The Importance Of Marketing Channels Marketing Essay

As a plan and an activity, the procedure of marketing includes a type of product, a type of service or the development, definition, promotion of a thought. The purpose is to satisfy the organization or personal need through exchange or transaction. Marketing means that with the directions of customer’s need, the enterprise’s process of manufacture, transaction, after-sale service.

For the traditional definition of marketing, there is no universal definition. We can classify the definition of marketing in two aspects, as the method of marketing, traditional marketing means selling without any technique of internet. As the theory of marketing, traditional marketing theory means no internet technology impingement. As a word, we can judge the definition of traditional marketing is the definition before internet technology came into forth. The internet marketing appeared in the end of 1990s. And the definition of marketing in 1990s is: Marketing is made up of three plates, including P (Positioning), STP (Segmentation, Targeting, Positioning) 4P(product, price, place, promotion).

1.1.2 The development of marketing and marketing theory

Marketing was originated in USA in 1920s. As the development of the social economy, the marketing had radical changes. From traditional marketing to contemporary marketing, the application of marketing has extended abroad and has developed to different type of organizations. Nowadays, marketing has been combined with the administration of the enterprise. As same as Economics, Behavioral Science, Anthropology, Mathematics, marketing has become a subject with edge management application. The development of western marketing is closely related to the change of commodity economy, business philosophy.

There are four steps for the development of definition of the marketing.

â… . The beginning stage

After the individual revolution of the main capitalism countries, the production capacity had a significant increase. The urban economy developed quickly, in the same time, the commodity need had big increase and it is simple for the product to actualize its value. The marketing came into being in this situation. In 1902, some universities in USA set up the subject of marketing, some pioneers of marketing appeared, such as Arch W Shaw, Ralph Star Bulter, John B Swirnly and J E Hagerty. The characters of the marketing research in this period are:

Emphasizing selling and advertising, there is no theory, definition and principles of the current marketing research.

The society and the enterprises didn’t pay a lot attention to marketing theory.

â…¡. The application period

The period from 1920s to the end of the Second World War is the application stage. The development of the marketing in this stage can be seen from the application. The research theory of marketing began to be known to the society, the enterprises began to pay attention to the theory of marketing.

â…¢. The development period

The period from the end of 1950s to 1980s is the development of marketing. What is more, the supply of products is more than the customer’s need from this period.

â…£. The Maturity period

The period from 1980s to current time is the maturity time of marketing, which has two characters,

Marketing became related to other subjects.

Marketing has its own theory system. 1980s’ marketing is the revolution time of marketing, which was a part of contemporary marketing and a new beginning of marketing.

The classification of marketing

Integrated Marketing Communications

Integrated Marketing Communications is very common in current enterprises, which includes common advertise, direct communication with customers, promotion, in the same time, this type of marketing combines the distributed information in order to make the sales of the products clearly and continuously.

Database marketing

Database marketing means to collect the consumers’ behavior information, the news of different stores and to accumulate the information in a format database. This type of marketing will be in forth in appropriate opportunities according to the analysis of database.

Internet Marketing

Internet Marketing is an important component of a company’s marketing strategy. The purpose of internet marketing is to actulize the overall objectives of a company, including all types of activities with internet marketing method. The functions of internet marketing include website promotion, internet brands, online research, customer’s relation, distribution channel, sales promotion and information broadcast.

Direct Marketing

Direct Marketing (DM) means to transfer the products and service to the consumers without any dealer. The biggest feature of DM is to communicate with the consumers directly. Usually the medium tools for communication of DM are different from the other general medium such as TV advertise, their communication tools is oriented to specialties, for example, some merchants print their advertisements in the packages of facial tissues, then they distribute the tissues freely to the potential consumers. Some other methods such as telephone promotion, TV shopping belong to DM too.

Relationship Marketing

In most situations, the company can’t find the instant transaction, so they always establish a long-term relationship with the customers. The company need to show their excellent service ability. Since the customers became globally nowadays, they prefer to be supplied different products in different area, maybe from different suppliers in order to solve problems in different areas. When the management plans for relationship of the customers implement, the organization must emphasize the management of customers and products. In the same time, the company must realize that although the relationship marketing is very important, but it is not effective in every situation. Therefore, the company must find out the most important relationship marketing from careful analysis.

Green Marketing

Green Marketing is to satisfy the habit of consumers in order to fulfill the need of environment requirement, whose manufacture idea is obeying the green culture. Their marketing activity is always oriented to the environmental products.

Social Marketing

Social Marketing is based on the social welfare through business marketing methods, or to promote their products and service through social welfare. As same as general marketing, social marketing is to change the behavior of the target consumers, the different point is that their motivations are non-commerce.

Virus Marketing

Virus Marketing is a type of information transferring, they duplicate their information like virus from public people in order to make more people know their products. This type of marketing method is common in Email or company’s website, which may ask you to ‘tell a friend’, or ask you to invite others to visit the website etc. Because of the cheap cost and good effect, this type of marketing is adopted by more and more companies.

Crisis Marketing

Crisis Marketing is adopting a series of measures used in crisis and urgent situation in order to reduce the bad influence. The measures include, broadcasting the company situation, let the staff know the truth, establish good relationship with the medium, keep contact with the customers.

Contemporary Marketing

Contemporary Marketing Channels

2.1.1The importance of marketing channels

The decision and management of marketing channels are important aspects of the strategy of marketing. In the past marketing disciplines in China, the most important thing is to research circulating business economy. Because in planned economy, the manufacturing companies are only in charge of manufacturing, they don’t care how to sell or where to sell. However, in nowadays, after establishing the market economy, the enterprise became individual operator and pursued the max benefits. Especially to the manufacturing enterprises, how to approach the final market and satisfy them has become the key point for them to win.

2.1.2 Distributors

The decision and management of marketing can solve two types of problems, first is the efficiency, second is the service for the customers. The efficiency problem run through the manufature, sales and research of the products. However, nowadays, the distribution cost is higher and higher, in the same time, the competition of the distributors is stronger and stronger. The key point for the enterprice marketing is to serve the customer and make them satisfied. It is important for exploring some new ways to save the customers’ time. Although many enterprises provide their service or product through direct sale, they must pay attention to the distributors. Even like the famous company Dell, it can’t leave the distributors and after-sale service provider. Anyway, direct sale is a type of distribution too. For the enterprise depended on direct sale, they must consider how to promote the products, how to manage the company, how to arrange the logistics etc. In other words, those types of enterprises distribute their products from direct investment, management and control. They also need to make decision on the distribution strategy.

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Also, the biggest challenge for the manufacturing enterprise is the grown-up of the distributor. Wal-Mart, as a retailer, has been the NO. 1 in top 500 companies for three years, which is a best evidence for us to understand that the distributor may become stronger than the manufacturer. The manufacturer can’t only take care of their competitor in manufacturing industry, but also need to consider the change of marketing channels. Of cource, there are many marketing channels for the manufactures to choose.

3. Internet Marketing

3.1 Definition of Internet Marketing

Internet Marketing, Also known as Web Marketing, Website Marketing, Search Marketing, Internet advertising, or eMarketing, Internet Marketing integrates a variety of creative and technical facets of the Internet, including design, development, advertising, and sales. Internet Marketing is best deployed as part of an overall strategic web marketing campaign, which should be viewed as a synergy of business models, platforms, technology and techniques applied to meet business objectives through good website marketing.

As same as traditional marketing, the aim of internet marketing is to change the protential exchange into acutal sales, which emphasizes the need of consumers. In the web environment, the consumers have more initiatives. Therefore, the objective for internet marketing to fulfill the max need of the customer.

3.2 The Characteristics of internet marketing

As the development of the internet, internet combines the enterprises, groups, organizations and individuals together, the biggest essentials of marketing is to transfer the information between them, so the internet has some characters

Highly Targeted: the digital nature of the internet allows you to offer specific and customised content to each individual. As a result, it allows you to attract highly targeted customers to your website who are most likely to be interested in your products and services;

Easily Measurable: knowing how many people are visiting your website, how they found you and what they looked at are invaluable elements to gaining a better understanding of your customers and being able to supply what they require. Emarketing allows you to obtain full tracking figures and will permits a detailed examination of the Return on Investment (ROI) of any campaign;

Immediate: time is crucial in business and an emarketing campaign has the advantage of being much quicker to set up and put into play than other marketing methods. Just as importantly, the response mechanisms are equally quick so you can start to see the results (quite literally) immediately;

Tested and Refined: although the immediacy and speed of a campaign is important, the quality needs to be just as high. To ensure it remains so, you have the opportunity to test and refine any campaign as it is happening to ensure you get the best possible results. By adopting the content and format which is achieving the highest response rates, you can continually improve your results and number of visitors.

Cost effective: with budgets tight, all of the elements above mean that companies needing clear ROI figures from their marketing activity will be well served by an integrated emarketing campaign. Being able to react quickly and in a very targeted way also means that they can avoid delays and the costs associated with them.

3.3.The advantage of internet marketing

Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience. Companies can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows consumers to research and purchase products and services at their own convenience. Therefore, businesses have the advantage of appealing to consumers in a medium that can bring results quickly. The strategy and overall effectiveness of marketing campaigns depend on business goals and cost-volume-profit (CVP) analysis.

Internet marketers also have the advantage of measuring statistics easily and inexpensively. Nearly all aspects of an Internet marketing campaign can be traced, measured, and tested. The advertisers can use a variety of methods: pay per impression, pay per click, pay per play, or pay per action. Therefore, marketers can determine which messages or offerings are more appealing to the audience. The results of campaigns can be measured and tracked immediately because online marketing initiatives usually require users to click on an advertisement, visit a website, and perform a targeted action. Such measurement cannot be achieved through billboard advertising, where an individual will at best be interested, then decide to obtain more information at a later time..

Because exposure, response, and overall efficiency of Internet media are easier to track than traditional off-line media-through the use of web analytics for instance-Internet marketing can offer a greater sense of accountability for advertisers. Marketers and their clients are becoming aware of the need to measure the collaborative effects of marketing (i.e., how the Internet affects in-store sales) rather than siloing each advertising medium. The effects of multichannel marketing can be difficult to determine, but are an important part of ascertaining the value of media campaigns.

3.4. The implement of internet marketing

As the main body of internet marketing, the enterprise must try to grasp some principles in order to get max benefits.

First, the enterprise must establish a strategy according to the characters of themselves,

Second, the enterprise must understand the goals of internet marketing, such as establish the CI, show the products, develop the marketing space, investigate the feedback, improve the after-sale service etc.

Third, the enterprise should combine the professional team and outsoursing projects. The professional team themselves should be in charge of the cooperation themselves. Then outsourse the establishment of the website. It is convenient and simple to transfer the task of establishing website to the experienced team, in the same time, a good consultant can really help a lot.

Forth, the enterprise can choose the functions he need, maybe start from a main page to manage a website, from advertising to establishing relationship, from sending emails to establishing supply chains.

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