what is marketing.doc

8/11/2019 What is Marketing.doc

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Key Concepts Marketing Strategy

Concepts, key terms linked to dictionary

Link to Discussion Board

What is Marketing?

Marketing is the process of planning and executing the conception, pricing, promotionand distribution of ideas, goods and services that satisfy individual and organizationalgoals. !M!

"roduct is the platform for attracting customers.!ll organizations are in the business of attracting customers.Can the above t#o statements be challenged$

%s marketing selling &' does it reduce the need for selling$

Discussion (opic) Challenge the above statements, using your o#n experiences asreference.

What are markets?

*xchange, division of labor, positive sum relationships, barter, money reduces friction.*volution of markets

+. (raditional bazaars. -eparation of supply and consumption

. Mass Markets / Media0. (arget Markets / 1iche Media2. *lectronic Markets) Meta Markets

Evolution of the Marketing Concept

+. Production ConceptDemand for goods and services 3 -upply ... therefore consumers gladlypurchased #hat #as being produced. "roducers have a captive market.%nvestment on increasing the efficiencies of production had the greatestimpact on company profitability. (hus smart businesses focused on

increasing productivity, rather than understanding the consumer. 4enry5ord6s 7uote) 8(he customer can have any color car as long as it is black8is closely identified #ith this era9 (his is appropriate for developingcountries, and evolved in the :- #ith the advent of the industrialrevolution.

. Sales ConceptDemand ; -upply ... therefore producers had to convinceconsumers topurchase their products. 5ocus of business investment starts shifting
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to#ards developing a robust sales mechanism in order to communicate#ith consumers. (he sales concept is also relevant for products consumersdo not seek out ordinarily, such as life insurance and dental treatment.

. Marketing Concept-upply 3 Demand ... therefore producers need to first understand #hat

consumers #anted, then produce those products, then convince consumersto purchase those products. (arget marketingand market segmentationbecame the ne# tools to increase company profitability.

0. One 2 One !elationship" Marketing Concept(he Marketing era evolved and sa# producers further segment theirmarkets, targeting smaller groups of consumers #ithin those markets. #hen you return to the site, you #ill receive recommendationsbased on your previous purchases. (his presentation is based not only on

your purchases =data stored in your cookie fileallo#s for this>, but onpurchases of others #ho have bought the same book and similar books.2. #iral Marketing

!n interesting thing is occuring, as #e are no# in a net#orked economy.&ur consumers are able to 8talk8 to each other and serve as an extendedsales force. (his lateral communication and / or transaction bet#eencustomers and noncustomers can serve as an opportunity for companiesto leverage. (he pioneer of viral marketing#as 4otmail. (his


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"lace =Distribution>

"romotion

&arget Markets

&rganizations select target markets#ithin the entire marketplace using marketsegmentation. (hey then develop a marketing mixto reach the target market.

Discussion (opic) %dentify the marketing mix for a product you use.

'our Cs

MacroenvironmentCustomersCompetitorsCollaborators

Company

Market Planning

0 Cs) Company, Collaborators, Competition, Customers0 "sMarket -egmentation*valuation and Budgets

Discussion (opic) %dentify a recent marketing campaign designed to create negativedemand.

'elevant #ebsites!merican Marketing !ssociation*dmunds.comMeta Market-B!) (he Marketing "lan

Link to Discussion Board'eturn to -yllabus&ld 1otes
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Marketing Strategy( Key Concepts 2

-ection +,

Strategic Planning Process

+. Corporate Level. Business Level. "roduct Level

4igher levels =corporate> govern lo#er level planning processes. -trategic planningre7uires)

+. "lanning. %mplementation

. Control

Corporate Strategic Planning

+. %dentify the company6s Mission. %dentify -B:s =customer focused>. !llocate 'esources across -B:s =BC Model * Model "roduct Life Cycle

systems>0. ro#th -trategies for -B:s =intensive integrative diversification>

Mission -tatement) "urpose Business alues 'eason to be$ %nvisible hand etc.

"roduct (erms...outdated(echnology (erms...outdatedMarket (erms...keep in touch #ith consumer6s needs5rom five years ago, and still relevant)

!(@( is in the communications business not the telephone business.

isa...allo#s customers to exchange values...not credit cards

M solves problems by putting innovation to #ork.

*xample Mission -tatements)

Mozilla.org

unicef Ben @ Aerry6s

"epsiCo

1e# Eork -tate *ducation6s Mission

Discussion (opic) 5ind your company6s mission statement. 4o# #ell is this statementunderstood among employees and customers$ *valuate the missions statements above#ith respect to purpose, business and values.
http://www.udel.edu/alex/market/key2.html#one%23onehttp://www.udel.edu/alex/market/key2.html#two%23twohttp://www.mozilla.org/mission.htmlhttp://www.unicef.org/mission.htmhttp://www.benjerry.com/mission.htmlhttp://www.pepsico.com/corp/content.shtmlhttp://www.nysed.gov/mission.htmlhttp://www.udel.edu/alex/market/key2.html#one%23onehttp://www.udel.edu/alex/market/key2.html#two%23twohttp://www.mozilla.org/mission.htmlhttp://www.unicef.org/mission.htmhttp://www.benjerry.com/mission.htmlhttp://www.pepsico.com/corp/content.shtmlhttp://www.nysed.gov/mission.html


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%dentify the limiting factors #ith the BC and * models.

%nsead I. athering 5eedback and *xercising Control

%f goal is to gro# a business by +2J, #hat other data are relevant to Fudge the merits ofthe goal$

Discussion (opic) Create a -.

Marketing Plans

5ocus on product and market focus on detailed marketing strategies for achieving theproduct6s obFectives in a target market.

Consider the difference bet#een strategic marketing and tactical marketing.

Marketing "lanning "rocess includes)

+. !nalyzing marketing opportunities. 'esearching and selecting target markets. Designing marketing strategies

0. planning marketing programs =marketing mix>2. implementation and control

"ut another #ay)+. -ituation !nalysis

o Corporate Capabilities and Culture

o Customer !nalysis

o Competitive !nalysis
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o Collaborators

o Macro %ssues

o -


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o 5e#er and Larger

o 1ature of Demand =Derived, %nelastic, 5luctuating>

o "urchase versus Lease

Buying "rocess consists of)

o "roblem 'ecognition

o eneral 1eed Description

o "roduct -pecification

o -upplier -earch

o "roposal -olicitation

o -upplier -election

o &rder 'outine -pecification

o "erformance 'evie#

Modified depending on #hether) -traight rebuy, Modified rebuy or 1e# task.

Contrast this #ith the Consumer buying process$


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your relation compared to other competitors is important =market leader versusfollo#er for instance> and the nature of the marketplace =monopoly, oligopoly andmonopolistic competition>.

Conse7uences of zero percent financing for autos$

1eed to consider competitors !1D customers for decisions.

%mportance of competitive intelligence.

Classification of competitors =brand, industry, form, generic>

Heep competitors$

%ndustry Concept of Competition)

o %mpacts of Barriers to *ntryand *xito 1umber of sellers and degree of competition =monopoly, oligopoly,

monopolistic competition, pure competition>o Cost -tructure

o Degree of ertical %ntegration

o Degree of lobalization

1e# *ntrants)%nnovators DilemmaDisruptive (echnology"riceline, *xpediaand !merican !irlinesversus (ravel !gent market place.

Discussion (opic) %dentify and discuss other industries prone to disruptivetechnologies.

-B!) (he Marketing "lan(he Marketing !udit Comes of !ge4o# to


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=employees, stockholders, suppliers and distributors>rotto "izza MissionCorporate culture needs to be consumercentric =begins

#ith the mission>!c7uire customers =set expectations> versus retaincustomers =do expectations fit #ith reality>"erceived value =7uality, service and value> versusdelivered valueBeat customer expectations. =delight customers>

4o# do customers perceive 7uality, ho# do you offer it

better than your competitors do$

*volution of Marketing Concept supports this) Competition in the Marketplace increasing =and

global> (echnology =DB and communications> allo#s

customers to learn more look at the evolution.

!elationship Marketing Management

1eed to build satisfaction through customer relationshipdevelopment activities.'elationship Marketing, process of attracting and retainingcustomers. !dd financial benefits, social benefits andstructural ties.Lifetime alue of a customer versus cost of ac7uiring a

customer

Customer !c7uisition Math *xample)Cost of -ales Call 2KK-ucces of -ales Call) + / 2
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Cost of ne# customer ,2KK =not including overhead>!verage Life alue of Customer)

!nnual Customer 'evenue) +K,KKK

!verage Life (ime) years"rofit Margin) +KJLife (ime alue) ,KKK

(his looks at averages, not at different consumers.

Do not try to satisfy all customers ... some more profitablethan others. 5ire customers, or move them to higher

profitability =increase price, reduce cost of service>. KIKK rule

Customers do not ordinarily complain, they simply do notbuy, and they may tell others9 *ncourage complaints tofilter to your company. =-ee Hellogg discussion>Cost of lost customers$

-urveying lost customersDiscussion (opic) 4o# does your company processcustomer complaints. #hat is done #ith them re) interaction#ith customer and changing business process$=!lternatively, as a customer, ho# have your complaintsbeen handled$>

%nternal marketing needsMaking Customer 'elationship Management


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*mail !utoresponder


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Cultural Characteristics) alues, "erceptions, preferencesand behaviors =learned from family>, fundamental topersons #ants.

Buyer behavior influenced by four factors)

cultural =culture, sub culture and social class=ethnocentrism and patriotism>>

social =reference groups, family, and roles andstatuses>

personal =age and life cycle state, occupation,

economic circumstance, life style, personality and selfconcept> psychological =motivation =freud, maslo#, hertzberg>,

perception, learning, and beliefs and attitudes>

Do Mixed *motions and !dvertising Mix$

4o# -tore Location and "ricing -tructure !ffect -hopping

BehaviorDecision influencers =initiator, influencer, decider, buyerand user> ... not as complex as BB buying decisioninfluencers.

(ypes of Buying -ituations)

Complex Buying Behavior Dissonance 'educing Buying Behavior 4abitual Buying Behavior ariety -eeking Buying Behavior

Consumer decisionmaking process)
http://www.ship.edu/~cgboeree/maslow.htmlhttp://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=251http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=203http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=203http://www.ship.edu/~cgboeree/maslow.htmlhttp://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=251http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=203http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=203


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+. 1eed 'ecognition. %nformation -earch. *valuation of !lternatives

0. "urchase Decision2. "ost "urchase Behavior

got milk$Change consumer attitudes about milk.

"atriotism


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(he basic marketing math that is needed to help makemarketing decisions are belo#. (hese are critical tounderstand #hen performing case analysis.

(hey include)

Break *ven !nalysis Lifetime alue of the Customer Market -egment -izing

Market Segment Si/ing

*stimate the number of customers by starting #ith the mostgeneral population, and then reducing according to thecharacteristics of the actual segment being sought.-egment value ; 1umber of Customers x alue perCustomer1umber of Customers ; "opulation x -egment -ize =J> x-egment "enetration =J>Customer alue ; Customer :sage 'ate x :nit "rice => x

:nit Contribution =J>

%mproving Decision Making


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NNDiscussion (opic) !ny issues #ith respect to the abovemarketing mathematics$

Marketing 0nformation Collection

Marketing %nformation -ystem)+. %nternal records. marketing intelligence system. marketing research

+. defining problem and research obFectives. developing the research plan. collecting information0. analyzing information2. presenting findings

0. marketing decision support system

NNDiscussion (opic) !ssess the impact of the #eb on thearea of data gathering.

Primary research( +ata gathering1

*xample surveys)-tanford


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Balance bet#een data gathering and the need forprivacy.Aunkbusters.com) ! great site to explore your privacyrights/issues.

Some useful secondary resource sites on the $e(

Business %nformationCyberatlas.com, Commerce1et, !merican Marketing!ssociation, ! Business 'esearchers %nterests, Bloomberg,C/1et, *D!', 4oover6s,1ational (rade Data Bank,"ublic 'egister6s !nnual 'eport -erviceovernment

Census Bureau, 5ed


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5aith "opcorn6s (rends-ierra ClubCreative Destruction) (he *ssence of Capitalism

'elevant HP< !rticle)'ole "laying) ! Method to 5orecast Decisions'ole "laying as a 5orecasting (oolMarketing -cience Meets 4olly#ood5orecasting in Conflicts) 4o# to predict #hat youropponenet #ill do.Making CD -ales 'ing

*thical %nspirations for Marketing Managers

Link to discussion board'eturn to -yllabus

Marketing Strategy( Key Concepts 3

"roduct scope) goods, services, experiences, events,persons, places, properties, organizations, information andideas.

"roduct Levels)

+. Core Benefits

. Basic "roduct) to satisfy core benefit sought. *xpected "roduct) meet buyers expectations for

product

5ocus of competition in LDC
http://www.faithpopcorn.com/trends/trends.htmhttp://www.sierraclub.org/http://http/www.npq.org/issues/v63/p10.htmlhttp://knowledge.wharton.upenn.edu/show_paper.cfm?id=651http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=72http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=323http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=512http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=512http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=99http://knowledge.wharton.upenn.edu/articles.cfm?catid=11&articleid=15http://webct.udel.edu:8900/webct/public/home.plhttp://www.udel.edu/alex/market/syllabus.htmlhttp://www.faithpopcorn.com/trends/trends.htmhttp://www.sierraclub.org/http://http/www.npq.org/issues/v63/p10.htmlhttp://knowledge.wharton.upenn.edu/show_paper.cfm?id=651http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=72http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=323http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=512http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=512http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=99http://knowledge.wharton.upenn.edu/articles.cfm?catid=11&articleid=15http://webct.udel.edu:8900/webct/public/home.plhttp://www.udel.edu/alex/market/syllabus.html


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0. !ugmented "roduct) exceed expectations5ocus of competition in developed countries

2. "otential "roduct) future possibilities

Competitive pressures push competition at the augmentedlevel, features at the augmented level become expectedfeatures, as the market adopts ne# features, furtherheightening competition. (his leaves room to developstripped do#n products for price conscious market.

Delight Customers by exceeding expectations.

"roduct 4ierarchy)

+. 1eed 5amily. "roduct 5amily. "roduct Class0. "roduct Line2. "roduct (ype

?. BrandG. %tem

"roduct Classifications) Different types of goods re7uiredifferent marketing mixesto be successful.

+. Durable oods. 1on Durable oods. -ervices

%nnovation of batteries$

Consumer oods Classification)
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Convenience) "ackaging is important to sell theproduct. Consumers #ill accept a substitute. Marketersfocus on intense distribution, time utility. Convenience

products can be categorized into staple =milk>, impulse=not intended prior to shopping trip>. Shopping) Consumers expend considerable effort

planning and making purchase decisions =i.e.,appliances, stereos, cameras>. Consumers are notparticularlybrandloyal. 1eed producer intermediarycooperation, high margins, less outlets thanconvenience goods. :se of sales personnel,

communication of competitive advantage, branding,advertising, customer service etc. !ttribute based =1on"rice Competition>, product #ith the best set ofattributes is bought. %f product attributes are Fudged tobe similar, then priced based.

Specialty) Buyer kno#s #hat they #ant and #ill notaccept a substitute, %* Mercedes. Do not compare

alternatives. Brand, store and person loyal.


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o "rocess materials) not readily identifiable part ofthe production of other products

Support Goodso

MaFor *7uipment)o !ccessory *7uipment) desk tops and toolso Consumable -upplies) %* "aper, pencils or ink

cartridgeso BusinesstoBusiness services) 5inancial, legal

marketing research etc.

%f an organization is marketing more than one product, it

has a product mix. Product itema single product Product lineall items of the same type Product mixtotal group of products that an

organization markets

Depthmeasures the Q of products that are offered #ithineach product line. -atisfies several consumer segments for

the same product, maximizes shelf space, discouragescompetitors, covers a range of prices and sustains dealersupport. 4igh cost in inventory etc.

Widthmeasures the Q of product lines a company offers.*nables a firm to diversify products, appeals to differentconsumer needs and encourages one stop shopping.

"roduct Line Decisions)Cannibalization and consumer movement issues%nternal =company> versus external =market>needs/decisions


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Coke 4unts for (alent ro 'e*stablish %ts Marketing Might

Brand


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4elps buyers evaluate 7uality of products especially ifunable to Fudge a products characteristics.

4elps reduce buyerRs perceived risk of purchase.

Buyer may derive a psychological re#ard fromo#ning the brand, %* 'olex or Mercedes.

&O SE55E!(

Differentiate product offering from competitors 4elps segment market by creating tailored images Brand identifies the companies products making

repeat purchases easier for customers 'educe price comparisons Brand helps firm introduce a ne# product that carries

the name of one or more of its existing products...halfas much as using a ne# brand, lo#er co. designs,advertising and promotional costs

*asier cooperation #ith intermediaries #ith #ellkno#n brands

5acilitates promotional efforts 4elps foster brand loyalty helping to stabilize market

share. 5irms maybe able to charge a premium for the brand.

Branding versus (actical "romotions$

Brand *7uity =Customer *7uity>

&perating profits expected profits for generic ) +K Mostaluable

-hare of Mind, !ttitudes ; %mage"o#er. Landor !ssociatesBrand a#areness ; considered set
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Brand a#areness)

+. #ithin relevant market=s>. #ith influencers

. #ith entire market

(he Best lobal Brands) 4andout%nterbrand) Best lobal Brand

Brand 1ame Decisions)

%ndividual 1ames) "rocter and amble, (ide, Cheer,

Bold 5amily 1ames) *, !(@(, and -ears (rade name #ith individual product name) Hraft

"roducts M5 Brand versus "rivate Brand$

Selecting a )rand 6ame

Criteria for choosing a name, some issues to consider) *asy for customers to say, spell and recall =inc.

international ppl> %ndicate products maFor benefits -hould be distinctive Compatible #ith all products in product line :sed and recognized in all types of media -ingle and multiple #ords Bic, Dodge rand Caravan,

%BM "C =letters>, or a combination Mazda 'G !vailability, already over 0KK car 8name plates8, this

makes it difficult to select a ne# one. :se #ords of no meaning to avoid negative

connotation, Hodak, *xxon
http://www.businessweek.com/magazine/toc/01_32/B3744magazine.htmhttp://www.brandchannel.com/features_effect.asp?id=82http://www.pg.com/http://www.ge.com/http://www.att.com/http://www.sears.com/http://www/kraft.comhttp://www/kraft.comhttp://www.businessweek.com/magazine/toc/01_32/B3744magazine.htmhttp://www.brandchannel.com/features_effect.asp?id=82http://www.pg.com/http://www.ge.com/http://www.att.com/http://www.sears.com/http://www/kraft.comhttp://www/kraft.com


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Can be created internally by the organization, or by aconsultancy

Legal restrictions, i.e. 5ood products must adhere to

the 1utrition Labeling and *ducation !ct, +SSK...MayI +SS0 lobal translations $

(he Brand "yramid)+. 5eatures) tangible characteristics of product. 5unctional Benefits) benefits to consumer for brand

features

. *motional 'e#ards) psychological or emotionalbenefits received by using brand6s product$

0. alues) #hat are the values of the typical loyalcustomer for this brand$

2. "ersonality) #hat #ords #ould you use to describebrand if it #ere a person$

1ameLab

Domain 1ames) 4ighFacking issues$ =4ighFacked Domainand1e# Domain>) 4elp9 %6ve Lost My Domain 1ame9

Discussion (opic) %nvestigate the above issues to determine#ho has rights to the use of a domain name.

&nline brand investment versus offline brand investment

"ampers

Discussion (opic) Discuss the challenges of branding onthe #eb, ho# are "ampers developing a branding strategy$
http://www.namelab.com/http://www.skatebuys.com/http://www.skate-buys.com/http://www.domainguru.com/article/347http://www.pampers.com/http://www.namelab.com/http://www.skatebuys.com/http://www.skate-buys.com/http://www.domainguru.com/article/347http://www.pampers.com/


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!rthur !ndersen changes name to !ndersen!ccenture no# a clear #inner #ithout !ndersen name%s there a #indo# of confusion$

!ndersen, !ccentureDiscussion (opic) Discuss the evolution of the value of thebrand) !ndersen

Brand Licensing

Discussion (opic) Discuss the role the corporate logo playsin branding. Cite logos and their inherent value. Discuss

logos #hich have changed, and #hy$

Packaging

Consists of a products physical container, label and/orinsert.!pproximately +KJ of product selling cost.Development of a container and a graphic design for a

product. Can affect purchase decisions %* pump dispenseron a tube of toothpaste.

"ackaging 5unctions include)

"rotect product and maintain functional form, %* milk. 5oil shop lifting &ffer convenience, :sage

"romote product by communicating features 8last 2seconds of mktg8, Campbells red labels...

Develop reusable package for alternative use. -egmentation, tailored to a specific group
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"ackaging decision serve the channel members and thefinal consumer.

Costho# much are customers #illing to pay for the

packaging$ "reprinted cost, use :"C codes Must comply #ith the 5D! packaging regulations. Make product tampering evident to the reseller and

customer, cost benefit #ith liability 1eed to consider consistency among package

designs5amily packaging...categoryconsistent..."ringles

1eed to inform potential buyers of ne# productscontent, features, uses, advantages and hazards.

1eed to create a desirable image through color etc.Can be designed to appear taller or shorter =thinvertical lines for taller> "eople associate specificcolors #ith certain feelings, 'ed #ith fire. Do notpackage meet in green99

Must meet the needs of resellerstransportation,storage and handling.

*nvironmental responsibility.

CD "acking %ssues

!&L "ackaging

Labeling

Product Positioning and Product !epositioning

Definition)(his refers to a place a product offering occupies in


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consumers6 minds on important attributes, relative tocompeting offerings.

4o# ne# and current items in the product mix are

perceived, in the minds of the consumer, thereforereemphasizing the importance of perception99

1e# "roductneed to communicate benefits*stablished "roductsneed to reinforce benefits

0deal Characteristics

1eed to introduce products that possess characteristics that

the target market most desires, ideal. "roduct positioning iscrucial.

Consumers desires refer to the attributes consumers #ouldlike the products to possess%D*!L "&%1(-. areperceived by consumers as being close to their ideal. (heobFective is to be 8more ideal8 than the competitors.

*ach product must provide some uni7ue combination ofne# features desired by the target market.

%nstead of allo#ing the customer to position productsindependently, marketers try to influence and shapeconsumers concepts and perceptions.

Marketers can use perception maps.

E%isting Products


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-un (an Lotion *xample)^

|

|

Old Position | New Position

|

| |

Glamour--------------------------------------------------Health

|

|

|

|

|

|

|

(raditional sun tan lotion positioned as aiding in getting avery glamorous deep tan etc.Dermatologist reports...skin cancer etc.Lifestyle needs change, move to more health conscioussociety1eed to reposition sun tan lotion as a healthy #ay to beexposed to the sun.(arget market has shifted from the left 7uartile to the right7uartile as far as needs are concerned.

-un tan marketers need to do same as far as changingconsumers perception for the product.4o#$

Change "romotion) 8(an don6t Burn8 (he -t. (ropez(an vs.:ltra -#eat "roof -erious tan for...Be -un-mart

Change "roduct) -unscreen and sunless tanning agent.

)MW positions on affordaility

^

Very a!e

| "e#us$in!initi

| %er&edes

| '%(

|

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important.4o#ever since every spreadsheet has that itRs an 8importantfundamental feature8, instead of an 8important

differentiating feature8.(he other side #ould be a spreadsheet that displays allnumbers in binary =K+> instead of 8normal8 numbers =KS>.(his is uni7ue but not important.

(he evaluation becomes a x matrix #ith uni7ueness onthe axis and importance on the Eaxis.

^ /m*ortant to 0% to&roer

%ath !un&tions | /m*ort ata

|

|

|

|

|

----------------------------------------------------------ni6ue

|

|

|

|

|

|

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'inary ata

%f the feature is in the upper right hand corner then youprobably have a #inning feature =:-">.

(his is kno#n as feature positioning, as opposed to productpositioning. &ne can then see #hat type of customer needsthe important =and perhaps uni7ue> features.

%f your spreadsheet accepts continuous data in realtime=such as stock market data> #hile *xcel doesn6t, you6dposition your spreadsheet as a 8realtime spreadsheet #ithall calculations needed by


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%ts a claim that tells something uni7ue about your product,#ho it6s for, and by implication, that *xcel can6t do it.

Product 5ife Cycle

"opularized by (heodore Levitt, +S?2"LC can be applied to)

product category = product style =Digital> a product item/brand =(imex>

5our -tages to the "roduct Life Cycle)

+. %ntroduction. ro#th. Maturity0. Decline

(he follo#ing material refers to the "LC as far as theproduct category is concerned unless other#ise stated.

0ntroduction

5ailure rate for ne# products can range from ?KJSKJ,depending on the industry. ! product does not have to be anentirely ne# product, can be a ne# model =car>, a ne#product for the company, or repositioning a product to ane# market.

Marketing Mi% MM" considerations

1eed to build channels of distribution/selective distributionDealers offered promotional assistance to support theproduct...":-4 strategy.Develop primary demand/pioneering information,
http://www.udel.edu/alex/market/key5.html#introduction%23introductionhttp://www.udel.edu/alex/market/key5.html#growth%23growthhttp://www.udel.edu/alex/market/key5.html#maturity%23maturityhttp://www.udel.edu/alex/market/key5.html#decline%23declinehttp://www.udel.edu/alex/market/key5.html#introduction%23introductionhttp://www.udel.edu/alex/market/key5.html#growth%23growthhttp://www.udel.edu/alex/market/key5.html#maturity%23maturityhttp://www.udel.edu/alex/market/key5.html#decline%23decline


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communications should stress the benefits of the product tothe consumer, as opposed to the brand name of theparticular product, since there #ill be little competition at

this stage and you need to educate consumers of theproduct6s benefits.Price skimming...set a high price in order to recoverdevelopmental costs as soon as possible.

Price penetration...set a lo# price in order to avoidencouraging competitors to enter the market, also helpsincrease demand and therefore allo#s the company to take

advantage of economies of scale.

7ro$th

1eed to encourage strong brand loyalty competitors areentering the market place. "rofits begin to decline late inthe gro#th stage.May need to pursue further segmentation.

MM considerations

May need to perform some type of product modification tocorrect #eak or omitted attributes in the product.

1eed to build brand loyalty =selective demand>,communications should stress the brand of the product,since consumers are more a#are of the products benefits

and there is more competition, must differentiate youroffering from your competitors.

May begin to move to#ard intensive distributiontheproduct is more accepted therefore intermediaries are moreinclined to risk accepting the product.


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"rice dealing/cutting or meeting competition, especially ifpreviously adopted a price skimming strategy.

Maturity

-ales curve peakssevere competition, consumers are no#experienced specialists.

MM Considerations

! product may be reFuvenated through a change in thepackaging, ne# models or aesthetic changes.!dvertising focuses on differentiating a brand, salespromotion aimed at customer =":LL> and reseller =":-4>.Move to more intense distribution"rice dealing/cutting or meeting competition"rovides company #ith a large, loyal group of stablecustomers. enerally cash co#s that can support otherproducts.-trategies during maturity include)

Modification of product...use line extensions 'eposition "roduct


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MM Considerations

-ome competition drop out1eed to time and execute properly the introduction,

alteration and termination of a product.Cannibalization strategies to introduce ne# products.

1eed to manage product mix through their respective lifecycles. products that compete #ith the current product offering. products as the existing product is still inthe gro#th stage of its life cycle.

+ifferent types of 5ife Cycle Curves

5ad Curve5leeting fashions vs. lasting shifts in consumerpreference. Cannot differentiate bet#een the t#o usingusual marketing tools like focus groups.

84and anyone a hula hoop, and they6ll have fun #ithitat first8

-easonal CurveLife cycles that vary by season, clothing etc.

+eveloping and Managing Products

(o compete effectively and achieve goals of an

organization, the organization must be able to adFust itsproduct mix.

1eed to understand competition and customer attitudes andpreferences.


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&ime% &urns do$n the S$atch

+SI, (imex turned do#n the opportunity to market8-#atches8.

(imex #as resting on its laurels, simple lo# cost #atches.Digital revolutionized industry technological change,(imex stuck #ith analog.

DD !"T #$$P UP WT% W&TC%$S $'"(UT"!

)*"+ & )U!CT"!&( "B,$CT T" & )&S%"!

&CC$SS"*-.

1o# consumer o#ns 2 #atches up from +.2 K years ago=emphasizing fashion need>. (imex has ac7uired uess andMonet Ae#ellers =distribution outlets> in an effort respondto change."roduct mix)Dressy #atches to


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Discussion (opic) Discuss the evolution of the DDstandard and its importance in ne# productdevelopment.

5or a ne# product to succeed it must have)

desirable attributes be uni7ue have its features communicated to the consumer =mkt

support necessary>

Developing ne# products is expensive and risky.

5ailure not to introduce ne# products is also risky. %*(imex above

5irms develop ne# products in three #ays)

By ac7uisition, i.e. (imex bought uess and MonetAe#ellers in +SS, bringing in ne# products to theirproduct mix.

!c7uiring patents, licensing technology %nternal development, this is #hat #e are going to

focus on.

!bout KH ne# products a year launched) about G2J arebrand extensions.

Why 6e$ Products 'ail

Lack of differentiating advantage "oor marketing plan "oor timing (arget market too small "oor product 7uality


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1o access to market

Seven phases to ne$ product development(

+. 1e# "roduct -trategy Development&nly a fe# ideas are good enough to reachcommercialization. %deas can be generated by chance,or by systematic approach and by company culture=M>. 1eed a purposeful, focused effort to identifyne# #ays to serve a market. 1e# opportunities appearfrom the changes in the environment.

. %dea enerationContinuous systematic search for ne# productopportunities.

o +arketing oriented sourcesidentifyopportunities based on consumer needs, labresearch is directed to satisfy that research. +IKKQs, research etc.

o (aoratory oriented sourcesidentify

opportunities based on pure research or appliedresearch.

o ntra/irm devisesbrain storming, incentives andre#ards for ideas. Ms "ost it, from choirpractice. 4e#lett "arkards lab is open 0 hrs.day. !nalyzing existing products, reading tradepublications.

Brainstorming /or your group pro0ect. deasshould not e critici1ed2 no matter ho3 o//4eat

they are.
http://www.3m.com/http://www.3m.com/


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. "roduct -creening and *valuation1e# product check list list ne# product attributesconsidered most important and compare each #ith

these attributes. Check list is standardized and allo#sideas to be compared.eneral characteristics, Marketing Characteristicsand "roduction Characteristics.

%deas #ith the greatest potential are selected forfurther research.

Do they match the organizations goals =-omecompanies have many patents that they have notexploited for this very reason.>

Look at companiesR ability to produce and market theproduct.

1eed to look at the nature and #ants of the buyers and

possible environmental changes.Concept (esting-ample of potential buyers is presented #ith theproduct idea through a #ritten or oral description todetermine the attitudes and initial buying intentions.

ConFoint !nalysis to see feature tradeoffs.

(his is done before investing considerable sums ofmoney and resources in 'esearch and Development.

Can better understand product attributes and thebenefits customers feel are most important.


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?. (est MarketingCan observe actual consumer behavior.Limited introduction in geographical areas chosen to

represent intended market.!im is to determine the reaction of probable buyers.%t is the sample launch of the Marketing Mix.Determine to go ahead, modify product, modifymarketing plan or drop the product.

"'&- are)

o

Lessens the risk of product failure.o 'educes the risk of loss of credibility or

undercutting a profitable product.o Can determine the #eaknesses in the MM and

make adFustments.o Can also vary parts of the MM during the test

market.o 1eed to select the appropriate MM and check the

validity.

C&1- are)

o (est market is expensive.o 5irm6s competitors may interfere.o Competitors may copy the product and rush it

out. %* Clorox detergent #ith bleach "@. 8%n a

live test you6ve tipped your hand, and believe me,the competition is going to come after you.:nless you have patented chemistry, they can ripyou off and beat you to a national launch8


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Director of Marketing at illette6s "ersonneldivision.

!lternatively can use a simulated test market. 5ree

samples offered in the mall, taken home andintervie#ed over the telephone later.

G. CommercializationCorresponds to introduction stage of the "roduct LifeCycle."lans for fullscale marketing and manufacturing must

be refined and settled.1eed to analyze the results of the test market todetermine any changes in the marketing mix.1eed to make decisions regarding #arranties etc=reduces consumers risk>.


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)uyers- Product 8doption Process

+. !#arenessBuyers become a#are of the product

. %nterestBuyers seek information and is receptive to learningabout product

. *valuationBuyers consider product benefits and determines#hether to try it

0. (rial

Buyers examine, test or try the product to determineusefulness relative to needs2. !doption

Buyers purchase the product and can be expected touse it #hen the need for the general type of productarises.

'ate of adoption depends on consumer traits as #ell as the

product and the firm6s marketing efforts.

+iffusion Process

(he manner in #hich different members of the targetmarket often accept and purchase a product =go through theadoption process>

+. %nnovators

(echnosavvies first customers to buy a product, .2 Jof consumers. *arly !dopters

(end to be opinion leaders. !dopt ne# products butuse discretion, +.2J


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. *arly MaFority0J of consumers, first part of the mass market to buythe product

0. Late MaForityLess cosmopolitan and responsive to change, 0J2. Laggards

"rice conscious, suspicious of change, +?J, do notadopt until the product has reached maturity.

%mplications to marketers, company must promote productto create #idespread a#areness of existence and benefits.

"roduct and physical distribution must be linked to patternsof adoption and repeat purchase.

Discussion topic) Discuss the differences in the ne#product development process for digital goods versustangible goods, consider intellectual property issues,standards issues etc$

!elevant Kno$ledge9Wharton 8rticles

Corporate -ponsorships of -tadiums and &ther %nstitutionsDonRt !l#ays "ay &ff-#itching names, effect of brand. alue to stadiums, valueto customers$4o# to Heep &thers 5rom 'ipping &ff Eour %deas"oachers !re &ut to "lunder Eour %ntellectual "roperty Can

you Do !nything$

%ntellectual "roperty)


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Link to discussion board'eturn to -yllabus

Marketing Strategy( Key Concepts :

Market 5ocus) Domestic versus %nternational"rotectionism versus open markets$ internationaltrade system

fe# versus many countries, percentage of sales determine #hich market to enter, risk versus rate of

return ho# to enter the market$ exporting, licensing, Foint

ventures and direct investment adaption of 0 "s$) (ext Books9
http://webct.udel.edu:8900/webct/public/home.plhttp://www.udel.edu/alex/market/syllabus.htmlhttp://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3LT6LG8ZC&live=true&tagid=IXLYK5HZ8CChttp://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3LT6LG8ZC&live=true&tagid=IXLYK5HZ8CChttp://webct.udel.edu:8900/webct/public/home.plhttp://www.udel.edu/alex/market/syllabus.htmlhttp://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3LT6LG8ZC&live=true&tagid=IXLYK5HZ8CChttp://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3LT6LG8ZC&live=true&tagid=IXLYK5HZ8CC


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organizational structure for international business$

*conomist) March nd, KK )(he -hort !rm of the La#

Discussion (opic) Discuss the complications of removingbribery from international transactions. "erishable =influence demand> ariable =standardization issues>
http://babelfish.altavista.com/http://www.ita.doc.gov/http://www.ita.doc.gov/http://www.exim.gov/http://www.bxa.doc.gov/http://www.wto.org/http://www.nafta-sec-alena.org/http://www.eurunion.org/http://europa.eu.int/http://europa.eu.int/http://www.oecd.org/http://www.oecd.org/http://www.usdoj.gov/criminal/fraud/fcpa.htmlhttp://www.transparency.org/http://www.transparency.org/http://www2.shell.com/home/Framework?siteId=royal-en&FC1=&FC2=&FC4=&FC5=&FC3=/royal-en/html/iwgen/About/how_we_work/management_primers.htmlhttp://babelfish.altavista.com/http://www.ita.doc.gov/http://www.ita.doc.gov/http://www.exim.gov/http://www.bxa.doc.gov/http://www.wto.org/http://www.nafta-sec-alena.org/http://www.eurunion.org/http://europa.eu.int/http://europa.eu.int/http://www.oecd.org/http://www.oecd.org/http://www.usdoj.gov/criminal/fraud/fcpa.htmlhttp://www.transparency.org/http://www.transparency.org/http://www2.shell.com/home/Framework?siteId=royal-en&FC1=&FC2=&FC4=&FC5=&FC3=/royal-en/html/iwgen/About/how_we_work/management_primers.html


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eneral Marketing %ssues) *xternal Marketing %nternal Marketing

%nteractive Marketing additional "s

"eople "hysical *vidence "rocesses

5ocus)

-earch Tualities) oods =clothing, Fe#elery> *xperience Tualities Credence Tualities) -ervices =medical, auto repair,

legal services>

!elevant Kno$ledge9Wharton 8rticles

"rescription Drug Coverage for -eniors 5aces :ncertain5uture

! Live Baby or Eour Money Back"oachers !re &ut to "lunder Eour %ntellectual "roperty UCan Eou Do !nything$*thical -tandards for lobal Corporations$*thical %nspiration for Marketing Managers! -earch for oogleRs -uccess (urns :p (#o


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o revenue max. =yield management pricingdynamic pricing>

o gro#th max. =penetration pricing ... 8free8>o

market skimmingo product7uality leadership =signaling effect$>

. Demand schedule) elastic versus inelastic demandissues =priceline>

"ercent change in 7uantity demanded relative to thepercent change in price.

J change in Ttty demandedJ change in price

%nelastic demand, less than + =+>:nitary demand, e7ual to +&l3ays take the asolute values

0nelastic +emand7|8

| 8

| 8

| 8

| 8

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7

Elastic +emand7|8

| 8

| 8

| 8

| 8

|-----------9tty
http://www.udel.edu/alex/dictionary.html#dynhttp://www.udel.edu/alex/dictionary.html#dyn


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7

(' ; "rice N Ttty%f demand is elasticthen change in price causes an

oppositechange in the total revenue.%f demand is inelasticthen change in price causes thesamechange in the total revenue1(he less elastic the demand, the more beneficial it isfor the seller to increase price.

. Cost issues) different levels of product =learning curveissues>, =dis>economies of scale, fixed/variable,

breakeven issues, marginal analysis

Marginal !nalysis)!verage ariable Cost, C/:nit produced

(otal Cost ; =!5CV!C>NT((E

+arginal cost; the extra cost to the firm forproducing one more unit.+arginal revenue; the extra revenue #ith the sale ofone additional unit.
http://www.udel.edu/alex/dictionary.html#leahttp://www.udel.edu/alex/dictionary.html#brehttp://www.udel.edu/alex/dictionary.html#leahttp://www.udel.edu/alex/dictionary.html#bre


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M' MC tells us if it is profitable to produce onemore unit."rofit maximization at M' ; MC

(o produce/sell more units than the point M' ; MCthe additional cost of producing one more unit isgreater than the additional revenue from selling onemore unit. !t any point prior to M' ; MC, M' #illbe greater than MC, therefore the additional revenuefrom selling one more unit #ill be greater than theadditional cost of producing one more unit, therefore

forgoing the opportunity to generate additional profits.(herefore M' ; MC ; "rofit Maximization assumingall products are sold.

Due to the environment, it is difficult to predict costsand revenues etc.Cost structures can influence pricing obFective) highlo# fixed variable makeup has significant impact on

contribution margins.

0. Competitors pricing2. "ricing method)

o Cost "lus) uarantees contribution simple to calculate not optimal

o Competition par #ith market price #ar implications$ not optimal

o alue


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optimal difficult to determine

?. 5inal price selection) odd / even etc.

5inancing issues.

Lifecycle "ricing issues. *specially #/ services, t#o tierpricing etc.

"rice -egmentation/Discrimination) arying prices due tomarket conditions, different consumers)

8cost to serve8 are different value of product are different service demands differ

Methods of segmentation/discrimination) "rice negotiation =second hand car examples, online

auctions> eography "rice and 7uantity discounts) seasonal discounts, trade

discounts, tradeins "romotion pricing) loss leader =lockin etc.>, special

event, rebates, lo# interest financing, #arranties Discriminatory pricing) customer segment pricing,

product form pricing, time pricing "roduct mix pricing) line pricing, optional feature, t#o

part pricing, product bundling "roduct bundling) office suite etc.

"rice changing issues =reducing or increasing> also relevantfor establishing a price, at above or belo# market)

Customer reactions


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Competitor reactions Collaborator reactions

ame theoryimplications of adopting prices in competitive

markets.

-ignal value of price changes to competitors andcustomers.

"rice transparency issues for establishing and changingprices.

Dealing #ith competitor price changes.

Discussion (opic)


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'etailers%s the "rice 'ight$ !sk Aay


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channel obFectives and constraints =based on product characteristics,

intermediaries, environment and competitors channels> buyer behavior =consumer and channel>

buyer demographics

identify channel alternatives =exclusive =BM vs. selective =clothes lines> vs.

intensive =orange Fuice>> competitors6 channels

channel terms and responsibilities

Channel incentives =trade promotions etc.>

evaluate channel by economic, adaptive and control criteria

Direct to market ; reater fixed cost

reater effectiveness / control over contacts

reater control over targeting

%ndirect to market ; reater variable cost

Less control / responsibility

reater coverage

Hno#ledge of customer #ithin channel

%ssues in selecting channel partners)


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Channel modification issues

(rends include vertical, horizontal and multichannel conflict.

%nternet has had significant impact re) building ne# channels and changing industries

through disintermediationand information flo# issues.

Legal and ethical issues)

*xclusive dealing

*xclusive territories

(ying agreements

Dealers6 rights

!etailing

'etailing includes all interactions #/ final customer -tore retailing =specialty, department stores, supermarkets, convenience,

superstores, discount stores, #arehouse stores, hypermarkets and catalogsho#rooms>

1onstore retailing =direct selling, direct mail billing, catalogs, #eb, vending

machines> 'etail organizations =corporate chains, voluntary chains / retailer cooperatives,

consumer cooperatives, franchises, independents>

'etail life cycle


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Wholesaling

manufacturers6 and retailers6 branches

miscellaneous #holesalers =e.g. agricultural, bulk chemicals>

%ncreasing importance of logistics, and providing a system#ide approach at reducingcosts.

Logistics decisions)

order processing =shorten order to remittance cycle>

#arehousing inventory

transportation =rail, air, trucks, #ater#ays, and pipelines>

%nteresting sites)

Carmax.comfor used cars

!mazon.comfor used books

1apsterand nutellafor music

Discussion (opic) %mpact of channel members creating a market for used product. %s this

good or bad for the market, ho# does it impact the value of the ne# product$

!elevant Kno$ledge 9 Wharton 8rticles

HmartRs KEear %dentity Crisis(aking -tock of -upermarket 'etail "erformance"ayfor"erformance (rade "romotions Can *ase 5riction Bet#een Manufacturers and
http://www.carmax.com/http://www.amazon.com/http://www.amazon.com/http://www.napster.com/http://www.napster.com/http://www.gnutella.com/http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=508http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=266http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=409http://www.carmax.com/http://www.amazon.com/http://www.napster.com/http://www.gnutella.com/http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=508http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=266http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=409http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=409


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'etailersChristmas *tailers) and / or transaction.

oal to develop relationships #ith customers.'apid gro#th rate.

catalog and direct mail sales gro#ing about GJ annually =retail sales P J>

internet gro#th rates =Cyberatlasis a great resource for the number>

ro#th due to innovations in) technology) databases =data mining and #arehouses> / communication systems

tollfree telephone services

payment systems =credit cards and smart cards>

"rovides continuity, better timing, testability and privacy. Can benefit both customers and

business #ith highly targeted and efficient exchanges.

Database marketing to support direct marketing. Companies can use their databases to)

identify prospects

differentiate offers

cross sell products

build loyalty

reactivate customer purchases

%ssues #ith direct marketing include)

+. annoyance. deception and fraud. privacy

MaFor direct marketing channels)

5aceto5ace

Direct Mail =inc. voicemail and email, bills, fax>
http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=409http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=110http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=502http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=203http://webct.udel.edu:8900/webct/public/home.plhttp://www.udel.edu/alex/market/syllabus.htmlhttp://www.cyberatlas.com/http://www.udel.edu/alex/dictionary.html#smahttp://www.udel.edu/alex/dictionary.html#prihttp://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=409http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=110http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=502http://knowledge.wharton.upenn.edu/articles.cfm?catid=4&articleid=203http://webct.udel.edu:8900/webct/public/home.plhttp://www.udel.edu/alex/market/syllabus.htmlhttp://www.cyberatlas.com/http://www.udel.edu/alex/dictionary.html#smahttp://www.udel.edu/alex/dictionary.html#pri


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Catalog Marketing =inc. CDs>

(elemarketing =use of computers / cell phones =contextual marketing>

( =direct response advertising / infomercials / shopping channels>

Hiosks =and vending machines>

&nline =permission based marketing>

&nline marketing is the most recent evolution of direct marketing. (his can createchannel conflict.

E>Commerce Marketing

-ession +) %ntroduction

-ession ) !spect of


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Definition)(o communicate #ith individuals, groups or organizationsto directly or indirectly facilitate exchanges by informing

and persuading one or more audiences to accept anorganization6s products.

Companies must communicate #ith their customers, thiscommunication should not be left to chance.Design communication to your specific target audience)

(arget Market

"art of (arget Market Different stakeholders of your organization.

"romotion) 5ourth element of the marketing mix. 1eed tomake sure the goals of promotion are integrated #ith other"s.

1eed to design a communications strategy, that integrates

the promotion mix) advertising) paid form of non personal communication

about an organization or its products that istransmitted to a target audience through a medium):-) +SSK, +I b, KKK K b =approx>, #orld#ide,GIK b. %n :-, 2J promotional budget

sales promotion) materials that act as a direct

inducement, offering adding value, or incentive for theproduct, to resellers, sales people or consumers) tradepromotions ; 0GJ of promotional budget, consumerpromotions ; IJ
http://www.udel.edu/alex/dictionary.html#mixhttp://www.udel.edu/alex/dictionary.html#mix


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public relations / publicity) ne#s story form about anorganization or its products or both, through a mediumat no charge

personal selling) personal communication in anexchange situation direct marketing

%ncreasing importance of %ntegrated MarketingCommunications ...


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+. %dentify target audience and characteristics, andperception of product, context etc.

. Define communications obFectives =not a#are,

a#areness, interest, evaluation, trial, adoption>.-eeking cognitive, affective or behavioral response. message)

+. content =rational / emotional / moral>. structure =one or t#o sided>. format =headline, copy, sound>0. source =trusted / likable / expert>

0. select media =communications channels>

2. establish budget =affordable / J sales / competitive /obFective and task>

Consider) push versus pull stage of purchase process stage of product life cycle

product complexity and risk market position

8dvertising

1eed to consider the follo#ing issues #hen considering#hether to advertise)

Does the product possess uni7ue, important features tofocus on :ni7ue -elling "oint =:-">

!re the hidden 7ualities important to the buyers %s the general demand trend for the product ade7uate %s the market potential for the product ade7uate %s the competitive environment favorable


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%s the organization able and #illing to spend there7uired money to launch an advertising campaign

%ssues to consider for advertisers) 'each) national, regional, local audience) industrial, consumer product) product, brand, institution obFectives) a#areness, interest, evaluation, trial,

adoption =inform, persuade or remind>

Decision making for advertising)

+. obFectives setting. budget decision =stage in product life cycle, marketshare, competition and clutter, needed fre7uency,product substitutability>

. message decisiono message generationo message evaluation and selection ... :-" $o message execution) structure depending on media

=print) headline, illustrations, sub headline, bodycopy, signature>defined obFective, defined product positioning,build product differentiation, consistent throughcampaign, strong integration, appropriate targetmarket, simple product centered message,positioning of brand name #ithin message

o social responsibility issues ... a #ider context ofevaluation

0. media decision


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o reach =Q of ppl exposed at least once>, fre7uency=total number of times reached> and impact=7uality of impact>

o

media types =( =J>, 1e#spaper =J>,Direct Mail =KJ>, &utdoor, Magazines =?J>,'adio =GJ>,


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rebates cash refunds product #arranties =high risk items>

premiums =McDonalds> prizes fre7uent user programs free trials point of purchase displays

Discussion (opic) (ake a look at -#eepstakesbuilder)


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Media relations

Dealing #ith bad publicity$

Sales

1eed to determine salesforce) obFectives prospecting, communicating, selling,

servicing, information gathering strategies) solo, team structure) territory =size / shape>, product, customer size compensation) salary, commission, bonus, expenses

"ersonal selling includes)+. prospecting and 7ualifying. preapproach) learn about prospect. approach) greeting0. presentation) tell the story2. overcoming obFections

?. closingG. follo#up and maintenance

%mportance of negotiations

-tandards versus flexibility

'elationship management versus single transaction

(echnologies impact on selling$ =Hno#ledge of customer /C'M / flexibility>

!elevant Kno$ledge 9 Wharton 8rticles


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Corporate -ponsorships of -tadiums and &ther %nstitutions DonRt !l#ays "ay &ffDo Mixed *motions and !dvertising Mix$(he Cell "hone as Marketing (ool)


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that maimi)e desired responses; *ecommended behaviors always have competition

which must be understood and addressed; The marketplace is constantly changing and so

program effects must be regularly monitored andmanagement must be prepared to rapidly alter

strategies and tactics.

These key concepts can be abbreviated as follows:

Action is the objective

The target audience is the

focus The echange is critical

+egment markets

,se all four Ps

Analy)e and beware of

competition

"onitor and be fleible

home about us social marketing success stories conferences related sites working papers

search employment listings register

Key concepts

Hey concepts of importance for utilising market information and market research)

C8SE CO6CEP&S

(he article discusses the continued opportunities that exist for nofrills air travel,allo#ing examination of market segmentationopportunities and the processes thatmay be involved in gathering Aualitativeand Auantitative dataon business andleisure travelers. 5urther, there is opportunity to discuss the different research

methodologiesthat could be employed and the arguments for the creation of aneffective marketing information system.

CB8P&E! CO6CEP&S

+arketing n/ormation System(he system consists of people, technology, and processes to gather, sort, analyse,
http://www.social-marketing.org/index.htmlhttp://www.social-marketing.org/aboutus.htmlhttp://www.social-marketing.org/sm.htmlhttp://www.social-marketing.org/success.htmlhttp://www.social-marketing.org/conferences.htmlhttp://www.social-marketing.org/relatedsites.htmlhttp://www.social-marketing.org/relatedsites.htmlhttp://www.social-marketing.org/papers.htmlhttp://www.social-marketing.org/search.htmlhttp://www.social-marketing.org/employment.htmlhttp://www.social-marketing.org/asp_scripts/frmSMIReg.asphttp://www.social-marketing.org/index.htmlhttp://www.social-marketing.org/aboutus.htmlhttp://www.social-marketing.org/sm.htmlhttp://www.social-marketing.org/success.htmlhttp://www.social-marketing.org/conferences.htmlhttp://www.social-marketing.org/relatedsites.htmlhttp://www.social-marketing.org/papers.htmlhttp://www.social-marketing.org/search.htmlhttp://www.social-marketing.org/employment.htmlhttp://www.social-marketing.org/asp_scripts/frmSMIReg.asp


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and disseminate information in a timely and accurate form for marketing decisionmakers. %nterestingly the elements identified for a marketing information system arethe same as for any other type of management information system. (he uni7uenessof a marketing information system is the focus on marketing orientated information.

Developing n/ormation(he information re7uired by marketing professionals from a marketing informationsystem, as described in 5igure I.+ on p.+G, emphasizes internal company records,marketing intelligence, and market research. (he information analysis system,typically driven by specialist computer technology, processes data to producemeaningful and useful information.

De/ining the +arket

! market is termed by many as a place #here buyers and sellers communicated inthe process of buying and selling goods. (raditionally the place of such exchanges

#ould be physical in nature but due to developments in technology the location formany markets is also becoming virtual.

&ssessing Current +arket DemandMarketing professionals need to be able to assess three aspects of current marketdemand) total market demand area market demand and actual sales and marketshare. (he measurement process is currently driven by online marketing databasesystems #hich are developed through dedicated market assessment organisations orby the actual buyers and sellers #ithin an industry. (he gathering and distribution ofinformation is no# becoming more timely and responsive due to computernet#orks and buyer/supplier net#orks in both consumer and business markets.

)orecasting )uture Demand

Market estimates are needed in order to Fudge future sales and market potential incountries, regions, cities and to#ns. (his enables many organisations to allocatemarketing budgets more cost effectively amongst chosen locations.

Keyconc

epts

Hey concepts relevant to learning)

C8SE CO6CEP&S

(he case looks for an application of marketing servicesto the


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entertainment industry, in particular multiscreen cinema theatres. (hespecific characteristicsof the cinema service are indicated, re7uiringthe suggestions of alternative marketing strategiesfor the use ofcinema venues.

what is marketing.doc

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