chapter 3 objectives the marketing environment describe the environmental forces that affect the...

Chapter 3 ObjectivesThe Marketing Environment

Describe the environmental forces that affect the company's ability to serve its customers.

Explain how changes in the demographic and economic environment affect marketing decisions.

Identify the major trends in the firm's natural and technological environments.

Explain the key changes in the political and cultural environment.

Discuss how companies can react to the marketing environment.

Microenvironment:internal forces

Company

Suppliers

MarketingIntermediaries

Customers

Publics

Competitors

Company

The Company

Topmanagement

Finance

R & D Purchasing

Manufacturing

Accounting

Marketing

Company

Suppliers

Customers

Publics

Competitors

Company

Macroenvironment:external forces

Demographic

Economic

Natural

Technological

Political

Cultural

Company

Demographics

Family

Population Shift

Education

Increasing Diversity

Demographics:Changing Age Structure in Canada

Median age up from 25 to 38 in 30 yearsLong-term slowing of birth rate (1.55)Increasing life expectancy“Baby dearth” of the 70’s Population bulge due to baby boomGrowth rates vary for different age groups

Canada’s Boomer Bulge

Demographics

BOOMERS 40 plus age now 45% bigger than 18-30 group …will be 60% bigger by 2010 1989 40+ became biggest adult segment in history Control 50%+ of discretionary spending Control 75% of nation’s wealth About to inherit largest intergenerational wealth

transfer in history

Demographic Environment:Increasing Diversity

Ethnicity: Ethnic purchasing power

$300 billion Growing market size Avoid stereotyping Use native languages Choose ethnic media

Sexual orientations Disabilities

Macroenvironment:external forces

Demographic

Economic

Natural

Technological

Political

Cultural

Company

Economics

Changes in Income

More Work = Less Leisure people are time starved

Changing Consumer Spending Patterns

Consumer Confidence

Consumer confidence fell to its lowest level since October 1983. Conference Board, Feb. 2003

Consumer Confidence

Consumer confidence tanked in February and has been rebounding since. Decima Research, 2003

Natural Environment

Shortages of Raw Materials

Increased Pollution

Increased Government Intervention e.g. Environmental Protection Act

Technological Environment

Fast pace of technological change

High R&D Budgets

Political Environment

Legislation regulating business

increased legislation

increased emphasis on ethics and socially responsible actions

Cultural Environment

Persistence of cultural values

Shifts in cultural values

Subcultures

Company

Suppliers

Customers

Publics

Competitors

Company

Chapter 18 ObjectivesMarketing and Society

Identify the major social criticisms of marketing.

Define consumerism and environmentalism and explain how they affect marketing strategies.

Describe the principles of socially responsible marketing.

Explain the role of ethics in marketing.

Social Criticisms of Marketing

Marketing’s Impact on Consumers

High Prices * Deceptive Practices * High-Pressure Selling

Shoddy Products * Planned Obsolescence * Poor Service

Social Criticisms of Marketing

Marketing’s Impact on Society

False Wants/Too Much Materialism * Too Few Social Goods

Cultural Pollution * Too Much Political Power

Consumerism

The right to safety Right to be informed The right to choose The right to be heard The right to redress

against damage The right to consumer

education

Consumer’s Association of Canada Fundamental Rights

Chapter 4 ObjectivesMarketing Research and Information Systems

Explain the importance of information to the company.

Define the marketing information system and discuss its parts.

Outline the four steps in the marketing research process.

Compare the advantages and disadvantages of various methods of collecting information.

Discuss the special issues some marketing researchers face.

Measuring & Forecasting Demand

1. As marketing manager for Cat's Pride cat litter, you have seen sales jump 50 percent in the last year after years of relatively stable sales. Explain how you will forecast sales for the coming year.

2. What are some leading indicators that might help you predict sales of diapers, cars, and hamburgers. Can you describe a general procedure for finding leading indicators or product sales?

The Importance of Information

Research Needs

MarketingEnvironment

Customer Needs and Wants

Strategic Decision Making

Competitors

Should you do Research?

NO if: being done before financial analysis complete a way to avoid making a decision results are not going to change your plans cheaper to try idea than conduct research

YES if: data will be useful in a very specific way you can get the information you need to make decisions you can’t afford to make an uniformed decision you must convince others of something you already

Market Research Process

Defineproblemandresearchobjectives

Developplantocollectdata

Implementcollectand analyzedata

Interpretandreportfindings

Step 1: defining the problem & research objectives

Exploratory research preliminary information helps better define problem

Descriptive research expand understanding of factors

Causal research test cause and effect hypothesis

Step 2: developing the plan for collecting information

Determine Specific Information Needs, e.g. Target customer characteristics Patterns of product use (which day-part?) Demand factors Response of marketing channels Customer reactions Projected sales

Gathering Secondary Data internal sources government sources books and periodicals commercial data services international data on-line databases and the internet syndicated research studies

Gathering Primary Data

Research Approaches Observational Survey: phone, mail, in-person Experimental

Primary Data CollectionContact Methods: strengths & weaknesses

Mail Questionnaire

Telephone Interview

Personal Interview

Large volume, Low costHonest answers, Slow,Not very flexible

Fast, Controlled sample,Flexible, Higher Response,More expensive, Bias

Very flexible, Fast, Very expensive, Bias

Step 3: implementing the research plan

Plan is put into actionmost expensive part of the process so:

1) important to watch for interviewer bias

2) accuracy

Step 4: interpreting and reporting findings

Present important findingsCompany ultimately must decide on

correct interpretation and how to proceed

Difficulties in Asking Questions of ConsumersDo they really know whether they are

likely to buy a particular product?

Even if they know the answer, will they tell you?

Will their actual purchase behaviour mirror their stated interests/intentions?

Chapter 5 ObjectivesConsumer Markets and Consumer Buying BehaviourDefine the consumer market and construct

a simple model of consumer buyer behaviour.

Name the four major factors that influence consumer buyer behaviour.

List and understand the stages in the buyer decision process.

Describe the adoption and diffusion process for new products.

Factors Affecting Consumer Behaviour

Cultural

Culture

Sub-culture

Socialclass

Social

Referencegroups

Family

Rolesand

status

Personal

Age andlife-cycle

OccupationEconomicsituationLifestyle

Personalityand

self-concept

Psycho-logical

MotivationPerceptionLearning

Beliefs andattitudes

Cultural Factors

CultureSocial Class Sub-culture

Social Factors

Groupsreference groupsaspirational groups

Family Roles & Status

Personal Factors

Age & Lifecycle StageOccupationEconomic situation Personality & Self-ConceptLifestyle

Psychological Factors

MotivationPerceptionLearningBeliefs & Attitudes

Physiological needs

Safety needs

Esteem needs

Self-Actualtization

Socialneeds

VALS2 Lifestyle Classification

Achievers

Strivers

Actualizers

Strugglers

Experiencers

Makers

Fulfilleds

Believers

Abundant Resources

Minimal Resources

Principle Oriented

StatusOriented

Action Oriented

Buyer Decision Process

Needrecognition

Purchasedecision

Evaluation ofalternatives

Post-Purchasebehaviour

Informationsearch

Types of Buying Behaviour

Complexbuying

behaviour

Complexbuying

behaviour

Variety-seeking

behaviour

Variety-seeking

behaviour

Dissonancereducing

behaviour

Dissonancereducing

behaviour

Habitualbuying

behaviour

Habitualbuying

behaviour

Low involvementHigh involvement

Significantdifferencesbetween brands

Few differencesbetween brands

Adopter Categorization:relative time of adoption

Time of adoption of innovations

2.5%Innovators

34%Early

majority

34%Latemajority

Earlyadopter

16%Laggards

Chapter 6 ObjectivesBusiness Markets and Business Buying BehaviourDefine the business market and explain how

business markets differ from consumer markets.

Identify the major factors that influence business buyer behaviour.

List and define the steps in the business buying-decision process.

Compare the institutional and government markets and explain how institutional and government buyers make buying decisions.

Characteristics of Business Markets

Differences BetweenBusiness

andConsumerMarkets

Market Structure and Demand

Nature of theBuying Unit

Types of Decisions &the Decision Process

Other Characteristics

andConsumerMarkets

Market Structure and Demand

1. Fewer but larger buyers2. More geographically concentrated3. Demand is more inelastic4. Demand is derived5. Demand fluctuates quickly

andConsumerMarkets

Nature of theBuying Unit

1. Involves more buyers2. More professional purchasing procedures

andConsumerMarkets

Types of Decisions &the Decision Process

1. More complex2. More formal3. Buyer-seller relationships more dependent, long-term relationships

andConsumerMarkets

Other Characteristics

1. Buy direct v.s. via retailer2. Practice reciprocity3. Often lease v.s. purchase

Business Buying Influences

Level ofprimary demand

Economicoutlook

Cost of money

Supplyconditions

Rate of techno-logical change

Political,regulatory

developments

Competitivedevelopments

Objectives

Policies

Procedures

Organizationalstructure

Systems

Authority

Status

Empathy

Persuasive-ness

AgeEducation

OccupationPersonality

Risk attitudes

Environmental

Interpersonal

Organizational

Individual

Business Buying Process

1. Problem Recognition

2. General Need Description

3. Product Specification

4. Supplier Search

5. Proposal Solicitation

6. Supplier Selection

7. Order Routine Specification

8. Performance Review

Institutions & Government

Institutional Markets

Government Markets

Low BudgetsCaptive Patrons

CentralizedBuying

Submitted Bids

PublicReview

Outside Publics

Non-economicCriteria

Chapter 7 ObjectivesSegmentation, Targeting, Positioning

Define the three steps of target marketing: segmentation, targeting, positioning.

List and discuss the major levels of market segmentation and the bases for segmenting consumer and business markets.

Explain how companies identify attractive market segments and choose a market-coverage strategy.

Explain how companies can position their products for maximum competitive advantage.

Steps in Market Segmentation, Targeting, and Positioning

Market segmentation1. Identify bases for

segmenting the market

2. Develop profiles ofresulting segments

Market targeting3. Develop measures of

segment attractiveness

4. Select the target segment(s)

Market positioning

6. Develop marketing mixfor each target segment

5. Develop positioningfor each target segment

Segmenting: 4 bases

GeographicDemographicPsychographicBehaviouristic

Segmenting: geographic base

Divide market into separate geographic units

Nations, regions provinces, cities, neighbourhoods, etc.

Develop appropriate marketing programs

Segmenting: demographic base

Most popular method Divide market into

groups based on: age sex family size & lifecycle income & occupation education religion ethnic background

Demographics - age

14% of population over 65 90% of 50+ are debt free 48% of all luxury cars sold

are purchased by 50+ group

50+ age group controls 80% of Canada’s personal wealth up have 2/3 of disposable income 25% of population

Most healthy and active

Segmenting: psychographic base

Social class determines choice of

home, car, clothes, leisure habits, etc.

Lifestyle reflected in purchases e.g. couch potatoes,

sports enthusiasts, or symphony lovers

Personality express who they are

Segmenting: behavioural base

Divide market into groups based on: Occasions User Status Usage Rate Loyalty Status Benefits sought

Requirements for effective segmentation

Requirements for Effective

Segmentation

Measurability

Substantiality

Actionability

Accessibility

Requirements for effective segmentation

Measurability - size, purchasing power, profiles of segments

Accessibility - effectively reach and serveSubstantiality - segments are large or

profitable enough to serveActionability - effective programs can be

designed to attract segments

Market Targeting:evaluating market segments

Segment size and growth

Structural attractiveness

Company objectives and resources

Company marketing mix Market

Undifferentiated marketingUndifferentiated marketing

Company marketing mix 1

Segment 1

Segment 3

Segment 2

Differentiated marketingDifferentiated marketing

Segment 1

Segment 3

Segment 2Company marketing mix

Concentrated marketingConcentrated marketing

Selecting Market Segments

Positioning

Defined by consumers on important attributes

Place in mind relative to competing products

Position happens - planned or not

Positioning Strategy:choosing and implementing

Communicate anddeliver chosen position

Select the rightcompetitive advantage

Identify possiblecompetitive advantage

Select an overall positioning strategy

Positioning

Against aCompetitor

UsageOccasions

Away fromCompetitors

ProductAttributes

ProductClass

BenefitsOffered

UsersUsers

Positioning Statement

For (target customer)Who (statement of need or opportunity)The (product name) is a (product category)That (statement of key benefit)Unlike (primary competitive alternative)Our product (statement of primary

differentiation)

Chapter 8 ObjectivesProduct Strategies

Define product and the major classifications of products and services.

Describe the roles of product and service branding, packaging, labelling, and product support services.

Explain the decisions companies make when developing product lines and mixes.

Identify the four characteristics of a service. Discuss the additional marketing

considerations that services require.

Levels of Product

Corebenefit

orservice

Augmented productAugmented productInstallation

After- Sale

service

Deliveryand

credit

Warranty

Brandname

Quality level Design

Features

Packaging

Core productCore product

Actual productActual product

Product Classifications:consumer products

Types ofConsumerProducts

Convenienceproducts

Shoppingproducts

Specialtyproducts

Unsought products

Product Decisions

Branding

Productattributes

Packaging

ProductSupportservices

Labelling

Product Attributes

QualityFeaturesSizesDesign

Product Support Services

Services that augment the actual product

e.g. 1-800 support for software program

e.g. web/Internet technical support

Branding

Name, term, sign, symbol or design or a combination intended to identify goods or services of a seller or group to differentiate them from competitors

Brand Name Selection:desirable qualities

Suggest benefits and qualities

Easy to pronounce recognize & remember

Distinctive Translated easily Capable of

registration & legal protection

Craftsman

Major Branding DecisionsTo brand ornot to brandTo brand ornot to brand

• Brand• No brand• Brand• No brand

Brand nameselection

Brand sponsorBrand sponsor

Brand strategyBrand strategy

Brandrepositioning

• Selection• Protection• Selection• Protection

• Manufacturer’s brand• Private brand• Licensed brand• Co-branding

• New brands• Line extensions• Brand extensions• Multibrands

• Brand repositioning• No brand repositioning• Brand repositioning• No brand repositioning

Figure 8- 3

Value of Branding

Helps consumers shop more efficiently

Aids repeat purchase

Suggests quality of product

Creates store loyalty Gives legal protection Helps in segmenting

markets Symbol of ongoing

promise

Buyer’s viewpoint Seller’s viewpoint

Packaging/Labelling

What should the package do for the product?

identify, describe,

and promote Elements support

position & strategy Environmental

issues?

Chapter 9 Objectives

New Product Development and Life Cycle StrategiesExplain how companies find and develop

new product ideas.List and define the steps in the new-product

development process.Describe the stages of the product life

cycle.Describe how marketing strategies evolve

during the product’s life cycle.

New Product Development Process:

Idea generation

Idea screening

ConceptDevelopment

& testing

Marketingstrategy

Marketing Strategy Development

Part one Target market Planned product positioning Sales, market share and profit goals (short term)

Part two Outline price, distribution and first year marketing budget

Part three Planned long-run sales Profit goals Marketing mix strategy

New Product Development Process:

Idea generation

Idea screening

ConceptDevelopment

& testing

Marketingstrategy

Businessanalysis

Productdevelopment

Commercialization

Test marketing

Why do new products fail?

Overestimated market or target market is too small

Poor design Poor product quality Incorrect positioning Error in pricing Poor marketing

communication Competition

Product Life-Cycle Strategies

Profits

Development Introduction

Growth

Maturity

Decline

SalesProfit($)

Loss($)

New Product Life Cycle Strategies

Introduction

MarketSkimming

MarketPenetration

Growth

NewFeatures

ImproveQuality

AddChannels

NewSegments

Maturity

ProductModification

Market Modification

Modify Marketing Mix

Decline

Maintain Harvest Drop

Chapter 10 ObjectivesPricing Strategies

Identify and define the internal factors affecting a firm’s pricing decisions.

Identify and define the external factors affecting pricing decisions.

Contrast the three general approaches to setting prices.

Describe the major strategies for pricing new products.

Discuss the key issues related to price changes.

Factors Affecting Pricing

Internal factors• Marketing objectives• Marketing-mix strategy• Costs• Organizational considerations

External factors• Nature of the market & demand• Competition• Other environmental factors (economy, resellers, government)

Pricingdecisions

Internal Factors

Internal factors• Marketing objectives• Marketing-mix strategy• Costs• Organizational considerations

Pricingdecisions

External Factors

External factors• Types of markets• Price-demand relationship• Competition• Other environmental factors (economy, resellers, government)

Pricingdecisions

Demand Curves

PP’’22

PP’’11

QQ11QQ22

QQ’’11QQ’’22

Quantity demandedQuantity demandedper periodper period

Inelastic demandInelastic demand

Quantity demandedQuantity demandedper periodper period

Elastic demandElastic demand

External Factors

External factors• Types of markets• Price-demand relationship• Competition• Other environmental factors (economy, resellers, government)

Pricingdecisions

General Pricing Approaches

1. Cost-Based Approaches

Cost-Plus Break-Even Target ProfitPricing Analysis Pricing

2. Value-Based Approaches

Perceived Value Pricing

2. Value-Based Approaches

Going-Rate Pricing Sealed-Bid Pricing

3. Competition-Based Approaches

New Product Pricing Strategies

setting a high price to maximize revenue

makes sense when: product quality and image

supports a higher price costs of producing a small

volume are not too high to cancel the advantage of charging more

company has a patent or technological advantage

Market Skimming

Setting a low price to attract a large number of buyers and gain a dominant market share

makes sense when: market is highly price sensitive (low price stimulates

sales and market growth) production costs must fall as volume increases low price must be an effective entry barrier for

competitors

New Product Pricing Strategies

Market Penetration

Product-Mix Pricing

Strategies

Product Line Pricing

$49.99$89.99

$129.99

$149.99$189.99

Product-Mix Pricing

Strategies

Captive Product Pricing

Product-Mix Pricing

Strategies

Captive Product Pricing

Product Bundle Pricing

PriceAdjustment

Strategies

Discount & Allowance Pricing

International Pricing

Segmented Pricing

Psychological Pricing

Promotional Pricing

Geographical Pricing

Chapter 11 ObjectivesDistribution Channels and Logistics ManagementExplain why companies use distribution

channels and explain the functions that these channels perform.

Discuss how channel members interact and organize to perform the work of the channel.

Identify the major channel alternatives.Discuss the nature and importance of

physical distribution Analyze integrated logistics management.

Chapter 12 ObjectivesRetailing and Wholesaling

Explain the roles of retailers and wholesalers in the distribution channel.

Describe the major types of retailers and give examples of each.

Identify the major types of wholesalers and give examples of each.

Explain the marketing decisions facing retailers and wholesalers.

Distribution (Place)

Good distribution is critical to the marketing success of products

Three main types of channels: Direct Indirect Hybrid

Consumer Marketing Channels

Manu-facturerManu-

facturer

DirectDirect

Whole-saler

RetailerRetailer

ConsumerConsumer

Manu-facturerManu-

facturer

Manu-facturerManu-

facturer

Manu-facturerManu-

facturer JobberJobber

Whole-saler

Whole-saler ConsumerConsumer

ConsumerConsumer

RetailerRetailer

IndirectIndirect

Hybrid Marketing Channel

Consumersegment 1Consumersegment 1

Businesssegment 1Businesssegment 1

Consumersegment 2Consumersegment 2

Businesssegment 2Businesssegment 2

RetailersRetailers

DealersDealersDistributorsDistributors

ProducerProducer

Catalogues, telephoneCatalogues, telephone

Sales forceSales force

Distribution Channel Functions

Information: gathering and distributing marketing research

Promotion Contact: finding and communicating with

prospective buyers Matching offers to buyer’s needs Negotiation Physical distribution, financing, risk taking

Why Use Marketing Intermediaries?

An intermediary reduces the number of channel transactions

# of contacts without a distributorM x C = 3 x 3 = 9

# of contacts with a distributorM x C = 3+ 3 =6

Franchiseorganizations

AdministeredVMS

Retailercooperatives

Wholesaler-sponsoredvoluntary

chains

Wholesaler-sponsoredvoluntary

chains

ContractualVMS

CorporateVMS

Manufacturer-sponsoredretailerfranchise

Manufacturer-sponsoredwholesalerfranchise

Service-firm-sponsoredfranchise

Figure 12-4

Vertical Marketing Systems (VMS)

Major Logistics Functions

Nature of Distribution

Order Processing

Warehousing

Transportation

Inventory

Chapter 13 ObjectivesIntegrated Marketing Communication Strategy

Name and define the five tools of the promotion mix.

Discuss the processes and advantages of integrated marketing communications.

Outline the steps in developing effective marketing communication.

Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix.

Promotion Mix

Advertising

Direct Marketing

Personal Selling

Public RelationsSales Promotion

Promotion Mix

Marketing Communications Mix

Advertisingpaid placement of a message in the

medianon-personal presentation and

promotion of ideas, goods, or servicesidentified sponsor

Sales Promotionshort-term incentives to encourage the sale of a product or

service

Personal Sellingpersonal presentation by a firm’s

sales forcefor the purpose of making sales and

building customer relationships

Public Relationsfree placement of a message in the mediaon-going process of building good

relations with the company’s various publics by: obtaining favourable publicity building a good corporate image handling stories or events heading off unfavorable rumours

Direct Marketingdirect communications with carefully

targeted individual consumersto obtain an immediate response

using mail, telephone, fax, e-mail and other non-personal tools

1. Identify the target audience

Steps in DevelopingEffective Communication

2. Determine the desired response

Buyer-Readiness Stages

AwarenessAwareness KnowledgeKnowledge LikingLiking

PurchasePurchaseConvictionConvictionPreferencePreference

3. Design a message

Designing a message

Message Contentrational - emotional - moral appeal?

Message Structureopen vs. conclusion? one side or two sides?

Message Formatwords - images - colour - sounds - expressions?

3. Design a message

4. Choose the media

Choosing media

Personal channels face to face, phone, email, mail allows personal contact and feedback

Non-personal channels major media e.g. print, radio, tv, etc. no personal contact or feedback Opinion leaders key to reaching

others

Choosing Advertising Media

1. Reach

# of people in your target market reached

2. Frequency

how often people in your target market

see your promotions

3. Impact

3. Design a message

4. Choose the media

5. Select the message source

Selecting the message source

Credible sources more persuasive

Credible people, e.g. doctors, dentists, health-care providers

Celebrity endorsers

3. Design a message

4. Choose the media

5. Select the message source

6. Collect feedback

Setting the Promotion Budget

Affordable methodPercent of salesCompetitive parityObjective and task

Chapter 14 ObjectivesAdvertising, Sales Promotion and Public RelationsDefine the roles of advertising, sales

promotion, and public relations in the promotion mix.

Describe the major decisions involved in developing an advertising program.

Explain how sales promotion campaigns are developed and implemented.

Explain how companies use public relations to communicate with their publics.

Promotion Tools

The Nature of Each

PromotionTool

AdvertisingLegitimate Public

Repetition Expensive

Promotion Tools

The Nature of Each

PromotionTool

Personal SellingEffective Costly

Two Way Relationships

Promotion Tools

The Nature of Each

PromotionTool

Sales PromotionTiming Incentive

Short Term

Promotion Tools

The Nature of Each

PromotionTool

Sales PromotionTiming Incentive

Short Term

Public RelationsCredibilityUnder Used

Campaign evaluation

Communicationimpact

Sales impact

Campaign evaluation

Communicationimpact

Sales impact

Message decisions

Message strategyMessage execution

Message decisions

Message strategyMessage execution

Budget decisionsAffordable approach

Percent of salesCompetitive parityObjective and task

Budget decisionsAffordable approach

Percent of salesCompetitive parityObjective and task

Objectives settingCommunication

objectivesSales

objectives

Objectives settingCommunication

objectivesSales

objectives

Media decisionsReach, frequency, impact

Major media typesSpecific media vehicles

Media timing

Media decisionsReach, frequency, impact

Major media typesSpecific media vehicles

Media timing

Figure 15-1

Major Advertising Decisions

Stage in Product

Life CyclePush or Pull

Setting the Promotion Mix

Factors in Setting the Promotion Mix

Type of MarketBuyer

Readiness

Relative importance Relative importance

Advertising

Sales promotion

Personal selling

Public Rel.

Personal selling

Sales promotion

Advertising

Public Rel.

Consumer Goods Industrial Goods

Type of Market

Stage in Product

Type of MarketBuyer

Readiness

Push versus Pull Strategy

Retailers andWholesalers

Retailers andWholesalers ConsumersConsumers

ConsumersConsumersRetailers andWholesalers

Retailers andWholesalersProducerProducer

ProducerProducer

Producermarketing activities

Resellermarketing activities

Push strategy

Pull strategy

Producer marketing activities

Demand Demand

Stage in Product

Type of MarketBuyer

Readiness

Chapter 15 ObjectivesPersonal Selling

Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.

Explain how companies design sales force strategy and structure.

Explain how companies recruit, select, and train salespeople.

Describe how companies compensate and supervise salespeople and how they evaluate sales-force effectiveness.

Discuss the personal selling process.

Steps in Effective Selling

Prospectingand

qualifying

Prospectingand

qualifyingPre-approachPre-approach ApproachApproach

Presentationand

demonstration

Presentationand

demonstration

Follow-upFollow-upClosingClosingHandlingobjections

Handlingobjections

Chapter 16 ObjectivesDirect and Online Marketing

Discuss the benefits of direct marketing to customers and companies and the trends fuelling its rapid growth.

Define a customer database and list the four ways that companies use databases in direct marketing.

Identify the major forms of direct marketing. Compare the two types of online marketing channels

and explain the effect of the Internet on e-commerce. Identify the benefits of online marketing to consumers

and marketers and the four ways that marketers can conduct online marketing.

Discuss the public policy and ethical issues facing direct marketers.

What is Direct Marketing?

Communications with carefully targeted individual consumers to obtain an immediate response Cultivate relationships Often one-to-one

interactive Precise targeting More effective results

Customersand

prospects

Customersand

prospects

Face-to-faceselling

Tele-marketing

Direct mail

KioskKiosk

OnlineOnline

DirectResponse

CatalogueCatalogue

Forms of Direct Marketing

Figure 17-1

Chapter 8 ObjectivesProduct Strategies

Define product and the major classifications of products and services.

Describe the roles of product and service branding, packaging, labelling, and product support services.

Explain the decisions companies make when developing product lines and mixes.

Identify the four characteristics of a service.Discuss the additional marketing

considerations that services require.

Marketing is the process

of helping others value your service.

Services are Different

SERVICES

Intangibleservices cannot be seen,

tasted, felt, heard orsmelled before purchase

SERVICES

Inseparableservices cannot be

separated from theirproviders

SERVICES

Variability(Inconsistency)

quality of services depends

on who provides them and

when, where and how

Moments of Truth

Front Line Employees

Middle Management

customers

SERVICES

Perishability(Inventory)

services cannot be storedfor later sale or use

SERVICES

Intangibleservices cannot be seen,

tasted, felt, heard orsmelled before purchase

Variablequality of services

dependson who provides them

andwhen, where and how

Inseparableservices cannot be

separated from theirproviders

Perishableservices cannot be stored

for later sale or use

Service-Profit Chain

Which is most important?

customersstockholdersemployees

Chapter 17 ObjectivesThe Global Marketplace

Discuss how the international trade system, economic, politico-legal, and cultural environments affect a company’s international marketing decisions.

Describe three key approaches to entering international markets.

Explain how companies adapt their marketing mixes for international markets.

Identify the three major forms of international marketing organization.

DecidingWhether to go international

Decidingwhich markets

to enter

Looking at theglobal marketing

environment

Deciding on theglobal marketing

program

organization

Deciding howto enter the

market

Major Decisions in International Marketing

Global Marketing Environment

International Trade System Tariffs Quotas Embargos Exchange controls Non-tariff trade barriers

Economic Environment Income distribution Industrial structure:

- subsistence economies

- raw-material exporting economies

- industrializing economies

- industrial economies

Politico-Legal & Ethical Environment Attitude toward foreign businesses Extent of government bureaucracy Political stability Monetary regulations Countertrade

Compensation Counterpurchase

Cultural Environment Language, customs Folkways, norms, taboos Business norms & behaviour

e.g. Personal distance

e.g. Meeting and greeting

to enter

environment

program

organization

market

to enter

environment

program

organization

market

to enter

environment

program

organization

market

Market Entry Strategies

Exporting

DirectIndirect

Joint venturing

LicensingContract manufacturingManagement contracting

Joint ownership

Direct investment

Assembly facilitiesManufacturingfacilities

Amount of commitment, risk, control, and profit potentialAmount of commitment, risk, control, and profit potential

to enter

environment

program

organization

market

Develop newproduct

Communicationadaptation

Dualadaptation

Productinvention

Straightextension

Productadaptation

Adaptproduct

Don’t changeproduct

Don’tChangepromotion

Adaptpromotion

Product

International Product & Promotion Strategies

Develop newproduct

Communicationadaptation

Dualadaptation

Productinvention

Straightextension

Productadaptation

Adaptproduct

Don’t changeproduct

Don’tChangepromotion

Adaptpromotion

Product

International Product & Promotion Strategies

to enter

environment

program

organization

market

Global Marketing Organization

Methods of Organizing International Marketing Operations

Export Department

InternationalDivision

GlobalOrganization

chapter 3 objectives the marketing environment describe the environmental forces that affect the...

diversity slide

history slide

marketing environment

objectives marketing

responsible marketing

marketing decisions

marketing strategies

demographic environment

Documents

lamsystems: company's activities

company's law

company's profile (example)

boost your company's brainpower

company's present

company's presentation - oxytronic

reputation risk management in the framework of enterprise...

company's list

company's profile

company's specializations

fullah sugah company's profile

strategy planning information systems and … · this...

health care reform: how will it affect your company's health...

increasing your company's value

your company's recruitment secret

newground: company's profile

shefali company's profile 1

during the audit planning meeting - raffa the audit planning...

why company's hire

richard hollins & associates · affect corporate...