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Part 3: How to MarketPart 3: How to MarketGoods and ServicesGoods and Services

8.8.Developing Marketing Developing Marketing StrategiesStrategies

9.9.Promoting and Promoting and DistributingDistributing

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Chapter 8Chapter 8

Developing Developing Marketing Marketing Strategies Strategies

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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DevelopingMarket Strategies

Marketing ConceptMarketing ConceptMarket ResearchMarket ResearchMarketing StrategyMarketing StrategyProduct Life CycleProduct Life CyclePackaging And PricingPackaging And PricingServices vs. GoodsServices vs. Goods

Ch

apte

r

7

USDA/ARS, Photo by Scott Bauer

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McGraw-Hill/Irwin

Superior MarketingSuperior Marketing

Moves QuicklyMoves Quickly

Pricing DifferentialPricing Differential

Attention to PackagingAttention to Packaging

Build Customer LoyaltyBuild Customer Loyalty

Samples/DemonstrationsSamples/Demonstrations

Educate CustomersEducate Customers

Ryan McVay/Getty Images

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Marketing ConceptMarketing Concept

“…“…Giving Special Giving Special Consideration To The Consideration To The Needs, Desires, And Needs, Desires, And Wishes Of Present Wishes Of Present And Prospective And Prospective

Customers.”Customers.”

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Elements OfElements OfMarketing ConceptMarketing Concept

1)1) Customer Customer OrientationOrientation

2)2) Goal OrientationGoal Orientation

3)3) Systems ApproachSystems ApproachJack Star/PhotoLink/Getty Images

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Implementing theImplementing the Marketing ConceptMarketing Concept

Conscious Of ImageConscious Of ImageProduct BenefitsProduct BenefitsCompany “Fit”Company “Fit”Offer ResearchOffer ResearchUnique ExpertiseUnique ExpertiseNot PushyNot PushySpeak With IntegritySpeak With Integrity

Practice ConsumerismPractice ConsumerismAware Of Danger SignalsAware Of Danger Signals

C. Borland/PhotoLink/Getty Images

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E-CommerceE-Commerce“…“…Technology-Mediated Technology-Mediated

Exchanges Between Parties Exchanges Between Parties As Well As The As Well As The

Electronically Based Intra- Electronically Based Intra- Or Interorganizational Or Interorganizational

Activities That Facilitate Activities That Facilitate Such Exchanges.”Such Exchanges.”

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MarketingMarketingResearch AreasResearch Areas

Identify CustomersIdentify Customers

Determine NeedsDetermine Needs

Evaluate Sales PotentialEvaluate Sales Potential

Select Appropriate Select Appropriate Channel Of Channel Of DistributionDistribution

Evaluate Advertising & Evaluate Advertising & PromotionPromotion

PhotoLink/Getty Images

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Steps InSteps InMarketing ResearchMarketing Research

Define ProblemDefine Problem

Gather/Evaluate Gather/Evaluate InformationInformation

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SourcesSourcesOf InformationOf Information

Existing InformationExisting Information

Primary ResearchPrimary Research

Specialized TechniquesSpecialized Techniques

WebWeb

Computerized DatabasesComputerized Databases

Keith Brofsky/Getty Images

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MarketingMarketingResearch On The InternetResearch On The Internet

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Checkout AutomationCheckout Automation

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Marketing StrategyMarketing Strategy

Set ObjectivesSet ObjectivesChoose Target Choose Target

MarketMarketMarket SegmentationMarket SegmentationShifting Target MarketsShifting Target MarketsRegional Purchasing DifferencesRegional Purchasing Differences

Jason Reed/Getty Images

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Shifting Markets-Shifting Markets-Population/HouseholdPopulation/Household

0

0.5

1

1.5

2

2.5

3

3.5

4

1940 1950 1960 1970 1980 1990 2000

Population PerHousehold

Population PerFamily

Source: U.S. Census Bureau

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Shifting Markets-Shifting Markets-Older ConsumersOlder Consumers

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Shifting Markets-Shifting Markets-Senior SpendersSenior Spenders

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Marketing Mix (4 Ps)Marketing Mix (4 Ps)

PProductroduct

PPlacelace

PPromotionromotion

PPricerice

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Product Life CycleProduct Life Cycle

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PackagingPackagingProductProduct

PromotesPromotes

ProtectsProtects

IdentificationIdentification

Improves Product Improves Product ConvenienceConvenience

Promotes Brand RecognitionPromotes Brand Recognition

Influences Buying Decision Influences Buying Decision

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Pricing (4 Cs)Pricing (4 Cs)CCustomerustomer

CCompanyompany

CCompetitionompetition

CConstraintsonstraintsRob Melnychuk/Getty Images

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InfluencesInfluencesOn Pricing PoliciesOn Pricing Policies

Stage Of Product Stage Of Product Life CycleLife Cycle

CompetitionCompetition

Cost-OrientedCost-Oriented

FlexibilityFlexibility

Suggested Retail Suggested Retail PricePrice

List PriceList Price

Prestige PricingPrestige PricingLeader PricingLeader PricingBait PricingBait PricingOdd PricingOdd PricingPsychological Psychological

PricingPricingPrice LiningPrice LiningDemand-Demand-

Oriented PricingOriented Pricing

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MarkupMarkup

Markup As Markup As Percentage Percentage

Of CostOf Cost==

$ Amount Of Markup$ Amount Of Markup

Cost Of The ItemCost Of The Item

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DiscountsDiscountsAnd AllowancesAnd Allowances

%Discount- Reduction Discount- Reduction On List Price As On List Price As Incentive To BuyIncentive To Buy

%Allowance- Given When Allowance- Given When Accepting Quality/Quantity Accepting Quality/Quantity ReductionReduction

Artvilee/Getty Images

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Types OfTypes Of Discounts/AllowancesDiscounts/Allowances

CashCashFunctional/TradeFunctional/TradeQuantityQuantityPromotionalPromotionalTrade-InsTrade-InsPush/Prize MoneyPush/Prize Money Joshua Ets-Hokin/Getty Images

BUY ONEBUY ONE

GET ONEGET ONE

FREEFREE

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SmallSmallBusiness Price SettingBusiness Price Setting

$Service FirmsService Firms$RetailersRetailers

¢Customary PriceCustomary Price¢Unit PriceUnit Price¢Loss LeaderLoss Leader

$WholesalersWholesalers$ProducersProducers$Building Contractors = Cost-PlusBuilding Contractors = Cost-Plus

PhotoLink/Getty ImagesPhotoLink/Getty Images

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Marketing ServicesMarketing Services

Nature Of ServiceNature Of ServicePersonalPersonal

BusinessBusiness

Differentiating Differentiating Services Services Adam Crowley/Getty Images

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MarketingMarketingService StrategyService Strategy

Level Of Customer Level Of Customer ContactContact

PrimacyPrimacy PricingPricing

QualityQuality Degree Of Expertise/SpecialtyDegree Of Expertise/Specialty Value To BuyerValue To Buyer

PromotionPromotion

Rob Melnychuk/Getty Images

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Strategy Implementation-Strategy Implementation- Introductory StageIntroductory Stage

Analyze SituationAnalyze SituationPresentPresent

FutureFuture

Fit Product To Fit Product To MarketMarket

Evaluate ResourcesEvaluate Resources

Ryan McVay/Getty ImagesRyan McVay/Getty Images

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New Classes Of CustomersNew Classes Of Customers

Penetration Of Penetration Of

Existing MarketExisting Market

Maintain Market Maintain Market

Share By Design & Marketing Share By Design & Marketing

InnovationInnovation

Strategy Implementation-Strategy Implementation- Growth StageGrowth Stage

C. Borland/PhotoLink/Getty Images