final exam prep (1)
TRANSCRIPT
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Requirements for marketingto occur
Two or more parties with unsatis ed needs.
Desire and ability to satisfy these needs.
A way for the parties to communicate.
Something to exchange.
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ommunications!Deli"ery
#oney!$nformation
ustomers!onsumers%&uyers'
(oods!Ser"ices)roducers%Sellers'
#arketing entails an exchange
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ustomers* former customers* prospects.$nternal analysis %sales acti"ities* sales
gures* pro tability* etc'.
ompetitors %direct and indirect'.$ndustry %same "ertical* supplier andcomplementary'.#acroen"ironment* technology and
trend analysis.
requires solid insightsbased on analysis ofresearch
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#arketing requires product*price* place* and promotiondecisions
)romotion
)lace
)rice
)roduct
+),s
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#arketing can be performed byboth indi"iduals andorgani-ations
B2B: holesaling is often only &usiness to &usiness
B2C: All retailing is &usiness toonsumer selling
C2C: Swap #eets/&ay* yard sales* e
0
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01
2alue1based marketing
3irms must o4er customerssomething in excess of that beingo4ered by the competitors.
3irms must understand how eachaspect of their product!ser"icecreates "alue for customers.
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Perception is based onbuyer s !
5ifestage and lifestyle. )ersonal beliefs %background*cultural heritage* experiences'.
$ndi"idual buying beha"iours and
expectations. $ncome. )re"ious consumer experiences
and knowledge.
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The marketing mix
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eek 6ne Takeaway The defnition o marketing is to fnd out what
your customers want and then give it to them. #arketing requires product* price* place* and
promotion decisions.
3irms must o4er customers something in excess
%"alue' of that being o4ered by the competitors. 7ou and your girlfriend!boyfriend!spouse!spouse1
like person may ne"er agree on which mo"ie tosee8
01
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01
hapter 6ne (lossary
ustomer relationship management9 A business philosophy and
set of strategies* programs* and systems that focus onidentifying and building loyalty among the rm,s most "aluedcustomers.
(oods9 $tems that you can physically touch. $deas9 $nclude thoughts* opinions* and philosophies* and
intellectual concepts such as these also can be marketed. Ser"ices9 $ntangible customer bene ts that are produced by
people or machines and cannot be separated from theproducer. Supply chain9 The group of rms that make and deli"er a gi"en
set of goods and ser"ices. Supply chain management9 Refers to a set of approaches and
techniques that rms employ to e:ciently and e4ecti"elyintegrate their suppliers* manufacturers* warehouses* stores*
and other rms in"ol"ed in the transaction into a seamless"alue chain.
d
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Segmentation* targeting andpositioning
"e#elop pro$les of resulting seg%ents
Mar&etseg%entation
"e#elop %easures of seg%ent attracti#eness
Select thetarget seg%ent's(
"e#elop positioningfor each seg%ent
"e#elop %ar&eting %i)
for each seg%ent
*dentify bases forseg%enting %ar&et
Mar&ettargeting
Mar&etpositioning
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)ro ling segmentsSegmentationMethod
Sample Segments
Geographic Country, province, city, urban, rural, climateContinent: North America, Asia, Europe, AfricaRegion: Atlantic, Central, Western Canada
emographic Age, gender, income, education, occupation,ethnic bac!ground, religion, family life cycle, etc"
#sychographic $ifestyles, %alues, &elf Concept
'ehavioural 'enefits derived, (sage rates, (ser status,$oyalty
The +unning +oo%
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onsumeranalysis
Who buys,
When is thepurchase
%ade,
Where is thepurchase%ade,
o. often arepurchases
%ade,
What isbought,
Why is thepurchase
%ade, o. is thepurchase%ade,
Consu%er/nalysis
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Demographicpro le factors
/ge
0ducation
1ender
Consu%er s"e%ographic
Pro$le
0)penditures
Occupation
Marital Status
0thnicity +ace*nco%e
Mobility
ousing
3ocation
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Social pro lefactors
Socialclass
4a%ily lifecycle
Ti%ee)penditures
Culture
Socialperfor%ance
+eferencegroups Opinion
leaders
Consu%er
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di#iding consu%ers into
seg%ents on the basis of
ho. they act to.ard5 feelabout5 or use a product orser#ice
67 27 rule: a rule of thumbthat ;
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r ter a or e#a uat ngseg%ents
Measurable : can the buyer characteristics be easily identi ed
and segmented into groups at reasonable costBSi%ilarity of needs : buyers within the group ha"e similar needand wants."istinctness of needs : buyers in each group ha"e distinct neeand wants.Pro$t Potential : greater potential for pro t by segmenting amarket than attempting to ser"e the mass market
ccessible: can buyers be reached e4ecti"ely with simplemarketingBCapability : does company ha"e resources of satisfying segmentB
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Di4erentiatedsegmentation
strategy 1 de"elopingone or more productsfor each of se"eraldistinct customergroups
&lack C Decker brand to homeowners and theDe alt line to professional contractor users.
S % l i i i
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3onger 8ersion: To young* acti"e soft1drinkconsumers who ha"e little time for sleep*
#ountain Dew is the soft drink that gi"es youmore energy than any other brand becauseit has the highest le"el of ca4eine. ith#ountain Dew* you can stay alert and keepgoing e"en when you ha"en,t been able toget a good night,s sleep.
Shorter 8ersion %; words or less'9 Toyoung* acti"e soft1drink consumers who wantinstant energy* #ountain Dew is the widelya"ailable soft drink with the most ca4eine.
Sa%ple positioningstate%ent
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Types of con"eniencegoodsStaple goods: purchased
regularly*%pulse goods: purchased withlittle thought
0%ergency goods: purchasedwhen need is urgent
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Soft"rin&sPepsi
"ietPepsi
Mountai
n "e.
Snac&4oods4ritos
3ays
Tostitos
"oritos
Cheetos
+estaurantsPi99a ut
Taco Bell
4C
Width
3ength
"epth %3la"ours'
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&ene ts of using the same brandname E brand extension
Boost salesof the core
brand
Synergya%ong
the products
Mar&etingcosts
are lo.er
Brand &no.nfor highquality
;a%e .ellestablished
Brand
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)urposes of packaging
&rand identi cation.
)6) ad"ertising 1 persuasi"e labelingand!or informational labeling.
3acilitate product transport.
At1home storage.
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Fnderstanding inno"ations
To remain competiti"e. To keep up with new technology. To follow changing consumerpreferences.
To replace dying products. To di"ersify its product o4ering andlower risk.
To create a di4erential ad"antage.
The product de#elop%ent
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The product de#elop%entprocess
0. $dea generation;. oncept testing. )roduct de"elopment
0. Alpha testing C beta testing
+. #arket testing
0. )re1market tests;. Test marketing
. )roduct launchG. /"aluation of results
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rossing the hasm* (eo4rey#oore
A brand can use name* logo
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A brand can use name* logosymbols* characters*slogans* Hingles and e"endistincti"e packages
& d
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)/RS6IA5$T7
S6F5
3FI T$6I
$#A(/
&rand anatomy
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Accidental
2aluesAspirational2alues
ore2alues
&rand "alues
( i id
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(enericideThose close but ha#e beenrescued by aggressi#e correcti#eca%paigns
Jleenex
Kerox &and1Aid )lexiglas
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&randing o"er"iew&randin
g
&rand/quity
&randIame
Strategies
&randAwareness
)ercei"ed 2alue&randAssociations
&rand 5oyalty
#anufacturer or
Iational&randStore or )ri"ate
5abel(eneric
orporate or3amily &rand
orporate C)roduct 5ine&rand$ndi"idual
&rand6wnershipStrategies
Recap 1 back to your brand %card'
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Step 09 )roduct and its attributes.
Step ;9 )roduct roles re "arious target audiences.
Step 9 )roduct positioning preferred by client.
Step +9 #ission! 2ision for the brand.
Step 9 ore C Aspirational "aluesL what client
wants people to say about its product.Step G9 Re1positioning of product based onresearch and feedback.
Step ?9 ommunicating your brand to youraudience.
Recap 1 back to your brand %card
* t gibilit *nseparability
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*ntangibilityannot be seen* tasted* felt or smelled before
purchasing
8ariabilitySer"ice quality depends
on who pro"ides and under what conditions.
nseparability)roduction Cconsumption
are simultaneous .
Perishabilityannot be stored*
for resale or later use.
The goods1ser"ices continuum
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The goods1ser ices continuum
Three additional M)sN for Ser"ices
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Three additional M)sN for Ser ices People Appearance C body
language Aptitude and attitudes /:ciency Physical e#idence )ayment method
aiting time After sales care Process /n"ironment
3acilities* etc
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People (roupism at work Oigh sense of humour 3un with themsel"es
including crewmember ustomer satisfaction 6nly hire high attitude
and technically skilled
Process 5ow price Io seat arrangement Speciali-ed ser"ice Standardi-ation
%solely operating&oeing ? ?s'
Physical 0#idence )lane colour asual dress in summ
er Io meals Seats easily accesible
https://www.youtube.com/watch?v=TxNrizGdhtY&app=desktophttp://www.youtube.com/watch?v=oHnqnyzegfchttp://www.youtube.com/watch?v=oHnqnyzegfchttp://www.youtube.com/watch?v=oHnqnyzegfchttp://www.youtube.com/watch?v=oHnqnyzegfchttps://www.youtube.com/watch?v=TxNrizGdhtY&app=desktop -
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People Fniform Training M3riendly* prompt
ser"iceN
Process 3ood preparation
transparent tocustomer MOamburger
Fni"ersityN
Physical 0#idence Oygienic Standard colours*
decor* signage* etc
Ion1monetary!economic costs
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Ion1monetary!economic costs Operating costs : costs
in"ol"ed in a using a product.
S.itching costs : costsin"ol"ed in mo"ing from onebrand to another.
Opportunity costs : the"alue of something that isgi"en up to obtain somethingelse.
3actors a4ecting price decisions
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3actors a4ecting price decisions onsumers
)rice
&rand Status seeker
Ser"ice seeker
osts #oore,s law
(o"ernment #icrosoft
hannel members
ompetition
The state of theeconomy
(lobal inPuences
the number of transistors on an integratedcircuit for minimum component costdoubles e"ery ;+ months
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"ollar or uoOriented
)ricing obHecti"es
l f
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Alternati"e ways ofde"eloping a pricing strategy
Begin .ith costs and .or& to.ards selling price
Begin .ith selling priceand .or& to.ards cost
Co%pare sellingprice .ith
co%petitors
Cost-based pricing
"e%and-based pricing
Co%petition-basedpricing
At the #arket
Abo"e the #arket
&elow the #arket
#arket skimming 1 high
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g gprice* low "olumes
Skim the pro t from themarket.
Suitable for products thatha"e short life cycles orwhich will face competition atsome point in the future %e.g.after a patent runs out'.
/xamples include9)laystation* Hewellery* digitaltechnology* new D2Ds* etc.
)enetration pricing 1 price set to
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) p g pQpenetrate the market,
Q5ow, price to secure high"olumes.
Typical in mass marketproducts E chocolate bars* food
stu4s* household goods* etc. Suitable for products with long
anticipated life cycles. #ay be useful if launching into
a new market.
)sychological pricing 1 used to
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)sychological pricing 1 used toplay on consumer perceptions
(oing rate %price
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( g pleadership'
$n case of price leader* ri"als ha"e di:cultyin competing on price E too high and theylose market share* too low and the priceleader would match price and force smallerri"al out of market.
here competition is limited* Qgoing rate,pricing may be applicable E banks* gas*supermarkets* electrical goods.
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Destroyer!predatory pricing
Deliberate price cutting or o4er of Qfree gifts!products, to force ri"als %normally smaller andweaker' out of business or pre"ent new entrants.
Anti1competiti"e and illegal if it can be pro"ed.
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Absorption!full cost pricing
4ull Cost Pricing E attempting to set price to co"erboth xed and "ariable costs.
/bsorption Cost Pricing E price set to Qabsorb, somof the xed costs of production.
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#arginal cost pricing
#arginal cost E the cost of producing 6I/ extra or 6I/fewer item of production.
# pricing E allows Pexibility . )articularly rele"ant in transport where xed costs may be
relati"ely high.
Allows "ariable pricing structure E e.g. on a Pight from Toronto to 6ttawa E pro"iding the cost of the extrapassenger is co"ered* the price could be "aried a good dealto attract customers and ll the aircraft.
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ontribution pricing
Contribution ? Selling Price @ 8ariable 'directcosts(
)rices set to ensure co"erage of "ariable costs and aQcontribution, to the xed costs.
Similar in principle to marginal cost pricing.
&reak1e"en analysis might be useful in suchcircumstances.
$mplementing a pricing strategy
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$mplementing a pricing strategy 6ne1price policy
"ersus Pexiblepricing.
6dd pricing.
The price1quality
association. 5eader pricing.
#ultiple unitpricing.
)rice lining.
)rice bundling.(eographic pricing.
)urchase terms.
$nternal reference
point.
De"eloping pricing tactics
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T.o-part pricing: selling a product orser"ice using two di4erent types ofpayments* such as an initial fee and thenongoing charges.
Pay%ent pricing: the total purchase priceis broken into smaller payments to make itappear more a4ordable.
Price bundling: selling two or more goodsor ser"ices as a single package for oneprice.
Capti#e pricing: a pricing tactic for twoitems that must be used togetherL one itemis priced "ery low and the rm makes itspro t on another* high1margin item
essential to the operation of the rst item
p g p g
De"eloping pricing tactics
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De eloping pricing tactics
Aone pricing: customers in di4erentgeographic -ones pay di4erenttransportation rates.
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De eloping pricing tactics
Trade or functional discounts: discountso4 list price of products to members of thechannel of distribution that perform "ariousmarketing functions.
>uantity discounts: charging reducedprices for larger quantities of a product.
Cu%ulati#e quantity discounts: discounts based on the total quantitybought within a speci ed time period.
)lus cash and seasonal discounts
Select the appropriate pricingt t g d l i h i
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strategy and explain your choice
0. al1#art launches a newrange of own1label soups.
;. unard launches two newcruise ships.
. A cable T2 pro"ider mo"esinto a new area and needsto achie"e a market share.
+. Ooliday $nns try to ll
hotels during winterweekends.. &urger Jing introduces a
new range of "alue meals.G. &lackberry launches a new
smartphone.
The consumer decision1making process
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The consumer decision1making process
Proble% +ecognition
*nfor%ation Search
0#aluation of /lternati#es
Product Choice
Post-purchase 0#aluation
&ill reali-es that he is fed up with his old T2
&ill takes the T2 homeand remains a couch potato
&ill talks to a few of hisfriends about a new T2
&ill goes shopping to compare T2s of di4erent brands
&ill chooses one model!bra ndfor its features and price
$nternal
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inPuences )erception Sensations /xposure )erceptual
selection
$nterpretation #oti"ation Oierarchy of
needs
Attitude 1 a learned
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predisposition torespond fa"ourably
or unfa"ourably To stimuli based on relati"ely
enduring e"aluations ofpeople* obHects* and issues.
Beliefs Beha#iour/ ect
/ttitudeBased oncogniti#
infor%atioprocessin
igh in#ol#e%ent purchase situation
Self1concept E all of an indi"idual,s
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thoughts and feelings ha"ingreference to him!her as an obHect
5ifestyle* in many ways* is an outwardexpression of ones self1concept.
Situational inPuences
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on our purchasing Atmospherics )hysical en"ironment
P h di
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3irm,s attempt to reducedissonance byreinforcing the decisionthrough thank youletters* congratulationsletters* quality ratings*etc.
Postpurchase: dissonance
#arketcontinuum
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continuum
Fnawareness Awareness omprehension on"iction )reference
$ntent1to1buy )urchase e"aluation )ost1sale ser"ice
performance
R h
&usiness purchasing9 The processis more str ct red to ens re that
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is more structured to ensure thatthe decision is based on more
obHecti"e criteria* rather thansubHecti"e or emotional reasons
There is also a greater likelihood of long-ter%business relationship s existing betweencompanies.
Deri"ed demand
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)urchases may require9ritten speci cations*ompetiti"e bidding*
)rice negotiations* andomplex nancial
arrangements
The nature of business
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buying 1 straight rebuy&usiness buyers make routine purchases
that require minimal decision making.
This can be re1ordering from an existingsupplier* which makes it more di:cult foranother supplier to break into the business.
Business %ar&etseg%entation criteria
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)roduct!ser"ice application*
such as end use or value inuse.
Type of buying situation E new*task* modi ed re1buy or
straight re1buy.
Stage in purchasing process.
seg%entation criteria'%acro(
3orces of change
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Brand 0ssence
ey /ttributes and Bene$ts
Points of "i erence
Category Me%bership
Positioning #ia 3addering
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Assess current marketing position* consumerperceptions* competiti"e assessment.$dentify potential problems in the making.&usiness strategy de"elopment %pricing* markets* etc.'9
/stimating short range!current demandL totalmarket potential ! area market potentialL industrysales and market shareL
/stimating future demandL sur"ey of buyers,intentions ! composite of sales force opinionL expertopinionL past sales analysisL market test method.
research
*ssues n ne. pro uctresearch >
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>
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doesfor marketers
Oelps gain a competiti"e edge. Reduces risks. )ro"ides key consumer insights. (i"es competiti"e intelligence.
2eri es intuitions. #easures market performance.
The marketing research process
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Methods of gatheringpri%ary data
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pri%ary data
Secondary data sources
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Statistics anada (uides* directories* indexes
)eriodicals* newspapers Databases 6pinion polls Trade publications
5ibraries 6n1line sources )ri"ate companies
)rimary data
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)rimary data /d#antages
Speci c to issue at hand
Fp1to1date
ontrollable
$denti able reliability #ay be the only way to
acquire data
"isad#antages
ostly Time consuming
annot gathersome types ofinformation5imited perspecti"e
ompanylimitations
Aspects to research
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Aspects to research
Si-e of market = of households = who buys in a
month Seasonality 3requency
Si-e* price* type* etcpreferencesRetailers used&rand trial&rand loyalty
SegmentationDemographics
/motional connections critical
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Fnderstanding how the consumer connects toyour brand and!or product and why9
Oow it helps them* makes them feel* etc.Oow they would like to feel when buying!using your product.
Ultimately, uncovering emotional connectionsresults in an understanding o a consumerscore values related to a product, brand orcategory.
)ro"ides purchase trigger emotional %e"en&;&'.
ore "alues usually don,t change.
&ased on idea that humans are best0thnography
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understood by obser"ing them in as manycontexts as possible* including9
The place where they li"e %andimpro"ements made' and how they make ali"ing,Oow they pro"ide food* housing* energyand water for themsel"es,#arriage customs,5anguage%s' they speak* etc.
(o into people,s workplaces and!or homesand watch and see what happens.
!imply, ethnography is the study o behavior
Beha#ioural research
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Similar to /thnography* but looking forbeha"iour in more clearly de ned* speci careas.Fsually longer than obser"ational and shorterthan ethnographic.
6ften makes use of a stimulus.
$n1home T2 show recorders.Swipe cards* bar code tracking* etc.
Data collection considerations
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uestionnaire design
Disguised "s. undisguised sur"ey Semantic di4erential Sampling
)robability Ion1probability
osts and time frames
Ietnography
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$nter UI/TV W /th UI6(RA)O7V
Ietnography is the branch ofethnography that analyses the freebeha"iour of indi"iduals on the$nternet that uses online marketing
research techniques to pro"ide usefulinsights.
)rof. RobertJo-inets
Why netnography,
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Ietnography
onsumer Types
/merging Trends
Retail/xperience
onsumer5anguage
ommunities
Fnderstand consumer
beha"iours.
)ro"ide consumerX
based insight.
)ro"ide inspiration.
Deli"er insights.
3eed follow up
quantitati"e research.
#ake the ser"ice a"ailable when Cwhere the consumer can use it
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Oow do you buy beerB
Oow do you buy pursesB gumBscotchB ice creamB
hy the growing importance ofmarketing channelsB
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g
0.The explosion of informationtechnology and /1commerce
;.A greater di:culty in gaining asustainable competiti"e ad"antage
;.The growing power of distributors*especially retailers in marketingchannels
.The need to reduce distribution
Disintermediation
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reduction of number of intermediaries
Reintermediation
f i di
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a new type of intermediary
Place or%ar&eting
channel strategySustainablecompetiti"e
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gypad"antage
)otential for gaining
competiti"e ad"antagebecause place is moredi:cult for competitors
to copy
hannel needs to adapt orchange as products mature
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g p
Adequatemarketco"erage
Adequatesupply
Adequatemarketco"erage andin"entory le"els
(auge e4ects ofcompetition onchannel support
#ake sure theproduct remainsattracti"e tochannel
)ossible changesin channelstructure toextend maturit
)hase outmarginal channelmembers
Determine impactof productdeletion onchannel
*ntroduction
1ro.th
Maturit
y "ecline
Sales%Y'
1ood personal selling atthe retail le#el
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An increasing consumer demand forknowledgeable and helpful salespeople
Trend 6ne
surroundings %ini%u%ser#ice but #ery lo
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arehouse clubs,membership
ser#ice but #ery lo.prices
Trend Two
Mail-order buying onlineshopping
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Sa"e time and a"oid theincon"enience of crowded
stores and tra:c congestion
Trend Three
/uto retailing
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3ewer hassles when buying a car
Trend 3our
B2B on the internet
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(rowing in all sectors
Trend 3i"e
A "alue network
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$,s sales force sells to large accounts* outboundtelemarketing sells to medium1si-ed accounts* directmail sells to small accounts* retailers sell to still smalleraccounts* and the $nternet to sell specialty items.
harles Schwab enables its customers to do transactionsin branch o:ces* o"er the phone* or "ia the $nternet.
Staples markets through traditional retail* direct1response $nternet site* "irtual malls* and
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3unctions performed in adistribution channel
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Mar&eting+esearch
Pro%otion
Buying
"istribution
Custo%erSer#ice
ProductPlanning
Pricing
3actors to consider whenselecting a channel
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The consumer The company The product The competitionDistributionchannels5egalities
Direct "s. indirect channels
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#anufacturer
holesaler
onsum
#anufacturer
#anufacturer
#anufacturer
onsum
onsum
onsum
Retailer
Retailerholesaler
"*+0CT
*;"*+0CT
#sD
)ush "ersuspull strategies
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p g
ManufacturerSer#ice Pro#ider
P
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$ndustrial distribution channelsDirect channels used extensi"ely.3ewer and larger transactions.Set speci cations.$ntermediaries more knowledgeable.
Team selling may be needed.5easing often required.#ore technical customer information.Sharing of shipping C warehousing.
Jey retailing functionsCollect product
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Collect productassort%ents and o er
the% for sale
+etailersPro#ide infor%ation
Store %erchandise5 %ar& prices5 and pay for goods
Conclude transactions.ith $nal consu%ers
+adio frequency distribution'+4*"( Tags
Tags auto transmit according to
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programmed instructions.Shipping and recei"ing9
)ermits e:cient recei"ing of entiretruckloads and containers.
an track indi"idual piece ofmerchandise sent to "endor./xpedited items tally with manifest.
hecking that goods are undamagedand that ordered recei"ed.
Store le"el95ocate lost items* deter theft.Analy-e shopping and tra:cpatterns.
hoice factors
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on"enience
2ariety of selection uality of products Oelp from salespeople Reputation
)rice Ser"ices o4ered
3unctions of wholesalers
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5ocal distribution.
Trained sales force.#arketing and research assistance.
Assortments for customers.
arehousing C deli"ery.
3inancing* nancial recordkeeping.
#erchandise adHustments for returns.
Risk1taking.
3ull1ser"ice merchantwholesalers
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Types of full-ser#ice%erchant
.holesalers
4ranchise:co%%onbusinessfor%at5
cooperation
+ac& =obberE:displays5 usesconsign%ent
sales
Cooperati#e:producer- orretailer-o.ned
Specialty%erchandise:carries a deep
assort%ent
1eneral%erchandise:
carries abroad
assort%ent
5imited1ser"ice merchantwholesalers
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Types of li%ited-ser#ice
%erchant.holesalers
Truc& .agon:sells anddeli#ers along
a route
"rop shipper:ships ite%s.ithout
handling the%
Mail order:sells throughcatalogs
Cash and carry:operatesan outlet for
retailer andbusiness needs
A marketing en"ironmentanalysis framework
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Successfully le"eragingcompany capabilities
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Iew markets* newproducts* etc.
ore competency
applied to
/xisting knowledge* facilities*patents* etc
hat is a di4erential ad"antageB Fnique features that attract
consumers.
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. ause consumers to patroni-e the
rm* and not its competitors. an be based on9 Distincti"e image Iew products or features )roduct quality ustomer ser"ice )ricing A"ailability
3actors to consider aboutconsumers
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Their demographics.
$nterpersonal inPuences.
onsumer,s decision making process.
onsumer groups and organi-ations.
Oow to communicate with them. Oow to maintain good community
relations.
3actors to consider aboutthe economy
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Rate of economic growth
onsumer con dence in the economy (ross domestic product osts of doing business9
Raw materials ages
Taxes $nterest rates )roperty rental costs
Real income /mployment situation
)olitical!regulatory en"ironment9competiti"e practice and tradelegislation
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legislation
The ompetition &ureau is responsible for theadministration and enforcement of the ompetitionAct* the onsumer )ackaging and 5abelling Act%non1food products'* the Textile 5abelling Act andthe )recious #etals #arking Act.
3actors to consider aboutgo"ernment
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le"els to consider.
$ncreased legislation. Special interest
groups. 5aws in place to
protect smaller rms.
onsumer protection
laws.Deregulation.#onitoring agencies.)olitical en"ironment.
hat about the (reen /nergy Act and go"ernmentsubsidies re alternate fuel useB Oow would it bedi4erent if you are in the O2A * "s. electricityproduction businessB hat if you were in
A marketing plan0. /xecuti"e Summary; urrent #arketing Situation
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;. urrent #arketing Situation. 6pportunity C $ssueAnalysis
+. 6bHecti"es. #arketing Strategies
)ositioning )roduct
)rice Distribution ommunications #arketing Research
G.Action )rograms?. )roHected )ro t C5oss Statement
>. $mplementationontrols
Steps in de"eloping thestrategic marketing plan
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Step one9 de ning the missionand!or "ision
#ADD stri"es to stop drunk dri"ing*
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p gsupport the "ictims of this "iolent
crime and pre"ent underage drinking.
M6ur mission is to preser"e the plants*animals* and natural communities thatrepresent the di"ersity of life on /arth byprotecting the lands and waters they need
Step two9 conduct a situationanalysis using S 6T
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(rowth strategies 6pportunity
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6pportunitymatrix
)enetrationstrategy
Acquisition 2ertical
integration Strategic alliance Di"estment ross marketing
#arket leadership
#arket challenger
#arket follower
ustomer excellence
6perational excellence
)roduct excellence
(rowth Strategies 16pportunity #atrix
M &
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#arket)enetration
Strategy
#arketDe"elopment
Strategy
)roductDe"elopment
StrategyDi"ersi catio
nStrategy
Present
Mar&et;e.Present
P r o
d u c t
;e.
)enetration strategyAggressi"e action is taken to build
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Aggressi e action is taken to buildcurrent businesses and brands.
oca1 olaDiet oke3ruitopiaDasani
)owerAde
"oca#"ola wants to be theleading beverage companyworldwide.
2ertical integration strategy
An organi-ation owns andt g i ti i
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operates organi-ations inother le"els of the channel ofdistribution.
Strategic alliance
A rel tionship bet een t o or more
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A relationship between two or morecompanies who decide to workcooperati"ely to achie"e goals.
Tim $ortons has kiosks in %sso outletscoast to coast.
Di"estment strategyA company retreats to its core business byselling unpro table di"isions or di"isions that
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don,t t strategically.
&rands formerly owned by )epsi o include9
)i--a Out* Taco &ell. J3 * /ast Side #arioZsStolichnaya* ilson Sporting (oods and IorthAmerican 2an 5ines.
ross1marketingTwo or more independent organi-ations
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Two or more independent organi ationsshare facilities and!or resources to markettheir goods and ser"ices to similar types ofcustomers.
hoosing a speci c attackstrategy )rice1discount
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)rice1discount 5ower price goods )restige goods )roduct proliferation )roduct inno"ation $mpro"ed ser"ices Distribution inno"ation #anufacturing cost reduction $ntensi"e ad"ertising promotion
Step three9 identifying ande"aluating opportunities usingsegmentation* targeting and
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positioning
Disney9 segmentation*targeting* positioning
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3amilies w!younger kids
Singles and ouples
Adults* families w!oldekids
#agic Jingdom
)leasure $sland
/pcot
Step four9 implement marketingmix and allocate resources
http://disneyworld.disney.go.com/wdw/parks/parkLanding?id=MKLandingPagehttp://disneyworld.disney.go.com/wdw/parks/parkLanding?id=EPLandingPagehttp://disneyworld.disney.go.com/wdw/parks/parkLanding?id=EPLandingPagehttp://disneyworld.disney.go.com/wdw/parks/parkLanding?id=MKLandingPage -
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Step "e9 e"aluate performanceand make adHustments
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A marketing plan0. /xecuti"e Summary;. urrent #arketing Situation
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. 6pportunity C $ssue
Analysis+. 6bHecti"es
. #arketing Strategies )ositioning )roduct
)rice Distribution ommunications #arketing Research
G.Action )rograms?. )roHected )ro t C
5oss Statement>. $mplementation
ontrols
Direct marketing uses non1personal media to reachpotential customers
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$t,s a complete sales presentation to make asale.
The key question is Mcan the good or ser"icebe sold with this approachBN
http9!!www.the1cma.org!
This is the Mhierarchy ofresponse beha"iourNSuspect
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/d#ocate
T.o-ti%ebuyer
One-ti%ebuyer
Prospect
Situation Analysis %from )/ST' ompany &ackground #arkets
S i ) d 5if l
A marketing plan
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Stage in )roduct 5ife ycle
ompetition )roducts hannels /n"ironment onsumer &eha"iour
$ssue Analysis %from S 6T'#ission and 6bHecti"es
#arketing 6bHecti"es Sales 6bHecti"es
#arketing #ix Segmentation* Targeting and )ositioning )roduct Strategies )ricing Strategies
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hannel Strategies
)romotion Strategies )ersonal Selling Trade )romotion onsumer )romotion )ublic Relations Ad"ertising
/"aluation #arketing Research ontrols
/xhibits %)/ST* S 6T* etc'
/KA#)5/S[appos E expanding distribution into anada %shoe distributor'2alue1based marketing E 6ld Ia"y %Y;+ Heans' "s. 5e"is %Y>@' and 2ersace%YG+@'[ara E keeping up with latest trends in /urope E implemented sophisticated$
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$T system into
customer tracking and S # E now [ara has o"er 0+ > store stores in ?;countries The Running Room E pro ling segments E type of people who enHoy runningand weekly run from the running room and teaching people how to run#cDonald,s M$,m lo"in, itN "s. &urger Jing,s MOa"e it your wayN E customerchoice
Di4erentiated segmentation E &lack and Decker brand to homeowners andDe alt line for professionals E same companyhanging product mix depth E onAgra E popcorn lines by introducing three
popular brands$ntroduction portion of lifespan of product E Swi4er
E