MCM 605-eL9

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M.Com 2 All right are reserved with CU-IDOL Marketing Management Course Code: MCM 605 Semester: First SLM Unit 10-12  e-lesson: 9 www.cuidol.in Unit 10-12(MCM 605)

TOPICS TO BE COVERED 3 > Non Personal Communication Channels > Communication Development Process Need for Marketing Channels Types and Functions of Intermediaries. http://www.lisbdnet.com/concept-of-advertising/ www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

43 OBJECTIVES INTRODUCTION  To make the students aware of the various steps  In this unit students are going to learn about in developing effective marketing the different types of Non-Personal communications.. Communication Channels available that can  To explain how companies select, motivate and evaluate channel members. be utilized by any organization for Marketing To explain the major types of intermediaries and purposes. their marketing decisions  Under this you will learn and understand that role of channel members in the marketing  In this unit you will also learn the benefits of major types of intermediaries and their marketing decisions www.cuidol.in Unit 10-12(MMC6M056)05) INASlTl ITriUgThEt OarFeDrIeSsTeArNvCeEd AwNitDh OCNUL-IIDNOE LLEARNING

Communication 5 Communication is: • An act or instance of transmitting; • A verbal or a written message; • A process by which information is exchanged between individuals through a common system of symbols; • Signs, or behaviour, also : exchange of information; • A system (as of telephones) for communicating; • A technique for expressing ideas effectively https://www.hult.edu/blog/psychographics-big-data-watching/market-segmentation www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Marketing Communication 6 The Marketing Communication refers to the process adopted by the companies to convey messages about the products and the brands they sell, either directly or indirectly to the customers with the intention to persuade them to purchase. https://theinvestorsbook.com/demand-forecasting.html www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Importance of Marketing 7 Communication • Marketing communication helps move products, services, and ideas from manufacturers to end users and builds and maintains relationships with customers, prospects, and other important stakeholders in the company. Advertising and sales promotion will continue to play important roles in marketing communication mix. https://www.enimarketing.com/the-importance-of-marketing-communications/ www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Marketing Communication 8 Channels All media tools that a company employs to correspond with its customers or its prospective customers. Sometimes abbreviated to ‘Marcomm Channels’. https://eltecenglish.com/2017/07/13/pte-essay-ielts-task-2-communication-channels- have-changed/ www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Types of Marketing 9 Communication Channels There are primarily two types of Marketing Communication channels deployed by all business organizations: • Personal Marketing Communication Channels • Non-Personal Marketing communication Channels www.cuidol.in Unit 10-12(MCM 605) https://www.articlecube.com/role-demand- forecasting-predict-future-demand-products All right are reserved with CU-IDOL

Personal Marketing Communication 10 Channels In personal communication channels, two or more people communicate directly with each other. They might communicate face to face, on the phone, through mail or e-mail, or even through an Internet \"chat.\" Personal communication channels are effective because they allow for personal addressing and feedback https://www.hult.edu/blog/psychographics-big-data-watching/market- segmentation/ www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Non-Personal Marketing Communication 11 Channels A channel of communication that carries messages without personal contact or feedback, including the media, radio, TV, etc. is Known as Non-Personal Communication Channel. https://in.images.search.yahoo.com/yhs/search;_ylt=AwrxhWhHPfpdgAYAHwTnHgx.;_ylu=X3oDMTB0N2poMXRwBGNvbG8Dc2czBHBvcwMxBHZ0aWQDB HNlYwNwaXZz?p www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Types of Non Personal Marketing 12 Communication Channels Media: Communication channels through which news, entertainment, education, data, or promotional messages are disseminated is known as media. in.images.search.yahoo.com/yhs/search;_ylt=AwrxhWpROhheVRcAmzDnHgx.;_ylu=X3oDMTB0N2poMXRwBGNvbG8Dc2czBHB vcwMxBHZ0aWQDBHNlYwNwaXZz?p www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Newspaper: 13 a paper that is printed and distributed usually daily or weekly and that contains news, articles of opinion, features, and advertising Magazine: A publication that is issued periodically, usually bound in a paper cover, and typically contains essays, stories, poems, etc., by many writers . https://in.images.search.yahoo.com/yhs/search;_ylt=AwrxhWhHPfpdgAYAHwTnHgx.;_ylu=X3oDMTB0N2poMXRw BGNvbG8Dc2czBHBvcwMxBHZ0aWQDBHNlYwNwaXZz?p www.cuidol.in Unit 10-12(MCM 605) All right a1re3reserved with CU-IDOL

14 Broadcasting is the distribution of audio or video content to a dispersed audience via any electronic mass communications medium, but typically one using the electromagnetic spectrum (radio waves), in a one-to-many model. https://in.images.search.yahoo.com/yhs/search;_ylt=AwrxhWhHPfpdgAYAHwTnHgx.;_y lu=X3oDMTB0N2poMXRwBGNvbG8Dc2czBHBvcwMxBHZ0aWQDBHNlYwNwaXZz?p www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Advertising 15 Advertising is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea. Sponsors of advertising are typically businesses wishing to promote their products or services. https://in.images.search.yahoo.com/yhs/search;_ylt=AwrxhWhHPfpdgAYAHwTnHgx.;_y lu=X3oDMTB0N2poMXRwBGNvbG8Dc2czBHBvcwMxBHZ0aWQDBHNlYwNwaXZz?p www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Communication Development 16 Process Communication for Development is a social process based on dialogue using a broad range of tools and methods. It is also about seeking change at different levels, including listening, building trust, sharing knowledge and skills, building policies, debating and learning for sustained and meaningful change. https://www.hult.edu/blog/psychographics-big-data-watching/market-segmentation/ www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Communication Development 17 Process Communication for Development is a social process based on dialogue using a broad range of tools and methods. It is also about seeking change at different levels, including listening, building trust, sharing knowledge and skills, building policies, debating and learning for sustained and meaningful change. https://www.hult.edu/blog/psychographics-big-data-watching/market-segmentation/ www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Communication Development Process 18 (Continued…) The communication process consists of several components. https://www.hult.edu/blog/psychographics-big- data-watching/market-segmentation/ A sender is the party that sends a message. Lindsey, of course, will be the sender. She'll also need the message, which is the All right are reserved with CU-IDOL information to be conveyed. Lindsey will also need to encode her message, which is transforming her thoughts of the information to be conveyed into a form that can be sent, such as words. A channel of communication must also be selected, which is the manner in which the message is sent. Channels of communication include speaking, writing, video transmission, audio transmission, electronic transmission through emails, text messages and faxes and even nonverbal communication, such as body language. Lindsey also needs to know the target of her communication. This party is called the receiver. The receiver must be able to decode the message, which means mentally processing the message into understanding. If you can't decode, the message fails. For example, sending a message in a foreign language that is not understood by the receiver probably will result in decoding failure . www.cuidol.in Unit 10-12(MCM 605)

Communication Development Process 19 (Continued…) Sometimes, a receiver will give the sender feedback, which is a message sent by the receiver back to the sender. For example, a member of Lindsey's team may provide feedback in the form of a question to clarify some information received in Lindsey's message. Let's put all these components together to build a model of the communication process: •A sender encodes information •The sender selects a channel of communication by which to send the message •The receiver receives the message •The receiver decodes the message •The receiver may provide feedback to the sender https://www.hult.edu/blog/psychographics-big-data-watching/market-segmentation/ www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

20 https://www.hult.edu/blog/psychographics-big-data-watching/market-segmentation/ www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

The Role of Marketing Channels in Marketing 21 Strategy Channels provide the means by which the firm moves the goods and services it produces to ultimate users • Facilitate the exchange process by cutting the number of contacts necessary • Adjust for discrepancies in the market’s assortment of goods and services via sorting • Standardize exchange transactions • Facilitate searches by both buyers and sellers www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Types of Marketing Channel 22 https://in.images.search.yahoo.com/yhs/search;_ylt=AwrxhSQkQE5eiHgAED3nHgx.;_yl u=X3oDMTB0N2poMXRwBGNvbG8Dc2czBHBvcwMxBHZ0aWQDBHNlYwNwaXZz? www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

23 https://in.images.search.yahoo.com/yhs/search;_ylt=AwrxhSQkQE5eiHgAED3nHgx.;_yl u=X3oDMTB0N2poMXRwBGNvbG8Dc2czBHBvcwMxBHZ0aWQDBHNlYwNwaXZz? 1w3-w2w3.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Channel Strategy Decisions 24  Selection of a Marketing Channel  Factors which impact the selection of a marketing channel include:  Market factors  Customer Preference  Geography  Competitors  Product factors  Life cycle  Product Complexity  Product Size and Weight  Producer/Manufacturer factor  Company Objective  Company Resources  Desire Of control www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Determining Distribution Intensity 25 Intensive distribution: channel policy in which a manufacturer of a convenience product attempts to saturate the market Selective distribution: channel policy in which a firm chooses only a limited number of retailers to handle its product line Exclusive distribution: channel policy in which a firm grants exclusive rights to a single wholesaler or retailer to sell its products in a particular geographic area www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Making Channel Management Decisions 26 Channel management decisions can greatly affect the success or failure of a business, because the partners that you decide to work with and the effort you put into managing them will determine how your business comes across to the public. There are certain trade offs when you choose to utilize channel sales to market and distribute your product. Of course, channel sales are usually cost-effective, which is why businesses rely on sales partners to sell their product. The loss of complete control over how your product is marketed is the drawback, but with a good partner management program you can make sure your company is represented the way you want it to be. www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Training and Motivating Channel 27 Members A company needs to view its intermediaries the same way it views its end users. It should determine their needs and wants and tailor its channel offering to provide them with superior value. •Coercive Power •Reward Power •Legitimate power •Expert power •Referent power http://multimediamarketing.com/motivating-channel-members/ www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Multiple Choice Questions 28 Channels are evaluated using: a) Economic Criteria b) Control Criteria c) Adaptive Criteria. d) All of the above www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Multiple Choice Questions 29 Channel Power consists of : a) Coercive Power b) Reward Power c) Referral Power d) All of the above www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Multiple Choice Questions 30 AIDA stands for: a) Attention. b) Interest c) Desire d) Action e) All of the above www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Multiple Choice Questions 31 Objectives of advertising are: a) Informing b) Persuading c) Reminding d) None of these www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Summary 32 • Promotion management consists of managing the different components of promotion mix. • Marketing channels fulfill the needs to bridge the gap between manufacturer and consumers. • Channels provide time, place and possession utility for consumers. • Marketing channel members have to be motivated and controlled by manufacturing using the channel powers. • Channel members perform a number of functions which are useful for the manufacturers as well as customers. www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

Frequently Asked Questions Q1. Which P of marketing mix deals with distribution channels? 33 Ans. In the marketing mix, the process of moving products from the producer to the intended user is called place. In other words, it is how your product is bought and where it is bought. This movement could be through a combination of intermediaries such as distributors, wholesalers and retailers. Q2. Discuss the benefits of direct marketing to both buyers and sellers. Ans. Convenience. • No Salespeople. • No Middleman. • Customization. • Special Offers. .Q3. What are the benefits of implementing a customer relationship programme in an organization? • Ans. Enhances Better Customer Service. • Facilitates discovery of new customers. • Increases customer revenues. • Helps the sales team in closing deals faster. www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL

REFERENCES 34 1. Kotler,P., Keller, K.L. Koshy, A. and Jha, M. (2009). Marketing Management: A South Asian Perspective. New Delhi: Pearson Education. 2. Etzel, M., Walker, B., Stanton, W. and Pandit, A.(2007). Marketing Management. New Delhi: Tata McGrawHill. 3. Ramaswamy, V.S., Namakumari, S. (2009). Marketing Management: Global Perspective Indian Context. New Delhi: Macmillan Publishers India Ltd. 4. Saxena, Rajan. (2010). Marketing Management. New Delhi: Tata McGraw Hill Education Pvt. Ltd. www.cuidol.in Unit 10-12(MCM 605) 3A4ll right are reserved with CU-IDOL

35 THANK YOU For queries Email: [email protected] www.cuidol.in Unit 10-12(MCM 605) All right are reserved with CU-IDOL