marketing discussions

MARKETING DISCUSSIONS 1

Marketing Discussions


Discussion #1

The modern market in any area is overwhelmed with offerings. In other words, a

customer can choose from a number of propositions and channels of distribution

(ReferenceForBusiness.com, 2000). Today, we can purchase goods in so many ways that

sometimes we are confused by this variety of choices. The following channels are available

for the distribution of nearly any product on the Australian market (Rosenbloom, 2004):

1. Manufacturers -> consumer (through Internet directly).

2. Manufacturers -> TV shopping -> customer.

3. Manufacturers -> own stores (showroom) -> customer.

4. Manufacturers -> retailer (supermarket, electronic stores) -> customer.

5. Manufacturers -> wholesaler -> retailer -> customer.

Before reviewing the channels, we are to evaluate briefly each phase (stages 1-3) of

making channel design decision before actually creating one (stage 4). Thus, stage 1 is about

recognizing the need for a channel design decision: in our case, we have a new product that

needs to be distributed over the new channels because the old ones will not provide necessary

return. Therefore, we need to create a new channel to sell a new product. It will allow us to

consider all peculiarities of the new product to distribute it with maximum efficiency.

Stage 2 addresses to the need to determine distribution objectives and align them with

marketing and general objectives of our enterprise. Therefore, our distribution objectives are

as follows: to attract potential customers via the appropriate distribution channel; to set

competitive price; to gain competitive advantage, offering the product exclusively; and to

maximize sales and gain market share. As we can see, these objectives are aligned with the

major goal to promote Personal Mini GPS Tracker on the Australian market as new exclusive

but rather affordable solution.

Finally, stage 3 specifies the distribution tasks. We have specified the distribution

tasks for our case as follows: it is necessary to evaluate the market in terms of understanding

the target audience of buyers (protection of the child/elderly/disabled/pet etc.; personnel

management; vehicle/equipment tracking; etc.); develop promotion campaign (the Internet,

local stores show rooms, etc.); create appropriate storage for at least minimal stock; develop

brochures and promotional banners with main features of the device; develop the appropriate

price to compete with rivals; develop the appropriate order processing procedure; arrange

logistics and payment methods; guarantee warranty service; organize return procedure and

repairs, if necessary. Completion of this stage provides us with a plan of further actions that

we are to perform on stage 4 – the development of possible alternative channel structures.


Discussion #2

Now, let us review briefly each of the items, stated on the first page. Goods can be

sold directly from a manufacturer to a customer over the Internet, eliminating such

expenditures as offices, showrooms, warehouses, logistics, etc. This is one of the most

advanced channels of distribution now. It has numerous advantages: the price is usually lower

than in stores; customers can choose from different Internet stores at a time; there are no

physical (geographical) boundaries that could mitigate the freedom of choice for customers; it

is very convenient because online shopping can be performed from any device with a web

browser, supporting internet connection; the products can be compared online to review

characteristics and make the justified choice; etc. (Dent, 2008).

However, there are disadvantages as well. They are as follows: customers cannot

physically assess goods (clothes or shoes, for example); the level of trust to the Internet stores

is rather low because it has to be earned first – retail stores do not have this problem in such

scale; return to the internet store can be rather difficult, especially if it is located abroad;

shipping can be a rather expensive and time consuming procedure; internet frauds are rather

common these days as well; etc. Regardless of the disadvantages, it is the most perspective

channel today (Dent, 2008).

The second channel is TV shopping. This channel is much older than internet sales

however, it has proved its efficiency. Goods are sold over the phone, advertising them with

help of specialized TV shows (Dent, 2008). The advantages of such channels are clear:

products can be presented the best way possible – salespersons show how they work, their

advantages and features; the prices are lower than in stores; the audience of such

presentations is tremendous; etc. Among the disadvantages the following can be outlined:

higher prices comparing to the internet stores (expenditures for time in TV) and a rather

specific range of goods (those are for domestic use only).

Now, we are to evaluate a less exotic and advanced channel – own stores

(showrooms). This channel is one of the most common one of the past and still present today

as one of the main distribution channels. The advantages are obvious: people can come and

evaluate goods with their own hands, eyes, hear, etc.; showrooms usually present specific

goods at one time, like cars, gadgets, etc. (of one brand or group of goods); etc. (Dent, 2008).

The disadvantages are the higher prices comparing to the previous channels and a

limited range of goods. This channel is perfect for the first presentation of goods in the region

or country because showrooms specializes on some particular groups of products and able to

present them in the best way possible (Rosenbloom, 2004).

As for the channel retailer – customer, it is probably the most commonly used channel

for products’ distribution these days. The prices are moderate or high; people can choose

goods from the vast variety of choices; there are no special places or presentations of the

products from retailers. It is a usual store that anyone can visit to purchase the product he is

interested in (Dent, 2008).

Finally, the chain wholesaler – retailer – customer is used rather common as well. The

prices are higher than in previous cases due to the increased number of interested parties in

the chain before a customer. However, this channel has worked for a long time already and is

suitable for almost any group of products (Rosenbloom, 2004; Dent, 2008).


Discussion #3

Advertising is the driving force for any business. This is one of the main approaches

in marketing. Companies have always used several ways of advertising their goods and/or

services since the very beginning of developing trade relations. First traders used their voice

to attract people to their goods. The most successful traders figured out, that loud sounds and

rapid speech, with various tricks like ‘you should have it’ or ‘this thing looks really good on

you’, made people believe their words. The development of technology brought new

opportunities to advertising. Ads in papers and later on television became very popular

among people of business at any level.

Usual means of advertising can be used for advertising and eventually selling the

goods and services, which could be interesting for most people. The promotion and

advertising of such products is widely available, so anybody, including children, is able to

have access to the promotional and advertising materials. Thus, these materials must not

contain any information in text and/or graphics, which might be inappropriate. Porn and

violence, racism and other potentially unacceptable content cannot be used in advertising of

any kind. The public morale has strict boundaries and marketers as well as advertisers must

keep their efforts to sell something in these boundaries.

Marketing approaches commonly use television, papers, and advertising panels on

literally anything from buildings to buses. These methods easily can be controlled, censored

and forbidden, if necessary, in case of some inappropriate content. Such public advertising

and promotion is aimed to attract our attention to the products and/or services, but we always

have a choice. We can watch commercials, we can read ads in papers and we are free not to

do it. Common sources of advertising give us one very important thing: Freedom of choice.

They cannot try to attract our attention without our knowledge.

Nowadays, when the Internet is available practically for everyone, marketing

approaches became slightly different than before. Web based advertising and promotion can

be sent to any device with access to the Internet. We are not able to perform web surfing

without annoying pop-up windows with various irrelevant content. People all over the world

receive tons of spam emails every second. Spyware sneaks to our computers and it spies on

us to show more targeted advertising. This is a modern reality for every individual. This

information reality is based on new web based marketing approaches.

The content of online advertising cannot be controlled. Thus, we get information of

any kind to our network devices, such as computers, mobile phones and others. This

information may contain anything from porn to violence and many other unpleasant and even

unacceptable kinds of information. Spam emails are sent to millions of computers every day

without any permission or desire from the receiving side. Spam filters in email boxes become

more sophisticated. However we get mad and angry because of all this rubbish that appears

on our computers. Companies believe that such advertising methods can attract more

customers, but these emails, usually, invoke anger instead of interest.

Children use computers everyday as well as adults. They also have access to all this

unacceptable content, like porn ads in the Web that pop up without any notification or

something like it. The moral impact of such content can be huge. Young people are not

supposed to see porn, violence and other adult content until their mind is ready for this.

Uncontrolled spreading of information and inappropriate advertising methods might be the

reason of psychological disorders among children and sensitive people. This is the worst side

of web based marketing approaches.

The other side is connected with constant pressure caused by various ads, text

messages and pop-up windows. Marketers use these modern channels of advertising without

any sense of measure. They, practically, make us want something, that we really do not need


or want to purchase. The consequences of such purchases usually look like frustration and

total disappointment, feeling of being deceived. These feelings are the most common thing as

a result of the annoying advertisement. The moral impact of such approaches can be

substantial, because all these spam emails, annoying advertisement of useless things and

other inappropriate methods of attracting attention make us angry, irritable, and unsatisfied.


Discussion #4

The importance of advertising and public relations in promoting new products or

services on some particular market is hard to over evaluate. These two industries are the

driving forces for any processes, connected with trading. They use different methods and

have certain advantages as well as disadvantages. Advertising is good because of these

reasons: Control over the ad content, an ad’s long shelf life, a comparatively free writing

style, target audience and others. Public relations do not have all these advantages so the

above mentioned pluses of advertising can be called disadvantages of PR and vice versa.

However public relations are advantageous because this is a free spreading of information

about a product/service; customers do not perceive PR information as subjective and paid-

for-opinion reviews, for example. Advertising is really beneficial to be used for promoting

well-known products/services like new Mercedes or pizza delivery. Public relations can give

an advantage, when something new like iPhone or Google Wave, for example, is released to

the market.

The Internet provided absolutely new area for promoting products/services and began

to play one of the main roles in the integrated marketing communications program (IMC) of

any company. This is a powerful tool that can be used to reach certain audiences. The Internet

can be used to execute the various elements of the promotional mix, which consists of

advertising, sales promotion, public relations, direct marketing and personal selling. Websites

became an excellent place for ads; various news services in the network make public relations

very effective; sales promotion can be met on millions of pages like electronic coupons,

discounts etc. Such companies as Google, Apple, Microsoft and others, who understand the

importance of such medium as the Internet, have been using it in their IMC programs very

successfully for many years. Traditional media like papers, magazines, television

commercials or billboards lose their share of the advertising and public relations market

because of the unique feature of the Internet – an unlimited variety of information that can be

used to reach any particular category of customers.


References

Duncan, A. (n.d.). 10 Differences Between Advertising and Public Relations. Retrieved from:

http://advertising.about.com/od/careersource/a/10advpr.htm

Dent, J. (2008). Distribution Channels: Understanding and Managing Channels to Market.

London, UK: Kogan Page Publishers.

ReferenceForBusiness.com (2000). Distribution Channels. Retrieved from:

http://www.referenceforbusiness.com/small/Di-Eq/Distribution-Channels.html

Reference for Business (n.d.). MARKETING COMMUNICATION. Encyclopedia of

Business, 2nd ed. Retrieved from:

http://www.referenceforbusiness.com/management/Log-Mar/Marketing-

Communication.html

Rosenbloom, B. (2004). Marketing Channels: A Management View. Boston, MA: Cengage

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