Product:A product is anything that satisfies a need or want and can be offered in an exchange.

A product
can be a goods, service, or idea. To deliver on its value proposition, the firm must first create a need-
satisfying market offering. Product means the goods-and-services combination the company offers to
the target market.

Price:Price the crucial art of deciding what price to charge for a product or service. It must then decide
how much it will charge for the offering. Price is the amount of money customers must pay to obtain the
product.

Place:Distribution place refers to marketing activities that make products available to consumers at the
right time and in a convenient location. How it will make the offering available to target consumers.
Place includes company activities that make the product available to target consumers.

Promotion: Promotion refers to marketing activities used to communicate to a target market positive,
persuasive information about an organization its products, and activities to directly or indirectly
expedite exchange.Finally, it must engage target consumers, communicate about the offering, and
persuade consumers of the offer’s merits. Promotion refers to activities that communicate the merits of
the product and persuade target customers to buy it.

Chapter(3)

1. Marketing orientated organizations operate within a number of environments and explain their
likelyimpact on the marketing operations of a company.
2. Environmental analysis(Short) {Marketing environment}

The actors and forces outside marketing that affect marketing management’s ability to build and
maintain successful relationships with target customers.A company’s marketing environment consists
of the actors and forces outside marketing that affect marketing management’s ability to build and
maintain successful relationships with target customers. The marketing environment consists of a
microenvironment and a macro environment.Figure: Components of the marketing mix and marketing
environment.
 The Microenvironment

1. The Company: In designing marketing plans, marketing management takes other company groups
into account-groups such as top management, finance, research and development (R&D), purchasing,
operations, human resources, and accounting. Top management-share the responsibility for
understanding customer needs and creating customer value.
2. Suppliers: Suppliers form an important link in the company’s overall customer value delivery
network. They provide the resources needed by the company to produce its goods and services. Most
marketers today treat their suppliers as partners in creating and delivering customer value.
3. Marketing Intermediaries: Marketing intermediaries help the company promote, sell, and distribute
its products to final buyers. They include resellers, physical distribution firms, marketing services
agencies, and financial intermediaries. Today’s marketers recognize the importance of working with
their intermediaries as partners rather than simply as channels through which they sell their
products. Firms that help the company to promote, sell, and distribute its goods to final buyers.
4. Competitors: To be successful, a company must provide greater customer value and satisfaction than
its competitors do. Thus, marketers must do more than simply adapt to the needs of target
consumers. They also must gain strategic advantage by positioning their offerings strongly against
competitors’ offerings in the minds of consumers.
5. Publics: The Company’s marketing environment also includes various publics. A public is any group
that has an actual or potential interest in or impact on an organization’s ability to achieve its
objectives. We can identify seven types of publics:
 Financial publics, such as Banks, investment analysts, and stockholders, etc.
 Media publics, such as news, television stations, newspapers, magazines, and blogs and other social
media.
 Government publics, such as company’s lawyers on issues of product safety, truth in advertising, and
etc.
 Citizen-action publics, such as environmental groups, minority groups, public relations department
and others.
 Local publics, such as neighborhood residents and community organizations.
 General public, such as the general public’s attitude toward its products and activities and buying
behavior.
 Internal publics, such as workers, managers, volunteers, and the board of directors.
 A company can prepare marketing plans for these major publics as well as for its customer markets.
6. Customers: The aim of the entire value delivery network is to engage target customers and create
strong relationships with them. The company might target any or all of five types of customer market.
There are - Consumer markets, Business markets, Reseller markets, Government markets, International
markets. Each market type has special characteristics that call for careful study by the seller.
The Macroenvironment

1. The Demographic Environment: Demography is the study of human populations in terms of size,
density, location, age, gender, race, occupation, and other statistics.The changing age structure of
the population that contains several generational groups. The four largest groups are including the
baby boomers, Generation X, the Millennials or Generation Y, and Generation Z. Their impact on
today’s marketing strategies.The baby boomers – The post-World War II - 78 million people baby
boomers (born between 1946 and 1964). Generation X - The baby boom was followed by a “birth
dearth,” (49 million) (between 1965 and 1976).Millennials or Generation Y- Millennials (also called
Generation Y or the echo boomers) (Born between 1977 and 2000),Generation Z - Hard on the heels
of the Millennials is Generation Z, young people born after 2000. Thus, marketers need to form more
precise age-specific segments within each group. More important, defining people by their birth date
may be less effective than segmenting them by lifestyle, life stage, or the common values they seek in
the products they buy.
2. The Economic Environment: Markets require buying power as well as people. The economic
environment consists of economic factors that affect consumer purchasing power and spending
patterns. Some countries have industrial economies, which constitute rich markets for many
different kinds of goods. In between are developing economies that can offer outstanding marketing
opportunities for the right kinds of products.Marketers should pay attention to income distribution
as well as income levels. Changes in major economic variables, such as income, cost of living, interest
rates, and savings and borrowing patterns, have a large impact on the marketplace.
3. The Natural Environment: The natural environment involves the physical environment and the
natural resources that are needed as inputs by marketers or that are affected by marketing activities.
At the most basic level, unexpected happenings in the physical environment—anything from weather
to natural disasters—can affect companies and their marketing strategies. Marketers should be
aware of several trends in the natural environment. The first involves growing shortages of raw
materials and then Air and water, pollution. That is not green environment. The second
environmental trend is increased pollution. Industry will almost always damage the quality of the
natural environment. Consider the disposal of chemical and nuclear wastes. A third trend is increased
government intervention in natural resource management. The governments of different countries
vary in their concern and efforts to promote a clean environment.
4. The Technological Environment: The technological environment is perhaps the most dramatic force
now shaping our destiny. Technology has released such wonders as antibiotics, robotic surgery,
miniaturized electronics, smart phones, and the Internet. As products and technology become more
complex, the public needs to know that these items are safe. Thus, government agencies investigate
 and ban potentially unsafe products. Marketers should be aware of these regulations when applying
new technologies and developing new products.
5. The Political and Social Environment: Marketing decisions are strongly affected by developments in
the political environment. The political environment consists of laws, government agencies, and
pressure groups that influence or limit various organizations and individuals in a given society.
Governments develop public policy to guide commerce - sets of laws and regulations that limit
business for the good of society as a whole. The first is to protect companies from each other to
define and prevent unfair competition by “Antitrust Law”. Thesecond purpose of government
regulation is to protect consumers from unfair business practices. Thethird purpose of government
regulation is to protect the interests of society against unrestrained business behavior. Marketers
need to know about the major laws protecting competition, consumers, and society. Beyond written
laws and regulations, business is also governed by social codes and rules of professional ethics that
are Socially Responsible Behavior, andCause-Related Marketing - To exercise their social
responsibility and build more positive images.
The Cultural Environment: The cultural environment consists of institutions and other forces that affect
a society’s basic values, perceptions, preferences, and behaviors. People in a given society hold many
beliefs and values. Their core beliefs and values have a high degree of persistence. Core beliefs and
values are passed on from parents to children and are reinforced by schools, businesses, religious
institutions, and government. Secondary beliefs and values are more open to change. Marketers have
some chance of changing secondary values but little chance of changing core values. Shifts in Secondary
Cultural Value- Marketers want to predict cultural shifts to spot new opportunities or threats. The major
cultural values of a society are expressed in people’s views of themselves and others, as well as in their
views of organizations, society, nature, and the universe.

Gathering Secondary Data

The company’s internal database provides a good starting point. Companies can buy secondary data
from outside suppliers. Informationhas already been collected for the purpose other than current
research. Sources are internal and external. Internal – existing inside of organization, Profit and lost
statements, Balance sheets, Sales figures, inventory records, previous marketing research study.
External – collected by other people or organizations from organization’s external environment,
Government source, trade business and professional association, media broadcast, print, internet,
university, foundations, commercial data services. The government census is a valuable source of
secondary data.Using commercial online databases: marketing researchers can conduct their own
searches of secondary data sources. Beyond commercial Web sites offering information for a
fee.Secondary data can usually be obtained more quickly and at a lower cost than primary data.
Secondary data has the advantage of saving time and reducing data gathering costs.

The disadvantages are the data may not fit the problem perfectly and the accuracy may be
more difficult to verify for secondary data than for primary data.Some secondary data is republished by
organizations other than the original source.Researchers can rarely obtain all the data they need from
secondary sources. Even when data can be found, the information might not be very usable. Thus, the
researchers must evaluate secondary information carefully to make certain it is relevant (fits the
research project’s need), accurate (reliable collected and reported), current (up-to-date enough for
current decisions), and impartial (objectively collected and reported).
 Primary Data Collection
Primary data is information that you collect specifically for the purpose of your research
projectto overcome the limitations of inconsistency, oldness and bias, the researcher turn to the
primary data. Primary sources - the data collected directly from the market place, customers. It helps in
overcoming limitations of secondary data.An advantage of primary data is that it is specifically tailored
to your research needs.

The disadvantage is that it is expensive to obtain.Secondary data provide a good starting point
for research and often help to define research problems and objectives. The source of your primary data
is the population sample from which you collect the data. The first step in the data collection process is
determining the target population. Obviously,we will have to determine the sample size and type of
sample.Table 1 – Planning Primary Data Collection Methodsshows that designing a plan for primary
data collection calls for a number of decisions on – research approaches, contact methods, the sampling
plan, and research instruments.

 Observational researchinvolves gathering primary data by observing relevant people,

actions, and situations.Researchers often observe consumer behavior to glean customer insights they
can’t obtain by simply asking customers questions.Marketers not only observe what consumers do but
also observe what consumers are saying.A wide range of companies now use ethnographic
research.Advantages - Seeking to test known hypothesis and obtain an answer to well-defined
products or strategy questions. Observational research can generate fresh customer and market
insights that people are unwilling or unable to provide. It provides a window into customers’
unconscious actions and unexpressed needs and feelings. Generate fresh customer and market insight
that people are unwilling to provide. / Provides customers’ unconscious actions and unexpressed
needs and feelings.
Difficulties - some things simply cannot be observed, such as attitudes, motives, or private behavior.
Long-term or infrequent behavior is also difficult to observe. Finally, observations can be very difficult to
interpret. Researchers often use observation along with other data collection methods.

 Survey Researchis the approach best suited for gathering descriptive information. A
company that wants to know about people’s knowledge, attitudes, preferences, or buying behavior
can often find out by asking them directly.
Advantages - The major advantage of survey research is its flexibility; it can be used to obtain many
different kinds of information in many different situations. Surveys addressing almost any marketing
question or decision can be conducted by phone or mail, in person, or online.
Difficulties - survey research also presents some problems. People may be unwilling to respond to
unknown interviewers or about things they consider private (confidential), always giving positive
answers. Finally, busy people may not take the time, or they might resent the intrusion into their
privacy.

 Experimental researchis gathering primary data by selecting matched groups of

subjects, giving them different treatments, controlling related factors, and checking for differences in
group responses.Whereas observation is best suited for exploratory research and surveys for
descriptive research, experimental researchis best suited for gathering causal information.
Advantages - Researcher can have control over variables and provides for greater transferability than
unreliable research, can be combined with other research methods, Provides for greater
transferability than unreliable research.Thus, experimental research tries to explain cause-and-effect
relationships.
 Difficulties - Personal bias of researcher can occur and produce artificial results. Sample may not be
representative.
Sampling Plan
Marketing researchers usually draw conclusions about large group of consumers by
studying a small sample of the total consumer population. A sample is a segment of the population
selected for marketing research to represent the population as a whole. Designing the sample requires
three decisions.
First, who is to be studied (what sampling unit?)
Second, how many people should be included (what sample size)?
Finally, how should the people in the sample be chosen (what sampling procedure)?
Table 2 describes different kinds of samples. These varied ways of drawing samples have
different costs and time limitations as well as different accuracy and statistical properties. Which
method is best depending on the needs of the research project.

Chapter(6)

1. main influences on organizational buying behavior and / explain the approaches that can be used
by marketing organizations in order to influence organizational buyers.   
2. main influences on organizational buying behavior and / provide examples to support your
recommendations.                           

A) EnvironmentalFactors: Business buyers are heavily influenced by factors in the current and expected
economic environment, such as the level of primary demand, the economic outlook, and the cost of
money. Another environmental factor is the supply of key materials. Many companies now are more
willing to buy and hold larger inventories of scarce materials to ensure adequate supply.Business buyers
also are affected by technological, political, and competitive developments in the environment. Finally,
culture and custom scan strongly influence business buyer reactions to the marketer’s behavior and
strategies, especially in the international marketing environment. The business buyer must watch these
factors, determine how they will affect the buyer, and try to turn these challenges into opportunities.
B) Organizational Factors: Each buying organization has its own objectives, strategies, structure,
systems, and procedures, and the business marketer must understand these factors well. Questions
such as these arise: How many people are involved in the buying decision? Who are they? What are
their evaluative criteria? What are the company’s policies and limits on its buyers?
C) Interpersonal Factors: The buying center usually includes many participants who influence each
other, so interpersonal factors also influence the business buying process. However, it is often difficult
to assess such interpersonal factors and group dynamics. Buying center participants do not wear tags
that label them as “key decision maker” or “not influential”. Participants may influence the buying
decision because they control rewards, and punishments, are well liked, have special expertise, or have
a special relationship with other important participants. Interpersonal factors are often very subtle.
Whenever possible, business marketers must try to understand these factors and design strategies that
take them into account.
D) Individual Factors: Each participant in the business buying decision process brings in personal
motives, perceptions, and preferences. These individual factors are affected by personal characteristics
such as age, income, education, professional identification, personality, and attitudes toward risk. Also,
buyers have different buying styles. Some may be technical types who make in-depth analyses of
competitive proposals before choosing a supplier. Other buyers may be intuitive negotiators who are
adept at pitting the sellers against one another for the best deal.

1. Requirements for Effective Segmentation

Clearly, there are many ways to segment a market, but not all segmentations are effective. For
example,if all salt buyers bought the same amount of salt each month, believed that all salt is the same,
and wanted to pay the same price, the company would not benefit from segmenting this market.
To be useful, market segments must be
 Measurable. The size, purchasing power, and profiles of the segments can be measured.
 Accessible. The market segments can be effectively reached and served.
 Substantial. The market segments are large or profitable enough to serve. A segment should be
the largest possible homogeneous group worth pursuing with a tailored marketing program.
 Differentiable. The segments are conceptually distinguishable and respond differently to
different marketing mix elements and programs.
 Actionable. Effective programs can be designed for attracting and serving the segments.
The importance of market segmentation
Market segmentationgive the following benefits -
 facilitates formation of marketing-mix which is more specific and useful for achieving marketing
objectives.
 enables a producer to understand the needs of consumers, their behavior and expectations.
 offers special benefits to small firms. Such firms can select only suitable market segment and
concentrate all efforts within that segment only for better marketing performance.
 facilitates efficient use of available resources. It enables a marketing firm to use its marketing
resources in the most efficient manner in the selected target market.
 gives satisfaction to consumers and higher sales and profit to the marketing firm.
 efforts on most productive/ profitable segments of the total market due to segmentation
technique.
 Advertising media can be more effectively to the target audience.
In conclusion, it can be said that market segmentation offers benefits not only to marketing firms but
also to customers. The marketing job will be conducted efficiently and the available resources will be
utilized in a better manner.
Channel Design Decisions / Channel Management Decisions / Factors consider in
selection of Appropriate Distribution Channel

If successful, the new firm can branch out to new markets through existing intermediaries. In
this way, channel systems often evolve to meet market opportunities and conditions. But For maximum
effectiveness, channel analysis and decision making should be more purposeful. Marketing channel
design calls for analyzing consumer needs, setting channel objectives, identifying major channel
alternatives, and evaluating those alternatives.
I. Analyzing Consumer Needs: Marketing channels are part of the overall customer value delivery
network. The designing marketing channel starts with finding out what target consumers want from the
channel. Also, providing higher levels of service results in higher costs for the channel and higher prices
for consumers. Thus, companies must balance consumer needs not only against the feasibility and costs
of meeting these needs but also against customer price preferences.

II.Setting Channel Objectives: Companies should state their marketing channel objectives in terms of
targeted levels of customer service. In each segment, the company wants to minimize the total channel
cost of meeting customer service requirements. The company's channel objectives are influenced by the
nature of the company, its products, its marketing intermediaries, its competitors, and the environment.
Finally, environmental factors such as economic conditions and legal constraints may affect channel
objectives and design.

III.Identifying Major Alternatives: When the company has defined its channel objectives, it should
next identify its major channel alternatives in terms of the types of intermediaries, the number of
intermediaries, and the responsibilities of each channel member.

1. Types of Intermediaries:
A firm should identify the types of channel members available to carry out its channel work, and
choice of many channel member. Most companies face many channel member choices. Using many
types of resellers in a channel provides both benefits and drawbacks. However, the new channels will be
more difficult to manage and control. In addition, the direct and indirect channels will compete with
each other for many of the same customers, causing potential conflict.

2. Number of Marketing Intermediaries

Companies must also determine the number of channel members to use at each level. Three
strategies are available: intensive distribution, exclusive distribution, selective distribution.
Intensive Distribution: Intensive distribution is a type of marketing strategy that involves playing the
goods and services offered by a company into as many markets as possible that means the producer’s
products are sold in the majority of outlets. With intensive distribution, the focus is not necessarily on
targeting specific consumer demographics for the purpose of deciding where to distribute those
products. When successful, an intensive distribution approach can greatly enhance the sales of age’s
product that are raw material, FMCG products.
Selective distribution: Selective distribution is the use of more than one but fewer than all of the
intermediaries that are willing to carry the company’s products. Its means that the producer relies on a
few intermediaries to carry their product. It is common for more specialized good, that are carried
through specialist dealers and limited numbers of dealers, example - air con, rice cooker, refrigerator.
Selective distribution is a retail strategy that involves making a product or group of products available
only in certain markets. The selective distribution process focuses on identifying specific markets where
a company’s product is highly likely to be favored by consumers in the area. Other approach that some
business take is to contract with a limited number of retailers.
Exclusive distribution: Exclusive distribution is giving a limited number of dealers the exclusive right to
distribute the company’s products in their territories. It means that the producer selects only very few
intermediaries. This strategy is typical of luxury goods retailers such as Gucci. In exclusive distribution,
only certain dealers are authorized to sell a specific product within a particular territory. The legality of
an exclusive distribution agreement can vary depending on the specifics of the case. This type of
distribution agreement is usually seen with high end and luxury products. For example, car
manufacturer might only agree to allow three dealers to sell its care in specific luxury, Dealers other
than these three who attempted to sell new vehicles from that manufacture would be doing as without
authorization, one consequence of this might be that the manufacturer would refuse to provide support
for cars sold at unauthorized dealers.
Intensive Selective Exclusive
Moderate market coverage,
Wide spread market coverage,
solid image, good sales and Prestige image, prices
objectives high volume sales and high
profits stability and high margins.
profits

Moderate in number, well

Few in number with exclusive
Many in numbers, all types of established better firms
Resellers right, well established,
firms (outlets) (outlets)
reputable firms (outlets)

Moderate in number, brand

Many in numbers, convenience awareness, somewhat willing Fewer in number, willing to
Customers
oriented to travel to store. travel to store, brand loyalty

Promotional mix, pleasant Personal selling, pleasant

Marketing Mass advertising, nearly
shopping condition, good shopping conditions, good
emphasis location, items in stock.
services services
Specialty products (designer
Types of Convenience products, Shopping products (furniture,
clothes, specific brand of car,
product (shampoo, coffee mix) used car, clothing)
medical specialists)
More generation revenue,
Brand awareness, good sales
advantages product awareness and pushing Brand loyalty, prestige image
and profits
impulse buying.
1. Responsibilities of Channel Members

The producer and the intermediaries need to agree on the terms and responsibilities of each
channel member. The producer should establish a list price and a fair set of discounts for intermediaries.
It must define each channel member’s territory, and it should be careful about where it places new
resellers.

IV.Evaluating the Major Alternatives: Suppose a company has identified several channel alternatives
and wants to select the one that will best satisfy its long-run objectives. Each alternative should be
evaluated against economic, control, and adaptability criteria. Using economic criteria, a company
compares the likely sales, costs, and profitability of different channel alternatives. The company must
also consider control issues. Using intermediaries usually means giving them some control over the
marketing of the product, and some intermediaries take more control than others. Finally, the company
must apply adaptability criteria. Thus, to be considered, a channel involving long-term commitments
should be greatly superior on economic and control grounds.

V.Designing International Distribution Channels: International marketers face many additional

complexities in designing their channels. Each country has its own unique distribution system. These
channel systems can vary widely from country to country. Thus, global marketers must usually adapt
their channel strategies to the existing structures within each country. In some markets, the distribution
system is complex and hard to penetrate, consisting of many layers and large numbers of
intermediaries. Designing efficient and effective channel systems between and within various country
markets poses a difficult challenge. Channel alternatives and determined the best channel
design.Marketing channel management calls for selecting, managing, and motivating individual channel
members and evaluating their performance over time.

Marketing Logistics and Supply Chain Management / Physical Distribution

In today’s global marketplace, selling a product is sometimes easier than getting it to customers.
Companies must decide on the best way to store, handle, and move their products and services so that
they are available to customers in the right assortments, at the right time, and in the right place. Logistic
effectiveness has a major impact on both customer satisfaction and company costs. Here, we consider
the nature and importance of logistics management in the supply chain, the goals of the logistics system,
major logistics functions, and the need for the integrated supply chain management.

I. Nature and Importance of Marketing Logistics

To some managers, marketing logistic means only trucks and warehouses. But modern logistics
is much more than this. Marketing logistics – also called physical distribution – involves planning,
implementing, and controlling the physical flow of goods, services, and related information from points
of origin to points of consumption to meet customer requirements at a profit. In short, it involves
getting the right product to the right customer in the right place at the right time.

In the past, physical distribution planners typically started with products at the plant and then
tried to find low-cost solutions to get them to customers. However, today's customer-centered logistics
starts with the marketplace and works backward to the factory or even to sources of supply.Marketing
logistics involves not only outbound logistics (moving products from the factory to resellers and
ultimately to customers) but also inbound logistics (moving products and materials from suppliers to the
factory) and reverse logistics (reusing, recycling, refurbishing, or disposing of broken, unwanted, or
excess products returned by consumers or resellers). That is, it involves the entirety of supply chain
management in Figure 4 – managing upstream and downstream value-added flows of materials, final
goods, and related information among suppliers, the company, resellers, and final consumers.

The logistics manager's task is too coordinate the activities of suppliers purchasing agents, marketers,
channel members, and customers. These activities include forecasting, information systems, purchasing,
production planning, order processing, inventory, warehousing, and transportation planning. Companies
today are placing greater emphasis on logistics for several reasons.

First,companies can gain a powerful competitive advantage by using improved logistics to give
customers betters service or lower prices.
Second,improved logistics can yield tremendous cost savings to both a company and its customers.
Third,the explosion in product variety has created a need for improved logistics managements.
Improvements in formation technology have also created opportunities for major gains in distribution
efficiency. Today's companies are using sophisticated supply chain management software, Internet-
based logistics systems, point-of-sale scanners, satellite tracking, and electronic transfer of order and
payment data. Such technology lets them quickly and efficiently manage the flow goods, information,
and finances through the supply chain.
Finally,logistics affects the environment and a firm's environmental sustainability efforts. At the same
time, developing a green supply chain is not only environmentally responsible but can also be profitable.

II. Goals of the Logistics System

Some companies state their logistics objective as providing maximum customer service at the
least cost. The goal of marketing logistics should be to provide a targeted level of customer service at
the least cost. A company must first research the importance of various distribution services to
customers and then set desired service levels for each segment. The objective is to maximize profits, not
sales. Therefore, the company must weigh the benefits of providing higher levels of service against the
costs.

III. Major Logistics Functions

Given a set of logistics objectives, the company designs a logistics system that will minimize the
cost of attaining these objectives. The major logistics functions are warehousing, inventory
management, transportation, and logistics information management.

Warehousing: The storage function overcomes differences in needed quantities and timing, ensuring
that products are available when customers are ready to buy them. A company must decide on how
many and what types of warehouses it needs and where they will be located. The company might use
either storage warehouses or distribution centers. Storage warehouses store goods for moderate to long
periods. In contrast, distribution centers are designed to move goods rather than just store them. They
are large and highly automated warehouses designed to receive goods from various plants and
suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.

Inventory Management: In managing inventory, firms must balance the costs of carrying larger
inventories against resulting sales and profits by reducing their inventories and related costs through
just-in-time logistics systems. Just-in-time systems require accurate forecasting along with fast,
frequent, and flexible delivery so that new supplies will be available when needed. However, these
systems result in substantial savings in inventory-carrying and inventory-handling costs. Marketers are
always looking for new ways to make inventory management more efficient.
Transportation:The choice of transportation carriers effects the pricing of products, delivery
performance, and the condition of goods when they arrive – all of which will affect customer
satisfaction. In shipping goods to its warehouses, dealers, and customers, the company can choose
among five main transportation modes: truck, rail, water, and air, along with an alternative mode for
digital products – the internet. Shippers also use multimodal transportation (rail, road, air, water, and
other transportations) – combining two or more modes of transportation.
Logistics Information Management:Companies manage their supply chains through information.
Channel partners often link up to share information and make better joint logistics perspective, flows of
information, and even customer data, are closely linked to channel performance. Information can be
shared and managed in many ways, but most sharing takes place through electronic data interchange
(EDI), the digital exchange of data between organizations, which primarily is transmitted via the
Internet. Many large retailers – such as Walmart and Home Depot – work closely with major suppliers to
set up vendor-managed inventory (VMI) systems or continuous inventory replenishment systems. By
using these systems, the customer shares real-time data on sales and current inventory levels with the
supplier.

IV. Integrated Logistics Management

Today, more and more companies are adopting the concept of integrated logistics
management. This concept recognizes that providing better customer service and trimming distribution
costs require teamwork, both inside the company and among all the marketing channel organizations.
Inside, the company's various departments must work closely together to maximize its own logistic
performance. Outside, the company must integrate its logistics system with those of its supplier and
customers to maximize the performance of the entire distribution network. Cross-Functional Teamwork
inside the company - Most companies assign responsibility for various logistics activities to many
different department – marketing, sales, finance, operations, and purchasing. The goal of integrated
supply chain management is to harmonize all of the company's logistics decisions to create high market
satisfaction at a reasonable cost. Building Logistics Partnerships - Companies must do more than
improve their own logistics. They must also work with other channel partners to improve customer
service and reduce channel costs. Some companies have created cross-functional, cross-company
teams. Third-Party Logistics (3PL) provider - An independent logistics provider that also called
outsourced logistics or contract logistics services.
To gain a competitive advantage. A company’s channel decisions directly affect every other marketing
decision. Management must make channel decisions carefully. Traditionally, distribution channels have
lacked the leadership needed to assign roles and manage conflict. Marketing logistics (or physical
distribution) is an area of potentially high cost savings and improved customer satisfaction. Today, some
companies are outsourcing their logistics functions to third-party logistics (3PL) providers to save costs,
increase efficiency, and gain faster and more effective access to global markets.

Integrated Marketing Communications {IMC}

Integrated marketing communications is the integration by the company of its communication

channels to deliver a clear, consistent, and compelling message about the organization and its brands. At
most basic level IMC means integrating all the promotional tools and work together in harmony. Aim is
to persuasively communicate customer value and build customer relationships such as DRIP -
Differentiate, Remind, Inform, Persuade. The Values of IMC are following -
 Create competitive advantage, boost sales and profits while saving money and time.
 Consolidates its image and relationship with customers that create customer loyalty and
customer life time value.
 Customer databases can identify precisely and carefully linked messages to help buyers by giving
timely reminders, updated information and special offers also help them move comfortably
through the stages of their buying process.

The Need for Integrated Marketing Communications:Several major factors are changing the face of
today’s marketing communications. Many marketers are now created the content marketing by digital
marketing strategy Such as communication tools-from Smartphone, E-mail, blogs, social media and
online communities, the mobile Web, and so much more. More companies today are adopting the
concept of integrated marketing communications (IMC) at Figure 1. Integrated marketing
communications calls for recognizing all touch points. The company’s goal should be to deliver a
consistent and positive message at each contact. Integrated marketing often different media play unique
roles in engaging, informing, and persuading consumers. Figure 1 – Integrated Marketing
Communications

The five major promotion tools are defined as follows:

1. Advertising: Advertising can reach masses of geographically dispersed buyers at a low cost per
exposure, and it enables the seller to repeat a message many times. Advertising is any paid form
of non-personal presentation and promotion of ideas, goods, or services by an identified
sponsor. {includes broadcast, print, online, mobile, outdoor, and other forms}
2. Personal selling: Personal selling is the most effective tool at certain stages of the buying
process, particularly in building up buyers’ preferences, convictions, and actions. Personal selling
is also the company’s most expensive promotion tool. Personal customer interactions by the
firm’s sales force for the purpose of engaging customers. {includes sales presentations, trade
shows, and incentive programs}.
 3. Sales promotion. Sales promotion includes a wide assortment of tools-coupons, contests,
discounts, premiums, and others-all of which have many unique qualities. Sales promotion
effects can be short-term incentives rather than effective as advertising or personal selling in
building long-run brand preference and customer relationships. {includes discounts, coupons,
displays, and demonstrations}.
4. Public relations: Public relations are very believable-news stories, features, sponsorships, and
events seem more real and believable to readers than advertising do. PR can also reach many
prospects who avoid salespeople and advertisements-the message gets to buyers as “news and
events” rather than as a sales-directed communication. Building good relations with the
company’s various publics by obtaining favorable publicity, building up a good corporate image.
{includes press releases, sponsorships, events, and Web pages}.
5. Direct and digital marketing: Direct marketing is interactive: It allows a dialogue between the
marketing team and the consumer, and messages can be altered depending on the consumer’s
response. Thus, direct and digital marketing are well suited to highly targeted marketing efforts,
creating customer engagement, and building one-to-one customer relationships. {includes direct
mail, catalogs, online and social media, mobile marketing, and more.}
Communication involves the nine elements shown in Figure 2 Two of these elements are the major
parties in a communication-the sender and the receiver. Integrated marketing communications involves
identifying the target audience and shaping a well-coordinated promotional program to obtain the
desired audience response. To do this, they must blend five promotions mix tools, guided by a well-
designed and implemented IMC strategy.

Figure 2 – Elements in the Communications Process

Promotion Mix

Marketers must do the steps in developing an effective integrated communications and promotion
program. the step by step:

 Identify the target audience,

 determine the communication objectives,
 design a message,
 choose the media through which to send the message,
 select the message source and collect feedback.