Channels and Intermediaries for Marketing Plan and Promotion Strategy - Term Paper Example

Channels and Intermediaries for Marketing Plan and Promotion Strategy Introduction For several years, the use of marketing channels as a strategic marketing tool has taken a back seat to the three strategic elements of the marketing mix: promotion, product, and price. Several businesses regard the strategy of marketing channels as rather what remains after more essential promotion, product and price strategies have been considered. In recent years, however, the attitudes towards marketing channels have changed, and many businesses have taken keen interests in this area. Developments that have resulted in the change, in attitude include the need to lower the costs of distribution, increased power of distributors, particularly retailers within marketing channels, increased difficulties in achieving proper competitive advantage, and the development of e – commerce and information and communication technologies. The theory of the marketing channel can be puzzling. At times, it is thought of as the course in use by a product as it progresses from the producer to the consumer or another final user. Several describe it as the route in use by the title to goods as it progresses through different agencies. Still others explain the marketing channel in terms of free coalitions of business enterprises that have come together with the intention of trade. Much of the uncertainty possibly stems from conflicting viewpoints or perspectives. A marketing channel is an essential marketing decision area that must be addressed by the marketing management. A marketing channel may be described as the external contactual organization that the management of a business controls in order to attain its distribution objectives. Marketing channel strategy is a key strategic area of marketing management, which fits under the place or distribution variable in the marketing mix (Ken Kaser, 2007). The management of the Youth Soccer Club must develop and run its marketing channels in a way that supports and augments the other planned variables of the marketing mix, to meet the demands of the club’s target markets. Where limitations exist in the promotion, price, and product strategies of the marketing mix, the best hope for the soccer club to be successful is to emphasize the market channel strategy. Specifically, the soccer club could establish stronger connections with donors or sponsors and suppliers. From the perspective of establishing competitive advantage, which ahs long-term viability, market channel strategy that is focused on the establishment of strong relationships between donors or suppliers and channel members can be extremely efficient. This is because competitors cannot easily imitate such relationships. Clever ideas, technology or short term cost advantage are useless in duplicating these relationships, although these factors are usually the center of competitive advantages based on promotional, price and product strategies. Economic considerations are exceedingly essential in making decisions on whether intermediaries will feature in marketing channels. Two of the most fundamental factors to consider are division of labor or specialization and contactual efficiency. Contactual efficiency is the intensity of the effort of negotiation between buyers and sellers comparative to attaining a distribution objective. By the late 1900s, e-commerce had grown to be the most discussed business tool of the 20th century. Forecasts predicted nothing other than a revolution of the way businesses conducted. It was believed that businesses would yield to the new standard of the dot-com start-ups that were establishing a new market based on the e-commerce technology. Indeed, a new piece of terminology referred to as disintermediation was created as a shorthand for the change that was to take place. Thousands of producers would be linked directly with millions of customers on an international level without the intervention of intermediaries, who would be disintermediated from marketing channels. The development of information and communication strategies has led to the emergence of several social media and networking sites, which are growing daily (Scott Rosner, 2011). One sure marketing channel for the soccer club is through online platforms, which are guaranteed to reach a wide variety of people. Online platforms are also cost effective as they have minimal maintenance costs with enormous benefits. The Youth Soccer Club needs to design a promotional strategy to differentiate their products and services from others. To achieve this, they should make an effort to take up a position within the market that is appealing to their target consumers. Promotions that pertain to the idea of positioning articulate to customers significant distinctions about the quality, usage, attributes, or price of a product or service. Increasing sales volume is the most widespread goal of a promotional strategy. Some of these strategies focus on selective demand while others on primary demand. Occasionally, certain audiences are targeted. In an attempt to improve the sales volume of the soccer club, the management can create an advertising campaign that targets the youth from the age of 13 to 25. For several businesses, advertising is the most efficient form of non-personal promotion. Advertising is a paid, impersonal sales communication normally intended for a large number of possible buyers. The soccer club should adopt this promotional strategy since it offers a low cost method of reaching the targeted audience and is more likely to be successful. Advertising media include television, direct mail, radios, and the internet among several others. Sales promotion comprises of forms of promotion other than personal selling, public relations, and advertising that increase the sales volume through one-time selling efforts. This strategy was customarily viewed as an enhancement to the sales of a business or its advertising efforts, but it has now become an essential part of the promotional mix. Point-of-purchase advertising is a sales promotion strategy, which comprises of demonstrations and displays promoting a certain item at a place and time near the location of the buying decision, such as in retail stores. A sales-oriented approach that the soccer club can adopt is the pushing strategy. This is whereby services, products, or product line are marketed to retailers and wholesalers within the marketing channels. Sales personnel enlighten them as to why they should have the item or service. This strategy is a sales-oriented promotional strategy meant to encourage marketing intermediaries to push or promote the product or service to their clients. Marketing intermediaries are often given cooperative advertising allowances, promotional materials, and special discounts. Occasionally, the producer contributes to the cost of local advertising for the product or product line. Public relations are a means through which a business communicates with its different publics, such as employees, government, customers, stockholders, news media, vendors, and the public. Most of these communication attempts have marketing purposes. Usually, businesses hope that the goodwill produced by public relations’ initiatives will not only improve their image but also translate into improved sales. Public relations are normally used to enhance personal selling and advertising efforts. In certain cases, however, public relations can be used as a principal element in the promotional campaigns of a business. References Ken Kaser, D. B. (2007). Sports and Entertainment Marketing. Connecticut: Cengage Learning. Scott Rosner, K. L. (2011). The Business of Sports. Burlington: Jones & Bartlett Publishers. Read More