CLEP Principles of Marketing Study Notes

There are 2 parts to a brand 1 brand name part of a

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There are 2 parts to a brand: 1. Brand name - part of a brand that can be spoken. Brand Name is the name of the logo. 2. Brand Mark - part, such as the design, or symbol, which cannot be spoken . For example, the way the letters are written for a can of Sprite--the Sprite font with a lemon and a lime above it--is the brand mark. The name Sprite itself is the brand name . The Brand Mark is the style or design of the logo , whereas the Brand Name is the name of the logo. Vertical Integration – acquiring firms that operate at different channel levels. Can increase operational control & stability of the channel. Channel Integration (aka: Vertical Channel Integration) - two or more levels of a distribution channel are combined under one management or when one channel member coordinates channel activities for those levels. Marketing channels which incorporate vertical channel integration are called vertical marketing systems , and can be broken down into corporate, contractual, and administered depending on how the different levels are coordinated.
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3 types of vertical marketing systems: 1. Corporate Channel of Distribution - all stages of the marketing channel, from producers to consumers, are combined under a single ownership . An example would be a retailer purchasing a wholesaler and production facilities. 2. Contractual Arrangement - most popular type of VMS, in which interorganizational relationships are formalized through contracts. Involves specifying performance terms for each intermediary in legal contracts. 3. Administered Vertical Marketing System - the distribution channel members are independent, but channel operations are coordinated through a dominant channel member. Dominant member is one with significant market power such as the producer, or a large retailer. An example is Walmart, which has a strong influence over the manufacturers in its marketing channels . Horizontal Integration -process of combining distribution channel members which are at the same level under one management. Involves acquiring firms on the same level of the distribution channel, as opposed to vertical integration, where different levels are combined under one management. An example of horizontal integration is a grocery store owner buying several other grocery stores. Dual Distribution (aka: Multiple Channel) - a producer distributes the same product through two or more different channels, or sells similar products through different channels under different brand names to reach the same target market. Can be used as a way to increase market coverage or reach new market segments. An example could be where a firm uses retailers where they are available, and then uses a direct channel by creating its own retail outlets where other retailers are not available. Consumerism -
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There are 2 parts to a brand 1 Brand name part of a brand...

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