13-1. business in a changing world mcgraw-hill/irwin copyright © 2009 by the mcgraw-hill companies,...
TRANSCRIPT
13-1
Business in aChanging World
McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
Chapter 13Dimensions of Marketing Strategy
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Concord Music Group (CMG): A savvy flair for marketing.
Merger between Concord Records and Fantasy Records in 2004; added Telarc Records in 2005. Together, largest and fastest growing independent music companies in the world.
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The Marketing Mix
Key to developing marketing strategy•Maintain right mix•satisfy target market•Long-term customer relations
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Dimension of value surpassing all others:•Wal-Mart – price•Procter & Gamble – top consumer brands•Domino’s Pizza – distribution via home delivery
The Marketing Mix
Competitive Advantage
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Product Strategy –
•Fred Smith and Federal Express•Professor said “Smith’s idea would never fly”
The Marketing Mix
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Developing New Products – Multi-step process•Idea development•Screening of new ideas•Business analysis•Product development•Test marketing•Commercialization
Product Strategy
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Test marketing –
a trial mini-launch of a new product in limited areas that represent the potential market.
Product Development
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Commercialization – The full introduction of a complete marketing strategy and the launch of the product for commercial success.
Product Development
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ACNielsen Market Decisions
Product Development
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Classifying Products
Consumer Products•Convenience products•Shopping products•Specialty products
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Classifying Products
Business Products• Raw materials• Major equipment• Accessory equipment• Component parts• Processed materials• Industrial services
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Product line–Group of closely related products that are treated as a unit because of a similar marketing strategy, production, or end-use
Product Mix – All the products offered by the company
Marketing Mix
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Product Life-Cycle
The Life Cycle of a Product
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Product Life Cycle
45 years of strong sales – Mattel’s Barbie doll’s life cycle is waning. Today, edgier dolls like Bratz dolls give Barbie a run for her money.
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U.S. Hybrid Vehicle Sales
1999-2008
Product Life Cycle
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Identifying Products
Branding – process of identifying products•Name•Term•Symbol•Design
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Branding
The Most Valuable Brands in the World
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Brands
Manufacturer brands – initiated and owned by the manufacturer to identify products from production to point of purchase.
Private distributor brands – cost less than manufacturer brands; owned and controlled by wholesaler or retailer
Generic brands – no brand name often come in simple packages and carry their generic name.
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Packaging
External container holds & describes the product:•Protection•Economy•Convenience•Promotion
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Brands
Coca-Cola is the most valuable brand in the world
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Branding
Labeling (often by law):•Ingredients or content•Nutrition facts (calories, fat, etc.)•Care instructions•Suggestions or use (such as recipes)•The manufacturer’s address and toll-free number•Web site•Other useful information
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Product Quality
Product quality --Degree to which a good, service, or idea meets the demands and requirements of customers
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Quality
Customer Satisfaction with Airlines
1 AirTran
2 JetBlue
3 Southwest
4 Northwest
5 Frontier
6 Continental
7 Alaska
8 United
9 American
10 Delta
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Pricing Strategy
Four Common Pricing Objectives:•Maximize profits and sales•Boost market share•Maintain the status quo•Survival
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Pricing Strategies
New Product PricingPrice skimming Penetration pricing
Psychological Pricing Odd/EvenPrestige pricing
Price DiscountingQuantity discountsSeasonal discountPromotional discounts
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A Green Marketing Strategy
• Target Market-consumers that want to make eco-friendly decisions
• Product-designed to reduce impact on the environment
• Price-includes added costs• Promotion- electronic media to reduce the use of
natural resources • Distribution-reduce emissions through efficient
transport, communication, & supply chain management
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Distribution Strategies
Marketing Channels•Retailers (Wal-Mart, Sears)•Wholesalers (food brokers to restaurants)•E-tailers (Amazon.com)
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Retailers
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Intensity of Market Coverage
Intensive distributionMakes a product available in as many outlets as possible
Selective distributionUses only a small proportion of all available outlets to expose products
Exclusive distributionExists when a manufacturer gives a middleman the sole right to sell a product in a defined geographic territory
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Distribution
Physical distribution -- includes all the activities necessary to move products from producers to customers.
•Inventory control•Transportation•Warehousing•Materials handling
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Promotion Strategy
Promotion mix•Advertising•Personal selling•Publicity•Sales promotion
Integrated marketing communicationsThe process of coordinating the promotion mix elements and synchronizing promotion as a unified effort
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Personal Selling
Direct, two-way communication with sellers & potential buyers •Prospecting•Approaching•Presenting•Handling objections•Closing – asking for the order•Following up
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Promotion Strategies: To Push or Pull