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©2000 Prentice Hall
ObjectivesObjectives
Course OrganizationCourse Organization Tasks of MarketingTasks of Marketing Major Concepts & Tools of MarketingMajor Concepts & Tools of Marketing Marketplace OrientationsMarketplace Orientations Marketing’s Responses to New Marketing’s Responses to New
ChallengesChallenges
©2000 Prentice Hall
Defining MarketingDefining Marketing
Marketing is a societal process by Marketing is a societal process by which individuals and groups obtain which individuals and groups obtain what they need and want through what they need and want through creating, offering, and freely creating, offering, and freely exchanging products and services of exchanging products and services of value with others. value with others.
- Philip Kotler (p. 7)- Philip Kotler (p. 7)
©2000 Prentice Hall
Simple Marketing SystemSimple Marketing System
Industry(a collection
of sellers)
Market(a collection
of Buyers)
Goods/services
Money
Communication
Information
©2000 Prentice Hall
Production ConceptProduction Concept
Product ConceptProduct Concept
Selling ConceptSelling Concept
Marketing ConceptMarketing Concept
Consumers prefer products that are widely available and inexpensive
Consumers favor products that offer the most quality, performance,
or innovative features
Consumers will buy products only ifthe company aggressively
promotes/sells these products
Focuses on needs/ wants of target markets & delivering value
better than competitors
Company Orientations Towards the Marketplace
Company Orientations Towards the Marketplace
©2000 Prentice Hall
ObjectivesObjectives
Define value & satisfaction - understand Define value & satisfaction - understand how to deliver themhow to deliver them
The nature of high-performance The nature of high-performance businessesbusinesses
How to attract & retain customersHow to attract & retain customers Improving customer profitabilityImproving customer profitability Total quality managementTotal quality management
©2000 Prentice Hall
Resources Organizationand
aligning...
High Performance BusinessHigh Performance Business
ProcessesBy improving critical business...
Stake-holders
Set strategies to satisfy key...
©2000 Prentice Hall
Satisfied Customers:Satisfied Customers:
Are loyal longerAre loyal longer Buy more (new products & upgrades)Buy more (new products & upgrades) Spread favorable word-of-mouthSpread favorable word-of-mouth Are more brand loyal (less price Are more brand loyal (less price
sensitive)sensitive) Offer feedbackOffer feedback Reduce transaction costsReduce transaction costs
©2000 Prentice Hall
Inactive orex-customers
Customer DevelopmentCustomer Development
PartnersAdvocatesClientsRepeat
customersFirst-timecustomers
Suspects
Prospects
Disqualifiedprospects
©2000 Prentice Hall
Customer/Product Profitability AnalysisCustomer/Product
Profitability Analysis
P1
Highlyprofitableproduct
P2Profitableproduct
P3Losingproduct
P4Mixed-bag
product
Products
++
+Highprofit
customer
+
-Mixed-bagMixed-bagcustomercustomer
+
--Losing
customer
C1 C2 C3
Customers
©2000 Prentice Hall
ObjectivesObjectives
Corporate and division strategic planingCorporate and division strategic planing Business unit planningBusiness unit planning The marketing processThe marketing process Product level planningProduct level planning The marketing planThe marketing plan
©2000 Prentice Hall
Market-Oriented Strategic Planning
Market-Oriented Strategic Planning
Objectives
Skills
Resources
Opportunities
©2000 Prentice Hall
Market-Oriented Strategic Planning
Market-Oriented Strategic Planning
Objectives
Skills
Resources
Opportunities
Profitand
Growth
©2000 Prentice Hall
Corporate Headquarters Planning
Corporate Headquarters Planning
Define the corporate missionDefine the corporate mission Establish strategic business units Establish strategic business units
(SBUs)(SBUs) Assign resources to SBUsAssign resources to SBUs Plan new business, downsize older Plan new business, downsize older
businessesbusinesses
©2000 Prentice Hall
The Marketing PlanThe Marketing Plan
Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
©2000 Prentice Hall
ObjectivesObjectives
Components of a marketing information Components of a marketing information systemsystem
Criteria of good marketing researchCriteria of good marketing research Decision support systems for marketing Decision support systems for marketing
managementmanagement Demand measurement and forecastDemand measurement and forecast
©2000 Prentice Hall
A marketing information system (MIS)marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
A marketing intelligence systemmarketing intelligence system is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment.
©2000 Prentice Hall
Research ApproachesResearch Approaches
BehavioralBehavioral
Focus-groupFocus-group
SurveySurvey
ExperimentalExperimental
ObservationalObservational
©2000 Prentice Hall
Secondary-Data SourcesSecondary-Data Sources
Internal SourcesInternal Sources Government PublicationsGovernment Publications Periodicals and BooksPeriodicals and Books Commercial DataCommercial Data On-LineOn-Line
AssociationsAssociationsBusiness InformationBusiness Information
©2000 Prentice Hall
Good Marketing Research:Good Marketing Research:
Is scientificIs scientific Is creativeIs creative Uses multiple methodsUses multiple methods Realizes the interdependence of models Realizes the interdependence of models
& data& data Acknowledges the cost & value of Acknowledges the cost & value of
informationinformation Maintains “healthy” skepticismMaintains “healthy” skepticism Is ethicalIs ethical
©2000 Prentice Hall
DemandDemand
MarketDemand
CompanyDemand
©2000 Prentice Hall
Estimating Current DemandEstimating Current Demand
Total Market PotentialTotal Market Potential Area Market PotentialArea Market Potential Industry SalesIndustry Sales Market ShareMarket Share
©2000 Prentice Hall
Estimating Future DemandEstimating Future Demand
Survey of Buyers’ IntentionsSurvey of Buyers’ Intentions Composite of Sales Force OpinionComposite of Sales Force Opinion Expert OpinionExpert Opinion Past Sales AnalysisPast Sales Analysis Market Test MethodMarket Test Method
©2000 Prentice Hall
©2000 Prentice Hall
ObjectivesObjectives
Tracking & Identifying Opportunities in Tracking & Identifying Opportunities in the Macroenvironmentthe Macroenvironment
Demographic, Economic, Natural, Demographic, Economic, Natural, Technological, Political, & Cultural Technological, Political, & Cultural DevelopmentsDevelopments
©2000 Prentice Hall
Macroenvironmental ForcesMacroenvironmental Forces
World trade enablersWorld trade enablers Asian economic powerAsian economic power Rise of trade blocsRise of trade blocs International monetary crisesInternational monetary crises Use of barter & countertradeUse of barter & countertrade Move towards market economiesMove towards market economies ““Global” lifestylesGlobal” lifestyles
©2000 Prentice Hall
Macroenvironmental ForcesMacroenvironmental Forces
Opening of “new” marketsOpening of “new” markets Emerging transnational firmsEmerging transnational firms Cross-border strategic alliancesCross-border strategic alliances Regional ethnic & religious conflictRegional ethnic & religious conflict Global brandingGlobal branding
©2000 Prentice Hall
Demographic EnvironmentDemographic Environment
Worldwide Population GrowthWorldwide Population Growth
Population Age MixPopulation Age Mix
Ethnic MarketsEthnic Markets
Household PatternsHousehold Patterns
Educational GroupsEducational Groups
Geographical Shifts in PopulationGeographical Shifts in Population
Shift from Mass Market to MicromarketsShift from Mass Market to Micromarkets
©2000 Prentice Hall
Economic EnvironmentEconomic Environment
Income DistributionIncome Distribution
Subsistence economiesSubsistence economies
Raw-material-exporting economiesRaw-material-exporting economies
Industrializing economiesIndustrializing economies
Industrial economiesIndustrial economies
Savings, Debt, & Credit AvailabilitySavings, Debt, & Credit Availability
©2000 Prentice Hall
NaturalEnvironment
Higher PollutionLevels
Higher PollutionLevels
Increased Costsof Energy
Increased Costsof Energy
Shortage of Raw MaterialsShortage of
Raw Materials
Changing Roleof GovernmentChanging Roleof Government
©2000 Prentice Hall
Accelerating Paceof Change
Accelerating Paceof Change
Unlimited Opportunitiesfor Innovation
Unlimited Opportunitiesfor Innovation
IncreasedRegulation
IncreasedRegulation
Issues in the TechnologicalEnvironment
Issues in the TechnologicalEnvironment
VaryingR & D Budgets
VaryingR & D Budgets
©2000 Prentice Hall
Political-Legal
Environment
Political-Legal
Environment
IncreasedLegislation
IncreasedLegislation
Special-InterestGroups
Special-InterestGroups
©2000 Prentice Hall
Social/Cultural EnvironmentSocial/Cultural Environment
OfOfOrganizationsOrganizations
OfOfNatureNature
OfOfOneselfOneself
OfOfSocietySociety
OfOfthe Universethe Universe
OfOfOthersOthers
ViewsThat Express
Values
ViewsThat Express
Values
©2000 Prentice Hall
Social/Cultural EnvironmentSocial/Cultural Environment
©2000 Prentice Hall
©2000 Prentice Hall
ObjectivesObjectives
Influences on Buying BehaviorInfluences on Buying Behavior Buyer Decision MakingBuyer Decision Making
©2000 Prentice Hall
Simple Response ModelSimple Response Model
StimulusStimulusStimulusStimulus OrganismOrganismOrganismOrganism ResponseResponseResponseResponse
©2000 Prentice Hall
Culture
Cultural FactorsCultural Factors
Subculture
Social Class
BuyerBuyer
©2000 Prentice Hall
Social FactorsSocial Factors
ReferenceGroups
ReferenceGroups
Roles &Statuses
Roles &StatusesFamilyFamily
©2000 Prentice Hall
Influences on Consumer Behavior
Influences on Consumer Behavior
Personal InfluencesPersonal Influences
Age and Family Life Cycle Stage
Age and Family Life Cycle Stage LifestyleLifestyle
Occupation &Economic Circumstances
Occupation &Economic Circumstances
Personality & Self-Concept
Personality & Self-Concept
©2000 Prentice Hall
Psychological FactorsPsychological Factors
PerceptionPerception LearningLearning
Beliefs &AttitudesBeliefs &Attitudes
MotivationMotivation
©2000 Prentice Hall
Four Types of Buying Behavior
Four Types of Buying Behavior
ComplexBuying
Behavior
Dissonance-Reducing Buying
Behavior
Variety-SeekingBehavior
HabitualBuying
Behavior
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
HighInvolvement
LowInvolvement
©2000 Prentice Hall
TotalSet
Decision Making Sets
Aware-nessSet
Consid-eration
SetChoice
Set Decision
©2000 Prentice Hall
ObjectivesObjectives
How Business & Consumer Markets DifferHow Business & Consumer Markets Differ Organizational Buying SituationsOrganizational Buying Situations Participants in the Business Buying Participants in the Business Buying
ProcessProcess Major Influences on Organizational BuyersMajor Influences on Organizational Buyers Business Buyer Decision MakingBusiness Buyer Decision Making Institutional & Government BuyingInstitutional & Government Buying
©2000 Prentice Hall
Organizational FactorsOrganizational Factors
Purchasing-DepartmentUpgrading
Cross-Functional
Roles
CentralizedPurchasing
Decentralized Purchasing
of SmallTicket Items
InternetPurchasing
Long-TermContracts
Purchasing-PerformanceEvaluation &Pro. Buyers
LeanProduction
©2000 Prentice Hall
Problem RecognitionProblem Recognition
General Need DescriptionGeneral Need Description
Product SpecificationProduct Specification
Supplier SearchSupplier Search
Proposal SolicitationProposal Solicitation
Supplier SelectionSupplier Selection
Order Routine SpecificationOrder Routine Specification
Performance ReviewPerformance ReviewPostPost
PurchasePurchase
PurchasePurchase
InfoInfoSearch/Search/
EvalEval
NeedNeedRecognitionRecognition
©2000 Prentice Hall
Institutional MarketsInstitutional MarketsInstitutional MarketsInstitutional Markets
Captive PatronsCaptive PatronsCaptive PatronsCaptive PatronsLow BudgetsLow BudgetsLow BudgetsLow Budgets
©2000 Prentice Hall
Government MarketsGovernment Markets
Domestic SuppliersDomestic Suppliers
Open BidsOpen BidsCost MinimizationCost Minimization
Public ReviewPublic Review
PaperworkPaperwork
©2000 Prentice Hall
ObjectivesObjectives
Identifying CompetitorsIdentifying Competitors Evaluating CompetitorsEvaluating Competitors Competitive Intelligence SystemsCompetitive Intelligence Systems Competitive StrategiesCompetitive Strategies Customer vs. Competitor OrientationCustomer vs. Competitor Orientation
©2000 Prentice Hall
Industry CompetitionIndustry Competition
Number of Sellers - Degree of Number of Sellers - Degree of DifferentiationDifferentiation
Entry, Mobility, Exit barriersEntry, Mobility, Exit barriers Cost StructureCost Structure Degree of Vertical IntegrationDegree of Vertical Integration Degree of GlobalizationDegree of Globalization
©2000 Prentice Hall
Analyzing CompetitorsAnalyzing Competitors
CompetitorCompetitorActionsActions
ObjectivesObjectives
Strengths &Strengths &WeaknessesWeaknesses
ReactionReactionPatternsPatterns
StrategiesStrategies
©2000 Prentice Hall
Competitor’s Expansion PlansCompetitor’s Expansion Plans
Markets
Pro
duct
s
IndividualUsers
Commercial & Industrial Educational
PersonalComputers
HardwareAccessories
Software
Dell
©2000 Prentice Hall
Hypothetical Market Structure & Strategies
Hypothetical Market Structure & Strategies
40%
Marketleader
30%
Marketchallenger
20%
Marketfollower
Expand MarketDefend Market Share
Expand Market Share
Attack leaderStatus quo
Imitate
10%
Marketnicher
Special-ize
©2000 Prentice Hall
Defense StrategiesDefense Strategies
AttackerAttacker
(3)(3) PreemptivePreemptivedefensedefense
(4)(4) Counter-Counter-offensiveoffensivedefensedefense Defender
(1)(1)PositionPositiondefensedefense
(5)Mobile
defense
(2) (2) Flank defenseFlank defense
(6) (6) ContractionContractiondefensedefense
©2000 Prentice Hall
Attack StrategiesAttack Strategies
AttackerDefender
(3) Encirclement attack
(4) Bypass attack
(2) Flank attack
(5) Guerilla attack
(1) Frontal attack
©2000 Prentice Hall
Specific Attack StrategiesSpecific Attack Strategies
Price-discountPrice-discount Cheaper goodsCheaper goods Prestige goodsPrestige goods Product proliferationProduct proliferation Product innovationProduct innovation Improved servicesImproved services Distribution innovationDistribution innovation Manufacturing cost reductionManufacturing cost reduction Intensive advertising promotionIntensive advertising promotion
©2000 Prentice Hall
“Nichemanship”“Nichemanship”
End-user specialistEnd-user specialist Vertical-level specialistVertical-level specialist Customer-size specialistCustomer-size specialist Specific-customer specialistSpecific-customer specialist Geographic specialistGeographic specialist Product or product-line specialistProduct or product-line specialist Product-feature specialistProduct-feature specialist Job-shop specialistJob-shop specialist Quality-price specialistQuality-price specialist Service specialistService specialist Channel specialistChannel specialist
©2000 Prentice Hall
BalanceBalance
CompetitionCustomer
+ Fighter orientation+ Alert+ Exploit weaknesses- Reactive
+ ID opportunities+ Long-run profit+ Emerging needs & groups
©2000 Prentice Hall
ObjectivesObjectives
Identifying Market SegmentsIdentifying Market Segments Choosing Target MarketsChoosing Target Markets
©2000 Prentice Hall
Market-Segmentation Procedure
Market-Segmentation Procedure
SurveySurveyMotivationsMotivationsAttitudesAttitudesBehaviorBehavior
AnalysisAnalysisFactorsFactorsClustersClusters
ProfilingProfiling
©2000 Prentice Hall
Bases for Segmenting Consumer Markets
Bases for Segmenting Consumer Markets
Occasions, Benefits, Uses, or Attitudes
Behavioral
GeographicRegion, City or MetroSize, Density, Climate Demographic
Age, Gender, Family size and Life cycle, Race, Occupation, or Income ...
Lifestyle or PersonalityPsychographic
©2000 Prentice Hall
Bases for Segmenting Business Markets
Bases for Segmenting Business Markets
DemographicDemographic Operating VariablesOperating Variables Purchasing ApproachesPurchasing Approaches Situational FactorsSituational Factors Personal CharacteristicsPersonal Characteristics
©2000 Prentice Hall
Measurable Measurable
AccessibleAccessible
SubstantialSubstantial
DifferentialDifferential
• Segments must be large or profitable enough to serve.
• Segments can be effectively reached and served.
ActionableActionable
• Size, purchasing power, profiles of segments can be measured.
• Segments must respond differently to
different marketing mix elements & actions.
• Must be able to attract and serve
the segments.
Effective SegmentationEffective Segmentation
©2000 Prentice Hall
Additional Segmentation Criteria
Additional Segmentation Criteria
Ethical Choice of Market TargetsEthical Choice of Market Targets Segment Interrelationships & Segment Interrelationships &
SupersegmentsSupersegments Segment-by-Segment Invasion PlansSegment-by-Segment Invasion Plans Intersegment CooperationIntersegment Cooperation
©2000 Prentice Hall
ObjectivesObjectives
Identify Differentiating AttributesIdentify Differentiating Attributes Choosing & Communicating Effective Choosing & Communicating Effective
PositioningPositioning Marketing Strategies Along the Product Marketing Strategies Along the Product
Life CycleLife Cycle Marketing Strategy & Market EvolutionMarketing Strategy & Market Evolution
©2000 Prentice Hall
Product DifferentiationProduct Differentiation
FormFea-
turesPerfor-mance
QualityConform-
anceQuality
Dura-bility
Relia-bility
Repair-ability
Style Design
©2000 Prentice Hall
DeliveryDelivery
Services DifferentiationServices Differentiation
OrderingEase
OrderingEase
Maintenance& Repair
Maintenance& Repair
CustomerTraining
CustomerTraining
InstallationInstallation CustomerConsulting
CustomerConsulting
MiscellaneousS
ervices
©2000 Prentice Hall
DifferentiationDifferentiation
PersonnelPersonnel ChannelChannel
©2000 Prentice Hall
Media Atmosphere
Symbols
Events
Image DifferentiationImage Differentiation
©2000 Prentice Hall
Differences WorthDifferences WorthEstablishingEstablishing
AffordableAffordable SuperiorSuperior
ProfitableProfitable
PreemptivePreemptive
DistinctiveDistinctive
ImportantImportant
©2000 Prentice Hall
PositioningPositioning is the act of is the act of designing the company’s designing the company’s
offering and image to offering and image to occupy a distinctive occupy a distinctive
place in the the target place in the the target market’s mind. market’s mind. P 298 P 298
©2000 Prentice Hall
Sales & Profit Life CyclesSales & Profit Life Cycles
IntroductionIntroduction GrowthGrowth MaturityMaturity DeclineDecline
TimeTimeSal
esS
ales
&
& p
rofi
tsp
rofi
ts (
$) (
$)
©2000 Prentice Hall
Four IntroductoryMarketing Strategies
Four IntroductoryMarketing Strategies
Rapid-Rapid-skimmingskimmingstrategystrategy
Rapid-Rapid-skimmingskimmingstrategystrategy
Rapid-Rapid-penetrationpenetration
strategystrategy
Rapid-Rapid-penetrationpenetration
strategystrategy
Slow-Slow-penetrationpenetration
strategystrategy
Slow-Slow-penetrationpenetration
strategystrategy
Slow-Slow-skimmingskimmingstrategystrategy
Slow-Slow-skimmingskimmingstrategystrategy
PricePrice
LowLow
HighHigh
PromotionPromotionHighHigh LowLow
©2000 Prentice Hall
Maturity StageMaturity Stage
Market ModificationMarket Modification Product ModificationProduct Modification Marketing-Mix ModificationMarketing-Mix Modification
©2000 Prentice Hall
Decline StageDecline Stage
Decrease investmentDecrease investment Resolve uncertainties - stable Resolve uncertainties - stable
investmentinvestment Selective nichesSelective niches HarvestingHarvesting DivestingDivesting
©2000 Prentice Hall
Market EvolutionMarket Evolution
EmergenceEmergence GrowthGrowth MaturityMaturity DeclineDecline
©2000 Prentice Hall
ObjectivesObjectives
Challenges in New Product Development (NPD)Challenges in New Product Development (NPD) Organizational Structure & NPDOrganizational Structure & NPD Stages & Management of NPDStages & Management of NPD Diffusion & Adoption of New ProductsDiffusion & Adoption of New Products
©2000 Prentice Hall
Why New Products FailWhy New Products Fail
““Over Championing”Over Championing” Overestimated DemandOverestimated Demand Poor DesignPoor Design Poor Marketing ExecutionPoor Marketing Execution High Development CostsHigh Development Costs Strong Competitive ReactionStrong Competitive Reaction
©2000 Prentice Hall
Challenges in NPDChallenges in NPD
Idea ShortageIdea Shortage Fragmented MarketsFragmented Markets Social & Governmental ConstraintsSocial & Governmental Constraints CostCost Capital ShortageCapital Shortage Need for SpeedNeed for Speed Shorter Product Life CyclesShorter Product Life Cycles
©2000 Prentice Hall
Probability of SuccessProbability of Success
ProbabilityProbabilityof technicalof technicalcompletioncompletion
OverallOverallprobabilityprobabilityof successof success ==
Probability ofProbability ofcommercializationcommercialization
given technicalgiven technicalcompletioncompletion
XXProbability ofProbability of
economiceconomicsuccess givensuccess given
commercializationcommercializationXX
©2000 Prentice Hall
Concept Development & TestingConcept Development & Testing
1. Develop Product Ideas into Alternative Product Concepts
1. Develop Product Ideas into Alternative Product Concepts
2. Concept Testing - Test the ProductConcepts with Groups of Target Customers
2. Concept Testing - Test the ProductConcepts with Groups of Target Customers
3. Choose the Best One3. Choose the Best One
©2000 Prentice Hall
Consumer-Goods Market TestingConsumer-Goods Market Testing
Sales-Wave
Research
Test offering trail toa sample of consumers insuccessive
periods.
Sales-Wave
Research
Test offering trail toa sample of consumers insuccessive
periods.
SimulatedTest Market
Test in a simulated shopping environment
to a sample of consumers.
SimulatedTest Market
Test in a simulated shopping environment
to a sample of consumers.
StandardTest Market
Full marketing campaignin a small number of representative cities.
StandardTest Market
Full marketing campaignin a small number of representative cities.
Controlled Test Market
A few stores that have agreed to carry newproducts for a fee.
Controlled Test Market
A few stores that have agreed to carry newproducts for a fee.
©2000 Prentice Hall
CommercializationCommercialization
When
Where
Whom
ProductPricePlacePromotion
©2000 Prentice Hall
Characteristics of the Innovation Rate of Adoption
Characteristics of the Innovation Rate of Adoption
Relative advantageRelative advantage CompatibilityCompatibility ComplexityComplexity DivisibilityDivisibility CommunicabilityCommunicability
©2000 Prentice Hall
ObjectivesObjectives
Factors to Consider Before Going GlobalFactors to Consider Before Going Global Selecting Foreign MarketsSelecting Foreign Markets Foreign Market EntryForeign Market Entry Product Adaption for Global MarketingProduct Adaption for Global Marketing Management & Organization of Global ActivitiesManagement & Organization of Global Activities
©2000 Prentice Hall
Major Decisions in International MarketingMajor Decisions in International Marketing
Deciding whetherto go abroad
Deciding whichmarkets to enter
Deciding how toenter the market
Deciding on themarketing program
Deciding on themarketing organization
©2000 Prentice Hall
Challenges in Going GlobalChallenges in Going Global
Shifting bordersShifting borders Unstable governmentsUnstable governments Foreign-exchangeForeign-exchange CorruptionCorruption Technological piratingTechnological pirating
©2000 Prentice Hall
Criteria for EntryCriteria for Entry
Market AttractivenessMarket Attractiveness RiskRisk Competitive AdvantageCompetitive Advantage
©2000 Prentice Hall
Five Models of EntryInto Foreign MarketsFive Models of EntryInto Foreign Markets
Directinvest-ment
JointventuresLicensingDirect
exportingIndirect
Exporting
Amount of commitment, risk, control, and profit potential
©2000 Prentice Hall
Internationalization ProcessInternationalization Process
No Export
Export via Agents
Sales Subsidiaries
Production Abroad
©2000 Prentice Hall
Five International Productand Promotion StrategiesFive International Productand Promotion Strategies
Dualadaptation
PromotionPromotion
ProductProduct
Productadaptation
AdaptAdaptproductproduct
Straightextension
Do not changeDo not changeproductproduct
Do not changeDo not changepromotionpromotion
Communi-cation
adaptation
AdaptAdaptpromotionpromotion
Develop newDevelop newproductproduct
Productinvention
©2000 Prentice Hall
Pricing ChallengesPricing Challenges
>Price Escalation
>Dumping charges
>Gray markets
>Transfer prices
©2000 Prentice Hall
Whole-channel Concept for International Marketing
Whole-channel Concept for International Marketing
Seller
Seller’s internationalmarketing headquarters
Channels betweennations
Channels withinforeign nations
Final buyers
©2000 Prentice Hall
ObjectivesObjectives
Product CharacteristicsProduct Characteristics Building & Managing the Product Mix & Product LinesBuilding & Managing the Product Mix & Product Lines Brand DecisionsBrand Decisions Packaging & LabelingPackaging & Labeling
©2000 Prentice Hall
Specialty ProductsSpecialty Products Unsought ProductsUnsought Products
Shopping ProductsShopping ProductsBuy less frequently> Gather product information> Fewer purchase locations> Compare for:
• Suitability & Quality • Price & Style
Convenience ProductsConvenience Products
Special purchase efforts> Unique characteristics> Brand identification> Few purchase locations
New innovations> Products consumers don’t want to think about. >Require much advertising & personal selling
Buy frequently & immediately> Low priced> Many purchase locations> Includes:
• Staple goods• Impulse goods• Emergency goods
Consumer-Goods ClassificationConsumer-Goods Classification
©2000 Prentice Hall
Product MixProduct Mix
WidthWidth - number of different product lines
WidthWidth - number of different product lines
LengthLength - total number of items
within the lines
LengthLength - total number of items
within the lines
Depth Depth - number of versions of each
product
Depth Depth - number of versions of each
product
Product Mix - Product Mix - all the product
lines offered
Product Mix - Product Mix - all the product
lines offered
Co
nsi
sten
cy
©2000 Prentice Hall
Product-Line LengthProduct-Line Length
Line StretchingLine Stretching DownmarketDownmarket UpmarketUpmarket Two-wayTwo-way
Line FillingLine Filling Line ModernizationLine Modernization Line Featuring & Line PruningLine Featuring & Line Pruning
©2000 Prentice Hall
What is a Brand?What is a Brand?
Attributes Benefits Values
Culture
User
Personality
©2000 Prentice Hall
Brand EquityBrand Equity
No Brand Loyalty(customer will change)
No Brand Loyalty(customer will change)
Satisfied Customer(no reason to change)Satisfied Customer
(no reason to change)
Satisfied & Switching CostSatisfied & Switching Cost
Values the Brand(brand as friend)
Values the Brand(brand as friend)
Devoted to Brand
Devoted to Brand
©2000 Prentice Hall
Brand StrategiesBrand Strategies
BrandExtension
New
Bra
nd
Nam
e
Product Category
LineExtension
Existing
Existing
MultibrandsNew NewBrands
©2000 Prentice Hall
Good Brand Names:Good Brand Names:
SuggestProductBenefits
Distinctive
Lack PoorForeign
LanguageMeanings
SuggestProductQualities
Easy to:PronounceRecognizeRemember
©2000 Prentice Hall
Why Package Crucial as a Marketing Tool
Why Package Crucial as a Marketing Tool
Self-serviceSelf-service Consumer affluenceConsumer affluence Company & brand imageCompany & brand image Opportunity for innovationOpportunity for innovation
©2000 Prentice Hall
LabelsLabels
IdentifyIdentifyIdentifyIdentify
DescribeDescribeDescribeDescribe
PromotePromotePromotePromote
©2000 Prentice Hall
ObjectivesObjectives
Service Definitions & ClassificationsService Definitions & Classifications How Services Differ GoodsHow Services Differ Goods Improving Service Differentiation, Quality, & ProductivityImproving Service Differentiation, Quality, & Productivity Improving Customer Support ServicesImproving Customer Support Services
©2000 Prentice Hall
Categories of Service MixCategories of Service Mix
PurePureServiceService
TangibleTangibleGoodGood
w/w/ServicesServices
MajorMajorServiceService
w/ Goodsw/ GoodsHybridHybrid
PurePureTangibleTangible
GoodGood
©2000 Prentice Hall
ServicesServices
Inseparability
Services cannotbe separated
from theirproviders
Inseparability
Services cannotbe separated
from theirproviders
Perishability
Services cannotbe stored for
later sale or use
Perishability
Services cannotbe stored for
later sale or use
Intangibility
Services cannotbe seen, tasted,
felt, heard, orsmelled before
purchase
Intangibility
Services cannotbe seen, tasted,
felt, heard, orsmelled before
purchase
Variability
Quality ofservices dependson who providesthem and when,where, and how
Variability
Quality ofservices dependson who providesthem and when,where, and how
©2000 Prentice Hall
ServicesServices
Inseparability
Increaseproductivity of
providers
Inseparability
Increaseproductivity of
providers
Perishability
Match supplyand demand
Perishability
Match supplyand demand
Intangibility
Use cues tomake it tangible
Intangibility
Use cues tomake it tangible
Variability
Standardizeservice
production& delivery
Variability
Standardizeservice
production& delivery
©2000 Prentice Hall
Service DifferentiationService Differentiation
Offer
Delivery
Image
©2000 Prentice Hall
Determinants of Service QualityDeterminants of Service Quality
ReliabilityReliability ResponsivenessResponsiveness AssuranceAssurance EmpathyEmpathy TangiblesTangibles
©2000 Prentice Hall
ServiceExcellence
ServiceExcellence
Strategic ConceptStrategic Concept Top-Management CommitmentTop-Management Commitment High StandardsHigh Standards Monitoring SystemsMonitoring Systems Satisfying Customer ComplaintsSatisfying Customer Complaints Satisfying Both Employees & CustomersSatisfying Both Employees & Customers Managing ProductivityManaging Productivity
©2000 Prentice Hall
Complaint ResolutionComplaint Resolution
Hiring Criteria & Training for EmployeesHiring Criteria & Training for Employees Develop Guidelines for FairnessDevelop Guidelines for Fairness Remove Complaint BarriersRemove Complaint Barriers Analyze Types & Sources of ComplaintsAnalyze Types & Sources of Complaints
©2000 Prentice Hall
ObjectivesObjectives
Setting the PriceSetting the Price Adapting the PriceAdapting the Price Initiating & Responding to Price ChangesInitiating & Responding to Price Changes
©2000 Prentice Hall
Types of Costs
Total CostsSum of the Fixed and Variable Costs for a Given
Level of Production
Total CostsSum of the Fixed and Variable Costs for a Given
Level of Production
Fixed Costs(Overhead)
Costs that don’tvary with sales or production levels.
Executive SalariesRent
Fixed Costs(Overhead)
Costs that don’tvary with sales or production levels.
Executive SalariesRent
Variable Costs
Costs that do varydirectly with the
level of production.
Raw materials
Variable Costs
Costs that do varydirectly with the
level of production.
Raw materials
©2000 Prentice Hall
Pricing MethodsPricing Methods
Markup PricingMarkup Pricing Target Return PricingTarget Return Pricing Perceived Value PricingPerceived Value Pricing Value PricingValue Pricing Going-Rate PricingGoing-Rate Pricing Sealed-Bid PricingSealed-Bid Pricing
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Some important pricing definitionsSome important pricing definitions
Utility: The attribute that makes Utility: The attribute that makes it capable of want satisfactionit capable of want satisfaction
Value: The worth in terms of Value: The worth in terms of other productsother products
Price: The monetary medium of Price: The monetary medium of exchange.exchange.
Value ExampleValue Example:: Caterpillar CaterpillarTractor is Tractor is $100,000$100,000 vs. Market vs. Market
$90,000$90,000$90,000 if equal$90,000 if equal 7,000 extra durable7,000 extra durable 6,000 reliability6,000 reliability 5,000 service5,000 service 2,0002,000 warranty warranty $110,000 in benefits -$110,000 in benefits -
$10,000 discount!$10,000 discount!
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Psychological Pricing
Most Attractive?Most Attractive?
Better Value?Better Value?
Psychological reason to price Psychological reason to price this way?this way?
A32 oz.
$2.19
B26 oz.
$1.99
Assume Equal Quality
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Discriminatory PricingDiscriminatory Pricing
Time
Product-form
Customer Segment
Location
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ObjectivesObjectives
Work Performed by Marketing ChannelsWork Performed by Marketing Channels Channel-Design DecisionsChannel-Design Decisions Channel-Management DecisionsChannel-Management Decisions Channel DynamicsChannel Dynamics
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How a Distributor Reduces theNumber of Channel Transactions
= = CustomerCustomer= = ManufacturerManufacturer
A. Number of contacts A. Number of contacts without a distributorwithout a distributor
M x C = 3 X 3 = 9M x C = 3 X 3 = 9
11
3322
445566
778899
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How a Distributor Reduces theHow a Distributor Reduces theNumber of Channel TransactionsNumber of Channel Transactions
= = DistributorDistributor= = CustomerCustomer= = ManufacturerManufacturer
B. Number of contacts B. Number of contacts with a distributorwith a distributorM x C = 3 + 3 = 6M x C = 3 + 3 = 6
Store
11
22
33
44
55
66
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Distribution Channel FunctionsDistribution Channel Functions
OrderingOrdering
PaymentsPayments
CommunicationCommunicationTransferTransfer
NegotiationNegotiation
FinancingFinancingRisk TakingRisk Taking
PhysicalDistribution
PhysicalDistribution
InformationInformation
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Customers’ Desired Service LevelsCustomers’ Desired Service Levels
Lot sizeLot size Waiting timeWaiting time Spatial convenienceSpatial convenience Product varietyProduct variety Service backupService backup
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Channel Management DecisionsChannel Management Decisions
SelectingSelecting
FE
ED
BA
CK
MotivatingMotivating
TrainingTraining
EvaluatingEvaluating
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Types of Vertical Marketing SystemsTypes of Vertical Marketing Systems
CorporateCommon Ownership at Different
Levels of the Channel
CorporateCommon Ownership at Different
Levels of the Channel
ContractualContractual Agreement Among
Channel Members
ContractualContractual Agreement Among
Channel Members
AdministeredLeadership is Assumed by One or
a Few Dominant Members
AdministeredLeadership is Assumed by One or
a Few Dominant Members
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Conventional Distribution Channel vs. Vertical Marketing Systems
VerticalVerticalmarketingmarketingchannelchannel
Manufacturer
Retailer
ConventionalConventionalmarketingmarketingchannelchannel
Consumer
Manufacturer
Consumer
Retailer
Wholesaler
Wh
ole
sale
r
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Causes of Channel ConflictCauses of Channel Conflict
IncompatibilityIncompatibility Difference in PerceptionDifference in Perception DependenceDependence
Legal & Ethical Issues in Channel Relations
Legal & Ethical Issues in Channel Relations
Exclusive DealingExclusive Dealing Exclusive TerritoriesExclusive Territories Tying AgreementsTying Agreements Dealers’ RightsDealers’ Rights
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ObjectivesObjectives
RetailingRetailing WholesalingWholesaling Market LogisticsMarket Logistics
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Four Levels of Retail ServiceFour Levels of Retail Service
Self-serviceSelf-service Self-selectionSelf-selection Limited-serviceLimited-service Full-serviceFull-service
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Classification Of Retailer TypesClassification Of Retailer Types
Specialty StoresSpecialty Stores
Department StoresDepartment Stores
SupermarketsSupermarkets
Convenience StoresConvenience Stores
Off-Price RetailerOff-Price Retailer
SuperstoresSuperstores
Catalog ShowroomCatalog Showroom
Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items
Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items
Wide Variety of Food, Laundry, & Household ProductsWide Variety of Food, Laundry, & Household Products
Limited Line of High-Turnover Convenience GoodsLimited Line of High-Turnover Convenience Goods
Inexpensive, Overruns, Irregulars, and Leftover GoodsInexpensive, Overruns, Irregulars, and Leftover Goods
Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services
Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services
Broad Selection, Fast Turnover, Discount PricesBroad Selection, Fast Turnover, Discount Prices
Narrow Product Line, Deep AssortmentNarrow Product Line, Deep Assortment
Store Type Length and Breadth of Product Assortment
Discount StoresDiscount Stores Broad Product Line, Low Margin, High VolumeBroad Product Line, Low Margin, High Volume
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Types of NonStore RetailingTypes of NonStore Retailing
Direct SellingDirect Selling
Direct MarketingDirect Marketing
Buying ServicesBuying Services
NonStore Retailing Accounts for More Than 12% of All Consumer Purchases, and is trending up.
Automatic VendingAutomatic Vending
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Low PriceLow StatusLow Margin
Mid PriceMid StatusMid Margin
High PriceHigh StatusHigh Margin
Wheel of RetailingWheel of Retailing
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Why are Wholesalers Used?Why are Wholesalers Used?
WholesalerFunctions
ManagementServices & Advice
ManagementServices & Advice
Selling andPromoting
Selling andPromoting
MarketInformation
MarketInformation
Buying andAssortment Building
Buying andAssortment Building
Risk BearingRisk Bearing Bulk BreakingBulk Breaking
TransportingTransporting
FinancingFinancing WarehousingWarehousing
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Goals of the Logistics SystemGoals of the Logistics System
• Provide a Targeted Level of Customer Service at the Least Cost.
• Maximize Profits, Not Sales.
Higher Distribution Costs/ Higher Customer Service Levels
Lower Distribution Costs/ Lower Customer Service Levels
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InventoryWhen to order
How much to orderJust-in-time
InventoryWhen to order
How much to orderJust-in-time
CostsMinimize Costs ofAttaining Logistics
Objectives
CostsMinimize Costs ofAttaining Logistics
Objectives
WarehousingStorage
Distribution
WarehousingStorage
Distribution
Order ProcessingSubmittedProcessed
Shipped
Order ProcessingSubmittedProcessed
Shipped
Logistics
FunctionsTransportation Water, Truck, Rail, Pipeline & Air
Logistics SystemsLogistics Systems
©2000 Prentice Hall
RailNation’s largest carrier, cost-effective for shipping bulk products, piggyback
RailNation’s largest carrier, cost-effective for shipping bulk products, piggyback
TruckFlexible in routing & time schedules, efficient
for short-hauls of high value goods
TruckFlexible in routing & time schedules, efficient
for short-hauls of high value goods
WaterLow cost for shipping bulky, low-value
goods, slowest form
WaterLow cost for shipping bulky, low-value
goods, slowest form
PipelineShip petroleum, natural gas, and chemicals
from sources to markets
PipelineShip petroleum, natural gas, and chemicals
from sources to markets
AirHigh cost, ideal when speed is needed or to
ship high-value, low-bulk items
AirHigh cost, ideal when speed is needed or to
ship high-value, low-bulk items
Transportation ModesTransportation Modes
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1. Speed.
2. Dependability.
3. Capability.
4. Availability.
Checklist for Choosing
Transportation Modes
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Rating Transportation Modes
RailRail 33 44 22 22 33
WaterWater 44 55 11 44 11
TruckTruck 22 22 33 11 44
PipelinePipeline 55 11 55 55 22
AirAir 11 33 44 33 55
Source:Source: See Carl M. Guelzo; See Carl M. Guelzo; Introduction to Logistics Management Introduction to Logistics Management Englewood Cliffs, NJ:Englewood Cliffs, NJ:Prentice Hall, 1986), p. 46.Prentice Hall, 1986), p. 46.
(Door-to-door
deliverytime)
(MeetingScheduleson Time)
(Ability toHandleVarious
Products)
(No. ofGeographic
PointsServed)
(PerTon-Mile)
Speed Dependability Capability Availability Cost
©2000 Prentice Hall
AdvertisingAdvertising
Personal SellingPersonal Selling
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.
Sales Promotion Short-term Incentives to Encourage Trial or Purchase.
Public Relations
Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response.
Protect and/or Promote Company’s Image/products.
Personal Presentations.
The Marketing Communications MixThe Marketing Communications Mix
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Message ProblemsMessage Problems
Selective Attention
Selective Distortion
Selective Retention
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Effective CommunicationsEffective Communications
Step 1. Identifying the Target AudienceStep 1. Identifying the Target Audience
PurchasePurchase
Conviction
Preference
Liking
Knowledge
Awareness
Step 2. Determining the Communication ObjectivesBuyer Readiness Stages
Step 2. Determining the Communication ObjectivesBuyer Readiness Stages
©2000 Prentice Hall
Step 3. Designing the MessageStep 3. Designing the Message
Message SourceExpertise,
Trustworthiness,Congruity
Message FormatLayout,
Words, & Sounds,Body Language
Message StructureDraw Conclusions
Argument TypeArgument Order
Message ContentRational Appeals
Emotional AppealsMoral Appeals
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Step 4. Select Communications ChannelStep 4. Select Communications Channel
Nonpersonal CommunicationChannels
Personal CommunicationChannels
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Step 5. Establish the BudgetStep 5. Establish the Budget
CompetitiveParity
Objective& Task
Affordable% OfSales
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Step 6. Decide on Communications MixStep 6. Decide on Communications Mix
AdvertisingPublic, Pervasive, Expressive, Impersonal
AdvertisingPublic, Pervasive, Expressive, Impersonal
Sales PromotionCommunication, Incentive, Invitation
Sales PromotionCommunication, Incentive, Invitation
Public Relations & PublicityCredibility, Surprise, Dramatization
Public Relations & PublicityCredibility, Surprise, Dramatization
Personal SellingPersonal Confrontation, Cultivation, Response
Personal SellingPersonal Confrontation, Cultivation, Response
Direct MarketingNonpublic, Customized, Up-to-Date, Interactive
Direct MarketingNonpublic, Customized, Up-to-Date, Interactive
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Step 7. Measure ResultsStep 7. Measure Results
Step 8. Manage the IMC ProcessStep 8. Manage the IMC Process
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Factors in Developing Promotion Mix Strategies
Factors in Developing Promotion Mix Strategies
Product Life-Cycle Stage
Type of Product/ Market
Push vs. Pull Strategy
Buyer/ Readiness
Stage
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Push Versus Pull Strategy
Producer
Producer
Interme-diaries
Marketingactivities
End users
Marketingactivities
Demand Interme-diaries
Demand
Push Strategy
Pull Strategy
End users
Marketing activities
Demand
©2000 Prentice Hall
ObjectivesObjectives
Developing & Managing an Advertising ProgramDeveloping & Managing an Advertising Program Deciding on Media & Measuring EffectivenessDeciding on Media & Measuring Effectiveness Sales PromotionSales Promotion Public RelationsPublic Relations
©2000 Prentice Hall
Informative AdvertisingBuild Primary Demand
Informative AdvertisingBuild Primary Demand
Persuasive AdvertisingBuild Selective Demand
Persuasive AdvertisingBuild Selective Demand
Comparison AdvertisingCompares One Brand to Another
Comparison AdvertisingCompares One Brand to Another
Reminder AdvertisingKeeps Consumers Thinking
About a Product.
Reminder AdvertisingKeeps Consumers Thinking
About a Product.
Advertising ObjectivesAdvertising Objectives
Specific Communication Specific Communication Task Task Accomplished with a Specific Accomplished with a Specific TargetTarget Audience Audience During a Specific Period of During a Specific Period of TimeTime
©2000 Prentice Hall
Advertising Budget FactorsAdvertising Budget Factors
Stage in the Product Life Cycle
Market Share &Consumer Base
Competition &Clutter
AdvertisingFrequency
ProductSubstitutability
©2000 Prentice Hall
Profiles of Major Media Types
NewspapersAdvantages: Flexibility, timeliness; good local market coverage;
broad acceptance, high believability
Limitations: Short life; poor reproduction quality; smallpass-along audience
TelevisionAdvantages: Combines sight, sound, motion; high attention; high reach; appealing to senses
Limitations: High absolute costs; high clutter; fleeting exposure;less audience selectivity
Direct MailAdvantages: Audience selectivity; flexibility, no ad compe-
tition within same medium; allows personalization
Limitations: Relative high cost; “junk mail” image
©2000 Prentice Hall
RadioAdvantages: Mass use; high geographic and demographic
selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences
MagazinesAdvantages: High geographic and demographic selectivity;
credibility and prestige; high-quality reproduction;long life; good pass-along readership
Limitations: Long ad purchase lead time; waste circulation; no guarantee of position
OutdoorAdvantages: Flexibility; high repeat exposure; low cost; low message competition
Limitations: Little audience selectivity; creative limitations
Profiles of Major Media Types
©2000 Prentice Hall
Advertising StrategyMessage Execution
Advertising StrategyMessage Execution
TypicalMessageExecution
Styles
TypicalMessageExecution
Styles
TestimonialEvidence
TestimonialEvidence Slice of LifeSlice of Life
ScientificEvidence
ScientificEvidence
LifestyleLifestyle
TechnicalExpertise
TechnicalExpertise
FantasyFantasy
MusicalMusical
PersonalitySymbol
PersonalitySymbol
Mood orImage
Mood orImage
Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.
©2000 Prentice Hall
Advertising EvaluationAdvertising Evaluation
Advertising Program EvaluationAdvertising Program Evaluation
Communication Effects
Is the Ad Communicating Well?
Communication Effects
Is the Ad Communicating Well?
Sales Effects
Is the Ad Increasing Sales?
Sales Effects
Is the Ad Increasing Sales?
©2000 Prentice Hall
Why the increase in Sales Promotion?Why the increase in Sales Promotion?
Growing retailer powerGrowing retailer power Declining brand loyaltyDeclining brand loyalty Increased promotional sensitivityIncreased promotional sensitivity Brand proliferationBrand proliferation Fragmentation of consumer marketFragmentation of consumer market Short-term focusShort-term focus Increased managerial accountabilityIncreased managerial accountability CompetitionCompetition ClutterClutter
©2000 Prentice Hall
Long-Term Promotional Allocation
0
10
20
30
40
50
60
1986 88 90 92 94 1996
Year
%t
of
tota
l -
3 yr
.MA
Trade Promo
Media Adv
Cons. Promo
Cox Direct 19th Annual Survey of Promotional PracticesCox Direct 19th Annual Survey of Promotional Practices
©2000 Prentice Hall
Channels of Sales PromotionsChannels of Sales Promotions
MANUFACTURER
RETAILER
TradeTradePromotionsPromotions
CONSUMER
ConsumerConsumerPromotionsPromotions
Push
PushPullRetailRetail
PromotionsPromotions
©2000 Prentice Hall
Consumer PromotionConsumer Promotion
Consumer-Promotion Objectives
Consumer-Promotion Tools
Point-of-PurchaseDisplays
Point-of-PurchaseDisplays
PremiumsPremiums
Price PacksPrice Packs
Cash RefundsCash Refunds
CouponsCoupons
SamplesSamples
Patronage Rewards
Patronage Rewards
GamesGames
SweepstakesSweepstakes
ContestsContests
AdvertisingSpecialties
AdvertisingSpecialties
Patronage Rewards
Entice Consumers to Try a New Product
Entice Consumers to Try a New Product
Lure Customers AwayFrom Competitors’ Products
Lure Customers AwayFrom Competitors’ Products
Get Consumers to “Load Up’on a Mature Product
Get Consumers to “Load Up’on a Mature Product
Hold & Reward Loyal Customers
Hold & Reward Loyal Customers
Consumer Relationship Building
Consumer Relationship Building
©2000 Prentice Hall
“Deal Proneness,”Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997
“Deal Proneness,”Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997
Examination of “deal proneness” Examination of “deal proneness” among consumers in a among consumers in a supermarket settingsupermarket setting
Surveys Surveys && Grocery Receipts Grocery Receipts usedused
Eight types of deals:Eight types of deals: Cent-off, One-free, Gift, Cent-off, One-free, Gift,
Display, Rebate, Contest, Display, Rebate, Contest, Sale, & CouponSale, & Coupon
“Deal Proneness,”Liechtenstein, Burton, & Netemeyer
“Deal Proneness,”Liechtenstein, Burton, & Netemeyer
Cluster analysis yielded two Cluster analysis yielded two interpretable results:interpretable results:
49%49% are “deal prone,” are “deal prone,” 51%51% not not 24%24% High “Deal prone,” High “Deal prone,” 50%50%
intermediate, intermediate, 26%26% deal insensitive deal insensitive ““Deal-proneness” a generalized Deal-proneness” a generalized
construct - (crosses type of construct - (crosses type of promotion)promotion)
Younger & Less educated more Younger & Less educated more likely to be deal pronelikely to be deal prone
©2000 Prentice Hall
Trade-Promotion ObjectivesTrade-Promotion Tools
Specialty Advertising
Items
Specialty Advertising
ItemsContestsContests
Free GoodsFree Goods
Buy-BackGuarantees
Buy-BackGuarantees
AllowancesAllowances
Price-OffsPrice-Offs
Patronage Rewards
Patronage Rewards
Push MoneyPush Money
DiscountsDiscounts
PremiumsPremiums
Displays
Persuade Retailers or Wholesalers to Carry a Brand
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf SpaceGive a Brand Shelf Space
Promote a Brand in Advertising
Promote a Brand in Advertising
Push a Brand to ConsumersPush a Brand to Consumers
Trade PromotionsTrade Promotions
©2000 Prentice Hall
Business-Promotion Objectives Business-Promotion
ToolsGenerate Business LeadsGenerate Business Leads
Stimulate PurchasesStimulate Purchases
Reward CustomersReward Customers
Motivate SalespeopleMotivate Salespeople
ConventionsConventions
Trade ShowsTrade Shows
Sales ContestsSales Contests
Business-to-Business PromotionBusiness-to-Business Promotion
©2000 Prentice Hall
Major Public Relations ToolsMajor Public Relations Tools
SpecialEvents
SpecialEvents
Written MaterialsWritten
Materials
Corporate Identity Materials
Corporate Identity Materials
SpeechesSpeeches
NewsNews
AudiovisualMaterials
AudiovisualMaterials
Public Service
Activities
Public Service
Activities
Web SiteWeb Site