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ls Inventory When to order How much to order Justintime Costs Minimize Costs of Attaining Logistics Objectives Warehousing Storage Distribution Order Processing Submitted Processed Shipped Logistics Functions Transportation Water, Truck, Rail, Pipeline Air Logistics Systems Rail Nation’s largest carrier, costeffective for shipping bulk products, piggyback Truck Flexible in routing time schedules, efficient for shorthauls of high value goods Water Low cost for shipping bulky, lowvalue goods, slowest form Pipeline Ship petroleum, natural gas, and chemicals from sources to markets Air High cost, ideal when speed is needed or to ship highvalue, lowbulk items Transportation Modes 1. Speed. 2. Dependability. 3. Capability. 4. Availability. Checklist for Choosing Transportation Modes Rating Transportation Modes Rail 3 4 2 2 3 Water 4 5 1 4 1 Truck 2 2 3 1 4 Pipeline 5 1 5 5 2 Air 1 3 4 3 5 Source: See Carl M. Guelzo。 Introduction to Logistics Management Englewood Cliffs, NJ: Prentice Hall, 1986), p. 46. (Doorto door delivery time) (Meeting Schedules on Time) (Ability to Handle Various Products) (No. of Geographic Points Served) (Per Ton Mile) Speed Dependability Capability Availability Cost Advertising Personal Selling Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Sales Promotion Shortterm Incentives to Encourage Trial or Purchase. Public Relations Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response. Protect and/or Promote Company’s Image/products. Personal Presentations. The Marketing Communications Mix Message Problems Selective Attention Selective Distortion Selective Retention Effective Communications Step 1. Identifying the Target Audience Purchase Conviction Preference Liking Knowledge Awareness Step 2. Determining the Communication Objectives Buyer Readiness Stages Step 3. Designing the Message Message Source Expertise, Trustworthiness, Congruity Message Format Layout, Words, Sounds, Body Language Message Structure Draw Conclusions Argument Type Argument Order Message Content Rational Appeals Emotional Appeals Moral Appeals Step 4. Select Communications Channel Nonpersonal Communication Channels Personal Communication Channels Step 5. Establish the Budget Competitive Parity Objective Task Affordable % Of Sales Step 6. Decide on Communications Mix Advertising Public, Pervasive, Expressive, Impersonal Sales Promotion Communication, Incentive, Invitation Public Relations Publicity Credibility, Surprise, Dramatization Personal Selling Personal Confrontation, Cultivation, Response Direct Marketing Nonpublic, Customized, UptoDate, Interactive Step 7. Measure Results Step 8. Manage the IMC Process Factors in Developing Promotion Mix Strategies Product LifeCycle Stage Type of Product/ Market Push vs. Pull Strategy Buyer/ Readiness Stage Push Versus Pull Strategy Producer Producer Interme diaries Marketing activities End users Marketing activities Demand Interme diaries Demand Push Strategy Pull Strategy End users Marketing activities Demand Objectives ? Developing Managing an Advertising Program ? Deciding on Media Measuring Effectiveness ? Sales Promotion ? Public Relations Informative Advertising Build Primary Demand Persuasive Advertising Build Selective Demand Comparison Advertising Compares One Brand to Another Reminder Advertising Keeps Consumers Thinking About a Product. Advertising Objectives ? Specific Communication Task ? Acplished with a Specific Target Audience ? During a Specific Period of Time Advertising Budget Factors Profiles of Major Media Types Newspapers Advantages: Flexibility, timeliness。 good local market coverage。 broad acceptance, high believability Limitations: Short life。 poor reproduction quality。 small passalong audience Television Advantages: Combines sight, sound, motion。 high attention。 high reach。 appealing to senses Limitations: High absolute costs。 high clutter。 fleeting exposure。 less audience selectivity Direct Mail Advantages: Audience selectivity。 flexibility, no ad pe tition within same medium。 allows personalization Limitations: Relative high cost。 “junk mail” image Radio Advantages: Mass use。 high geographic and demographic selectivity。 low cost Limitations: Audio only。 fleeting exposure。 lower attention。 nonstandardized rates。 fragmented audiences Magazines Advantages: High geographic and demographic selectivity。 credibility and prestige。 highquality reproduction。 long life。 good passalong readership Limitations: Long ad purchase lead time。 waste circulation。 no guarantee of position Outdoor Advantages: Flexibility。 high repeat exposure。 low cost。 low message petition Limitations: Little audience selectivity。 creative limitations Profiles of Major Media Types Advertising Strategy Message Execution Typical Message Execution Styles Testimonial Evidence Slice of Life Scientific Evidence Lifestyle Technical Expertise Fantasy Musical Personality Symbol Mood or Image Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s