels in the
same channel.
E.g. The conflict between the manufacturer and the wholesaler regarding price, quantity,
marketing activities, etc.
2. Horizontal Channel Conflict: This type of conflict arises between the same level in the
same channel.
E.g. The conflict between two retailers of the same manufacturer faces disparity in terms of sales
target, area coverage, promotional schemes, etc.
3. Multichannel Conflict: This type of conflict arises between the different market channels
participating in the common sale for the same brand.
E.g. If a manufacturer uses two market channels, first is the official website through which the
products and services are sold. The second channel is the traditional channel i.e. through
wholesaler and retailer. If the product is available at a much lower price on a website than is
available with the retailer, the multichannel conflict arises.

CAUSES OF CHANNEL CONFLICT
Goal incompatibility: Different partners in the channel of distribution have different

goals that may or may not coincide with each other and thus result in conflict.
E.g. The manufacturer wants to achieve the larger market share by adopting the market
penetration strategy i.e. offering a product at low price and making the profits in the long run,
whereas the dealer wants to sell the product at a high cost i.e. market skimming strategy and earn
huge profits in the short run.
Ambiguous Roles: The channel partners may not have a clear picture of their role i.e.
what they are supposed to do, which market to cater, what pricing strategy is to be adopted, etc.
E.g. The manufacturer may sell its products through its direct sales force in the same area where
the authorized dealer is supposed to sell; this may result in the conflict.
Different Perceptions: The channel partners may have different perceptions about the
market conditions that hamper the business as a whole thereby leading to the conflict.
E.g. The manufacturer is optimistic about the change in the price of the product whereas the
dealer feels the negative impact of price change on the customers.
Manufacturer dominating the Intermediaries: The intermediaries such as the

wholesaler, distributor, retailer, etc. carry the process of distribution of goods and services for
the manufacturer. And if the manufacturer makes any change in the price, product, marketing
activity the same has to be implemented with an immediate effect thereby reflecting the huge
dependence of intermediaries on the manufacturer.
E.g. If the manufacturer changes the promotional scheme of a product with the intention to cut
the cost, the retailer may find it difficult to sell the product without any promotional scheme and
hence the conflict arises.
Lack of Communication: This is one of the major reasons that lead to the conflict among
the channel partners. If any partner is not communicated about any changes on time will hamper
the distribution process and will result in disparity.
E.g. If retailer urgently requires the stock and the wholesaler didn’t inform him about the
availability of time may lead to the conflict between the two.
MANAGING CHANNEL CONFLICT

Subordinate Goals: The channel partners must decide a single goal in terms of increased
market share, survival, profit maximization, high quality, customer satisfaction, etc. with the
intention to avoid conflicts.
Exchanging employees: one of the best ways to escape channel conflict is to swap
employees between different levels i.e. two or more persons can shift to a dealer level from the

manufacturer level and from wholesale level to the retailer level on a temporary basis. By doing
so, everyone understands the role and operations of each other thereby reducing the role
ambiguities.
Trade associations: Another way to overcome the channel conflict is to form the
association between the channel partners. This can be done through joint membership among the
intermediaries. Every channel partner works as one entity and works unanimously.
Co-optation: Under this, any leader or an expert in another organization is included in the
advisory committee, board of directors, or grievance redressal committees to reduce the conflicts
through their expert opinions.
Diplomacy, Mediation and Arbitration: when the conflict becomes critical then partners
have to resort to one of these methods.
 In Diplomacy, the partners in the conflict send one person from each side to resolve the
conflict.
 In Mediation, the third person is involved who tries to resolve the conflict through his
skills of conciliation.
 In Arbitration, when both the parties agree to present their arguments to the arbitrator and
agree to his decision.
Legal resource: When the conflict becomes crucial and cannot be resolved through any
above mentioned ways, the channel partners may decide to file a lawsuit.
DESIGNING A PHYSICAL DISTRIBUTION SYSTEM
Meaning - Physical distribution is the group of activities associated with the supply of finished
product from the production line to the consumers. The physical distribution considers many
sales distribution channels, such as wholesale and retail, and includes critical decision areas like
customer service, inventory, materials, packaging, order processing, and transportation and
logistics.
The planning, implementation, and controlling of the physical flow of material or product from
one point to another to meet the customer requirements in the market is known as physical
distribution.
Physical distribution is responsible for delivering to the customer what is wanted on time and at
minimum cost. The objective of distribution management is to design and operate a distribution
a system that attains the required level of customer service and does so at least cost. To reach this
Objective, all activities involved in the movement and storage of goods must be organized into
an integrated system (physically).

Steps in Designing a Physical Distribution System
To design a physical distribution system for a product, following steps need to be followed −
• Step 1 − Defining distribution objective and services required for product distribution
• Step 2 − Articulating customer requirement
• Step 3 − Comparing the strategy with market competitors
• Step 4 − Managing the cost of distribution to decrease cost without compromising on the
quality of service
• Step 5 − Building physical distribution system that is flexible for implementation of
changes, if required
COMPONENTS/ ELEMENTS OF A PHYSICAL DISTRIBUTION SYSTEM
Physical distribution can be controlled and monitored by its different components. Each
component should be evaluated and managed in order to accomplish physical distribution without
any problems.
The various elements of a physical distribution system are:
1. Customer service:
Customer service is a predefined standard of customer satisfaction, which a retailer plans to
provide to its customers. Without defining and setting ‘standards of customer service’, retailers
cannot achieve competitive advantage over their competitors. A customer service standard may
be that 95% of the orders are delivered within 5 hours of receipt and 100% are delivered within
24 hours. Retailers maintaining higher service standards bear costs of maintaining higher
inventory level or expenditure incurred on fast mode of transportation.
The effective distribution systems must keep proper records of costs of meeting various customer
service standards (90%, 95% or 100% of orders delivered within 24 hours), and additional
customer satisfaction that results from raising standards.
These days, specialized software packages are being used by modern retailers to track the
merchandise during its transportation to ensure fastest, cost-effective deliveries on time.
Customer service levels may be improved by following steps too:

(a) By ensuring product availability all the time.
(b) By improving order cycle time – it implies reducing the gap between placing the order and
its delivery time.
(c) By providing proper training to sales persons and employees engaged in transportation.
(d) By having separate plans for
 quick deliveries in case of urgent orders
 in case of natural/unforeseen problems

2. Order Processing:
Order processing, alternatively known as order fulfillment is the handling of customer orders
within the distribution center (may be warehouse, retail store itself) involving the keying of
customer and order details into the computer system in order to produce the invoices for picking.
The basic idea is to deliver the orders as per customers’ wants of place and timing.
Therefore, action should be taken quickly as an order has been placed and the customer must
have fast confirmation of the order’s receipt and the exact delivery time. In today’s high tech
world, computers are used to check the customer’s credit rating, stock levels, and delivery
promptness so that management can obtain an accurate picture of distribution status. Accuracy
plays a vital role in successful order processing, as are procedures that are designed to lessen
(shorten) the order processing cycle.
3. Inventory Control:
Inventory control is a major component of a retail organization’s physical distribution system. It
includes money invested in inventory, wear and tear and possible obsolescence of the goods with
the passage of time. In a retail organization, where finance executives seek inventory
minimization, marketing executives advocate large inventories to prevent stock outs. Therefore,
retailers should to try minimize optimum level of inventory to meet the customers’ demand close
to customer service standards of 100%.
4. Warehousing:
It involves all the activities required in storage of goods between the time these are procured and
the time these are transported to the customer upon receipt of order. This function basically
involves receiving the merchandise, breaking bulk, storing and loading for delivery to customers
as per their details. Storage warehouses usually keep goods for long periods while distribution
centers operate as central/middle locations for quick movements of goods to retail stores.
Further, retail organizations use regional distribution centers where wholesalers dump the
products in high volume. At regional distribution centers, these consignments are broken down
to small loads that are then quickly transported to retail outlets as per the outlet’s requirements.
5. Transportation Mode:
Transportation is indispensable for physical distribution of goods and services. Transportation
mode enables channel members like producers, wholesalers and retailers to make goods and
services available at the customers’ place of purchase or at his doorstep. From cost point of view,
transportation accounts nearly 25-40% of total distribution costs. Quick and timely delivery,
security of goods during transit and proper handling results in customer satisfaction.

6. Materials Handling:
Materials handling implies the movement of goods inside the retail organization, warehouses and
retail stores/outlets. In case of chain stores, the raw materials, finished goods etc move from a
common warehouse to various store locations. Similarly, in case of multistory or even single-
story storage houses, movements of goods take place.
Some items or materials may be light weight but few may be heavy, which may require proper
handling and utmost care. In modern storage facilities, material handling is through equipments
meant for moving/transferring goods. These handling equipments also vary with method of
loading and modes of transport used like railways, water ways, airways etc.
Type of handling equipment used will depend upon the following reasons:
 Mode of transport: rail, air, water, road and others.

 Nature & size of goods (materials: heavy, light, solid, liquid or gases).
 Place of operation: warehouse & selling floor.
Other components of the physical distribution system −

• Planning of physical distribution system
• Storage planning in plant
• Logistics
• Warehousing on field
• Receiving
• Sub distribution of product
• Management of inventory at various levels
• Execution of order
• Accounting transactions
• Communication at different levels
PROMOTIONS:
 Promotion is also one of the elements in the promotional mix or promotional plan. These
are personal selling, advertising, sales promotion, direct marketing, publicity, word of
mouth and may also include event marketing, exhibitions and trade shows.
 A promotional plan specifies how much attention to pay to each of the elements in the
promotional mix, and what proportion of the budget should be allocated to each element.

MARKETING COMMUNICATIONS:
 Marketing communication involves sharing of meaning, information and concepts by the

source and the receiver about the products and services and also about the firm selling through
the devices of promotion via, advertising, publicity, salesmanship and sales promotion.
 One of the primary goals of marketing communication is to persuade consumers or
businesses, by either changing their perception of a brand, product, or service or persuading
them to purchase (or feel motivated / tempted to purchase) a product or service.
 Marketing Communications refers to the use of different marketing channels and tools in
combination. Marketing communication channels focus on how businesses communicate a
message to its desired market, or the market in general. It is also in charge of the internal
communications of the organization.
DIRECT MARKETING
Direct marketing is a type of marketing that involves communicating directly with customers and
potential customers in order to promote products and services. Direct marketing can be conducted
in various ways, including email, text messages, catalogs, phone calls, and direct mail.
Direct marketing is a form of advertising that involves directly communicating a marketing

message to a potential customer, usually through mail, email, telemarketing, or door-to-door
visits. Examples of direct marketing include mail order catalogs, flyers, postcards, coupons, and
door-to-door sales.
INTEGRATED MARKETING COMMUNICATION – (IMC)

Integrated Marketing Communications (IMC) blends various promotional tools and
communications/marketing/advertising services and techniques to maximize profit. IMC is
ultimately achieved through concise and consistent messaging that fosters familiarity and
consumer affinity. Effective IMC messages and images are meaningful and useful to consumers,
and messaging and branding consistency - a proven IMC concept - yield customer satisfaction
and loyalty. An approach to achieving the objective of a marketing campaign through a well
coordinated use of different promotional methods that are intended to reinforce each other. As
defined by the American Association of Advertising Agencies – IMC recognizes the value of a
comprehensive plan that evaluates the strategic roles of a variety of communication discipline
Advertising, public relations, personal selling and sales promotion and combines them to provide
Clarity, consistency and maximum communication profit.
COMMUNICATION OBJECTIVE
 To develop brand awareness
 To increase consumer or business demand for a product category

 To change or influence customer beliefs or attitudes

 To enhance purchase actions
 To encourage repeat purchases
 To build customer traffic to physical stores, websites or other marketing channels
 To enhance firm/brand image
 To increase market share
 To increase sales
 To reinforce purchase decision
STEPS IN DEVELOPING EFFECTIVE COMMUNICATION:
1. Identify the target audience - A major part of audience analysis is assessing the
audience’s current image of the company, its products, and its competitors. If most
respondents have unfavorable feelings towards the product, the organization needs to
overcome a negative image problem, which requires great patience because images are
persistent even long after the organization has changed. Once people havea certain image,
they perceive what is consistent with that image. It will take highly disconfirming
information to raise doubts and open their minds- but it can be done.
2. Determine the communication objectives - Here the marketer wants to decide that
whether he wants to put something into consumer’s mind, change an attitude, or get the
consumer to act. “Learn-feel-do” sequence is appropriate when the audience has high
involvements with a product category that is perceived to have differentiation, as in
purchasing an automobile. An alternative sequence, “dofeel-learn,” is relevant when the
audience has high involvement but perceive little or no differentiation within the product
category, as in purchasing aluminum siding. A third sequence, “learn-do-feel,” is relevant
when the audience has low involvement and perceives little differentiation within the
category, as in purchasing salt.
3. Design the message - The communicator now moves next to developing an effective
message. Ideally, the message should gain attention, hold interest, arouse desire, and elicit
action. AIDA (Attention- Interest-Desire-Action) framework suggests the desirable
qualities of any communication. Formulating the message involves decisions about
message content, structure, format, and source.
4. Select the communication channels - The communicator must select an effective

communication channel to carry the message. In general, firms use two types of

communication channels: personal and non-personal. Personal communication channels

involve two or more persons communicating directly with each other face to face, person
to audience, over the telephone, or through e-mail. These channels derive their
effectiveness through individualized presentation and feedback. Non-personal
communication channels include media, atmospheres, and events. Media consists of print
media, broadcast media, network media, electronic media, and display media. Most non-
personal messages cone through paid media. Atmospheres are “packaged environments”
that create or reinforce the buyer’s learning’s toward product purchase. Law offices, for
instance, are decorated with fine rugs and furniture to communicate “stability” and
“success”. Events are occurrences such as news conferences, grand opening, and other
activities designed to communicate particular message to target audiences.
5. Establish the communications budget - Industries and companies vary considerably in

how much they spend on promotion. Expenditures might amount to 30- 50 percent of
sales in the cosmetics industry but only 5-10 percent in the industrial-equipment industry,
with companytocompany variations. Four common methods of deciding on a budget
include: Affordable method: Many companies set the promotion budget at what
management thinks the firm can afford. Percentage-of-the-sales method: Many firms set
promotion expenditure as a specified percentage of sales or of the sales price.
6. Decide on the media mix i.e. Marketing Communication Mix - Companies must
decide how to allocate the budget over the five promotional tools. Even in the same
industry, companies differ considerably in their media and channel choices. Advertising
can reach geographically dispersed buyers efficiently. Certain forms of advertising
require a large budget, while others do not. Sales promotion tools coupons, contests,
premiums and the like offer three key benefits: communication, incentive and invitation.
The appeal of public relations and publicity is based on three qualities: high credibility,
ability to catch buyers off guard and dramatization. Direct marketing can be in the form
of direct mail, telemarketing and Internet Marketing. These share four characteristics-
nonpublic, customized, up-to-date and interactive. Qualities of personal selling include
personal confrontation, cultivation and response.
7. Measure the results - After implementing the promotional plan, the company must
measure its impact. Members of the target audience are asked whether they recognize or
recall the message, how many times they saw it, what points they recall, how they felt
about the message, and their previous and current attitude towards the product and
company. The communicator should also collect behavioral measures of audience
response, such as how many people bought the product, like it, and talked to others about
it.

8. Manage the integrated marketing communication process - Given the fragmenting of

mass markets, the proliferation of new media, and the growing sophistication of
customers, companies need to use a wider range of tools and messages through integrated
marketing communications. Integrated marketing communications (IMC) is a concept of
marketing communications planning that recognizes the added value of a comprehensive
plan evaluating the strategic roles of a variety of communications disciplines-such as
advertising, direct response, sales promotion and public relations- and combine these
disciplines to provide clarity, consistence and maximum communications impact through
the seamless integration of discrete messages. Properly implemented, IMC improves the
firm’s ability to reach the right customers with the right messages at the right time and in
the right place
STAGES IN DESIGNING MESSAGE:
1. Sender: The party or person who is sending the message to the other party or person is
the sender.
2. Encoding: The conversion of thought into the meaningful symbols is called encoding.
3. Message: The group of symbols transmitted by the sender is called a message.
4. Media: The channel of communication through which transfers the message from sender
to receiver is called media.
5. Decoding: The conversion of symbols into meaning by the receiver is called decoding.
6. Receiver: The sent message received by another person or party is called the receiver.
7. Response: The reaction shown by the receiver before the message is called response.
8. Feed Back: The portion of the response of the receiver that is sent back to the sender is
called feedback.
ADVERTISING MEANING
Advertising is a paid form of non personal communication. Advertising promotes ideas, goods
and services of identified sponsors. The main purpose of advertising is to create sales. Advertising
is a marketing tactic involving paying for space to promote a product, service, or cause. The
actual promotional messages are called advertisements, or ads for short. The goal of advertising
is to reach people most likely to be willing to pay for a company’s products or services and entice
them to buy.
ADVERTISING OBJECTIVES
1. To Inform - Advertisements are used to increase the brand awareness and brand exposure in
the target market. Informing the potential customers about the brand and its products is the
first step towards attaining business goals.
2. To Persuade - Persuading customers to perform a particular task is a prominent objective of
advertising. The tasks may involve buying or trying the products and services offered, to from

a brand image, develop a favorable attitude towards the brand etc.

3. To Remind - Another objective of advertising is to reinforce the brand message and to
reassure the existing and potential customers about the brand vision. Advertising helps the
brand to maintain top of mind awareness and to avoid competitors stealing the customers.
This also helps in the word of mouth marketing.
4. Introduce a product - The most common reason Advertising is used is to introduce a new
product in the market. This can be done by existing brands as well as new brands. Have a
look at the latest IPhone in the market or a Samsung smartphone and you will find a lot of
advertisement for these new products. The objective of advertising here is to tell customers –
“Here is the new product we have launched”.
5. Introduce a brand - There are many startups in the market today and many of them are
services. Services are generally marketed as a brand rather than marketing their individual
service product. Thus, Uber will market its own brand and introduce that Uber has started
servicing customers in a new market. Same goes for Oracle or Accenture – Companies which
market their brand and their presence in the market rather than marketing an individual
product.
6. Differentiation and value creation - A most important aspect of Advertising is to differentiate
the product or the service from those of the competitor. A customer can only differentiate
between services based on the value the firms provides over that of competitors.
7. Acquiring customers or Brand switching - One of the major objectives of advertising and the
first objective of many advertising campaigns is to acquire more customers. This is also
known as making the customers switch brands. This can happen by passing on a strong
message so that the potential customer leaves the brand which he is tied up with and comes
to your brand.
8. Brand building - When a brand regularly advertises and delivers quality products and fulfills
the promises it makes, automatically the value of the brand is built. However, there are many
other aspects of brand building. One of the first ones is to advertise via ATL and BTL
campaigns etc.
9. Increase sales - Naturally, with so many steps being taken to advertise the product, it is no
doubt that one of the objectives of advertising is to increase sales. Many a times this objective
is achieved via advertising. However, if the campaign is improper or the audience is not
targeted properly, then advertising can fail in its objective.
ADVERTISING BUDGET
An advertising budget is estimate of a company's promotional expenditures over a certain
period of time. More pertinently, it is the money a company is willing to set aside to
accomplish its marketing objectives. When creating the advertising budget, a company must
weigh the tradeoffs between spending one additional advertising dollar with the amount of
revenue that dollar will bring in as revenue.

The advertising budget of a business is typically a subset of the larger sales budget and,
within that, the marketing budget.
METHODS / TYPES OF ADVERTISING BUDGET:

Advertising is a part of the sales and marketing effort. Money spent on advertising can also
be seen as an investment in building up the business.
1. Percentage of Sales method

2. Objective and Task method
3. Competitive Parity method
4. Market Share method
5. Unit Sales method
6. All Available Funds method
7. Affordable method
It is important to notice that most of these methods are often combined in any number of
ways, depending on the situation. Because of this, these methods should not be seen as rigid
but as building blocks that can be combined, modified, or discarded as necessary. Remember,
a business must be flexible—ready to change course, goals, and philosophy when the market
and the consumer demand such a change.
1. Percentage of Sales Method

Due to its simplicity, the percentage of sales method is the most commonly used by small
businesses. When using this method an advertiser takes a percentage of either past or
anticipated sales and allocates that percentage of the overall budget to advertising. But critics
of this method charge that using past sales for figuring the advertising budget is too
conservative, that it can stunt growth. However, it might be safer for a small business to use
this method if the ownership feels that future returns cannot be safely anticipated. On the
other hand, an established business, with well-established profit trends, will tend to use
anticipated sales when figuring advertising expenditures. This method can be especially
effective if the business compares its sales with those of the competition (if available) when
figuring its budget.
2. Objective and Task Method

Because of the importance of objectives in business, the task and objective method is
considered by many to make the most sense and is therefore used by most large businesses.
The benefit of this method is that it allows the advertiser to correlate advertising expenditures
with overall marketing objectives. This correlation is important because it keeps spending
focused on primary business goals.
With this method, a business needs to first establish concrete marketing objectives, often

articulated in the "selling proposal," and then develop complementary advertising objectives
articulated in the "positioning statement." After these objectives have been established, the
advertiser determines how much it will cost to meet them. Of course, fiscal realities need to
be figured into this methodology as well. Some objectives (expansion of area market share
by 15 percent within a year, for instance) may only be reachable through advertising
expenditures beyond the capacity of a small business. In such cases, small business owners
must scale down their objectives so that they reflect the financial situation under which they
are operating.
3. Competitive Parity Method

While keeping one's own objectives in mind, it is often useful for a business to compare its
advertising spending with that of its competitors. The theory here is that if a business is aware
of how much its competitors are spending to advertise their products and services, the
business may wish to budget a similar amount on its own advertising by way of staying
competitive. Doing as one's competitor does is not, of course, always the wisest course. And
matching another's advertising budget dollar for dollar does not necessarily buy one the same
marketing outcome. Much depends on how that money is spent. However, gauging one's
advertising budget on other participants' in the same market is a reasonable starting point.
4. Market Share Method

Similar to competitive parity, the market share method bases its budgeting strategy on
external market trends. With this method a business equates its market share with its
advertising expenditures. Critics of this method contend that companies that use market share
numbers to arrive at an advertising budget are ultimately predicating their advertising on an
arbitrary guideline that does not adequately reflect future goals.
5. Unit Sales Method

This method takes the cost of advertising an individual item and multiplies it by the number
of units the business wishes to sell. This method is only effective, of course, when the cost
of advertising a single unit can be reasonably determined.
6. All Available Funds Method

This aggressive method involves the allocation of all available profits to advertising
purposes. This can be risky for a business of any size it means that no money is being used
to help the business grow in other ways (purchasing new technologies, expanding the work
force, etc.). Yet this aggressive approach is sometimes useful when a start-up business is
trying to increase consumer awareness of its products or services. However, a business using
this approach needs to make sure that its advertising strategy is an effective one and that
funds which could help the business expand are not being wasted.

7. Affordable Method
With this method, advertisers base their budgets on what they can afford. Of course, arriving
at a conclusion about what a small business can afford in the realm of advertising is often a
difficult task, one that needs to incorporate overall objectives and goals, competition,
presence in the market, unit sales, sales trends, operating costs, and other factors.
ADVERTISING COPY
An advertising copy is a term used to describe the main text used in the advertisement. The
text could be a dialogue, a catchy punch line or a company’s dictum. It is a print, radio or
TV advertising message that aims at developing and retaining an interest of the target
customer and prompting him to purchase the product within a couple of seconds. An
advertisement copy is the text used in the advertisement, be it print, radio, television or other
form of advertisement. The text so used can be in the form of dialogs, some catchy phrase, a
company’s motto or slogan or any word.
AIDA MODEL
 AIDA is an acronym that stands for Attention, Interest, Desire and Action. The AIDA
model is widely used in marketing and advertising to describe the steps or stages that
occur from the time when a consumer first becomes aware of a product or brand through
to when the consumer trials a product or makes a purchase decision. Given that many
consumers become aware of brands via advertising or marketing communications, the
AIDA model helps to explain how an advertisement or marketing communications
message engages and involves consumers in brand choice.
 In essence, the AIDA model proposes that advertising messages need to accomplish a
number of tasks in order to move the consumer through a series of sequential steps from
brand awareness through to action (purchase and consumption).
 The AIDA model is one of the longest serving models used in advertising, having been
developed in the late nineteenth century. Since its first appearance in the marketing and
advertising literature, the model has been modified and expanded to account for the
advent of new advertising media and communications platforms. A number of modified
alternative models are in current use. During the past 100 years, the model has undergone
many refinements and extensions, such that today there are many variants in circulation.
Thus, the simple AIDA model is now one of a class of models, collectively known as
hierarchical models or hierarchy of effects models.

First Step: Attention

Often, the attention part is overlooked by many marketers. It is assumed that the product or
service already got the attention of the consumers – which may or may not be the case. In
any event, don’t just assume that everyone is already aware of your product. One of the best
approaches to attracting consumer attention is what’s called “creative disruption” – breaking
existing patterns of behavior through a highly creative message. This can be done in several
ways: • Placing advertisements in unexpected situations or locations. This is often referred
to as guerrilla marketing. • Creating shock in advertisements through provocative imagery. •
An intensely targeted message. This is also referred to as personalization. Essentially, the
goal is to make consumers aware that a product or service exists.
Second Step: Interest

Creating interest is generally the hardest part. For example, if the product or service is not
inherently interesting, this can be very difficult to achieve. Make sure that advertising
information is broken up and easy to read, with interesting subheadings and illustrations.
Focus on what is most relevant for your target market in relation to your product or service,
and on conveying only the most important message you want to communicate to consumers.
A good example of this is Wendy’s “Where’s the beef?” ad campaign that focused on the
fact that Wendy’s hamburgers contained more beef than their competitors’ hamburgers.

Third Step: Desire

The second and third steps of the AIDA model go together. As you are hopefully building
interest in a product or service, it is important that you help customers realize why they
“need’ this product or service. Think about how the content in infomercials is presented –
they aim to provide interesting information on the product, along with benefits of buying it
– benefits that ideally make consumers want the product more and more. Infomercials do
this extremely well by showing the product being used in several creative situations. Convey
to the audience the value of the product or service, and why they need it in their life.
Fourth Step: Action

The last step of the AIDA model is getting your consumer to initiate action. The
advertisement should end with a call to action – a statement that is designed to get an
immediate response from the consumer. For example, Netflix uses persuasive text to
convince the consumer to try their free trial. Netflix communicates how convenient their
product is and highlights its value, then urges consumers to sign up for a free trial.
Good advertising should elicit a sense of urgency that motivates consumers to take action
RIGHT NOW. One commonly used method for achieving this goal is making limited time
offers (such as: free shipping).
TRADITIONAL MEDIA
The non-electronic mediums which works as part of our culture and as vehicles of
transmitting tradition from one generation to another generation is called traditional media.
The different forms of traditional media are as follows: Traditional dance • drama • painting
• sculpture • song • music • motifs and symbols • Street Play • Games
MODERN MEDIA
New media are forms of media that are native to computers, computational and relying on
computers for redistribution. Some examples of new media are telephones, computers,
virtual worlds, single media, website games, human-computer interface, computer animation
and interactive computer installations. New media are often contrasted to "old media", such
as television, radio, and print media, although scholars in communication and media studies
have criticized rigid distinctions based on oldness and novelty. New media does not include
television programs (only analog broadcast), feature films, magazines, books, – unless they
contain technologies that enable digital generative or interactive processes The different
forms of modern media are as follows: Digital Video • Digital Sound • Graphics • Animation
ONLINE ADVERTISING
Online advertising, also called online marketing or Internet advertising or web advertising is

a form of marketing and advertising which uses the Internet to deliver promotional marketing
messages to consumers. It includes email marketing, search engine marketing (SEM), social
media marketing, many types of display advertising (including web banner advertising)
Online advertising is a marketing strategy that involves the use of the Internet as a medium
to obtain website traffic and target and deliver marketing messages to the right customers.
Online advertising is geared toward defining markets through unique and useful applications.
Since the early 1990s there has been an exponential increase in the growth of online
advertising, which has evolved into a standard for small and large organizations. Online
advertising is also known as Internet advertising or Digital Advertising.
MOBILE ADVERTISING
Mobile advertising is the communication of products or services to mobile device and
Smartphone consumers. The mobile advertising spectrum ranges from short message service
(SMS) text to interactive advertisements. Mobile advertising is type of advertising that
appears on mobile devices such as smart phones and tablets that have wireless connections.
As a subset of mobile marketing, mobile advertising can take place as text ads via SMS, or
banner advertisements that appear embedded in mobile web site, in downloaded apps or in
mobile games. Mobile technology used by companies such as Google and Face book tailor
mobile advertisements based on individual's web browsing history, geographic location, and
with data collected by shopping habits. Because mobile devices typically have smaller
screens than computers or laptops, this form of digital advertising is usually optimized for
small displays by being concise.
SOCIAL MEDIA FOR ADVERTISING

Social network advertising, also social media targeting, is a group of terms that are used to
describe forms of online advertising that focus on social networking services. One of the
major benefits of this type of advertising is that advertisers can take advantage of the users'
demographic information and target their ads appropriately. Social media targeting combines
current targeting options (such as geotargeting, behavioral targeting, socio-psychographic
targeting, etc.), to make detailed group identification possible. With social media targeting,
advertisements are distributed to users based on information gathered from target group
profiles. Social network advertising is not necessarily the same as social media targeting.
Social media targeting is a method of optimizing social media advertising by using profile
data to deliver advertisements directly to individual users. Social media targeting refers to
the process of matching social network users to target groups that have been specified by the
advertiser.
KEY COMPONENTS OF DIGITAL MARKETING:

Digital marketing is the practice of promoting products or services through digital channels.
Here are some key components of digital marketing:

1. Search engine optimization (SEO): This involves optimizing a website to rank higher
in search engine results pages (SERPs) for relevant keywords. SEO involves both on-
page and off-page optimization strategies to increase organic traffic and visibility.
2. Pay-per-click (PPC) advertising: This is a form of online advertising where advertisers

pay each time a user clicks on their ad. PPC advertising can be done through search
engines (e.g., Google Ads) or social media platforms (e.g., Facebook Ads).
3. Social media marketing: This involves using social media platforms (e.g., Facebook,
Twitter, Instagram) to promote products or services and engage with customers. Social
media marketing can include both organic and paid efforts.
4. Content marketing: This involves creating and sharing valuable content (e.g., blog
posts, videos, infographics) to attract and engage a target audience. Content marketing
can be used to drive traffic, generate leads, and build brand awareness.
5. Email marketing: This involves using email to communicate with customers and
prospects. Email marketing can be used to promote products or services, nurture leads,
and build relationships with customers.
6. Mobile marketing: This involves reaching customers through mobile devices, such as
smartphones and tablets. Mobile marketing can include tactics such as mobile apps,
mobile-optimized websites, and SMS marketing.
7. Analytics and reporting: Digital marketing efforts should be tracked and measured to
assess their effectiveness. Analytics tools can provide insights into website traffic, user
behavior, and campaign performance.
These are just a few of the key components of digital marketing. The digital marketing
landscape is constantly evolving, so it's important for businesses to stay up-to-date with the
latest trends and best practices in order to effectively reach and engage their target audience.
PUSH AND PULL STRATEGIES:

Promotion is an important part of any marketing strategy. You can have the best product or
service out there, but unless you promote it successfully, no one will know about it. There
are three basic types of promotional strategies – a push strategy, a pull strategy or a
combination of the two. In general, a push strategy is sales oriented, a pull strategy is
marketing-oriented and a push-pull strategy is a combination of the two.
Push Promotional Strategy

A push promotional strategy works to create customer demand for your product or service
through promotion: for example, through discounts to retailers and trade promotions.
Appealing package design and maintaining a reputation for reliability, value or style are also
used in push strategies. One example of a push strategy is mobile phone sales, where
manufacturers offer discounts on phones to encourage buyers to chose their phone. Push
promotional strategies also focus on selling directly to customers, for example, through point
of sale displays and direct approaches to customers.
 A push strategy involves actively promoting a product or service to retailers, wholesalers,

and distributors, who then push it out to consumers through advertising, discounts, or
other promotions. The goal of a push strategy is to increase demand by increasing the
availability of a product or service.
These are the most common push promotion strategies used today:
 Direct selling to customers in showrooms
 Point of Sale (POS) displays
 Trade show promotions
 Package or display design
Advantages of Push Marketing Strategy

There are many advantages to using a push marketing strategy including:

 The ability to establish a sales channel
 Create product exposure, demand, and consumer awareness about a product
 Able to forecast and predict demand
Pull Promotional Strategy

A pull promotional strategy uses advertising to build up customer demand for a product or
service. For example, advertising children's toys on children's television shows is a pull strategy.
The children ask their parents for the toys, the parents ask the retailers and the retailers the order
the toys from the manufacturer. Other pull strategies include sales promotions, offering discounts
or two-for-one offers and building demand through social media sites such as YouTube.
 A pull promotional strategy also called a pull marketing strategy, is the opposite of a push
strategy. Instead of directly attempting to get products in front of customers, a pull strategy
aims to get the customers to come to the product (hence the term “pull”).
 A pull strategy is all about getting the customer to come to you. There are six widely used
pull marketing strategies employed today:
 Advertising and mass media production
 Word-of-mouth referrals
 Customer relationship management
 Sales promotions and discounts
 Social media coverage
 Email marketing
Advantages of Pull Marketing Strategy

There are many advantages of using a pull marketing strategy, including:
 Establishing direct contact with your customers
 Building consumer loyalty
 Stronger bargaining power with retailers or distributors
 No pressure to conduct outbound marketing
 Ability to test a product’s acceptance in the market and gain feedback on the product

Combination of Both Strategies

Some companies use a combination of both push and pull strategies. For example, Texas-based
textile producer Cotton Incorporated uses a push/pull promotional strategy. They push to create
customer demand through constantly developing new products and offering these products in
stores; and pull customers towards these products through advertising and promotion deals.
According to marketing expert Blair Entenmann, in an article he wrote for his company
Marketing Help, there is no single correct combination of push and pull. The amount spent on
each type of strategy will depend on factors such as budget, the type of product, the target
audience and competition.
When To Use Each Strategy

Push promotional strategies work well for lower cost items, or items where customers may make
a decision on the spot. New businesses use push strategies to develop retail markets for their
products and to generate exposure. Once a product is already in stores, a pull strategy creates
additional demand for the product. Pull strategies work well with highly visible brands, or where
there is good brand awareness. This is usually developed through advertising.
IMPORTANT QUESTIONS:
1. Briefly explain the channel design decisions.7m
2. What is Channel conflict? Identify the causes of Channel conflict. 7m
3. Explain the factors effecting the channel choice.10m
4. What are the elements involved in designing physical distribution system? 7m
5. Explain the channels available for the distribution of consumer goods.10m
6. Explain AIDA concept of message development.7 m
7. Define Direct Marketing.3m
8. Define IMC.3m
9. What is channel conflict? Explain the types of channel conflict.7m

10. Explain the steps in effective communication.10m

11. Explain Advertising, its objectives & Different media involved in the
advertising.10m
12. Discuss the methods need for preparing advertising budget.10m
13. Compare the push and pull marketing strategies with appropriate examples.7m
14. Compose the procedure of Market Channel Designing.7m
15. Accumulate & Analyze the key components of Digital Marketing.10m
16. State the different levels of channel.3m
17. Enumerate the steps involved in physical distribution system.7m
18. List out the stages in designing message.7m

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MARKETING MANAGEMENT (22MBA15)

MARKETING CHANNELS MEANING

 A channel of distribution is an organized network or system of agencies and institutions,

MARKETING CHANNELS DEFINITION

 According to Phillip Kotler,” It is a set of independent organizations involved in the process

Prof. Ningambika G Meti Department of MBA, SVIT

PURPOSE OF MARKETING CHANNELS

Prof. Ningambika G Meti Department of MBA, SVIT

CHANNELS AVAILABLE FOR THE DISTRIBUTION OF CONSUMER GOODS.

6. Multi-level marketing: This channel involves selling products through a network of

Prof. Ningambika G Meti Department of MBA, SVIT

FACTORS AFFECTING CHANNEL CHOICE

Factors Pertaining to the Product:

Factors pertaining to the Consumer or Market:

Prof. Ningambika G Meti Department of MBA, SVIT

less in number are distributed by the manufacturer himself.

C. Factors Pertaining to the Middlemen:

1. Services Provided by Middlemen: The selection of the middlemen is made keeping in

Prof. Ningambika G Meti Department of MBA, SVIT

D. Factors Pertaining to the Producer or Company:

3. Managerial Competence and Experience: If some producer lacks in the necessary

1. Distribution Channel of Competitors: While determining the channel of distribution, the

Prof. Ningambika G Meti Department of MBA, SVIT

Prof. Ningambika G Meti Department of MBA, SVIT

• Perishable products require more direct marketing.

 Distributors or re-distribution stock list

3. Degree of adaptability of channel members

CHANNEL MANAGEMENT DECISIONS

Prof. Ningambika G Meti Department of MBA, SVIT

TYPES OF CHANNEL CONFLICT

1. Vertical channel conflict

Prof. Ningambika G Meti Department of MBA, SVIT

CAUSES OF CHANNEL CONFLICT

Goal incompatibility: Different partners in the channel of distribution have different

Manufacturer dominating the Intermediaries: The intermediaries such as the

MANAGING CHANNEL CONFLICT

Prof. Ningambika G Meti Department of MBA, SVIT

DESIGNING A PHYSICAL DISTRIBUTION SYSTEM

Prof. Ningambika G Meti Department of MBA, SVIT

Steps in Designing a Physical Distribution System

COMPONENTS/ ELEMENTS OF A PHYSICAL DISTRIBUTION SYSTEM

Customer service levels may be improved by following steps too:

Prof. Ningambika G Meti Department of MBA, SVIT

Prof. Ningambika G Meti Department of MBA, SVIT

 Mode of transport: rail, air, water, road and others.

Other components of the physical distribution system −

Prof. Ningambika G Meti Department of MBA, SVIT

 Marketing communication involves sharing of meaning, information and concepts by the

Direct marketing is a form of advertising that involves directly communicating a marketing

INTEGRATED MARKETING COMMUNICATION – (IMC)

Prof. Ningambika G Meti Department of MBA, SVIT

 To change or influence customer beliefs or attitudes

STEPS IN DEVELOPING EFFECTIVE COMMUNICATION:

4. Select the communication channels - The communicator must select an effective

Prof. Ningambika G Meti Department of MBA, SVIT

communication channels: personal and non-personal. Personal communication channels

5. Establish the communications budget - Industries and companies vary considerably in

Prof. Ningambika G Meti Department of MBA, SVIT

8. Manage the integrated marketing communication process - Given the fragmenting of