UNIVERSITAS BAKRIE

Magister Manajemen
Marketing Management
Week 10
Marketing Strategies

Muchsin Saggaff Shihab, MBA, Ph.D.

Marketing Strategy:
The Marketing Mix

Customers
Needs
Promotion

Distribution

Doves Campaign for Real Beauty

Communications Objectives
Informing

Increase awareness
Explain how product works
Suggest new uses
Build company image

Persuading
Preference based on
competitive advantages
Brand switching or
prevention of brand
switching

Reminding
Trigger memories
Maintain preference and
buying habits

IMC Builds Brands

What is IMC???????

Modes (mix)
non-personal communication by an identified sponsor,
transmitted to target audience via (mass) media

Advertising
short-term
incentives
to encourage
sales

Sales
promotion

Publicity
and PR
Makingnews; building
goodwill, understanding
between organisations &
publics

Direct
marketing

Sponsorship
supporting event, person,
etc, to enhance sponsors
awareness, image, etc.

creating, developing
direct relationships
with individual
customers

Personal
selling
Informing, persuading
potential customers through
personal communication

Elements in the Macro Communications Process

Barriers to Communication
Selective Exposure to Message (perceived
advertising Message)
Channel surf
Road blocking

Psychological Noise
Mind is not present
Neighbors are noisy
How solve it

Repetition
Quizzes
Contrast
?

Micro Model of Consumer Response

Designing the Communications

Message strategy
(Themes)
Creative strategy
Message source
Global adaptation

Creative Strategy
Informational and transformational
appeals
Positive and negative appeals

Fear
Guilt
Shame
Humor
Love
Pride
Joy

Establish Budget
Setting the Total Promotional Budget
Affordability Method
Budget is set at a level that a company can afford

Percentage-of-Sales Method
Past or forecasted sales may be used

Competitive-Parity Method
Budget matches competitors outlays

Evaluating Advertising Effectiveness

Communication-Effect Research

Consumer feedback method

Portfolio tests
Laboratory tests
Sales-Effect Research

Virtual Worlds as a Media Vehicle

Marketing Channel
What is Marketing Channel?
Set of interdependent organizations involved in the
process of making a product or service available for us
A system of marketing institutions that enhances the
flow of goods or services for use/ consumption
Merchant ---buy, take title and re-sell
Agents/broker --- take no title (negotiate on behalf)
Facilitator --- transportation companies/ banks/

Channels and Marketing Decision

A push strategy uses the manufacturers sales force, trade

promotion money, and other means to induce intermediaries
to carry, promote, and sell the product to end users.
A pull strategy uses advertising, promotion, and other forms
of communication to persuade consumers to demand the
product from intermediaries.

Industrial Marketing Channels -Level

Consumer Marketing Channels - Level

Identifying Channel Alternatives

3A: Types of
Intermediaries (direct vs. indirect)
Number of
intermediaries
Terms and
responsibilities

Number of Intermediaries
Exclusive
Selective
Intensive

The Best Channel System Should Achieve

Ideal Market Exposure

Intensive
Intensive

Market
Market
Exposure
Exposure
Strategies
Strategies
Selective
Selective
Selective
Selective

Exclusive
Exclusive

= number of
outlets

Checking your knowledge

Chocolate Dreams is a manufacturer of expensive,
high-quality, hand-made old style candies that are
sold through fine department stores and certain
bookstores and fine gift shops. The ideal market
exposure for products manufactured by Chocolate
Dreams is:
A.
B.
C.
D.

intensive.
comprehensive.
exclusive.
selective.

The answer is D

Channel Power
Coercive
the manufacturer threatens to withdraw a resource or terminate
a relationship if intermediaries fail to cooperate.

Reward
Extra benefit for performing specific functions

Legitimate
Request a behavior that is warranted under
the contract

Expert
Manufacturer has special knowledge that
the intermediaries value
Once the intermediaries acquire this expertise, however, expert
power weakens.

Referent
Intermediaries are proud of manufacturers

Channel Integration and Systems

1. Verticalmarketingsystem(VMS)VsConventional
Plannedchannelsystemdesignedtoimprovedistributionefficiencyandcost
effectivenessbyintegratingvariousfunctionsthroughoutthedistribution
channel.
CORPORATEANDADMINISTEREDSYSTEMS
Corporatemarketingsystemsingleownerrunsorganizationsateachstageof
themarketingchannel(produceranddistributor)
Administeredmarketingsystemdominantchannelmemberexercisespower
toachievechannelcoordination.
CONTRACTUALSYSTEMS
Contractualmarketingsystemcoordinatesdistributionthroughformal
agreementsamongchannelmembers.Franchise
2. Horizontal marketing systems
(two or more unrelated companies put together resources or
programs to exploit an emerging opportunities) in-store banking
3. Multichannel systems (Integrated)
Singlefirmusestwoormoremarketingchanneltoreachoneormore
customers

Multi-Channel Systems Can Be Complex

What is Channel Conflict?

Channel conflict occurs when one members
actions prevent another channel from
achieving its goal.
Types of channel conflict
Vertical
Horizontal
Multichannel

What are the causes of channel conflict?

What are the strategies to manage conflict?