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PowerPoint Presentation by Charlie Cook

The University of West Alabama

Copyright 2006 Thomson Business & Professional Publishing.

All rights reserved.

Part 4 Focusing on the Customer:

Marketing Growth Strategies

Product and SupplyChain Management

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To Grow or Not to Grow

Growth sufficient to maintain the status quo is agoal of some entrepreneurs.

Growing a business too quickly can be stressful

for the small firm.

A growth trap may occur when a firms growth

soaks up cash faster than it can be generated.

Growth also puts pressure on a small firms

personnel.

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Innovation: A Path to Growth

Competitive Advantage and InnovationInnovation and entrepreneurship often go hand-in-

hand.

Coming up with and perfecting new products or

services is often not easy.The risk of failure increases when innovation is the

goal.

Innovation is a means by which a firm can sustain its

competitive advantage.

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The Competitive Advantage Life Cycle

Develop

Deploy

Decline

Stage 1 Stage 2 Stage 3

Time

Exhibit 14.1

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Sustaining Competitive Advantage

Exhibit 14.2

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The Product Life Cycle

Exhibit 14.3

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Building the Total Product

BrandingA verbal and/or symbolic means of identifying a

product

Brand Name

A brand that can be spoken (tangible)

Brand Mark

A brand that cannot be spoken (tangible)

Brand ImageSymbolic (Intangible)

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Components of a Brand Identity

Exhibit 14.4

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Building the Total Product (contd.)

Designing a Logo:Be simple.

Leave it open to interpretation.

Be relentlessly consistent.

Dont be embarrassed about

design.

Get good advice.

Dont expect miracles.

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Protecting the Product Offering

TrademarkAn identifying feature used to distinguish a

manufacturers product

Service Mark

A legal term indicating theexclusive right to use a

brand to identify a serviceVinnies

Villa

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Building the Total Product (contd.)

PackagingColor, design, and protection for the product

Labeling

Shows the brand and informs the consumer about

product features and care

Making Warranties

A promise that the product will perform at a certain

level or meet certain standards

Implied and written warranties

Policy considerations: Cost, service capability, competitivepractices, customer perceptions, legal implications

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Copyrights Trade Dress

Trademarks Patents

Ways of Protecting Intangible Assets

Protecting Marketing Assets

Exhibit 14.7

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Supply Chain Management

Supply Chain ManagementA system of management that integrates and

coordinates the means by which a firm creates or

develops a product or service and delivers it to

customers

Distribution

Physically moving products and establishing

intermediary relationships to support

such movement

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Supply Chain Management (contd.)

Physical Distribution (Logistics)The activities of distribution involved in the physical

relocation of products

Channel of DistributionThe system of relationships established to guide the

movement of a product

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Alternative

Channels of

Distribution

Exhibit 14.8

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Supply Chain Management (contd.)

Important Factors in Building a DistributionChannel

Costs associated with establishing a direct channel

distribution

Coverage is increased through the use of indirectchannels of distribution

Control is enhanced using a direct distribution channel

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The Scope of Physical Distribution

TransportationWhich Mode to Use?Common carriers

Transportation intermediaries available for hire to the generalpublic

Contract carriers Transportation intermediaries that contract with individual

shippers

Private carriers

Lines of transportowned by shippers

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The Scope of Physical Distribution (contd.)

Logistics CompaniesFirms which specialize in providing cost-effective

transportation, storage, and distribution services to

small companies

Trucking

Packaging

Warehousing