Conflict, Cooperation, and Competition

No matter how well channels are designed and managed, there will be some conflict, if only because the interests of independent business entities do not always coincide. Channel conflict is generated when one channel member’s actions prevent another channel member from achieving its goal. Software giant Oracle Corp., plagued by conflict between its high-powered

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MARKETING EXCELLENCE Amazon.com

Founded by Jeff Bezos in 1995, Amazon.com started as the “world’s largest bookstore” and, ironically, owned no books. Bezos promised to revolutionize retailing, however, and over the years he has blazed a trail of e-commerce innovations that many executives have studied and companies have followed. Amazon initially set out to create personalized store­fronts for

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MARKETING EXCELLENCE TESCO

Tesco’s main purpose is to earn a customer’s lifetime I oyalty by creating value. To achieve this goal, the company has adopted the values of understanding cus­tomers, being the first to meet their needs, and acting responsibly in the communities they serve. Tesco was founded in 1919 by Jack Kohen, who began to sell

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The nature of retailing and marketing retailing

Retailing includes all the activities in selling goods or services directly to final consumers for personal, nonbusi­ness use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Any organization selling to final consumers—whether it is a manufacturer, wholesaler, or retailer—is doing retailing. It doesn’t matter how the

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Private Labels in retailing

A private-label brand (also called a reseller, store, house, or distributor brand) is a brand that retailers and whole­salers develop. Benetton, The Body Shop, and Marks & Spencer carry mostly own-brand merchandise. In grocery stores in Europe and Canada, store brands account for as much as 40 percent of the items sold. In Britain,

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The Nature of wholesaling

Wholesaling includes all the activities in selling goods or services to those who buy for resale or business use. It excludes manufacturers and farmers because they are engaged primarily in production, and it excludes retailers. The major types of wholesalers are described in Table 18.4. Wholesalers (also called distributors) differ from retailers in a

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Market Logistics

Physical distribution starts at the factory. Managers choose a set of warehouses (stocking points) and transporta­tion carriers that will deliver the goods to final destinations in the desired time or at the lowest total cost. Physical distribution has now been expanded into the broader concept of supply chain management (SCM). Supply chain management starts

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MARKETING EXCELLENCE ZARA

Zara, the Spanish-based company, is Europe’s leading apparel retailer, providing consumers with current, high- fashion styles at reasonable prices. With more than $14.5 billion in sales and more than 2,000 stores, the company has succeeded by breaking virtually every traditional rule in the retailing industry. The first Zara store opened in 1975. By the

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MARKETING EXCELLENCE BEST BUY

Best Buy is the world’s largest multichannel consumer electronics retailer, with $45 billion in sales in fiscal 2013. Sales boomed in the 1980s as the company expanded nationally and made some risky business decisions, like putting its sales staff on salary instead of commission. This decision created a more consumer-friendly, low- pressure shopping atmosphere

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The Role of Marketing Communications

Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers— directly or indirectly—about the products and brands they sell. In a sense, they represent the voice of the com­pany and its brands; they are a means by which the firm can establish a dialogue and build relationships with consumers.

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Marketing Communications Mix

In this new communication environment, although advertising is often a central element of a marketing commu­nications program, it is usually not the only one—or even the most important one—for sales and building brand and customer equity. Mondelez International is partnering with nine digital start-ups to gain an advantage in that area, committing to spend

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How Do Marketing Communications Work?

Marketing communication activities in every medium contribute to brand equity and drive sales in many ways: by creating brand awareness, forging brand image in consumers’ memories, eliciting positive brand judgments or feelings, and strengthening consumer loyalty. The way brand associations are formed does not matter. Whether a consumer has a strong, favorable, and unique

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Developing Effective Communications

Figure 19.3 shows the eight steps in developing effective communications. We begin with the basics: identifying the target audience, setting the communication objectives, designing the communications, selecting the commu­nication channels, and establishing the total marketing communications budget. 1. IDENTIFY THE TARGET AUDIENCE The process must start with a clear target audience in mind: potential

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Selecting the Marketing Communications Mix

Companies must allocate their marketing communications budget over the eight major modes of communication— advertising, sales promotion, events and experiences, public relations and publicity, online and social media marketing, mobile marketing, direct and database marketing, and the sales force. Within the same industry, companies can differ considerably in their media and channel choices. Avon

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Managing the Integrated Marketing Communications Process

The American Marketing Association defines integrated marketing communications (IMC) as “a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.” When done well, this planning process evaluates the strategic roles of a variety

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MARKETING EXCELLENCE RED BULL

Red Bull’s integrated marketing communications mix has been so successful that the company has created an entirely new billion-dollar drink category-energy drinks. In addition, Red Bull has become a multibillion-dollar beverage brand among fierce competition from bever­age kings like Coca-Cola, Pepsi, and Anheuser-Busch. To date, the company has sold more than 40 billion cans

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MARKETING EXCELLENCE L’Oreal

L’Oreal is one of the leading beauty and cosmetic compa­nies in the world with well-segmented product offerings in 130 countries. Headquartered in Paris, France, L’Oreal’s origins date back to 1909, when the young entrepre­neur Eugene Schueller formed a company that sold hair dyes to hairdressers. Growing through successful brand launches and acquisitions, the company

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Developing and Managing an Advertising Program

Advertising can be a cost-effective way to disseminate messages, whether to build a brand preference or to educate people. Even in today’s challenging media environment, good ads can pay off. GEICO has succeeded by keeping both its ad campaigns and their executions fresh.1 2 [1] GEICO GEICO has spent hundreds of millions of dollars

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Sales Promotion

Sales promotion, a key ingredient in marketing campaigns, consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.47 Whereas advertising offers a reason to buy, sales promotion offers an incentive. 1. ADVERTISING VERSUS PROMOTION Although sales promotion

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Events and Experiences

The IEG Sponsorship Report estimated that marketers spent $19.8 billion on sponsorships in North America during 2013, with 70 percent going to sports; another 10 percent to entertainment tours and attractions; 4 percent to festivals, fairs, and annual events; 4 percent to the arts; 3 percent to associations and membership organiza­tions; and 9 percent

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