Introd to-

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Introd to-

  1. 1. Chapter 3 Objectives The Marketing Environment  Describe the environmental forces that affect the company's ability to serve its customers.  Explain how changes in the demographic and economic environment affect marketing decisions.  Identify the major trends in the firm's natural and technological environments.  Explain the key changes in the political and cultural environment.  Discuss how companies can react to the marketing environment.
  2. 2. Microenvironment: internal forces Company Suppliers Marketing Intermediaries Customers Publics Competitors Company
  3. 3. The Company Top management Finance R & D Purchasing Manufacturing Accounting Marketing
  4. 4. Microenvironment: internal forces Company Suppliers Marketing Intermediaries Customers Publics Competitors Company
  5. 5. Macroenvironment: external forces Demographic Economic Natura l Technological Political Cultural Company
  6. 6. Demographics Family Population Shift Education Increasing Diversity
  7. 7. Demographics: Changing Age Structure in Canada Median age up from 25 to 38 in 30 years Long-term slowing of birth rate (1.55) Increasing life expectancy “Baby dearth” of the 70’s Population bulge due to baby boom Growth rates vary for different age groups
  8. 8. Canada’s Boomer Bulge
  9. 9. Demographics BOOMERS  40 plus age now 45% bigger than 18-30 group  …will be 60% bigger by 2010  1989 40+ became biggest adult segment in history  Control 50%+ of discretionary spending  Control 75% of nation’s wealth  About to inherit largest intergenerational wealth transfer in history
  10. 10. Demographic Environment: Increasing Diversity  Ethnicity:  Ethnic purchasing power $300 billion  Growing market size  Avoid stereotyping  Use native languages  Choose ethnic media  Sexual orientations  Disabilities
  11. 11. Macroenvironment: external forces Demographic Economic Natura l Technological Political Cultural Company
  12. 12. Economics Changes in Income More Work = Less Leisure people are time starved Changing Consumer Spending Patterns
  13. 13. Consumer Confidence Consumer confidence fell to its lowest level since October 1983. Conference Board, Feb. 2003
  14. 14. Consumer Confidence Consumer confidence tanked in February and has been rebounding since. Decima Research, 2003
  15. 15. Natural Environment Shortages of Raw Materials Increased Pollution Increased Government Intervention e.g. Environmental Protection Act
  16. 16. Technological Environment Fast pace of technological change High R&D Budgets
  17. 17. Political Environment Legislation regulating business increased legislation increased emphasis on ethics and socially responsible actions
  18. 18. Cultural Environment Persistence of cultural values Shifts in cultural values Subcultures
  19. 19. Microenvironment: internal forces Company Suppliers Marketing Intermediaries Customers Publics Competitors Company
  20. 20. Chapter 18 Objectives Marketing and Society Identify the major social criticisms of marketing. Define consumerism and environmentalism and explain how they affect marketing strategies.  Describe the principles of socially responsible marketing. Explain the role of ethics in marketing.
  21. 21. Social Criticisms of Marketing Marketing’s Impact on Consumers High Prices * Deceptive Practices * High-Pressure Selling Shoddy Products * Planned Obsolescence * Poor Service
  22. 22. Social Criticisms of Marketing Marketing’s Impact on Society False Wants/Too Much Materialism * Too Few Social Goods Cultural Pollution * Too Much Political Power
  23. 23. Consumerism  The right to safety  Right to be informed  The right to choose  The right to be heard  The right to redress against damage  The right to consumer education Consumer’s Association of Canada Fundamental Rights
  24. 24. Chapter 4 Objectives Marketing Research and Information Systems  Explain the importance of information to the company.  Define the marketing information system and discuss its parts.  Outline the four steps in the marketing research process.  Compare the advantages and disadvantages of various methods of collecting information.  Discuss the special issues some marketing researchers face.
  25. 25. Measuring & Forecasting Demand 1. As marketing manager for Cat's Pride cat litter, you have seen sales jump 50 percent in the last year after years of relatively stable sales. Explain how you will forecast sales for the coming year. 2. What are some leading indicators that might help you predict sales of diapers, cars, and hamburgers. Can you describe a general procedure for finding leading indicators or product sales?
  26. 26. The Importance of Information Research Needs Marketing Environment Customer Needs and Wants Strategic Decision Making Competitors
  27. 27. Should you do Research? NO if:  being done before financial analysis complete  a way to avoid making a decision  results are not going to change your plans  cheaper to try idea than conduct research YES if:  data will be useful in a very specific way  you can get the information you need to make decisions  you can’t afford to make an uniformed decision  you must convince others of something you already know
  28. 28. Market Research Process Define problem and research objectives Develop plan to collect data Implement collect and analyze data Interpret and report findings 4-2
  29. 29. Step 1: defining the problem & research objectives Exploratory research  preliminary information  helps better define problem Descriptive research  expand understanding of factors Causal research  test cause and effect hypothesis
  30. 30. Step 2: developing the plan for collecting information Determine Specific Information Needs, e.g.  Target customer characteristics  Patterns of product use (which day- part?)  Demand factors  Response of marketing channels  Customer reactions  Projected sales
  31. 31. Step 2: developing the plan for collecting information Gathering Secondary Data  internal sources  government sources  books and periodicals  commercial data services  international data  on-line databases and the internet  syndicated research studies
  32. 32. Step 2: developing the plan for collecting information Gathering Primary Data Research Approaches  Observational  Survey: phone, mail, in-person  Experimental
  33. 33. Primary Data Collection Contact Methods: strengths & weaknesses Mail Questionnaire Telephone Interview Personal Interview Large volume, Low cost Honest answers, Slow, Not very flexible Fast, Controlled sample, Flexible, Higher Response, More expensive, Bias Very flexible, Fast, Very expensive, Bias
  34. 34. Step 3: implementing the research plan Plan is put into action most expensive part of the process so: 1) important to watch for interviewer bias 2) accuracy
  35. 35. Step 4: interpreting and reporting findings Present important findings Company ultimately must decide on correct interpretation and how to proceed
  36. 36. Difficulties in Asking Questions of Consumers Do they really know whether they are likely to buy a particular product? Even if they know the answer, will they tell you? Will their actual purchase behaviour mirror their stated interests/intentions?
  37. 37. Chapter 5 Objectives Consumer Markets and Consumer Buying Behaviour Define the consumer market and construct a simple model of consumer buyer behaviour. Name the four major factors that influence consumer buyer behaviour. List and understand the stages in the buyer decision process. Describe the adoption and diffusion process for new products.
  38. 38. Factors Affecting Consumer Behaviour Cultural Culture Sub- culture Social class Social Reference groups Family Roles and status Personal Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Psycho- logical Motivation Perception Learning Beliefs and attitudes
  39. 39. Cultural Factors Culture Social Class Sub-culture
  40. 40. Social Factors Groups reference groups aspirational groups Family Roles & Status
  41. 41. Personal Factors Age & Lifecycle Stage Occupation Economic situation Personality & Self- Concept Lifestyle
  42. 42. Psychological Factors Motivation Perception Learning Beliefs & Attitudes Physiological needs Safety needs Esteem needs Self-Actualtization Social needs
  43. 43. VALS2 Lifestyle Classification Achievers Strivers Actualizers Strugglers Experiencers Makers Fulfilleds Believers Abundant Resources Minimal Resources Principle Oriented Status Oriented Action Oriented
  44. 44. Buyer Decision Process Need recognition Purchase decision Purchase decision Evaluation of alternatives Evaluation of alternatives Post-Purchase behaviour Post-Purchase behaviour Information search
  45. 45. Types of Buying Behaviour Complex buying behaviour Complex buying behaviour Variety- seeking behaviour Variety- seeking behaviour Dissonance reducing behaviour Dissonance reducing behaviour Habitual buying behaviour Habitual buying behaviour Low involvementHigh involvement Significant differences between brands Few differences between brands
  46. 46. Adopter Categorization: relative time of adoption Time of adoption of innovations 2.5% Innovators 34% Early majority 34% Late majority Early adopter s 13.5% 16% Laggards
  47. 47. Chapter 6 Objectives Business Markets and Business Buying Behaviour Define the business market and explain how business markets differ from consumer markets. Identify the major factors that influence business buyer behaviour. List and define the steps in the business buying-decision process. Compare the institutional and government markets and explain how institutional and government buyers make buying decisions.
  48. 48. Characteristics of Business Markets Differences Between Business and Consumer Markets Market Structure and Demand Nature of the Buying Unit Types of Decisions & the Decision Process Other Characteristics
  49. 49. Characteristics of Business Markets Differences Between Business and Consumer Markets Market Structure and Demand 1. Fewer but larger buyers 2. More geographically concentrated 3. Demand is more inelastic 4. Demand is derived 5. Demand fluctuates quickly
  50. 50. Characteristics of Business Markets Differences Between Business and Consumer Markets Nature of the Buying Unit 1. Involves more buyers 2. More professional purchasing procedures
  51. 51. Characteristics of Business Markets Differences Between Business and Consumer Markets Types of Decisions & the Decision Process 1. More complex 2. More formal 3. Buyer-seller relationships more dependent, long-term relationships
  52. 52. Characteristics of Business Markets Differences Between Business and Consumer Markets Other Characteristics 1. Buy direct v.s. via retailer 2. Practice reciprocity 3. Often lease v.s. purchase
  53. 53. Business Buying Influences Level of primary demand Economic outlook Cost of money Supply conditions Rate of techno- logical change Political, regulatory developments Competitive developments Objectives Policies Procedures Organizational structure Systems Authority Status Empathy Persuasive- ness Age Education Occupation Personality Risk attitudes Environmental Interpersonal Organizational Individual
  54. 54. Business Buying Process 1. Problem Recognition 2. General Need Description 3. Product Specification 4. Supplier Search 5. Proposal Solicitation 6. Supplier Selection 7. Order Routine Specification 8. Performance Review
  55. 55. Institutions & Government Institutional Markets Government Markets Low Budgets Captive Patrons Centralized Buying Submitted Bids Public Review Outside Publics Non-economic Criteria
  56. 56. Chapter 7 Objectives Segmentation, Targeting, Positioning Define the three steps of target marketing: segmentation, targeting, positioning. List and discuss the major levels of market segmentation and the bases for segmenting consumer and business markets. Explain how companies identify attractive market segments and choose a market- coverage strategy. Explain how companies can position their
  57. 57. Steps in Market Segmentation, Targeting, and Positioning Market segmentation 1. Identify bases for segmenting the market 2. Develop profiles of resulting segments Market targeting 3. Develop measures of segment attractiveness 4. Select the target segment(s) Market positioning 6. Develop marketing mix for each target segment 5. Develop positioning for each target segment
  58. 58. Segmenting: 4 bases Geographic Demographic Psychographic Behaviouristic
  59. 59. Segmenting: geographic base  Divide market into separate geographic units  Nations, regions provinces, cities, neighbourhoods, etc.  Develop appropriate marketing programs
  60. 60. Segmenting: demographic base  Most popular method  Divide market into groups based on:  age  sex  family size & lifecycle  income & occupation  education  religion  ethnic background
  61. 61. Demographics - age  14% of population over 65  90% of 50+ are debt free  48% of all luxury cars sold are purchased by 50+ group  50+ age group controls 80% of Canada’s personal wealth up have 2/3 of disposable income 25% of population
  62. 62. Segmenting: psychographic base  Social class  determines choice of home, car, clothes, leisure habits, etc.  Lifestyle  reflected in purchases  e.g. couch potatoes, sports enthusiasts, or symphony lovers  Personality  express who they are
  63. 63. Segmenting: behavioural base Divide market into groups based on:  Occasions  User Status  Usage Rate  Loyalty Status  Benefits sought
  64. 64. Requirements for effective segmentation Requirements for Effective Segmentation Measurability Substantiality Actionability Accessibility
  65. 65. Requirements for effective segmentation Measurability - size, purchasing power, profiles of segments Accessibility - effectively reach and serve Substantiality - segments are large or profitable enough to serve Actionability - effective programs can be designed to attract segments
  66. 66. Market Targeting: evaluating market segments Segment size and growth Structural attractiveness Company objectives and resources
  67. 67. Company marketing mix Market Undifferentiated marketingUndifferentiated marketing Company marketing mix 1 Company marketing mix 2 Company marketing mix 3 Segment 1 Segment 3 Segment 2 Differentiated marketingDifferentiated marketing Segment 1 Segment 3 Segment 2 Company marketing mix Concentrated marketingConcentrated marketing Selecting Market Segments
  68. 68. Positioning Defined by consumers on important attributes Place in mind relative to competing products Position happens - planned or not
  69. 69. Positioning Strategy: choosing and implementing Communicate and deliver chosen position Communicate and deliver chosen position Select the right competitive advantage Select the right competitive advantage Identify possible competitive advantage Identify possible competitive advantage Select an overall positioning strategy Select an overall positioning strategy
  70. 70. Positioning G Against a Competitor Against a Competitor Usage Occasions Usage Occasions Away from Competitors Away from Competitors Product Attributes Product Attributes Product Class Product Class Benefits Offered Benefits Offered UsersUsers B D C G F A E
  71. 71. Positioning Statement For (target customer) Who (statement of need or opportunity) The (product name) is a (product category) That (statement of key benefit) Unlike (primary competitive alternative) Our product (statement of primary
  72. 72. Chapter 8 Objectives Product Strategies Define product and the major classifications of products and services. Describe the roles of product and service branding, packaging, labelling, and product support services. Explain the decisions companies make when developing product lines and mixes.  Identify the four characteristics of a service.  Discuss the additional marketing considerations that services require.
  73. 73. Levels of Product Core benefit or service Augmented productAugmented product Installation After- Sale service Delivery and credit Warranty Brand name Quality level Design Features Packaging Core productCore product Actual productActual product 8-1
  74. 74. Product Classifications: consumer products Types of Consumer Products Convenience products Shopping products Specialty products Unsought products
  75. 75. Product Decisions Branding Product attributes Packaging Product Support services Labelling
  76. 76. Product Attributes Quality Features Sizes Design
  77. 77. Product Support Services Services that augment the actual product e.g. 1-800 support for software program e.g. web/Internet technical support
  78. 78. Branding  Name, term, sign, symbol or design or a combination intended to identify goods or services of a seller or group to differentiate them from competitors
  79. 79. Brand Name Selection: desirable qualities  Suggest benefits and qualities  Easy to pronounce recognize & remember  Distinctive  Translated easily  Capable of registration & legal protection Craftsman
  80. 80. Major Branding Decisions To brand or not to brand To brand or not to brand • Brand • No brand • Brand • No brand Brand name selection Brand name selection Brand sponsorBrand sponsor Brand strategyBrand strategy Brand repositioning Brand repositioning • Selection • Protection • Selection • Protection • Manufacturer’s brand • Private brand • Licensed brand • Co-branding • Manufacturer’s brand • Private brand • Licensed brand • Co-branding • New brands • Line extensions • Brand extensions • Multibrands • New brands • Line extensions • Brand extensions • Multibrands • Brand repositioning • No brand repositioning • Brand repositioning • No brand repositioning Figure 8- 3
  81. 81. Value of Branding  Helps consumers shop more efficiently  Aids repeat purchase  Suggests quality of product  Creates store loyalty  Gives legal protection  Helps in segmenting markets  Symbol of ongoing promise Buyer’s viewpoint Seller’s viewpoint
  82. 82. Packaging/Labelling  What should the package do for the product? identify, describe, and promote  Elements support position & strategy  Environmental issues?
  83. 83. Chapter 9 Objectives New Product Development and Life Cycle Strategies Explain how companies find and develop new product ideas. List and define the steps in the new-product development process. Describe the stages of the product life cycle. Describe how marketing strategies evolve during the product’s life cycle.
  84. 84. New Product Development Process: Idea generation Idea screening Concept Development & testing Marketing strategy 9-1
  85. 85. Marketing Strategy Development Part one  Target market  Planned product positioning  Sales, market share and profit goals (short term) Part two  Outline price, distribution and first year marketing budget Part three  Planned long-run sales  Profit goals  Marketing mix strategy
  86. 86. New Product Development Process: Idea generation Idea screening Concept Development & testing Marketing strategy Business analysis Product development Commercialization Test marketing 9-1
  87. 87. Why do new products fail?  Overestimated market or target market is too small  Poor design  Poor product quality  Incorrect positioning  Error in pricing  Poor marketing communication
  88. 88. Product Life-Cycle Strategies Profits Sales Development Introduction Growth Maturity Decline Sales Profit ($) Loss ($) 9-2
  89. 89. New Product Life Cycle Strategies Introduction Market Skimming Market Penetration
  90. 90. New Product Life Cycle Strategies Growth New Features Improve Quality Add Channels New Segments
  91. 91. New Product Life Cycle Strategies Maturity Product Modification Market Modification Modify Marketing Mix
  92. 92. New Product Life Cycle Strategies Decline Maintain Harvest Drop
  93. 93. Chapter 10 Objectives Pricing Strategies Identify and define the internal factors affecting a firm’s pricing decisions. Identify and define the external factors affecting pricing decisions. Contrast the three general approaches to setting prices. Describe the major strategies for pricing new products. Discuss the key issues related to price changes.
  94. 94. Factors Affecting Pricing Internal factors • Marketing objectives • Marketing-mix strategy • Costs • Organizational considerations Internal factors • Marketing objectives • Marketing-mix strategy • Costs • Organizational considerations External factors • Nature of the market & demand • Competition • Other environmental factors (economy, resellers, government) External factors • Nature of the market & demand • Competition • Other environmental factors (economy, resellers, government) Pricing decisions Pricing decisions
  95. 95. Internal Factors Internal factors • Marketing objectives • Marketing-mix strategy • Costs • Organizational considerations Internal factors • Marketing objectives • Marketing-mix strategy • Costs • Organizational considerations Pricing decisions Pricing decisions
  96. 96. External Factors External factors • Types of markets • Price-demand relationship • Competition • Other environmental factors (economy, resellers, government) External factors • Types of markets • Price-demand relationship • Competition • Other environmental factors (economy, resellers, government) Pricing decisions Pricing decisions
  97. 97. Demand Curves PP’’22 PP’’11 QQ11QQ22 PP11 PP22 QQ’’11QQ’’22 Quantity demandedQuantity demanded per periodper period Inelastic demandInelastic demand Quantity demandedQuantity demanded per periodper period Elastic demandElastic demand PricePrice
  98. 98. External Factors External factors • Types of markets • Price-demand relationship • Competition • Other environmental factors (economy, resellers, government) External factors • Types of markets • Price-demand relationship • Competition • Other environmental factors (economy, resellers, government) Pricing decisions Pricing decisions
  99. 99. General Pricing Approaches 1. Cost-Based Approaches Cost-Plus Break-Even Target Profit Pricing Analysis Pricing
  100. 100. General Pricing Approaches 1. Cost-Based Approaches 2. Value-Based Approaches Perceived Value Pricing
  101. 101. General Pricing Approaches 1. Cost-Based Approaches 2. Value-Based Approaches Going-Rate Pricing Sealed-Bid Pricing 3. Competition-Based Approaches
  102. 102. New Product Pricing Strategies  setting a high price to maximize revenue  makes sense when:  product quality and image supports a higher price  costs of producing a small volume are not too high to cancel the advantage of charging more  company has a patent or technological advantage Market Skimming
  103. 103.  Setting a low price to attract a large number of buyers and gain a dominant market share  makes sense when:  market is highly price sensitive (low price stimulates sales and market growth)  production costs must fall as volume increases  low price must be an effective entry barrier for competitors New Product Pricing Strategies Market Penetration
  104. 104. Product-Mix Pricing Strategies Product Line Pricing $49.99 $89.99 $129.99 $149.99 $189.99
  105. 105. Product-Mix Pricing Strategies Product Line Pricing Captive Product Pricing
  106. 106. Product-Mix Pricing Strategies Product Line Pricing Captive Product Pricing Product Bundle Pricing
  107. 107. Price Adjustment Strategies Discount & Allowance Pricing International Pricing Segmented Pricing Psychological Pricing Promotional Pricing Geographical Pricing
  108. 108. Chapter 11 Objectives Distribution Channels and Logistics Management Explain why companies use distribution channels and explain the functions that these channels perform. Discuss how channel members interact and organize to perform the work of the channel. Identify the major channel alternatives. Discuss the nature and importance of physical distribution Analyze integrated logistics management.
  109. 109. Chapter 12 Objectives Retailing and Wholesaling Explain the roles of retailers and wholesalers in the distribution channel. Describe the major types of retailers and give examples of each. Identify the major types of wholesalers and give examples of each. Explain the marketing decisions facing retailers and wholesalers.
  110. 110. Distribution (Place) Good distribution is critical to the marketing success of products Three main types of channels:  Direct  Indirect  Hybrid
  111. 111. Consumer Marketing Channels Manu- facturer Manu- facturer DirectDirect Whole- saler Whole- saler RetailerRetailer RetailerRetailer ConsumerConsumer Manu- facturer Manu- facturer Manu- facturer Manu- facturer Manu- facturer Manu- facturer JobberJobber Whole- saler Whole- saler ConsumerConsumer ConsumerConsumer ConsumerConsumer RetailerRetailer IndirectIndirect IndirectIndirect IndirectIndirect
  112. 112. Hybrid Marketing Channel Consumer segment 1 Consumer segment 1 Business segment 1 Business segment 1 Consumer segment 2 Consumer segment 2 Business segment 2 Business segment 2 RetailersRetailers DealersDealersDistributorsDistributors ProducerProducer Catalogues, telephoneCatalogues, telephone Sales forceSales force
  113. 113. Distribution Channel Functions  Information: gathering and distributing marketing research  Promotion  Contact: finding and communicating with prospective buyers  Matching offers to buyer’s needs  Negotiation  Physical distribution, financing, risk taking
  114. 114. Why Use Marketing Intermediaries? An intermediary reduces the number of channel transactions # of contacts without a distributor M x C = 3 x 3 = 9 # of contacts with a distributor M x C = 3+ 3 =6
  115. 115. Franchise organizations Franchise organizations Administered VMS Administered VMS Retailer cooperatives Retailer cooperatives Wholesaler-sponsored voluntary chains Wholesaler-sponsored voluntary chains Contractual VMS Contractual VMS Corporate VMS Corporate VMS Manufacturer- sponsored retailer franchise Manufacturer- sponsored wholesaler franchise Service-firm- sponsored franchise Figure 12-4 Vertical Marketing Systems (VMS)
  116. 116. Major Logistics Functions Nature of Distribution Order Processing Warehousing Transportation Inventory
  117. 117. Chapter 13 Objectives Integrated Marketing Communication Strategy Name and define the five tools of the promotion mix. Discuss the processes and advantages of integrated marketing communications. Outline the steps in developing effective marketing communication. Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix.
  118. 118. Promotion Mix Advertising Direct Marketing Personal Selling Public Relations Sales Promotion Promotion Mix
  119. 119. Marketing Communications Mix Advertising paid placement of a message in the media non-personal presentation and promotion of ideas, goods, or services identified sponsor
  120. 120. Marketing Communications Mix Sales Promotion short-term incentives to encourage the sale of a product or service
  121. 121. Marketing Communications Mix Personal Selling personal presentation by a firm’s sales force for the purpose of making sales and building customer relationships
  122. 122. Marketing Communications Mix Public Relations free placement of a message in the media on-going process of building good relations with the company’s various publics by:  obtaining favourable publicity  building a good corporate image  handling stories or events  heading off unfavorable rumours
  123. 123. Marketing Communications Mix Direct Marketing direct communications with carefully targeted individual consumers to obtain an immediate response using mail, telephone, fax, e-mail and other non-personal tools
  124. 124. 1. Identify the target audience Steps in Developing Effective Communication
  125. 125. 1. Identify the target audience 2. Determine the desired response Steps in Developing Effective Communication
  126. 126. Buyer-Readiness Stages AwarenessAwareness KnowledgeKnowledge LikingLiking PurchasePurchaseConvictionConvictionPreferencePreference
  127. 127. 1. Identify the target audience 2. Determine the desired response 3. Design a message Steps in Developing Effective Communication
  128. 128. Designing a message Message Content rational - emotional - moral appeal? Message Structure open vs. conclusion? one side or two sides? Message Format words - images - colour - sounds - expressions?
  129. 129. 1. Identify the target audience 2. Determine the desired response 3. Design a message 4. Choose the media Steps in Developing Effective Communication
  130. 130. Choosing media Personal channels  face to face, phone, email, mail  allows personal contact and feedback Non-personal channels  major media e.g. print, radio, tv, etc.  no personal contact or feedback  Opinion leaders key to reaching others
  131. 131. Choosing Advertising Media 1. Reach # of people in your target market reached 2. Frequency how often people in your target market see your promotions 3. Impact
  132. 132. 1. Identify the target audience 2. Determine the desired response 3. Design a message 4. Choose the media 5. Select the message source Steps in Developing Effective Communication
  133. 133. Selecting the message source  Credible sources more persuasive  Credible people, e.g. doctors, dentists, health- care providers  Celebrity endorsers
  134. 134. 1. Identify the target audience 2. Determine the desired response 3. Design a message 4. Choose the media 5. Select the message source 6. Collect feedback Steps in Developing Effective Communication
  135. 135. Setting the Promotion Budget Affordable method Percent of sales Competitive parity Objective and task
  136. 136. Chapter 14 Objectives Advertising, Sales Promotion and Public Relations Define the roles of advertising, sales promotion, and public relations in the promotion mix. Describe the major decisions involved in developing an advertising program. Explain how sales promotion campaigns are developed and implemented. Explain how companies use public relations to communicate with their publics.
  137. 137. Promotion Tools The Nature of Each Promotion Tool Advertising Legitimate Public Repetition Expensive
  138. 138. Promotion Tools The Nature of Each Promotion Tool Advertising Legitimate Public Repetition Expensive Personal Selling Effective Costly Two Way Relationships
  139. 139. Promotion Tools The Nature of Each Promotion Tool Advertising Legitimate Public Repetition Expensive Personal Selling Effective Costly Two Way Relationships Sales Promotion Timing Incentive Short Term
  140. 140. Promotion Tools The Nature of Each Promotion Tool Advertising Legitimate Public Repetition Expensive Personal Selling Effective Costly Two Way Relationships Sales Promotion Timing Incentive Short Term Public Relations Credibility Under Used
  141. 141. Campaign evaluation Communication impact Sales impact Campaign evaluation Communication impact Sales impact Message decisions Message strategy Message execution Message decisions Message strategy Message execution Budget decisions Affordable approach Percent of sales Competitive parity Objective and task Budget decisions Affordable approach Percent of sales Competitive parity Objective and task Objectives setting Communication objectives Sales objectives Objectives setting Communication objectives Sales objectives Media decisions Reach, frequency, impact Major media types Specific media vehicles Media timing Media decisions Reach, frequency, impact Major media types Specific media vehicles Media timing Figure 15-1 Major Advertising Decisions
  142. 142. Stage in Product Life Cycle Push or Pull Setting the Promotion Mix Factors in Setting the Promotion Mix Type of Market Buyer Readiness
  143. 143. Relative importance Relative importance Advertising Sales promotion Personal selling Public Rel. Personal selling Sales promotion Advertising Public Rel. Consumer Goods Industrial Goods Type of Market
  144. 144. Stage in Product Life Cycle Push or Pull Setting the Promotion Mix Factors in Setting the Promotion Mix Type of Market Buyer Readiness
  145. 145. Push versus Pull Strategy Retailers and Wholesalers Retailers and Wholesalers ConsumersConsumers ConsumersConsumersRetailers and Wholesalers Retailers and WholesalersProducerProducer ProducerProducer Producer marketing activities Reseller marketing activities Push strategy Pull strategy Producer marketing activities Demand Demand
  146. 146. Stage in Product Life Cycle Push or Pull Setting the Promotion Mix Factors in Setting the Promotion Mix Type of Market Buyer Readiness
  147. 147. Chapter 15 Objectives Personal Selling Discuss the role of a company’s salespeople in creating value for customers and building customer relationships. Explain how companies design sales force strategy and structure. Explain how companies recruit, select, and train salespeople. Describe how companies compensate and supervise salespeople and how they evaluate sales-force effectiveness.
  148. 148. Steps in Effective Selling Prospecting and qualifying Prospecting and qualifying Pre-approachPre-approach ApproachApproach Presentation and demonstration Presentation and demonstration Follow-upFollow-upClosingClosingHandling objections Handling objections
  149. 149. Chapter 16 Objectives Direct and Online Marketing  Discuss the benefits of direct marketing to customers and companies and the trends fuelling its rapid growth.  Define a customer database and list the four ways that companies use databases in direct marketing.  Identify the major forms of direct marketing.  Compare the two types of online marketing channels and explain the effect of the Internet on e-commerce.  Identify the benefits of online marketing to consumers and marketers and the four ways that
  150. 150. What is Direct Marketing?  Communications with carefully targeted individual consumers to obtain an immediate response  Cultivate relationships  Often one-to-one interactive  Precise targeting  More effective results
  151. 151. Customers and prospects Customers and prospects Face-to-face selling Face-to-face selling Tele- marketing Tele- marketing Direct mail Direct mail KioskKiosk OnlineOnline Direct Response TV Direct Response TV CatalogueCatalogue Forms of Direct Marketing Figure 17-1
  152. 152. Chapter 8 Objectives Product Strategies  Define product and the major classifications of products and services.  Describe the roles of product and service branding, packaging, labelling, and product support services.  Explain the decisions companies make when developing product lines and mixes. Identify the four characteristics of a service. Discuss the additional marketing considerations that services require.
  153. 153. Marketing is the process of helping others value your service.
  154. 154. Services are Different SERVICES Intangible services cannot be seen, tasted, felt, heard or smelled before purchase
  155. 155. Services are Different SERVICES Inseparable services cannot be separated from their providers
  156. 156. Services are Different SERVICES Variability (Inconsistency) quality of services depends on who provides them and when, where and how
  157. 157. Moments of Truth Execs Front Line Employees Middle Management customers
  158. 158. Services are Different SERVICES Perishability (Inventory) services cannot be stored for later sale or use
  159. 159. Services are Different SERVICES Intangible services cannot be seen, tasted, felt, heard or smelled before purchase Variable quality of services depends on who provides them and when, where and how Inseparable services cannot be separated from their providers Perishable services cannot be stored for later sale or use
  160. 160. Service-Profit Chain Which is most important? customers stockholders employees
  161. 161. Chapter 17 Objectives The Global Marketplace Discuss how the international trade system, economic, politico-legal, and cultural environments affect a company’s international marketing decisions. Describe three key approaches to entering international markets. Explain how companies adapt their marketing mixes for international markets. Identify the three major forms of international marketing organization.
  162. 162. Deciding Whether to go international Deciding Whether to go international Deciding which markets to enter Deciding which markets to enter Looking at the global marketing environment Looking at the global marketing environment Deciding on the global marketing program Deciding on the global marketing program Deciding on the global marketing organization Deciding on the global marketing organization Deciding how to enter the market Deciding how to enter the market Major Decisions in International Marketing
  163. 163. Global Marketing Environment International Trade System  Tariffs  Quotas  Embargos  Exchange controls  Non-tariff trade barriers
  164. 164. Global Marketing Environment Economic Environment  Income distribution  Industrial structure: - subsistence economies - raw-material exporting economies - industrializing economies - industrial economies
  165. 165. Global Marketing Environment Politico-Legal & Ethical Environment  Attitude toward foreign businesses  Extent of government bureaucracy  Political stability  Monetary regulations  Countertrade  Compensation  Counterpurchase
  166. 166. Global Marketing Environment Cultural Environment  Language, customs  Folkways, norms, taboos  Business norms & behaviour e.g. Personal distance e.g. Meeting and greeting
  167. 167. Deciding Whether to go international Deciding Whether to go international Deciding which markets to enter Deciding which markets to enter Looking at the global marketing environment Looking at the global marketing environment Deciding on the global marketing program Deciding on the global marketing program Deciding on the global marketing organization Deciding on the global marketing organization Deciding how to enter the market Deciding how to enter the market Major Decisions in International Marketing
  168. 168. Deciding Whether to go international Deciding Whether to go international Deciding which markets to enter Deciding which markets to enter Looking at the global marketing environment Looking at the global marketing environment Deciding on the global marketing program Deciding on the global marketing program Deciding on the global marketing organization Deciding on the global marketing organization Deciding how to enter the market Deciding how to enter the market Major Decisions in International Marketing
  169. 169. Deciding Whether to go international Deciding Whether to go international Deciding which markets to enter Deciding which markets to enter Looking at the global marketing environment Looking at the global marketing environment Deciding on the global marketing program Deciding on the global marketing program Deciding on the global marketing organization Deciding on the global marketing organization Deciding how to enter the market Deciding how to enter the market Major Decisions in International Marketing
  170. 170. Market Entry Strategies Exporting Direct Indirect Joint venturing Licensing Contract manufacturing Management contracting Joint ownership Direct investment Assembly facilities Manufacturing facilities Amount of commitment, risk, control, and profit potentialAmount of commitment, risk, control, and profit potential
  171. 171. Deciding Whether to go international Deciding Whether to go international Deciding which markets to enter Deciding which markets to enter Looking at the global marketing environment Looking at the global marketing environment Deciding on the global marketing program Deciding on the global marketing program Deciding on the global marketing organization Deciding on the global marketing organization Deciding how to enter the market Deciding how to enter the market Major Decisions in International Marketing
  172. 172. Develop new product Communication adaptation Communication adaptation Dual adaptation Dual adaptation Product invention Product invention Straight extension Straight extension Product adaptation Product adaptation Adapt product Don’t change product Don’t Change promotion Adapt promotion Product Promotion International Product & Promotion Strategies
  173. 173. Develop new product Communication adaptation Communication adaptation Dual adaptation Dual adaptation Product invention Product invention Straight extension Straight extension Product adaptation Product adaptation Adapt product Don’t change product Don’t Change promotion Adapt promotion Product Promotion International Product & Promotion Strategies
  174. 174. Deciding Whether to go international Deciding Whether to go international Deciding which markets to enter Deciding which markets to enter Looking at the global marketing environment Looking at the global marketing environment Deciding on the global marketing program Deciding on the global marketing program Deciding on the global marketing organization Deciding on the global marketing organization Deciding how to enter the market Deciding how to enter the market Major Decisions in International Marketing
  175. 175. Global Marketing Organization Methods of Organizing International Marketing Operations Export Department International Division Global Organization

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