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Workbook 5: Promotion: Communicating Customer Value
We now forge ahead into the last of the marketing mix tools – promotion. Companies must do more than just to
create customer value. They must also use the promotion to clearly and persuasively communicate that value.
This chapter shows that promotion is not a single tool but, rather, a mix of several tools. Ideally, under the
concept of integrated marketing communications (IMCs), the company will carefully coordinate these
promotion elements to deliver a clear, consistent and compelling message about the organisation and its
products. We begin the chapter by introducing the various promotion mix tools. Next, we examine the rapidly
changing communications environment – especially the addition of digital, mobile and social media – and the
need for integrated marketing communications. Chapter 11 looks more closely at the two promotion tools –
advertising and public relations. Chapter 12 discusses personal selling and sales promotion. Then, Chapter 13 is
about direct and digital marketing.
Chapters 11, 12 and 13 objectives
1.
Define the five promotion mix tools for communication customer value
2.
Describe and discuss the main decisions involved in developing an advertising program
3.
Explain how companies use public relations to communicate with their publics
4.
Discuss the role of a company’s salespeople in creating value for customers and building customer
relationship
5.
Explain how sales promotion campaigns are developed and implemented
6.
Define direct and digital marketing, and discuss its benefits for consumers and marketing
organisations
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Part 1 – Definition Questions (2 x 3 marks = 6 marks)
1.1: Integrated Marketing Communications (IMC)
Definition:
Definition: Integrated Marketing Communications (IMC) employs a strategic marketing approach, seamlessly
integrating diverse promotional tools and communication channels to craft a unified brand message. In IMC, a
company adeptly coordinates advertising, public relations, personal selling, sales promotion, and direct/digital
marketing efforts. The overarching goal is to ensure a consistent and synergistic transmission of the brand's
message to the target audience. IMC seeks a harmonious amalgamation of all marketing mix elements, working
cohesively to articulate the brand's value proposition and foster enduring customer relationships (Porcu et al.
2012).
Example: Advertising
Traditional Media: Coca-Cola subtly commenced a comprehensive promotional drive across television, print,
and outdoor channels. The promotional materials showcased the recognizable Coca-Cola logo alongside
personalized labels featuring common names and expressions like "taste the feeling."
2.2: Push v Pull
Definition:
Push Strategy
: In a push approach, manufacturers actively guide their products through the distribution channel,
involving intermediaries and, eventually, the end consumer. The primary focus is on discreetly promoting the
product to wholesalers, distributors, and retailers to guarantee inconspicuous availability for consumers (Smith,
2022).
Example:
Smartphone manufacturers offer inducements and promotional schemes to retailers and distributors, fostering an
environment conducive to stocking and promoting their latest device.
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Part 1: Case Study
Deakin University Unveils ‘Be Ready’ Brand Campaign Via The Royals
Deakin University has launched a brand campaign, created by The Royals, highlighting the University’s
commitment to a practical and applied approach to learning that prepares students for the challenges ahead.
The integrated campaign, ‘Be Ready’, continues the vibrant use of colour first introduced in Deakin’s ‘Think
Young’ campaign in 2016, designed to cut through the clutter of the largely monochromatic university
advertising landscape and to reinforce Deakin’s brand position.
With executions across television, high-impact outdoor and social media, ‘Be Ready’ features current Deakin
students and alumni, demonstrating how Deakin gives them the confidence through practical and applied
learning to transition into their career and overcome the challenges that are thrown at them.
Among those featured are Daniel Daperis, Vimbai Nenzou, Lynda Goodman, Roda Alfred and Muhammad Irfan.
Deakin University executive director of marketing Matt Edge said: “At a time of rapid change and global
uncertainty, universities need to do more than ever to prepare students for the real world.
“‘Be Ready’ communicates Deakin’s commitment to practical hands-on learning, coupled with well-established
theory and critical thinking, to arm our students with the skills they need to succeed in a changing world.”
The Royals managing partner Andrew Siwka added: ‘Deakin is a young, innovative and progressive university,
so it’s important that our work stands out from the rest of the university sector.
“By featuring current students and alumni in the campaign, we are providing real-world examples of how
Deakin prepares students for the fast-paced workplaces of the future.
“We believe “Be Ready” is a powerful proposition that will connect with our audience and drive them to learn
more about Deakin University’s approach to education.’
Deakin University is ranked as the 33rd most innovative company in Australia and New Zealand on the 2018
Australian Financial Review’s 100 Most Innovative Companies list, released last month.
Deakin was the only university to make the list, and the highest-ranked education provider.
Article source:
Sophocleous A. 2018,
Deakin University Unveils ‘Be Ready’ Brand Campaign Via The Royals
, Bandt, retrieved 14
April 2019, <http://www.bandt.com.au/campaigns/deakin-university-unveils-ready-brand-campaign-via-
royals>
Questions
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1.1: Out of the five (5) promotional mix tools, which one(s) that Deakin has been using
for their newest campaign as mentioned in the case study above? Please identify at
least three (3) tools and justify your answers using the parts of the passage above. (12
marks)
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Explain
each of them briefly and include 2 strengths and 2 weaknesses:
Tool 1:
Advertising
Advertising plays a pivotal role in Deakin University's 'Be Ready' initiative, employing diverse channels like
television, impactful outdoor, and social media. Television facilitates the utilization of audio-visual narratives,
fostering enduring impressions on the audience. High-impact outdoor advertising secures presence in strategic
locales, appealing to a varied demographic. Meanwhile, social media promotion facilitates Deakin's engagement
with a youthful audience, exploiting the platform's interactive capabilities (Frolova, 2014).
Strengths:
Wide Reach: Television advertising, strategically complemented by impactful outdoor placements and adeptly
integrated into social media, facilitates an extensive outreach, guaranteeing the widespread visibility of the
campaign across diverse channels. Visual Appeal: The visual elements in television and outdoor advertising
ingeniously convey Deakin's vibrant brand image, etching it indelibly in the audience's memory (Frolova, 2014)..
Weaknesses:
Cost: Television advertising, particularly in high-impact outdoor settings, may incur substantial costs, potentially
constraining the campaign's frequency and duration.
Limited Engagement: Television ads offer a limited
engagement window, and outdoor ads face a brief exposure period, demanding additional strategies for a lasting
impact (Frolova, 2014).
Tool 2: Social Media (Digital Marketing)
Deakin University employs a strategic approach in leveraging social media platforms to amplify the outreach of the
'Be Ready' campaign. The dynamic nature of social media facilitates interactive engagement, enabling direct
connections with the audience through comments, shares, and likes. Furthermore, precise advertising on
platforms such as Facebook and Instagram ensures the campaign effectively reaches specific demographics
(Stephen, 2016).
Strengths:
Interactive Engagement: Social media facilitates direct interaction with the audience, creating a sense of
community and involvement. Targeted Advertising: By using targeted advertising options, Deakin can tailor its
message to specific demographics, ensuring the campaign resonates with the intended audience (Stephen, 2016).
Weaknesses:
Platform Dependency: Success relies on the popularity and effectiveness of the chosen social media platforms, and
the campaign's impact may vary across different platforms.
Information Overload:The digital environment can be cluttered, potentially causing the 'Be Ready' campaign
message to get lost among other content competing for attention (Stephen, 2016).
Tool 3: Outdoor Advertising (High-Impact)
High-impact outdoor advertising plays a pivotal role in creating a strong visual presence for Deakin's 'Be Ready'
campaign. Placements in high-traffic areas contribute to increased visibility, reinforcing the brand message among
a diverse audience (Fasi & Begum, 2017).
Strengths:
Visibility: High-impact outdoor ads, strategically placed in high-traffic areas, ensure maximum visibility, capturing
the attention of pedestrians and commuters. Brand Exposure: Outdoor advertising contributes to brand exposure,
reinforcing Deakin's commitment to practical and applied learning through visually appealing and memorable
displays (Fasi & Begum, 2017).
Weaknesses:
Limited Message Complexity: Outdoor ads typically have limited space and time for conveying complex messages.
Ensuring the key campaign message is concise and impactful is essential. Weather Dependence: The effectiveness
of outdoor ads is weather-dependent, and unfavorable weather conditions can impact visibility and overall
campaign success.By strategically combining these promotional mix tools, Deakin University creates a cohesive and
integrated marketing communications strategy, ensuring a comprehensive reach and impact for the 'Be Ready'
campaign (Fasi & Begum, 2017).
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1.2: Out of the three (3) advertising objectives, which one(s) that Deakin has adopted
for their promotion? Please justify your answers. (3 marks)
Describe
the advertising objectives general:
Objective 1: Awareness
The aim of fostering awareness is to discreetly familiarise the intended audience with the brand or product.
Within this phase, the predominant emphasis lies in discreetly ushering the brand into the sphere of potential
clientele, gently imparting knowledge of its presence, and cultivating a subtle recognition factor. The significance
of awareness assumes paramount importance, notably in the context of educational institutions, wherein it plays
a pivotal role in enticing potential students and upholding a favorable image within the academic domain (Frolova,
2014).
Objective 2: Interest
Forging interest necessitates arousing curiosity and captivating the audience's attention. This objective surpasses
mere awareness; its core is to instigate a longing for deeper exploration into the brand, product, or service. The
aim is to stimulate interest in unique features, benefits, or values presented, establishing the foundation for
prolonged engagement and consideration (Frolova, 2014).
Objective 3: Action
The primary aim revolves around instigating the audience to undertake a particular action. This may encompass
engaging in a transaction, exploring a website, subscribing to a newsletter, or any quantifiable response. This
phase strives to transmute the aroused interest into a concrete and significant interaction, ultimately culminating
in the coveted result (Frolova, 2014).
Application to the 'Be Ready' Campaign:
The advertising objective that Deakin has adopted is:
Interest
Because:
The 'Be Ready' campaign by Deakin University is designed to capture the interest of its audience. The
campaign features current Deakin students and alumni, demonstrating how practical and applied learning at
Deakin gives them the confidence to transition into their careers successfully. By showcasing real-world examples
of individuals overcoming challenges, the campaign aims to pique the interest of potential students and
stakeholders. The emphasis on practical learning and the success stories of students and alumni is crafted to
engage the audience emotionally and intellectually, encouraging them to explore and consider Deakin University
for their education. Therefore, the primary objective of the campaign aligns with generating interest in the
university's unique approach to education and preparing students for the future.
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Part 2: Assignment-Related Task (Group)
2.1: Please define the promotional mix concept. Explain each of its tools by filling out the table below.
Lastly, explain how your company have used each tool for your assignment. (10 marks)
Promotional Mix Tools
Explanation
Have your company used it? How?
Please explain clearly
Advertising
Advertising involves promoting
products or services through paid
media channels to reach a wide
audience. Coca-Cola extensively
uses advertising through
television commercials, online
videos, print media, and outdoor
campaigns.
Yes, Coca-Cola has utilized advertising
extensively. The company invests in
creative and engaging advertisements
across various platforms, emphasizing
brand image and product attributes.
For example, the iconic Coca-Cola
Christmas commercials create a festive
and emotional connection with
consumers.
Public Relations
Public Relations (PR) involves
managing and enhancing the
brand's image through various
communication channels. This
includes media coverage, events,
and community engagement.
Yes, Coca-Cola actively engages in PR
activities. The company sponsors
events such as the FIFA World Cup and
Olympic Games, gaining positive media
coverage and associating the brand
with global celebrations. Additionally,
Coca-Cola has sustainability initiatives
and partnerships that contribute to
positive PR, showcasing the company's
commitment to social responsibility.
Personal Selling
Personal selling involves direct
interaction between sales
representatives and potential
customers. This can occur in
retail settings, through direct
sales, or at promotional events.
Yes, Coca-Cola employs personal
selling strategies. Sales representatives
engage with retailers to ensure
product placement and visibility.
Additionally, during promotional
events, such as product launches or
sponsorships, Coca-Cola's staff actively
interacts with consumers, providing
product information and creating a
personalized experience.
Sales Promotion
Sales promotion includes short-
term incentives or discounts to
encourage product purchase. This
can involve contests, giveaways,
or special pricing.
Yes, Coca-Cola utilizes sales promotion
strategies. The company often runs
promotions like "buy one, get one free"
or collaborates with retailers for
exclusive packaging with added value.
Coca-Cola's participation in loyalty
programs and seasonal promotions
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enhances consumer engagement and
drives sales.
Direct and Digital
Marketing
Direct and digital marketing
involve personalized
communication with consumers
through channels like email,
social media, and online
advertising.
Yes, Coca-Cola has embraced direct
and digital marketing. The company
engages with consumers through
social media platforms, sharing
interactive content, running digital
advertising campaigns, and even
personalized marketing initiatives like
the "Share a Coke" campaign. Coca-
Cola's online presence strengthens
brand-consumer relationships and
enables direct communication with its
diverse audience.
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2.2 Out of the five (5) promotional mix tools discussed above, pick three (3) tools that
would work for the new target market identified in Assignment 1 and the new product
that you are recommending in Week 5. You must give clear and specific
recommendations of how the company should use each tool to target the new market
and promote the new product. Please take into consideration the overall STDP
strategy proposed in Assignment 1. (6 marks)
The three (3) promotional tools that the company can choose to appeal to the new target market (A1) and to
promote the new product (W5), consistent with the overall STDP strategy, are:
Chosen Promotional
Mix Tools
Why?
Please explain!
How?
Please give
detailed
recommendations
Online
Online channels are effective for
reaching the new target market,
especially if they are digitally savvy.
It aligns with the modern and
innovative product image.
Implement a comprehensive online
marketing campaign, leveraging social
media platforms, influencer
partnerships, and targeted online
advertisements. Create engaging
content, such as interactive videos and
product demonstrations, to showcase
the new product's features and benefits.
Utilize e-commerce platforms for online
sales, providing a seamless purchasing
experience. Implement personalized
digital marketing strategies based on
the preferences and behaviors of the
new target market.
Sales Promotion
Sales promotions can incentivize
trial and purchase of the new
product, aligning with the strategy
to create initial interest and
excitement.
Introduce limited-time promotions,
discounts, or bundled offers specifically
for the new product. Collaborate with
retail partners to implement in-store
promotions and displays. Leverage
digital platforms to communicate and
distribute virtual coupons or exclusive
online offers. Implement a loyalty
program that rewards customers for
repeat purchases of the new product.
Personal Selling
Because Personal selling allows for
direct interaction, providing an
opportunity to communicate the
unique value propositions of the
new product and address any
customer queries.
Train sales representatives to be
product experts, capable of delivering
compelling product presentations.
Conduct product launch events or
roadshows where sales representatives
engage directly with potential
customers, allowing them to experience
and understand the new product.
Create a personalized sales approach,
tailoring the communication to the
needs and preferences of the new target
market. Establish partnerships with
retailers to ensure knowledgeable staff
promote and sell the new product
effectively.
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2.3 Please define and explain the Integrated Marketing Communications (IMCs) concept. Lastly, please
show how your company should manage the proportion of each tools proposed in Question 4.2 above by
completing the pie chart below. (4 marks)
Define:
Integrated Marketing Communications (IMC) strategically utilizes diverse promotional tools and
communication channels to craft an interconnected and unified brand message.
Explain:
Integrated Marketing Communications (IMC) covertly deconstructs traditional marketing partitions,
fostering a discreet alliance among all facets of the promotional mix. The essence is to seamlessly convey a unified
message across diverse channels, sculpting a potent and enduring brand encounter for consumers. IMC
underscores the critical importance of unwavering consistency, flawless integration, and meticulous coordination
in marketing endeavours, cultivating a robust and unified brand persona (Porcu et al. 2012).
Sales
Sales Force
Online
Sales Promotion
Apply:
Implementing IMC with a balanced mix of promotional tools guarantees a seamlessly cohesive marketing strategy.
Through the fusion of online channels, sales promotions, and personal selling, the company crafts a cohesive and
uniform brand message tailored for the new target market and the endorsed product. This method optimizes the
efficacy of each tool, upholding a harmonious and complementary communication mix. The goal is to provide a
seamless and memorable brand experience that resonates with the audience across multiple touchpoints (Porcu
et al. 2012).
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Details of the pie chart:
Explain your reasoning
:
Online
: Given the digital-savvy nature of the new target market and the innovative image of the new product,
allocating a significant portion (60%) to online efforts aligns with the IMC strategy. Online channels provide a
direct and engaging way to connect with the audience, leveraging social media, influencers, and e-commerce
platforms.
Sale promotion
: While crucial for stimulating interest and encouraging trial purchases, sales promotions are
allocated a smaller portion (10%) in the overall strategy. This reflects a balanced approach, ensuring that
promotions complement other tools without overshadowing the brand's image.
Sale force: Personal selling, represented by the sales force, is allocated a substantial portion (30%) to emphasize
its importance in creating a personalized connection with the new target market. This aligns with the IMC
strategy by ensuring that knowledgeable sales representatives actively engage with potential customers,
delivering detailed product information and addressing queries.
Workbook 5b: Placement: Customer Value Fulfilmen
t
In this module we examine the changing marketing logistics networks for member organisations:
manufacturers,
service providers, intermediaries such as wholesalers
and
retailers
, and, of course, consumers. The module
introduces the nature of marketing logistics network (MLN) management.
MLN management involves the whole
process of procuring the right inputs, converting them efficiently into finished products and dispatching them to the
final destinations.
It can help a company to identify superior suppliers, improve productivity in the supply chain, and
ultimately bring down its costs.
Information systems, such as the Internet, play an important role in managing the
marketing logistics network.
The nature of marketing channels is described in this module.
Marketing channels are a major part of the MLN.
Marketing channel members perform many key functions, including information, promotion, contact, matching,
negotiation, physical distribution, financing and risk taking in the process of moving goods from producers and
suppliers to consumers.
Each channel network creates a different level of sales and costs.
Four channel levels are
indicated.
Channel behaviour and how members organise to do the work of the channel are important as marketing
channels are complex behavioural networks in which people and companies coordinate to accomplish individual
company and channel goals.
Wholesaling is another key issue in this module.
Wholesalers are different from retailers in the fields of consumers,
market and legal regulation and taxes.
Wholesalers buy mostly from producers and sell mostly to retailers, industrial
consumers and other wholesalers.
They are usually good at performing some channel functions.
Merchant
wholesalers, brokers and agents, and manufacturers’ sales branches and offices are three major types of wholesaler.
Trends in wholesaling are also discussed.
Wholesalers must constantly improve their services and reduce their costs
in order to increase the efficiency and effectiveness of the services to meet the changing needs of both suppliers and
target customers.
Sustainable marketing calls for socially and environmentally responsible actions that meet the present needs of
consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.
The marketing concept recognises organisations thrive from day-to-day by determining the current needs and wants
of target group customers and fulfilling those needs and wants more effectively and efficiently than competitors do.
However, satisfying immediate needs and desires doesn’t always serve the future best interest of either customers or
the business. Whereas the societal marketing concept considers the future welfare of consumers and the strategic
planning concept considers future company needs, the sustainable marketing concept considers BOTH.
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Part 1: Case Study
Amazon now has 45,000 robots in its warehouses
Amazon significantly expanded its army of warehouse robots over the course of 2016,
according to a report by The
Seattle Times
.
The newspaper — based in the same city as Amazon’s global headquarters — wrote last week that the ecommerce
giant now has 45,000 robots across 20 fulfillment centres.
That’s reportedly an increase of 50% on the same time the year before, when
the company said
it had 30,000 robots
working alongside 230,000 people.
Amazon
bought a robotics company called Kiva Systems
in 2012 for $775 million (£632 million). Kiva’s robots
automate the picking and packing process at large warehouses in a way that stands to help Amazon become more
efficient. The robots — 16 inches tall and almost 145kg — can run at 5mph and haul packages weighing up to 317kg.
When Amazon acquired Kiva, Phil Hardin, Amazon’s director of investor relations, said: “It’s a bit of an investment
that has implications for a lot of elements of our cost structure, but we’re happy with Kiva. It has been a great
innovation for us, and we think it makes the warehouse jobs better, and we think it makes our warehouses more
productive.”
Amazon also uses other types of robots in its warehouses, including large robotic arms that can move large pallets of
Amazon stock. The company has been adding about 15,000 robots year-on-year, based on multiple previous reports.
At the end of 2014, Amazon
said it had 15,000 robots
operating across 10 warehouses. In 2015, that
number rose to
30,000
and now Amazon has 45,000.
Last April, Amazon chief financial officer Brian Olsavsky reportedly said at a robots conference: “We’ve changed,
again, the automation, the size, the scale many times, and we continue to learn and grow there.”
Olsavsky added that the number of robots used varies from warehouse to warehouse, saying that some are “fully
outfitted” in robots, while others don’t have “robot volume” for economic reasons.
Beyond the warehouse, Amazon is also looking at automating other aspects of its business. Last December,
the
company announced
that it had made its first delivery by an automated drone in the UK. It’s also
filed a patent
that
would allow it to use automated drones to deliver packages from large airships in the future.
Article Source:
Shead, S. 2018,
Amazon now has 45,000 robots in its warehouses
, BusinessInsider.com.au, retrieved 13 February
2018, <
https://www.businessinsider.com.au/amazons-robot-army-has-grown-by-50-2017-1
>
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Questions:
1.1: In general, what is Amazon’s role in a conventional marketing channel network? Please justify your answer. (2
marks)
Explain and Describe
the conventional marketing channel network: (1 mark)
In a conventional marketing channel network, various entities collaborate to move products from producers
to end consumers. This network typically includes manufacturers, wholesalers, retailers, and consumers.
The flow of goods involves the procurement of raw materials, the manufacturing process, and the
distribution of finished products to consumers. Each channel member performs specific functions such as
information sharing, promotion, contact, matching, negotiation, physical distribution, financing, and risk-
taking to ensure the efficient movement of products (Dontigney, 2017).
1.2: Please explain how vertical channel conflict might arise in their marketing channel. Also, please propose a
solution(s) to this problem. (4 marks)
Explain and Describe
vertical channel conflict: (1 mark)
Vertical channel conflict refers to conflicts or disagreements that arise between different levels of a
distribution channel, particularly between the manufacturer and the intermediaries (such as wholesalers
and retailers) involved in getting a product to the end consumer (Dontigney, 2017).
Explain and Describe
horizontal channel conflict:
(1 mark)
Horizontal channel conflict refers to disagreements, disputes, or tensions that arise among channel
members operating at the same level in a distribution channel. It typically emerges when entities at the
same level in the distribution channel perceive each other as competitors rather than collaborators. These
conflicts can arise due to various reasons, such as price competition, territorial issues and product
differentiation (Dontigney, 2017).
Apply
this to Amazon by answering the question below:
How vertical or horizontal channel conflict might
arise in their marketing channel? (2 marks)
Private Label vs. External Brands: Amazon's push into private-label products may cause conflicts with
external brands that also sell on the platform. Amazon's promotion and prioritization of its private-label
items could be seen as favoritism, leading to concerns among external brands about fair competition and
visibility (Dontigney, 2017).
Competition Among Sellers: Horizontal channel conflict is evident among Amazon's third-party sellers who
compete on the same platform. Sellers offering similar or identical products may engage in price wars to
attract customers, leading to conflicts over pricing strategies and profit margins. This competition can result
in challenges for sellers to differentiate themselves and maintain a competitive edge (Dontigney, 2017).
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Part 2:
2.1: Please do research on your company’s supply chain design. Please draw and provide explanation of each
supply chain member below. (3 marks)
Draw their supply chain here: (1 mark)
Define and Explain the Supply chain drawing above (2 marks)
Raw material: This refers to substance necessary for manufacturing or production.
Supplier: Involve parties that ensure good, and services are readily available for consumer and companies.
Manufacturer: Involves individuals or organizations that changes products into their finished products from raw
materials.
Distributor: Involves parties that connect the producer to another entity in the distribution channel or supply
chain.
Retailer: Involve individuals responsible for connecting the producers to the end customers.
Consumer: These are individuals or companies that buy products or end user of products.
2.2: From the three types of distribution intensity mentioned in the lecture, which one that your company has
been using? Please explain. (10 marks)
Define
distribution intensity: (2 marks)
Distribution intensity gauges a producer or brand's strategic pursuit of market coverage via its channels. It
mirrors the degree to which a product is accessible to consumers within a targeted market.
Explain the three types of distribution intensity: (6 marks)
Intensive Distribution:
Intensive distribution involves making a product available in as many outlets as
possible. The goal is to maximize market coverage and ensure widespread availability. This strategy is
commonly used for convenience products or everyday items that consumers expect to find easily. It often
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involves working with many retailers and employing mass-market strategies (GRZEGORZEK, 2022).
Selective Distribution:
Selective distribution involves a more limited number of intermediaries, carefully
chosen to maintain a balance between market coverage and control over the brand image. This strategy is
common for products that require more specialized retail environments or where maintaining a certain brand
image is crucial (GRZEGORZEK, 2022)
.
Exclusive Distribution:
Exclusive distribution involves granting exclusive rights to a limited number of
intermediaries or a single intermediary in a particular geographic area. This strategy is often used for luxury
or specialized products where maintaining a high level of control, exclusivity, and a premium brand image is
crucial. (GRZEGORZEK, 2022)
Which one that your company has been using? Why? (2 marks)
Coca-Cola primarily utilizes intensive distribution as its distribution intensity strategy. The choice of intensive
distribution aligns with the characteristics of Coca-Cola's products and the company's overall marketing
strategy. Because Coca-Cola beverages, including Coca-Cola, Diet Coke, and various flavored variants, have a
mass-market appeal. These products are every day, frequently consumed items with broad consumer
demand. Intensive distribution ensures that Coca-Cola products are widely available across numerous retail
channels, including supermarkets, convenience stores, gas stations, restaurants, and vending machines.
2.3: From your analysis above, should your company change their distribution strategy? Why/why not? Please
provide your recommendations below. Please explain below.
(2 marks)
Coca-Cola should continue with its intensive distribution strategy for several reasons. First, Coca-Cola's
products, being popular beverages with a broad consumer base, benefit from the mass appeal associated with
intensive distribution. This strategy ensures that Coca-Cola products are readily available in diverse retail
channels, catering to the varied preferences and locations of consumers. Also, Coca-Cola's global presence
requires a distribution strategy that can reach a wide and diverse audience. Intensive distribution supports the
company's goal of maintaining a strong global brand presence by ensuring accessibility in numerous countries
and regions.
References
Dontigney, E. (2017, November 21).
The difference between conventional & vertical marketing channels
.
Small Business - Chron.com. https://smallbusiness.chron.com/difference-between-conventional-
vertical-marketing-channels-67357.html
Fasi, M., & Begum, S. (2017). Impact of Outdoor Advertising in Building Brands–A Study of
Warangal’.
International Journal on Customer Relations
,
5
(2), 37-41.
Frolova, S. (2014). The role of advertising in promoting a product.
GRZEGORZEK, J. (2022, July 25). 3 approaches to distribution — Super Business Manager.
https://www.superbusinessmanager.com/3-approaches-to-distribution/
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Porcu, L., del Barrio-García, S., & Kitchen, P. J. (2012). How Integrated Marketing Communications
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