KINE 4430 - 2009
Marketing Class # 3*PLACE – Distribution Strategy*Social Marketing* Sponsorship
Reviewing the OutputsThe outputs of the marketing plan process
- Types of distribution- Distribution strategies (consumer & business)
- Types of promotion- Promotional strategies
(consumer & business)
- Price Elasticity (Sensitivity)- Pricing strategies
(lifecycle/product type)- Pricing policies
Product PromotionPricing
Marketing Mix Elements
Place
- Product types- Product tangibility- Product lifecycle
- New product development
Analytic Tools:
• Research• Balance & Gaps Assessment
• Measurement, Monitoring & Evaluation
Marketing Objectives & Strategy
Business Location Decision
• Two major factors:1. What your customer believes is the “best
location”
2. Your distribution channel—the method or way in which a producer makes a product or service available to the consumer
Distribution Channels
PRODUCERProducer
Consumer Segment
#1
Retailers
Consumer Segment
#2
Distributors
Dealers
Business Segment
#1
Business Segment
#2
Distribution Strategy
• Your distribution strategy will depend on a number of factors, such as:Target Customer needsType of businessProduct/service characteristicsTransportation costsCompetition
The “Best” Location
___Local/municipal licensing___Neighbourhood mix___Competition___Security, safety___Labour pool___Services___Costs___Ownership___Property owner/landlord___Past tenants___Space___Accessibility___Professional advice
___Local/municipal licensing___Neighbourhood mix___Competition___Security, safety___Labour pool___Services___Costs___Ownership___Property owner/landlord___Past tenants___Space___Accessibility___Professional advice
___Parking___History of the property___Physical visibility___Life-cycle stage of the area ___Image___Hours of operation___Utilities___Local zoning by-laws___Taxes___Approvals___Transportation___ Your target customers
___Parking___History of the property___Physical visibility___Life-cycle stage of the area ___Image___Hours of operation___Utilities___Local zoning by-laws___Taxes___Approvals___Transportation___ Your target customers
•A location filter or checklist will help you zero in on the “perfect” location•Use a scale of 1 to 10 to rate the relative importance of each item on this list. When you finish scoring, go back and note the high numbers anything above 5.
Is Home the “Best” Place?Potential
DisadvantagesPotential
Advantages Low risk of expensive mistakes Opportunity to use household
resources Low overhead Gradual start-up and growth No commuting time or expense Tax advantages (with
deductions allowed for part of the house)
Relatively inexpensive way to test a market
Reduced child-care costs Increased quality time with
family
Isolation and lack of contact
with colleagues Increased family stress Need for self-discipline Local by-laws and regulations Less established or refined
image Conflict with neighbours Parking problems
Before You Sign Checklist Escape clause Escape clause
Option to renew Option to renew
Right to transfer Right to transfer
Cost-of-living Cost-of-living
Percentage lease Percentage lease
Floating rent sale Floating rent sale
Start-up buffer Start-up buffer
Improvement Improvement
Restrictive covenants Restrictive covenants
Maintenance Maintenance
CAUSE OR SOCIAL MARKETING
Strengthens business relationships - customers & general public
Addresses social issues of concern to target market
Increases sales
Builds a Brand image
Lessons for Socially Responsible Companies
• What you sell is important: both the mission and the product should be socially responsible
• Be proud to be in business: profit not a dirty word
• Make a solid commitment to change: business is natural outgrowth of social entrepreneur’s values
• Focus on two bottom lines: viable company + social mission
• Forget the hype: socially responsible companies lead by doing good deeds, not by promoting them
Source: Thea Singer, “Can Business Still Save the World?”Inc., April 30, 2001, pp58-71; and MEC website, www.mec.ca
Environmentalism
• Environmentalism:– An organized movement of concerned citizens and
government agencies
– To protect and improve people’s living environment
• Environmental sustainability:– Management approach
– Develop strategies that both sustain the environment and produce Company ‘s profits
Socially Responsible Marketing
• Enlightened marketing:– A marketing philosophy that holds
– A company’s marketing should support the– Best long-run performance of the
marketing system
• Five principles:– Consumer-oriented marketing
– Innovative marketing
– Value marketing
– Sense-of-mission marketing
– Societal marketing
Ethical Issues Associated with Marketing
• Marketing research:– Invalid or unreliable research studies
– Invasion of consumer privacy, not respecting confidentiality
– Disguising sales as research
– Failure to secure voluntary and informed participation
– Competitive intelligence gathering
• Segmentation/target marketing:– Redlining: discriminating against poor
or disadvantaged consumers
– Targeting inappropriate products to vulnerable audiences
Ethical Issues Associated with Marketing
• Positioning:– Making socially undesirable products more desirable
– Positioning on questionable benefits
• Product:– Marketing unsafe products
– Product testing: on animals or insufficient testing
– Marketing socially controversial products
• Packaging and labeling:– Actual versus apparent size
– Misleading or inadequate information
– Excessive or environmentally-unfriendly packaging
Ethical Issues Associated with Marketing
• Pricing:– Collusion with competitors
– Negative option billing
– Prejudice in negotiated prices
– Price discrimination
• Advertising:– Sex role stereotyping
– Dehumanizing images and portraying people as products
– Bait-and-switch advertising
Seller’s Versus Consumers’ Rights
Sellers’ rights:– To introduce products of
different styles and sizes, provided they are not hazardous
– To set its own prices, provided no discrimination occurs
– To spend to promote the product
– To use any product message, provided it is not misleading
– To use buying incentives
Consumers’ rights:– To choose
– To be informed
– To safety
– To be heard
– To redress
– To consumer education
– To participate in marketplace decision making
– To have access to basic services
– To a sustainable environment
Canadian Marketing Association Code of Ethics
• Topics covered:– Application and governing legislation
– Accuracy of representation
– Disclosure, comparisons, guarantees, and warranties
– Fulfillment practices
– Media-specific standards of practice
– Product safety
– Marketing to children
– Protection of the environment
– Protection of personal privacy
– Enforcement procedures
Table 4.4
SPONSORSHIP MEDIUM
1ST AMPLIFY the Message
2nd AIM the Message
-marketers zero in on a “captured” TM-minimizes inefficiencies of communication process
EFFECTIVE SPONSORSHIPServes 4 constituent groups
Business interest of Sponsoring Company
Best interests of Event & Participants
Positive impact on Sponsor’s direct customers (dealers & retailers)
Benefit to Consumers who buy those products.
BUSINESS STRATEGIES & Sponsorship
1. CommunicatingSponsors communicate using sport as the communication medium
2. Targeting
Sponsorship effective for targeting clusters of consumers
3. Differentiating
“Image Enhancement” “Value Added” “Product Differentiation”
Gives Brand a unique & memorable attribute so it’s different from competitors
Villain Products – cigarette & alcohol use image enhancement
ADVANTAGES of SPONSORSHIP
1. CREATES IDENTITY
2. INCREASES SALES
3. PROMOTES business- to-business contacts
4. CONSTITUENT benefits
5. BUSINESS customers
“Interacting with consumers on an Emotional level”
Exposes people to product in environment encompassing their lifestyle or aspiring lifestyle
OLYMPIC GAMES SPONSORSHIP
• One of world’s oldest & most respected Brands• Represents the best in amateur sport• Encourages global co-operation, peace & harmony• Captures spirit & enthusiasm of virtually every
nation• Most recognized symbol (90% consumer
awareness)
Corporate Interests in the Olympic Rings
• Signature property
• Community engagement
• Employee engagement
• Product/ service showcase
• Media relations
• Customer hospitality
Opportunities with Canadian-hosted Games
As an emotional touch point, the Olympics creates a unique set of circumstances for companies to engage Canadians directly.
Vancouver Olympics 2010 Challenge is creating & sustaining high level of awareness
from the outset
Responsibilities of VANOC
To plan, organize, finance & stage the 2010 Winter Games
To protect the Olympic Brand in Canada
Has custodianship of Olympic & Paralympic Brands
The Olympic and Paralympic Marks Act
Specifically protects Olympic Brand in Canada (obligation to IOC)
Enables VANOC to protect exclusive rights granted to its marketing partners
Ensures Canada is aligned with International Community in granting special protection for Olympic/Paralympic brand
THE EXCHANGE
• Official sponsors, licensees & government partners significantly invest to ensure successful staging of 2010 Winter Games and funding to Canadian athletes
• Exclusive right to access marks, images, & stories that make Olympic & Paralympic Brand a sought after marketing tool
Ambush Marketing
Form of marketing used by certain commercial bodies to capitalize on “Goodwill of Olympic Movement” (+ the Games & Athletes) without making the financial investment required to secure official sponsorship rights.
Protecting the Olympic Brand in Canada
• VANOC’s Infringement Assessment
• Infringement of brand?
• Misleading business association?• 6 factors – factually accurate use, relevant use,
commercially neutral, undue prominence, use of Olympic or Paralympic visuals, unauthorized association