Distribution Arrangement

Intensive

It's a product distribution where the company sells as many outlets as possible, so the consumers can find the product everywhere they go. The advantage of intensive distribution is that it makes customers remember and eventually buy the product, because they come across the product frequently. Products that are distributed in this way are the ones that you use everyday like a toothpaste. The original shop for toothpastes is a drug store, but you can buy them in grocery stores and supermarkets too.

Selective

This retail strategy involves making products that are available only in certain markets. It's the opposite of intensive distribution. Basically, the benefits of selective distribution are that a retailer is able to control his product, which means he can limit distribution of his products to specific geographical areas. This creates a "good image" of products, because it looks like they are special in some way as you can't get them everywhere. An example of this is luxury goods, or goods that are expensive because of their brand. These products are just for one group of people (upper class) so not everybody can afford, and are not sold everywhere.

Exclusive

It's a distribution where distributors and suppliers make an agreement that allows only some named distributors to sell a product. A positive thing about exclusive distribution is that a supplier has once again a control of how distributors display the product. It gives  a competitive advantage to retailers too because they can pay for displaying the product in a particular section of the store. For example, Nike and Adidas use this technique all the time.

Integrated

Integrated means combining or putting this together. Therefore, integrated distribution is a distribution that puts different types in one effective group. Advantage is that a supplier has a close relationship with other channel members. An example is the Carnegie Steel Company where the company controls not only the mills where the steel is made but also the mines where the iron is extracted. 

When you are choosing a distribution channel it is important to realize that it is not short term. It also requires careful choosing among and between distributors, direct marketing, retailers and sale force. Distribution is one of the two main roles of marketing., therefore it definitely requires strong strategic thinking.
Here are some things you must consider about  selecting a channel partner: Services capabilities, Partnership attitude, Noncompetitive, Marketplace credibility, Sales capabilities, Geographic coverage, Cost model., Technology fit.

How does the promotional mix change at different stages of the product life cycle

Before the first stage which is introduction, the product is still just an idea. During this very first stage, the product producer develops plans for the future product and starts researching marketing methods that might be very useful in the future. This includes ways to promote the product or to attract customers' attention through campaigns and other promotions. This phase is all about planning, which means the producer doesn't use any marketing strategies yet. As the product hits the market, which happens during the introduction stage of a product life cycle, it's very important to bring awareness of the product. For this stage, the producer should choose a type of promotion techniques that will make customers be aware of the product. This requires lots of effort. During the second stage, which is growth the customers are already aware of the product and sales usually increase. In order to keep it this way, the company should start to use marketing techniques like branding, which would make the product different from the others. Maturity stage is a stage, where the product gains over its competition. In this stage, the producers want to get costumers from competitors. That's why it is important and very beneficial to use special, and interesting promotions. The last stage of the product life cycle is decline. The company can retain their old customers, but it's hard to attract new sales from new customers. The company tries to keep the good and positive image of the company. The main focus is on the reinforcing the brand image. During this stage marketing efforts decline.

Case Studies

Blood Donors Respond

In Pennsylvania, American Red Cross was organizing an interesting summer blood drive campaign. To motivate and attract donors, all the donors who participated and gave their blood, received a small Route 56- logoed Red Cross Keytag. All of them had also a chance to win a year's supply of gas that was around $2,000. Eventually, donations increase more than 16% over the last year. This blood donation was very important because when people are on vacation they usually don't donate blood. In my opinion the reason why it was that effective is that people like getting new things for free. They got a good feeling for helping others and at the same time they were rewarded for it by having a chance to win something special. A year's supply of gas served as a temptation and drove peoples' attention.

Museum gets huge membership boost!

The Cleveland Museum of natural history, which is a great and popular destination for visitors, started to feel a need for more members that would support the Museum's collection. In order to promote a new traveling exhibit and to entice visitors, a new tactic was used. They started to send an instant prize promotion-"Conceal & Reveal" game cards in a form of a direct email. The email included a custom scratch-off that gave people a chance to win great prizes like free tickets for the Museum party. This campaign attracted more than 500 new members in the first 10 days which was an unexpected success. This is just another example of attracting people by giving them a chance to win. Even though, the chance of winning is very small and not everyone can win, people still want to try it.

A Starbucks "Gotcha!" 

The aim of this interesting and unusual campaign was to increase the awareness of the Starbucks Holiday Red Cups. The chief at Free Car Media, Dew Livingston, got an idea of attaching these cups to the roofs of cars. These cars would drive around in huge cities like New York, Seattle, Chicago and San Francisco. It gives people the impression that a driver put this cup on the roof of his car, and then forgot about it. This promotion produced a favorable reviews on some Internet websites and definitely did increase the attention of customers. It was a non-traditional way of promoting cups that attracted people the most. This is an example of "targeting marketing."

Nike Incentive Program Boosts Attendance 

Nike is a huge company that gives a job to factory workers all around the world. Without these customers, Nike would be forced to shut down some of their factories, which would cost the company lots of money. In order to avoid this situation, Nike developed a one-year program that would motivate workers. In each quarter, the workers were given mugs. These mugs were different every quarter which makes workers to compete between each other. To make it even more interesting, Nike started to reward workers who were in some way better than the others with a T-shirt with a slogan "Just do it." The results of the campaign were great. There were no shutdowns and the attendance of workers rapidly improved. I think this idea was very effective and smart because it motivated workers and made them to compete between each other.

Marketing - Advertising Techniques

Repetition
It's a way to keep product or brand in consumers' minds by repeating. Repetition basically builds familiarity. To make it effective, repetition must occur in right time intervals, otherwise consumers will get tired of it.
Benefits: Consumers are able to remember the product or brand for a long period of time. It imprints to their memory. http://www.youtube.com/watch?v=f_SwD7RveNE

Slogan
Identifies product or service with a short positive sentence, quote, or with an idea. Slogan should be catchy and interesting so it drives consumer's attention. Slogan is usually placed after the company name and it helps to give a positive image.
Benefits: It kind of reveals the purpose of the product or the company.

Logo
It's a symbol or an image that identifies the product. The logo design is the illustration of the business nature, its character, energy, and personality. 

Benefits: Your company or the the product is recognized and memorized by the logo design. Logo makes your company or product unique, because no one else has the same logo as you do. It also makes your company or product look professional. Logo establishes the brand identity.

Snob Appeal

The attributes of something that appeal to people who associate those qualities with social or intellectual superiority. Basically, businesses create an image that elite and tempt rich costumers to use their products.

Benefits: Snob appeal makes customers believe that the product that the business sell is much better and have a higher quality than other cheaper products of other brands. Most of the people want to have the best and they like competing between each other so that's why snob appeal is something that they like

Testimonial

Recommendation from a celebrity or a very satisfied costumer affirming the quality of a product or a service. It makes customers believe that the product or service is very good when other popular people recommend it or use it.

Benefits: It provides a good image for the business, company, or for the product itself. http://www.youtube.com/watch?v=O20LUWtT5vI 

Sex Appeal

The product enhances the sexual attractiveness of costumers.

Benefits: It drives customers' attention. Sex appeal becomes associated with products and services. Sex appeal has also an impact on mood. It basically "plays" with customer's mood. Eventually the mood of the customer is related to the product. http://www.youtube.com/watch?v=zLrUJY4D5Bc 

Bandwagon

It's an advertising technique that uses pressure to influence and persuade consumers. It makes consumer think and believe that "if everyone else is having this product, so should I."

Benefits: The business might get a large amount of customers, just because of the bandwagon.

http://www.youtube.com/watch?v=VQ3d3KigPQM 

Technical Jargon
In order to persuade and impress the costumer, the business uses technical words. Even though costumers might not understand these terms, it makes them believe that the product has a good quality.
Benefits: It makes a very professional image of the product. 
http://www.youtube.com/watch?v=R55e-uHQna0 


Name Calling
It's a technique, where the advertiser compares his product with other similar products of other brands in a way that is favorable to to the advertiser. 
Benefits: It gives costumers reasons, why they should buy the product that advertiser is promoting and not the products of other brands.


Wit and Humor

In order to attract customers to the products or services, the business makes and an advertisement or a commercial that entertain costumers, and makes them laugh. It brings customers a positive emotion.

Benefits: People/customers will like the product because of the positive emotion. It attracts them even though they might not be aware of it. http://www.youtube.com/watch?v=uuainpwmxlw

O'Donnell Learn

Key to O' Donnell Learn's Success

Putting customers front and center. 

Company Values
1. Creativity combined with expertise
2. Professionalism
3. We are always learning

What They Do

They help clients to design better educational products and digital learning experiences. They also develop content and technology products ranging from online courses to assessment. Their goal is to help educational companies to evolve and to launch new brands and products.

How They Do It
O'Donnell Learn uses the broad knowledge gained from research and consulting over the past decades in order to help clients to design, develop, and launch successful products and services. Thanks the gained experience, O'Donnell also helps clients to build strong, meaningful customer relationships.

History

O' Donnell was found in 1990 by Carrie O'Donnell who is a change-agent in the industry. O' Donnell Learn's  company has been set up as a virtual company, with around 100 project professionals who have been working on the company's engagements. In 1991, the first media project based on market feedback was accomplished. In 1994, O'Donnell's company started helping publishers who got first successions of best -selling products. In 1999, OD&A began to built the professional development and large satellite courses. In 2004, OD&A helped to launch publisher platforms. In 2010, O'Donnell's company conducted a study in order to find out what makes students buy educational materials and tried to better understand the behaviour behind the purchase of  textbooks. In 2012, OD&A rebranded itself as O'Donnell Learn. Joanna Jebsen took over as a president and Carrie O'Donnell formed the O'Donnell Group.

                     

Ethics and Marketing

Ethics are described as a collection of principles of right conduct that shape peoples' or organizations' decisions. In order to practice ethics, the business or the company should apply moral rights and fairness to marketing decision-making. Business Ethics is the behavior of the business that includes how the business interacts with a world and how it deals with costumers. Business Ethics can really be applied to everything. Nowadays, businesses use and practice many wrong, unfair, and deceptive practices that make their businesses behaviors very unethical. An example of deception is when customers believe that they will get more value from the product  than they actually receive. The reason why ethics are so important to marketing is not just a matter of being "nice", but  they also keep the economy running. Without business ethics or a "lubricant" the economy would be much less efficient (lower quality, higher prices). One benefit of business ethics is that they provide a "good image" of a business, which automatically drives customers' attention. Lance Armstrong is a famous, rich biker who has won many cycling competitions as Tour De France and who is a founder of the Livestrong Foundation which is a major cancer-fighting charity. His name has been mentioned in lots of advertisements for Nike and other popular brands. The issue is that Lance Armstrong was accused from cheating. His good reputation of a cancer survivor and the cycling legend changes to an accused doper. In order to save a good name, Nike and Livestrong resigned their contracts with the cyclist. They believe this is the only way they can save the popularity of their businesses. They think that if they continued in supporting Lace Armstrong, it would rapidly decrease the profits of their companies. Nike and Livestrong hope that the departure of Lance Armstrong can be seen as a good thing because it gives them an image of loyal companies. They also assume donors will be still involved with organizations, because donors' values are same as the values of Nike and Livestrong. In this case Nike and Livestrong are still able to raise money. I understand why Nike and Livestrong did what they did, but the way they gave up on Lance Armstrong seems to me quit unfair.

Stakeholder Conflict and TESCO

1. & 2.  (between which stakeholders is the conflict?, what is the nature of the conflict?)

The conflict is between Tesco and its employees. Transport workers who deliver fuel to Tesco fear that they will use their jobs because of the plans that say transport workers' employment is going to be transfer from Wincanton to another firm, TDG.

 

Shareholders (investors) highly disagree about giving 2-year rolling contracts to chief executive (Terry Leahy) and to other board members. Despite this discontent Tesco wins the pay battle.

 

Another conflict is that Tesco operates more than 2,300 stores around a world and this fact highly affects smaller independent retailers. Many small shops have to close down in a current area because they get almost no profit. The explanation is that recycling money goes to a big multinational chain, rather than to small local traders.

Local Community doesn't want the another (fourth) store of Tesco in the city they live which creates a conflict. People who live in this city think that 3 stores of Tesco is definitely enough, but Tesco company still wants to build another one.

 Tesco and its suppliers have a conflict as well. Tesco is blamed after one of its suppliers revealed they will close Trafford Park Bakery. This means that lots of people will loose their jobs. Suppliers and other firms think Tesco should take a responsibility and compensate it somehow.

3. (what is the adverse result that is expected to occur with the specific stakeholder  group?) 

  

Transport workers (stakeholders) may loose their jobs, and their pay and conditions are under threat.

Shareholders think and argue that 2-year contracts maximize chance of failure.

Customers have less choices for shopping because many small retailers' stores close down.

Local Community & Local Council believe that 4th Tesco store is just a waste of space. There's no need for it.

Many local workers loose their jobs because one of the Tesco suppliers decided to close down Tesco is blamed. 

4. (what would your advice be to settle the issue using a compromise) 

Tesco should compensate the possible loss of jobs, pay and condition to make a compromise transport

workers.

They should make everybody to vote.

There should be a policy that only one Tesco store can be placed in a particular area which means retailers' stores wouldn't have to close down, and customers would have more choices for shopping.

As I've already mentioned there should be some deal between people who live in the city with Tesco. Local people should have a right to say how many Tesco stores can be placed in their city.

Tesco should "practise" Corporate Social Responsibility and supplier shouldn't close down the Trafford Park Bakery but they should try to make a deal with Tesco again.