Ch. 14 - Marketing Channels and Retailing

Retailing is the process of selling goods and services to consumers through different channels of distribution (i.e. a set of independent organizations that facilitate the transfer of ownership as products move for the producer to consumers). For over 16 years now, proactiv has been distributed by direct marketing firm, Guthy-Renker. They have been instrumental to the success proactiv has become. Mainly by  leveraging its unique style of marketing to bring a revolutionary new approach to acne treatment direct to consumers. They have acted as an intermediary between the producers of Proactiv and the users of the acne solution.  Its direct to consumer model allows consumers to purchase products at a guaranteed low monthly price with generous extended return policies. Guthy-Renker has offices in Santa Monica, CA, Palm Desert, CA; San Francisco, CA; London, England; Malmo, Sweden; Wiesbaden, Germany; Tokyo, Japan; Sydney, Australia; and Gurgaon, India, making proactiv available on an international level.

There are a few different ways to get proactiv, mainly through non-store retailing. The primary way of getting proactiv is through online retailing/e-tailing which allows consumers to shop the solution online. Another way of getting proactiv is through shop-at home television networks. Their shows display products, with the retail price and viewers can phone in their orders directly on a toll-free number with a credit card. These two options make make it convenient for customers to get proactiv without having to go to a brick and mortar location. 

Another popular way of getting the acne treatment solution is through kiosks (i.e vending machines and stalls in some malls). Proactiv itself doesn't actually have a brick and mortar store, but the product can be found in certain retail stores throughout the U.S. Recently I visited the kiosk located at the Manhattan Mall in Manhattan, New York and It is found on the first level of the mall. These kiosks are strategically placed in the malls and stores to attract the target market.This brings to mind distributors and retailers use of the right and effective retailing mix. A retailing mix is a combination of the six p's- product (product assortment); place (location); promotion (advertising and publicity); price; presentation (layout and atmosphere) and personnel (customer service and personal selling). The right mix usually influences the target markets perception of a product. It also sets apart one seller from an other in the eyes of the consumers because they are always looking for sellers to meet or exceed their expectations.

Ch. 6 - Consumer Decision Making 

When customers buy anything, a decision is made before they carry on to buy that particular product. Anything done by a customer leading up to a purchase is called consumer behavior. In the MKTG-Principles of Marketing textbook by Lamb/Hair/Daniel, Student Edition 8 Consumer Behavior is described as a process consumers use to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use. The textbook also mentions that understanding how consumers make purchase decisions can help marketing managers in many ways. I find this to be true because not only would it aid and guide marketing officers to make better decisions in enticing customers both old and new, It will also cause them to improve their marketing strategy to create a need, strengthen relationships with the customers and increase sales figures.

The consumer decision-making process has five steps which guides shoppers in their decision making.  This process doesn't just help with the actual purchasing of a product by a customer but also helps them deal the complex process of what happens before and after a purchase. The five steps are; need/problem recognition, information search, alternative evaluation,purchase and post-purchase evaluation.

                                

An important factor when going through the purchasing process is the evaluation of need/want. The difference between need and want is that need is something you have to have and a want is something you would like to have. Most people use these words interchangeably but they don't mean the same thing. Making this evaluation between the two helps consumers make sound and reasonable purchasing decisions. I'm sure Proactiv customers go through the same process when making purchases. Some people would consider acne treatment products a need because of how acne is viewed in some societies. In some other places it could be considered a want because not much emphasis is placed on acne and its treatment. Whatever the case may be it, the decision to buy is entirely dependent on the customer, what they are willing to buy and its accessibility.

Acne is a global issue and with its market estimated to reach  $3.02 billion by 2016 according to research, it is quite obvious that consumers have a wide range of products to choose from for acne treatment. There are many acne treatment solutions in the market and most of them are affordable and sold at drug stores, however there has to be something great that pulls customers more towards the Proactiv brand. A research showed that Proactiv works just as well as other drug store acne treatment solutions, but what I believe draws consumers towards the brand is their smart marketing. Proactiv uses well-known celebrities to endorse their brand. This alone will have consumers thinking that if it works for celebrities, then it certainly is good enough for them. Another plus is how they divided the treatment into three easy-to-use steps. Consumers wouldn't have to figure out on their own what other steps they should take or what other products they could use on top of other regularly sold acne treatment solutions. Finding an effective regimen is sometimes hard so the three step acne system is a plus when it comes to customers making a choice. With this out of the way, customers can focus more on other important issues like affordability, whether they really need or want Proactiv and how they can get it. 

Chp. 5 - Developing a Global Vision

Being that acne is a global issue that affects people from all over the world, it is increasingly becoming possible to buy Proactiv solution in other countries. Proactiv can now be accessed in Canada, Asia Pacific and Europe. In terms of global marketing, each of these countries that sell the solution have their own separate website that is linked to the U.S's website. it is located at the bottom page of the site and once you select a country, it redirects you to another page. Each website is customized to match the country that the solution is being sold(e.g language, web setup, graphics etc). However, Guthy-Renker, the direct marketing company that is in charge of the proactiv brand does not directly sell certain proactiv products in any jurisdiction other than the United States of America because they may not be approved for sale in other jurisdictions. 

The sellers of Proactiv have done a great job in reacting to international marketing opportunities. The main reason it has been able to entice business from all over the world has been because of their famous adverts. The sellers of proactive use real celebrities to market and endorse their products both on TV and online. Guthy-Renker expanded into Web, social and mobile marketing. As of 2010, they hit 1.5 million views on its YouTube channel, 41,000 Facebook fans, and 8,700 Twitter followers. However in June of 2012, The advertising standards authority(ASA) in the Uk banned some of Proactiv's celebrity endorsed advertisements from being aired on tv in the Uk. This was after a woman filed a complaint stating that the adverts were misleading. She said the celebrities were likely to have used Proactiv's American brand, which contains an active ingredient not present in the UK version. Issues like these is the reason why it is imperative to have a good global vision. What may be acceptable or over looked in some parts of the world may not be allowed in other parts. It is also important to market a product differently in each geographic area to suit its target market. When global marketing is done the right way, it helps a company stay ahead of its competitors.