Final Exam Prep (1)

7/26/2019 Final Exam Prep (1)

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Requirements for marketingto occur

Two or more parties with unsatis ed needs.

Desire and ability to satisfy these needs.

A way for the parties to communicate.

Something to exchange.


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ommunications!Deli"ery

#oney!$nformation

ustomers!onsumers%&uyers'

(oods!Ser"ices)roducers%Sellers'

#arketing entails an exchange


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ustomers* former customers* prospects.$nternal analysis %sales acti"ities* sales

gures* pro tability* etc'.

ompetitors %direct and indirect'.$ndustry %same "ertical* supplier andcomplementary'.#acroen"ironment* technology and

trend analysis.

requires solid insightsbased on analysis ofresearch


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#arketing requires product*price* place* and promotiondecisions

)romotion

)lace

)rice

)roduct

+),s


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#arketing can be performed byboth indi"iduals andorgani-ations

B2B: holesaling is often only &usiness to &usiness

B2C: All retailing is &usiness toonsumer selling

C2C: Swap #eets/&ay* yard sales* e

0


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01

2alue1based marketing

3irms must o4er customerssomething in excess of that beingo4ered by the competitors.

3irms must understand how eachaspect of their product!ser"icecreates "alue for customers.


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Perception is based onbuyer s !

5ifestage and lifestyle. )ersonal beliefs %background*cultural heritage* experiences'.

$ndi"idual buying beha"iours and

expectations. $ncome. )re"ious consumer experiences

and knowledge.


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The marketing mix


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eek 6ne Takeaway The defnition o marketing is to fnd out what

your customers want and then give it to them. #arketing requires product* price* place* and

promotion decisions.

3irms must o4er customers something in excess

%"alue' of that being o4ered by the competitors. 7ou and your girlfriend!boyfriend!spouse!spouse1

like person may ne"er agree on which mo"ie tosee8

01


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01

hapter 6ne (lossary

ustomer relationship management9 A business philosophy and

set of strategies* programs* and systems that focus onidentifying and building loyalty among the rm,s most "aluedcustomers.

(oods9 $tems that you can physically touch. $deas9 $nclude thoughts* opinions* and philosophies* and

intellectual concepts such as these also can be marketed. Ser"ices9 $ntangible customer bene ts that are produced by

people or machines and cannot be separated from theproducer. Supply chain9 The group of rms that make and deli"er a gi"en

set of goods and ser"ices. Supply chain management9 Refers to a set of approaches and

techniques that rms employ to e:ciently and e4ecti"elyintegrate their suppliers* manufacturers* warehouses* stores*

and other rms in"ol"ed in the transaction into a seamless"alue chain.

d


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Segmentation* targeting andpositioning

"e#elop pro$les of resulting seg%ents

Mar&etseg%entation

"e#elop %easures of seg%ent attracti#eness

Select thetarget seg%ent's(

"e#elop positioningfor each seg%ent

"e#elop %ar&eting %i)

for each seg%ent

*dentify bases forseg%enting %ar&et

Mar&ettargeting

Mar&etpositioning


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)ro ling segmentsSegmentationMethod

Sample Segments

Geographic Country, province, city, urban, rural, climateContinent: North America, Asia, Europe, AfricaRegion: Atlantic, Central, Western Canada

emographic Age, gender, income, education, occupation,ethnic bac!ground, religion, family life cycle, etc"

#sychographic $ifestyles, %alues, &elf Concept

'ehavioural 'enefits derived, (sage rates, (ser status,$oyalty

The +unning +oo%


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onsumeranalysis

Who buys,

When is thepurchase

%ade,

Where is thepurchase%ade,

o. often arepurchases

%ade,

What isbought,

Why is thepurchase

%ade, o. is thepurchase%ade,

Consu%er/nalysis


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Demographicpro le factors

/ge

0ducation

1ender

Consu%er s"e%ographic

Pro$le

0)penditures

Occupation

Marital Status

0thnicity +ace*nco%e

Mobility

ousing

3ocation


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Social pro lefactors

Socialclass

4a%ily lifecycle

Ti%ee)penditures

Culture

Socialperfor%ance

+eferencegroups Opinion

leaders

Consu%er


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di#iding consu%ers into

seg%ents on the basis of

ho. they act to.ard5 feelabout5 or use a product orser#ice

67 27 rule: a rule of thumbthat ;


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r ter a or e#a uat ngseg%ents

Measurable : can the buyer characteristics be easily identi ed

and segmented into groups at reasonable costBSi%ilarity of needs : buyers within the group ha"e similar needand wants."istinctness of needs : buyers in each group ha"e distinct neeand wants.Pro$t Potential : greater potential for pro t by segmenting amarket than attempting to ser"e the mass market

ccessible: can buyers be reached e4ecti"ely with simplemarketingBCapability : does company ha"e resources of satisfying segmentB


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Di4erentiatedsegmentation

strategy 1 de"elopingone or more productsfor each of se"eraldistinct customergroups

&lack C Decker brand to homeowners and theDe alt line to professional contractor users.

S % l i i i


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3onger 8ersion: To young* acti"e soft1drinkconsumers who ha"e little time for sleep*

#ountain Dew is the soft drink that gi"es youmore energy than any other brand becauseit has the highest le"el of ca4eine. ith#ountain Dew* you can stay alert and keepgoing e"en when you ha"en,t been able toget a good night,s sleep.

Shorter 8ersion %; words or less'9 Toyoung* acti"e soft1drink consumers who wantinstant energy* #ountain Dew is the widelya"ailable soft drink with the most ca4eine.

Sa%ple positioningstate%ent


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Types of con"eniencegoodsStaple goods: purchased

regularly*%pulse goods: purchased withlittle thought

0%ergency goods: purchasedwhen need is urgent


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Soft"rin&sPepsi

"ietPepsi

Mountai

n "e.

Snac&4oods4ritos

3ays

Tostitos

"oritos

Cheetos

+estaurantsPi99a ut

Taco Bell

4C

Width

3ength

"epth %3la"ours'


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&ene ts of using the same brandname E brand extension

Boost salesof the core

brand

Synergya%ong

the products

Mar&etingcosts

are lo.er

Brand &no.nfor highquality

;a%e .ellestablished

Brand


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)urposes of packaging

&rand identi cation.

)6) ad"ertising 1 persuasi"e labelingand!or informational labeling.

3acilitate product transport.

At1home storage.


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Fnderstanding inno"ations

To remain competiti"e. To keep up with new technology. To follow changing consumerpreferences.

To replace dying products. To di"ersify its product o4ering andlower risk.

To create a di4erential ad"antage.

The product de#elop%ent


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The product de#elop%entprocess

0. $dea generation;. oncept testing. )roduct de"elopment

0. Alpha testing C beta testing

+. #arket testing

0. )re1market tests;. Test marketing

. )roduct launchG. /"aluation of results


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rossing the hasm* (eo4rey#oore

A brand can use name* logo


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A brand can use name* logosymbols* characters*slogans* Hingles and e"endistincti"e packages

& d


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)/RS6IA5$T7

S6F5

3FI T$6I

$#A(/

&rand anatomy


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Accidental

2aluesAspirational2alues

ore2alues

&rand "alues

( i id


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(enericideThose close but ha#e beenrescued by aggressi#e correcti#eca%paigns

Jleenex

Kerox &and1Aid )lexiglas


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&randing o"er"iew&randin

g

&rand/quity

&randIame

Strategies

&randAwareness

)ercei"ed 2alue&randAssociations

&rand 5oyalty

#anufacturer or

Iational&randStore or )ri"ate

5abel(eneric

orporate or3amily &rand

orporate C)roduct 5ine&rand$ndi"idual

&rand6wnershipStrategies

Recap 1 back to your brand %card'


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Step 09 )roduct and its attributes.

Step ;9 )roduct roles re "arious target audiences.

Step 9 )roduct positioning preferred by client.

Step +9 #ission! 2ision for the brand.

Step 9 ore C Aspirational "aluesL what client

wants people to say about its product.Step G9 Re1positioning of product based onresearch and feedback.

Step ?9 ommunicating your brand to youraudience.

Recap 1 back to your brand %card

* t gibilit *nseparability


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*ntangibilityannot be seen* tasted* felt or smelled before

purchasing

8ariabilitySer"ice quality depends

on who pro"ides and under what conditions.

nseparability)roduction Cconsumption

are simultaneous .

Perishabilityannot be stored*

for resale or later use.

The goods1ser"ices continuum


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The goods1ser ices continuum

Three additional M)sN for Ser"ices


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Three additional M)sN for Ser ices People Appearance C body

language Aptitude and attitudes /:ciency Physical e#idence )ayment method

aiting time After sales care Process /n"ironment

3acilities* etc


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People (roupism at work Oigh sense of humour 3un with themsel"es

including crewmember ustomer satisfaction 6nly hire high attitude

and technically skilled

Process 5ow price Io seat arrangement Speciali-ed ser"ice Standardi-ation

%solely operating&oeing ? ?s'

Physical 0#idence )lane colour asual dress in summ

er Io meals Seats easily accesible
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People Fniform Training M3riendly* prompt

ser"iceN

Process 3ood preparation

transparent tocustomer MOamburger

Fni"ersityN

Physical 0#idence Oygienic Standard colours*

decor* signage* etc

Ion1monetary!economic costs


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Ion1monetary!economic costs Operating costs : costs

in"ol"ed in a using a product.

S.itching costs : costsin"ol"ed in mo"ing from onebrand to another.

Opportunity costs : the"alue of something that isgi"en up to obtain somethingelse.

3actors a4ecting price decisions


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3actors a4ecting price decisions onsumers

)rice

&rand Status seeker

Ser"ice seeker

osts #oore,s law

(o"ernment #icrosoft

hannel members

ompetition

The state of theeconomy

(lobal inPuences

the number of transistors on an integratedcircuit for minimum component costdoubles e"ery ;+ months


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"ollar or uoOriented

)ricing obHecti"es

l f


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Alternati"e ways ofde"eloping a pricing strategy

Begin .ith costs and .or& to.ards selling price

Begin .ith selling priceand .or& to.ards cost

Co%pare sellingprice .ith

co%petitors

Cost-based pricing

"e%and-based pricing

Co%petition-basedpricing

At the #arket

Abo"e the #arket

&elow the #arket

#arket skimming 1 high


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g gprice* low "olumes

Skim the pro t from themarket.

Suitable for products thatha"e short life cycles orwhich will face competition atsome point in the future %e.g.after a patent runs out'.

/xamples include9)laystation* Hewellery* digitaltechnology* new D2Ds* etc.

)enetration pricing 1 price set to


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) p g pQpenetrate the market,

Q5ow, price to secure high"olumes.

Typical in mass marketproducts E chocolate bars* food

stu4s* household goods* etc. Suitable for products with long

anticipated life cycles. #ay be useful if launching into

a new market.

)sychological pricing 1 used to


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)sychological pricing 1 used toplay on consumer perceptions

(oing rate %price


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( g pleadership'

$n case of price leader* ri"als ha"e di:cultyin competing on price E too high and theylose market share* too low and the priceleader would match price and force smallerri"al out of market.

here competition is limited* Qgoing rate,pricing may be applicable E banks* gas*supermarkets* electrical goods.


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Destroyer!predatory pricing

Deliberate price cutting or o4er of Qfree gifts!products, to force ri"als %normally smaller andweaker' out of business or pre"ent new entrants.

Anti1competiti"e and illegal if it can be pro"ed.


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Absorption!full cost pricing

4ull Cost Pricing E attempting to set price to co"erboth xed and "ariable costs.

/bsorption Cost Pricing E price set to Qabsorb, somof the xed costs of production.


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#arginal cost pricing

#arginal cost E the cost of producing 6I/ extra or 6I/fewer item of production.

# pricing E allows Pexibility . )articularly rele"ant in transport where xed costs may be

relati"ely high.

Allows "ariable pricing structure E e.g. on a Pight from Toronto to 6ttawa E pro"iding the cost of the extrapassenger is co"ered* the price could be "aried a good dealto attract customers and ll the aircraft.


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ontribution pricing

Contribution ? Selling Price @ 8ariable 'directcosts(

)rices set to ensure co"erage of "ariable costs and aQcontribution, to the xed costs.

Similar in principle to marginal cost pricing.

&reak1e"en analysis might be useful in suchcircumstances.

$mplementing a pricing strategy


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$mplementing a pricing strategy 6ne1price policy

"ersus Pexiblepricing.

6dd pricing.

The price1quality

association. 5eader pricing.

#ultiple unitpricing.

)rice lining.

)rice bundling.(eographic pricing.

)urchase terms.

$nternal reference

point.

De"eloping pricing tactics


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T.o-part pricing: selling a product orser"ice using two di4erent types ofpayments* such as an initial fee and thenongoing charges.

Pay%ent pricing: the total purchase priceis broken into smaller payments to make itappear more a4ordable.

Price bundling: selling two or more goodsor ser"ices as a single package for oneprice.

Capti#e pricing: a pricing tactic for twoitems that must be used togetherL one itemis priced "ery low and the rm makes itspro t on another* high1margin item

essential to the operation of the rst item

p g p g

De"eloping pricing tactics


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De eloping pricing tactics

Aone pricing: customers in di4erentgeographic -ones pay di4erenttransportation rates.


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De eloping pricing tactics

Trade or functional discounts: discountso4 list price of products to members of thechannel of distribution that perform "ariousmarketing functions.

>uantity discounts: charging reducedprices for larger quantities of a product.

Cu%ulati#e quantity discounts: discounts based on the total quantitybought within a speci ed time period.

)lus cash and seasonal discounts

Select the appropriate pricingt t g d l i h i


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strategy and explain your choice

0. al1#art launches a newrange of own1label soups.

;. unard launches two newcruise ships.

. A cable T2 pro"ider mo"esinto a new area and needsto achie"e a market share.

+. Ooliday $nns try to ll

hotels during winterweekends.. &urger Jing introduces a

new range of "alue meals.G. &lackberry launches a new

smartphone.

The consumer decision1making process


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The consumer decision1making process

Proble% +ecognition

*nfor%ation Search

0#aluation of /lternati#es

Product Choice

Post-purchase 0#aluation

&ill reali-es that he is fed up with his old T2

&ill takes the T2 homeand remains a couch potato

&ill talks to a few of hisfriends about a new T2

&ill goes shopping to compare T2s of di4erent brands

&ill chooses one model!bra ndfor its features and price

$nternal


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inPuences )erception Sensations /xposure )erceptual

selection

$nterpretation #oti"ation Oierarchy of

needs

Attitude 1 a learned
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predisposition torespond fa"ourably

or unfa"ourably To stimuli based on relati"ely

enduring e"aluations ofpeople* obHects* and issues.

Beliefs Beha#iour/ ect

/ttitudeBased oncogniti#

infor%atioprocessin

igh in#ol#e%ent purchase situation

Self1concept E all of an indi"idual,s


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thoughts and feelings ha"ingreference to him!her as an obHect

5ifestyle* in many ways* is an outwardexpression of ones self1concept.

Situational inPuences


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on our purchasing Atmospherics )hysical en"ironment

P h di


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3irm,s attempt to reducedissonance byreinforcing the decisionthrough thank youletters* congratulationsletters* quality ratings*etc.

Postpurchase: dissonance

#arketcontinuum


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continuum

Fnawareness Awareness omprehension on"iction )reference

$ntent1to1buy )urchase e"aluation )ost1sale ser"ice

performance

R h

&usiness purchasing9 The processis more str ct red to ens re that


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is more structured to ensure thatthe decision is based on more

obHecti"e criteria* rather thansubHecti"e or emotional reasons

There is also a greater likelihood of long-ter%business relationship s existing betweencompanies.

Deri"ed demand


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)urchases may require9ritten speci cations*ompetiti"e bidding*

)rice negotiations* andomplex nancial

arrangements

The nature of business


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buying 1 straight rebuy&usiness buyers make routine purchases

that require minimal decision making.

This can be re1ordering from an existingsupplier* which makes it more di:cult foranother supplier to break into the business.

Business %ar&etseg%entation criteria


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)roduct!ser"ice application*

such as end use or value inuse.

Type of buying situation E new*task* modi ed re1buy or

straight re1buy.

Stage in purchasing process.

seg%entation criteria'%acro(

3orces of change


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Brand 0ssence

ey /ttributes and Bene$ts

Points of "i erence

Category Me%bership

Positioning #ia 3addering


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Assess current marketing position* consumerperceptions* competiti"e assessment.$dentify potential problems in the making.&usiness strategy de"elopment %pricing* markets* etc.'9

/stimating short range!current demandL totalmarket potential ! area market potentialL industrysales and market shareL

/stimating future demandL sur"ey of buyers,intentions ! composite of sales force opinionL expertopinionL past sales analysisL market test method.

research

*ssues n ne. pro uctresearch >


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>


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doesfor marketers

Oelps gain a competiti"e edge. Reduces risks. )ro"ides key consumer insights. (i"es competiti"e intelligence.

2eri es intuitions. #easures market performance.

The marketing research process


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Methods of gatheringpri%ary data


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pri%ary data

Secondary data sources


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Statistics anada (uides* directories* indexes

)eriodicals* newspapers Databases 6pinion polls Trade publications

5ibraries 6n1line sources )ri"ate companies

)rimary data


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)rimary data /d#antages

Speci c to issue at hand

Fp1to1date

ontrollable

$denti able reliability #ay be the only way to

acquire data

"isad#antages

ostly Time consuming

annot gathersome types ofinformation5imited perspecti"e

ompanylimitations

Aspects to research


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Aspects to research

Si-e of market = of households = who buys in a

month Seasonality 3requency

Si-e* price* type* etcpreferencesRetailers used&rand trial&rand loyalty

SegmentationDemographics

/motional connections critical


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Fnderstanding how the consumer connects toyour brand and!or product and why9

Oow it helps them* makes them feel* etc.Oow they would like to feel when buying!using your product.

Ultimately, uncovering emotional connectionsresults in an understanding o a consumerscore values related to a product, brand orcategory.

)ro"ides purchase trigger emotional %e"en&;&'.

ore "alues usually don,t change.

&ased on idea that humans are best0thnography


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understood by obser"ing them in as manycontexts as possible* including9

The place where they li"e %andimpro"ements made' and how they make ali"ing,Oow they pro"ide food* housing* energyand water for themsel"es,#arriage customs,5anguage%s' they speak* etc.

(o into people,s workplaces and!or homesand watch and see what happens.

!imply, ethnography is the study o behavior

Beha#ioural research


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Similar to /thnography* but looking forbeha"iour in more clearly de ned* speci careas.Fsually longer than obser"ational and shorterthan ethnographic.

6ften makes use of a stimulus.

$n1home T2 show recorders.Swipe cards* bar code tracking* etc.

Data collection considerations


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uestionnaire design

Disguised "s. undisguised sur"ey Semantic di4erential Sampling

)robability Ion1probability

osts and time frames

Ietnography


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$nter UI/TV W /th UI6(RA)O7V

Ietnography is the branch ofethnography that analyses the freebeha"iour of indi"iduals on the$nternet that uses online marketing

research techniques to pro"ide usefulinsights.

)rof. RobertJo-inets

Why netnography,


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Ietnography

onsumer Types

/merging Trends

Retail/xperience

onsumer5anguage

ommunities

Fnderstand consumer

beha"iours.

)ro"ide consumerX

based insight.

)ro"ide inspiration.

Deli"er insights.

3eed follow up

quantitati"e research.

#ake the ser"ice a"ailable when Cwhere the consumer can use it


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Oow do you buy beerB

Oow do you buy pursesB gumBscotchB ice creamB

hy the growing importance ofmarketing channelsB


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g

0.The explosion of informationtechnology and /1commerce

;.A greater di:culty in gaining asustainable competiti"e ad"antage

;.The growing power of distributors*especially retailers in marketingchannels

.The need to reduce distribution

Disintermediation


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reduction of number of intermediaries

Reintermediation

f i di


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a new type of intermediary

Place or%ar&eting

channel strategySustainablecompetiti"e


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gypad"antage

)otential for gaining

competiti"e ad"antagebecause place is moredi:cult for competitors

to copy

hannel needs to adapt orchange as products mature


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g p

Adequatemarketco"erage

Adequatesupply

Adequatemarketco"erage andin"entory le"els

(auge e4ects ofcompetition onchannel support

#ake sure theproduct remainsattracti"e tochannel

)ossible changesin channelstructure toextend maturit

)hase outmarginal channelmembers

Determine impactof productdeletion onchannel

*ntroduction

1ro.th

Maturit

y "ecline

Sales%Y'

1ood personal selling atthe retail le#el


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An increasing consumer demand forknowledgeable and helpful salespeople

Trend 6ne

surroundings %ini%u%ser#ice but #ery lo


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arehouse clubs,membership

ser#ice but #ery lo.prices

Trend Two

Mail-order buying onlineshopping


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Sa"e time and a"oid theincon"enience of crowded

stores and tra:c congestion

Trend Three

/uto retailing


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3ewer hassles when buying a car

Trend 3our

B2B on the internet


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(rowing in all sectors

Trend 3i"e

A "alue network


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$,s sales force sells to large accounts* outboundtelemarketing sells to medium1si-ed accounts* directmail sells to small accounts* retailers sell to still smalleraccounts* and the $nternet to sell specialty items.

harles Schwab enables its customers to do transactionsin branch o:ces* o"er the phone* or "ia the $nternet.

Staples markets through traditional retail* direct1response $nternet site* "irtual malls* and


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3unctions performed in adistribution channel


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Mar&eting+esearch

Pro%otion

Buying

"istribution

Custo%erSer#ice

ProductPlanning

Pricing

3actors to consider whenselecting a channel


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The consumer The company The product The competitionDistributionchannels5egalities

Direct "s. indirect channels


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#anufacturer

holesaler

onsum

#anufacturer

#anufacturer

#anufacturer

onsum

onsum

onsum

Retailer

Retailerholesaler

"*+0CT

*;"*+0CT

#sD

)ush "ersuspull strategies


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p g

ManufacturerSer#ice Pro#ider

P


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$ndustrial distribution channelsDirect channels used extensi"ely.3ewer and larger transactions.Set speci cations.$ntermediaries more knowledgeable.

Team selling may be needed.5easing often required.#ore technical customer information.Sharing of shipping C warehousing.

Jey retailing functionsCollect product


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Collect productassort%ents and o er

the% for sale

+etailersPro#ide infor%ation

Store %erchandise5 %ar& prices5 and pay for goods

Conclude transactions.ith $nal consu%ers

+adio frequency distribution'+4*"( Tags

Tags auto transmit according to


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programmed instructions.Shipping and recei"ing9

)ermits e:cient recei"ing of entiretruckloads and containers.

an track indi"idual piece ofmerchandise sent to "endor./xpedited items tally with manifest.

hecking that goods are undamagedand that ordered recei"ed.

Store le"el95ocate lost items* deter theft.Analy-e shopping and tra:cpatterns.

hoice factors


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on"enience

2ariety of selection uality of products Oelp from salespeople Reputation

)rice Ser"ices o4ered

3unctions of wholesalers


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5ocal distribution.

Trained sales force.#arketing and research assistance.

Assortments for customers.

arehousing C deli"ery.

3inancing* nancial recordkeeping.

#erchandise adHustments for returns.

Risk1taking.

3ull1ser"ice merchantwholesalers


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Types of full-ser#ice%erchant

.holesalers

4ranchise:co%%onbusinessfor%at5

cooperation

+ac& =obberE:displays5 usesconsign%ent

sales

Cooperati#e:producer- orretailer-o.ned

Specialty%erchandise:carries a deep

assort%ent

1eneral%erchandise:

carries abroad

assort%ent

5imited1ser"ice merchantwholesalers


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Types of li%ited-ser#ice

%erchant.holesalers

Truc& .agon:sells anddeli#ers along

a route

"rop shipper:ships ite%s.ithout

handling the%

Mail order:sells throughcatalogs

Cash and carry:operatesan outlet for

retailer andbusiness needs

A marketing en"ironmentanalysis framework


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Successfully le"eragingcompany capabilities


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Iew markets* newproducts* etc.

ore competency

applied to

/xisting knowledge* facilities*patents* etc

hat is a di4erential ad"antageB Fnique features that attract

consumers.


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. ause consumers to patroni-e the

rm* and not its competitors. an be based on9 Distincti"e image Iew products or features )roduct quality ustomer ser"ice )ricing A"ailability

3actors to consider aboutconsumers


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Their demographics.

$nterpersonal inPuences.

onsumer,s decision making process.

onsumer groups and organi-ations.

Oow to communicate with them. Oow to maintain good community

relations.

3actors to consider aboutthe economy


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Rate of economic growth

onsumer con dence in the economy (ross domestic product osts of doing business9

Raw materials ages

Taxes $nterest rates )roperty rental costs

Real income /mployment situation

)olitical!regulatory en"ironment9competiti"e practice and tradelegislation


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legislation

The ompetition &ureau is responsible for theadministration and enforcement of the ompetitionAct* the onsumer )ackaging and 5abelling Act%non1food products'* the Textile 5abelling Act andthe )recious #etals #arking Act.

3actors to consider aboutgo"ernment


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le"els to consider.

$ncreased legislation. Special interest

groups. 5aws in place to

protect smaller rms.

onsumer protection

laws.Deregulation.#onitoring agencies.)olitical en"ironment.

hat about the (reen /nergy Act and go"ernmentsubsidies re alternate fuel useB Oow would it bedi4erent if you are in the O2A * "s. electricityproduction businessB hat if you were in

A marketing plan0. /xecuti"e Summary; urrent #arketing Situation


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;. urrent #arketing Situation. 6pportunity C $ssueAnalysis

+. 6bHecti"es. #arketing Strategies

)ositioning )roduct

)rice Distribution ommunications #arketing Research

G.Action )rograms?. )roHected )ro t C5oss Statement

>. $mplementationontrols

Steps in de"eloping thestrategic marketing plan


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Step one9 de ning the missionand!or "ision

#ADD stri"es to stop drunk dri"ing*


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p gsupport the "ictims of this "iolent

crime and pre"ent underage drinking.

M6ur mission is to preser"e the plants*animals* and natural communities thatrepresent the di"ersity of life on /arth byprotecting the lands and waters they need

Step two9 conduct a situationanalysis using S 6T


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(rowth strategies 6pportunity


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6pportunitymatrix

)enetrationstrategy

Acquisition 2ertical

integration Strategic alliance Di"estment ross marketing

#arket leadership

#arket challenger

#arket follower

ustomer excellence

6perational excellence

)roduct excellence

(rowth Strategies 16pportunity #atrix

M &


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#arket)enetration

Strategy

#arketDe"elopment

Strategy

)roductDe"elopment

StrategyDi"ersi catio

nStrategy

Present

Mar&et;e.Present

P r o

d u c t

;e.

)enetration strategyAggressi"e action is taken to build


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Aggressi e action is taken to buildcurrent businesses and brands.

oca1 olaDiet oke3ruitopiaDasani

)owerAde

"oca#"ola wants to be theleading beverage companyworldwide.

2ertical integration strategy

An organi-ation owns andt g i ti i


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operates organi-ations inother le"els of the channel ofdistribution.

Strategic alliance

A rel tionship bet een t o or more


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A relationship between two or morecompanies who decide to workcooperati"ely to achie"e goals.

Tim $ortons has kiosks in %sso outletscoast to coast.

Di"estment strategyA company retreats to its core business byselling unpro table di"isions or di"isions that


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don,t t strategically.

&rands formerly owned by )epsi o include9

)i--a Out* Taco &ell. J3 * /ast Side #arioZsStolichnaya* ilson Sporting (oods and IorthAmerican 2an 5ines.

ross1marketingTwo or more independent organi-ations


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Two or more independent organi ationsshare facilities and!or resources to markettheir goods and ser"ices to similar types ofcustomers.

hoosing a speci c attackstrategy )rice1discount


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)rice1discount 5ower price goods )restige goods )roduct proliferation )roduct inno"ation $mpro"ed ser"ices Distribution inno"ation #anufacturing cost reduction $ntensi"e ad"ertising promotion

Step three9 identifying ande"aluating opportunities usingsegmentation* targeting and


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positioning

Disney9 segmentation*targeting* positioning


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3amilies w!younger kids

Singles and ouples

Adults* families w!oldekids

#agic Jingdom

)leasure $sland

/pcot

Step four9 implement marketingmix and allocate resources
http://disneyworld.disney.go.com/wdw/parks/parkLanding?id=MKLandingPagehttp://disneyworld.disney.go.com/wdw/parks/parkLanding?id=EPLandingPagehttp://disneyworld.disney.go.com/wdw/parks/parkLanding?id=EPLandingPagehttp://disneyworld.disney.go.com/wdw/parks/parkLanding?id=MKLandingPage


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Step "e9 e"aluate performanceand make adHustments


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A marketing plan0. /xecuti"e Summary;. urrent #arketing Situation


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. 6pportunity C $ssue

Analysis+. 6bHecti"es

. #arketing Strategies )ositioning )roduct

)rice Distribution ommunications #arketing Research

G.Action )rograms?. )roHected )ro t C

5oss Statement>. $mplementation

ontrols

Direct marketing uses non1personal media to reachpotential customers


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$t,s a complete sales presentation to make asale.

The key question is Mcan the good or ser"icebe sold with this approachBN

http9!!www.the1cma.org!

This is the Mhierarchy ofresponse beha"iourNSuspect
http://www.the-cma.org/http://www.the-cma.org/


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/d#ocate

T.o-ti%ebuyer

One-ti%ebuyer

Prospect

Situation Analysis %from )/ST' ompany &ackground #arkets

S i ) d 5if l

A marketing plan


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Stage in )roduct 5ife ycle

ompetition )roducts hannels /n"ironment onsumer &eha"iour

$ssue Analysis %from S 6T'#ission and 6bHecti"es

#arketing 6bHecti"es Sales 6bHecti"es

#arketing #ix Segmentation* Targeting and )ositioning )roduct Strategies )ricing Strategies


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hannel Strategies

)romotion Strategies )ersonal Selling Trade )romotion onsumer )romotion )ublic Relations Ad"ertising

/"aluation #arketing Research ontrols

/xhibits %)/ST* S 6T* etc'

/KA#)5/S[appos E expanding distribution into anada %shoe distributor'2alue1based marketing E 6ld Ia"y %Y;+ Heans' "s. 5e"is %Y>@' and 2ersace%YG+@'[ara E keeping up with latest trends in /urope E implemented sophisticated$


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$T system into

customer tracking and S # E now [ara has o"er 0+ > store stores in ?;countries The Running Room E pro ling segments E type of people who enHoy runningand weekly run from the running room and teaching people how to run#cDonald,s M$,m lo"in, itN "s. &urger Jing,s MOa"e it your wayN E customerchoice

Di4erentiated segmentation E &lack and Decker brand to homeowners andDe alt line for professionals E same companyhanging product mix depth E onAgra E popcorn lines by introducing three

popular brands$ntroduction portion of lifespan of product E Swi4er

E

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