9c1f8ead4468e9aa83c56bf1d73e0848.ppt
- Количество слайдов: 26
Channel Marketing and Trade Promotion For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Chapter Outline § What is trade promotion and how does it fit into channel marketing? § How do trade promotion’s strategies and practices operate? § What is co-marketing and why is it an “integrating” practice? For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Chapter Perspective Channel marketing is more critical now than ever because of a major power shift from: Manufacturers Retailers For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Opening Case: Finish Line For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Opening Case: Finish Line Challenge: Answer: Results: Position Finish Line as the Nike destination A trade-promotion partnership including: • Use of a Nike-recommended agency • Joint Finish Line/Nike in-store fixtures/POP displays • Joint advertising on TV and in magazines • “Nike Stories” in Finish Line Magazine • 20% increase in Nike sales at Finish Line • “Nike destination” scores rose from 20% to 62% For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
What Does What is Trade Promotion? Traditional concept New thinking Trade Promotion Channel marketing • Discounts and premiums offered to retailers in exchange for their promotional support • An integrated process that uses personal selling, trade promotions, and co-marketing programs to build relationships with retailers and other channel members Vs. For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Common Channel Members Wholesalers: Companies that move goods from manufacturers to retailers Bottlers: In the soft drink industry, local companies who buy ingredients then mix it, bottle it, and sell it to local stores Dealers: In the automotive industry, they buy cars from the manufacturer, and display models on their lots/showrooms Retailers: The stores that sell products and services to consumers For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Think About It • When a discount store like Target features Tide in its ads, does it make the brand seem ‘cheap? ” • How about Wal-Mart? For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Selling New Products Stimulate Consumer Demand Slotting Allowances Special Offers Selling Shelfmanagement Diagram Sampling the Product Research Consumer Needs Profit Projections For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Promoting Authorized Products The trend is toward more trade support of existing products at the expense of consumer promotion Percent of Marketing Budget 1997 2001 Consumer promotions 24 15 Trade promotions 53 61 For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Trade Promotion Objectives Increase Distribution Promotional Support by Channel Members Balance Demand Objectives Control Inventory Levels Respond to Competitive Programs For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
In-store Support For the Cheese Industry + For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Trade Promotion Strategies Complement Consumer Promotions Strategies Counter New Competitive Introductions Motivate Trade Support With Allowances For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Trade Promotion Tools Volume Discounts Point of Purchase (Po. P) Sales Training Allowances Tools Dealer Contests Dealer Loader For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
A Special Advertising Allowance For Running this Ad + For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Insight: Trade Promotion Agencies Developing and managing trade promotion programs requires a unique combination of brand marketing and retail understanding. Most advertising agencies and general marketing communications agencies do not have the channel understanding. However, there a handful of agencies that specialize in trade promotion, and due to the demand, more agencies are starting to offer their clients trade promotion services at some level. For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
An Example of Dealer Loader Rack For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Tales From the Real World Sometimes in the real world, good channel marketing comes down to sharing some simple information and advice. For example, Oscar Mayer helped encourage the adoption of its new “Breakfast Ham” product by working closely with retailers to make sure that it was displayed next to bacon and sausage (in the breakfast meats section) rather than with traditional ham products (in the refrigerated meats section). For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
An Example of POP Clutter For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
IMC In Action: Kendall-Jackson + For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
IMC In Action: Kendall-Jackson Challenge: Answer: Results: To increase sales without huge ad expenses Creation of a channel marketing team that: • Helped train staff at Red Lobster, Olive Garden, and Hyatt Hotels Garden and Hyatt Hotels • Advertised in trade journals to build relationships with retailers • Worked with retailers to increase aisle space • Created a cross promotion with Hormel promoting wine and meat • Sales volume increased 24% versus 2% for the industry For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
What is Co-Marketing? Co-marketing: A customized manufacturer -retailer joint effort designed to have a better price/image balance in local retail advertising of manufacturers’ brands • Increasingly important for brands because: • Competition for shelf space is intense • Need to accommodate the growing power of retailers • 5 chains control 50% of all U. S. grocery sales For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Three Co-Marketing Objectives Build Traffic Objectives Maintain Brand Consistency Encourage Integration For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
IMC In Action: P&G For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
IMC In Action: P&G Challenge: To be smarter about promoting its brands Answer: Development of Organization 2005 that: • Conducted research to better understand consumer needs • Shifted money from coupons to channel marketing efforts • Allocated $100 million annually for retailer-specific trade promotions Results: P & G is now a leader in its co-marketing efforts with major retailers including Wal-Mart For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin
Final Note: Push and pull strategies are both important to get retailers to sell brands Here is an analogy: Employers to college grads: Retailers to brands: “We can’t hire you until you have experience” “We can’t carry your product until our customers ask for it” For use only with Duncan texts. © 2005 Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin