Relation to text This slide relates to material on p. 39 of text and Figure 2-1. Summary Overview This model is a framework for analyzing how promotion fits into an organization’s marketing strategy and programs. The model consists of four major components: Marketing strategy and Analysis Target Marketing Process Marketing Planning Program Development (includes the promotional mix) Target Market As the model shows, the marketing process begins with the development of a marketing strategy and analysis in which the company decides the product or service areas and particular markets where it wants to compete. The company must then coordinate the various elements of the marketing mix into a cohesive marketing program that will reach the target market effectively. Note that the promotion program is directed to both the ultimate consumer and the “trade” members or resellers that distribute the company’s products. Use of this slide This slide can be used to provide an overview of a firm’s marketing process and how promotion fits into the program. You might provide a brief discussion of each stage of the marketing process shown in this model.
Relation to text This slide relates to material on pp. 40-41 and Exhibit 2-1 of the text. Summary Overview This slide shows a print ad for Merrill shoes and relates to analyzing marketing opportunities. Marketing opportunities are areas where there are favorable trends, where companies believe customer needs are not being satisfied, and they can compete effectively. This ad shows how Merrill sees opportunity in the growing segment of “lifestyle” shoes. Relation to text This slide can be used to show how companies need to capitalize on marketing opportunities. For instance the athletic shoe industry has changed dramatically as we have seen an emergence of a new segment called “lifestyle” shoes. Merrill is competing in this segment by using ads such as the one shown here.
Relation to the text This slide relates to material on p. 43 if the text and Figure 2-2. Summary Overview The process by which marketers develop different marketing strategies to satisfy different customer needs is called target marketing . The basic steps of this process are shown on this slide. These include: Identify markets with unfulfilled needs – this isolates consumers with similar lifestyles, needs, and wants to find a common ground to more effectively provide them with products/services Determining market segmentation – dividing a market into distinct groups that have common needs and will respond similarly to a marketing action. Selecting a market to target – determining how many segments to enter and which segments offer the most potential. Positioning through marketing strategies – defined as the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningful apart from competition. Use of this slide This slide can be used to introduce the target marketing process and provide a brief description of each step.
Relation to text This slide relates to material on pp. 43-44 and Figure 2-3. Summary Overview This graph shows the various market segments of the beer industry. There are many segments in the beer industry that correspond to different customers’ needs, lifestyles, budgets, and other characteristics. The market has become highly segmented with each segment appealing to a different set of needs such as taste, cost, image, lifestyle, and calorie content. Use of this slide This slide can be used to show how the beer industry can be segmented and how it has evolved. Years ago beer was just beer, with little differentiation. Today the market is segmented based on many factors in an attempt to better satisfy customer needs.
Relation to text This slide relates to the material on pp. 43-44 and Exhibit 2-4 Summary Overview This slide for Grupo Modelo shows how companies compete in a variety of segments with a variety of products varying the marketing mix with each. This ad shows all the different types of beer offered by Grupo Modelo appealing to a different set of needs such as tastes, lifestyle, image, and even waistlines. Use of slide This slide can be used to show how marketers identify customers with differing lifestyles, tastes, demographics, or images and develop different products to better satisfy their needs.
Relation to text This slide relates to the material on pp. 44-45. Summary Overview In order to effectively segment markets the segmentation process involves five distinct steps: Find ways to group customers according to their needs Find ways to group the marketing actions – usually the products offered Develop a market/product grid to relate the market segments to the firm’s products and actions Select the product segments toward which the firm directs its marketing actions Take marketing actions to reach target segments. Use of this slide This slide can be used to provide an overview of market segmentation and the steps involved in this process.
Relation to text This slide relates to material on pp. 46-49 of the text and Figure 2-4. Summary Overview There are a number of methods that are available for segmenting markets. These methods can be broken into two broad categories based on customer characteristics and aspects of the buying situation. Segmentation based on customer characteristics includes: Geographic segmentation, which divides markets by geographic locations such as nations, states, regions, or cities. Demographic segmentation which divides markets based on demographic variables such as gender, age, education, race, and life stage. Socioeconomic segmentation, which divides markets based on socioeconomic variables such as income, education, and occupation. Psychographic segmentation, which divides markets based on personality values or lifestyle. SRI’s VALS 2 is a popular approach to lifestyle segmentation Segmentation based on the buying situation includes: Behavioral segmentation which divides a market into groups according to their level of involvement with and purchase behavior toward a product or service. Outlets which segments a market based on the type of store where a product is sold such as convenience, supermarket, mass merchandiser, specialty Benefit segmentation divides markets on the basis of the specific benefits or outcomes consumers want from a product or service. Usage segmentation which classifies customer based on their level of use of a product or service including heavy, medium, and light users. Use of this slide This slide can be used to provide an overview of various approaches used by marketers in segmenting markets on the basis of customer characteristics and buying situations.
Relation to text This slide relates to material on pp. 44-50 and Exhibit 2-7 of text. Summary Overview This slide shows a print ad for clothing retailer Abercrombie & Fitch which is a good example of a company that uses demographic segmentation. A&F’s marketing strategy focuses on a specific demographic group called echo boomers (18-22 year olds). A&F’s clothing, as well as its advertising, is designed to appeal to the echo boomers. Use of this slide This slide can be used to show an example of the type of ads Abercrombie & Fitch is using to appeal to their target audience which consists primarily of teens and young adults.
Relation to text This slide contains a Spanish language commercial for Philadelphia Cream Cheese from Kraft Foods and relates to Diversity Perspective 2-1 on pp. 45-46. Summary of Slide This commercial for Philadelphia Cream Cheese is titled “Celestial Family” and is an example of how companies such as Kraft Foods are developing advertising specifically for the Hispanic market. Like many other ads targeting Hispanics, this message addresses a key Hispanic value which is the family and depicts the mother fulfilling an important role of providing for her children. Many marketers are developing commercials for the Hispanic market that can be broadcast on Spanish language TV networks and stations. Use of this slide This commercial can be used as an example of how marketers are developing advertising specifically for the Hispanic market. As discussed in Diversity Perspective 2-1, Hispanics now represent the largest ethnic market in the U.S. and are also the fastest growing market. Marketers recognize that it is important to develop ads for this important market.
Relation to text This slide relates to material on pp. 51-52 which discusses positioning. Summary Overview Positioning is a very important part of the strategic marketing process. To create a position for a product or service, positioning gurus Al Ries and Jack Trout suggest that marketers must consider six basic questions What position do we have now? What position do we want to own? From whom must we win this position? Do we have the money to do the job? Do we have the tenacity to stay with it? Does our creative strategy match our positioning strategy? Use of this slide This slide can be used to introduce the process of developing a positioning strategy. Answering these six questions before proceeding with the positioning strategy will establish a clear understanding of the company’s current situation and where it wants to go.
Relation to text This slide relates to material on pp.52-55 of the text. Summary Overview A number of positioning strategies might be used by marketers. These include positioning on the basis of the following: Attributes/Benefits – setting the brand apart from competition using specific characteristics or benefits offered. Marketers attempt to identify salient benefits which are those that are important to customers in their purchase decisions Price/Quality – using price as characteristic of the brand. High quality/image pricing can be used as well as value pricing which reflects a very competitive price. Use/Application – associate the brand with a specific use. This approach can also be effective way to expand usage of a product. Product Class – competition can come from outside the product class whereby a product is positioned against another product category Product User – associating a brand with a type of person or group that uses a product or service. Competitor – positioning a company or brand against a competitor. Often another form of positioning is used as well to differentiate the brand. Cultural Symbols – use symbols that have acquired cultural meaning and associating a brand with these symbols to differentiate it from competitors (e.g. Marlboro and the cowboy) Use of the slide This slide can be used to explain the various approaches that can be used to position a brand and differentiate it from the competition.
Relation to slide This slide relates to material on pp. 52-55 and Exhibit 2-19. Summary Overview This slide shows a print ad for the Green Giant brand of vegetables. It is an example of the positioning strategy by which cultural symbols are used to differentiate brands. The Jolly Green Giant has become a well-recognized cultural symbol who has been used effectively in advertising for the Green Giant brand of vegetables. Use of the slide This slide can be used to demonstrate an example of positioning by cultural symbol. The Jolly Green Giant has been used in advertising for the Green Giant brand for many years.
Relation to text This slide relates to material on pp.55-58 of the text. Summary Overview This slide provides an overview of the six steps involved in the development of a positioning platform which include: Identify the Competitors – requires broad thinking and considering all likely competitors. Competitors can be from other product classes. Assess Perceptions of Competitors – Once competitors are defined, it must be decided how they are perceived by consumers. Market research is used to assess which attributes are important in the decision process. Determine Their Positions – what are our competitors’ positions, as well as ours, in relation to important product or service attributes Analyze Consumer Preferences – what are consumers’ purchase motives and what attributes are important to them? Determining a consumer’s ideal brand or product is one way to assess this. Make Positioning Decision – going through the first four steps should lead to a decision regarding which position to assume in the marketplace. Monitor the Position – assessing how well the position is being maintained in the marketplace Use of slide This slide can be used to discuss the process by which a company develops a positioning strategy. It should be noted that the process includes a thorough understanding of the current situation and extensive market research is often used to provide the needed information.
Relation to text This slide relates to material on pp. 57-58 of the text. Summary Overview In making a final decision regarding positioning, marketers must make some subjective judgments. Some questions marketer might want to answer before a final decision is made are included on this slide. These questions include: Is the current positioning strategy working? Is the segmentation strategy appropriate? Are there sufficient resources to communicate the position? How strong is the position? Use of the slide This slide can be used to discuss important issues marketers must consider when they are making positioning decisions.
Relation to text This slide relates to material on p. 58 and Exhibit 2-21 of the text. Summary Overview This slide shows an outdoor ad for Calvin Klein Jeans which is a brand that relies heavily on image. For many products, strong symbolic features and social and psychological meaning may be more important than functional utility. Designer jeans are a very good example of a product where advertising plays an important role in developing an image for the brand, particularly among teenagers and young adults. Use of this slide This slide can be used to show how advertising plays an important role in developing and maintaining the image of brands. It can also be used in a discussion of the concept of product symbolism , which refers to what a product or brand means to consumers and what they experience in purchasing and using it.
Relation to text This slide relates to material on pp. 58-60 of the text. Summary Overview This slide shows two important elements of product decisions - branding and packaging. Branding and packaging are very important in creating an image for a product and must be coordinated to present an image or position that extends beyond a product’s physical attributes. A brand name identifies a product or service and often communicates attributes and meaning. Brand equity refers to the intangible assets of added value or goodwill that results from the favorable image, impression, and consumer attachment to a company, brand name, or trademark. Packaging is an important part of brand’s identity. Traditionally, the package provided functional benefits such as economy, protection, and storage. However, the role of packaging has changed because of self-service in many stores and more buying decisions being made at the point-of-purchase. Use of this slide This slide can be used to discuss two important product-related decisions which are branding and packaging. Many marketers rely on their brand name and packaging to communicate with consumers and help create a position and/or image.
Relation to text This slide relates to material on pp.59-60 and Exhibit 2-24 of the text. Summary Overview This slide shows an ad for Tiffany perfume and provides a good example of the importance of packaging in creating a distinct identity and brand image. Many companies view the package as an important way to communicate and create an impression of their brand in the mind of consumers. Use of this slide This slide can be used to show the importance of packaging in creating brand identity and image. Packaging can be used to communicate, hold the consumer’s attention, and differentiate a brand from competitors.
Relation to text This slide shows a commercial that relates to the discussion of branding on p. 59. Summary Overview This commercial is for Skyy Blue, a flavored malt beverage that is a joint venture between Skyy Spirits and the Miller Brewing Company. Skyy Blue is a category extension that is designed to leverage the favorable brand equity that has been developed for Skyy vodka. Part of Skyy vodka’s success has been due to the distinctive cobalt blue packaging that is used for the brand and Skyy Blue uses a similar packaging concept. Use of this slide This slide can be used to demonstrate how marketers can take advantage of strong brand equity by developing line and category extensions. It can also be used to show how distinctive packaging plays an important role in differentiating a brand as the cobalt blue bottle for Skyy Blue contributes to the identity of the brand.
Relation to text This slide relates to material on pp.60-62 of the text. Summary Overview A firm must consider a number of factors in determining the price it charges for its product or service, including costs, demand factors, competition, and perceived value. A number of pricing considerations are shown on this slide. These include: Price must be consistent with perceptions of the product Higher prices communicate higher product quality Lower prices reflect bargain or value perceptions Price, advertising and distribution must be unified in identifying the product position A product positioned as a high quality while carrying a lower price than competitors will confuse customers Use of this slide This slide can be used to explain the role of pricing decision in an IMC program. Pricing needs to be coordinated with the other elements in the marketing mix to create an effective IMC program.
Relation to text This slide relates to material on pp. 60-61 and Exhibit 2-26 of the text. Summary Overview This slide is an ad for Scotty Cameron putters which are made by Titleist, one of the leading manufacturers of golf balls and equipment. This line of putters competes on the basis of product quality rather than prices and advertising is used to help establish and maintain an image of high quality. Use of slide This slide can be used to show an example of a brand that is sold on the basis of quality rather than price. Golfers are willing to pay premium prices for quality equipment made by companies such as Titleist.
Relation to text This slide refers to material on pp.62-64 of the text. Summary Overview Distribution decisions are among the most important made by marketers and often play a role in shaping the image of a company or brand. This slide shows various distribution channel decisions marketers must make including: Selecting the type of channels that will be used to distribute a product Managing the relationship with the channel members Motivating the channel members to stock and promote the company’s product Use of this slide This slide can be used as part of a discussion of distribution channel decisions and how they must be coordinated with the other elements of the marketing mix.
Relation to text This slide refers to material on p. 62 of the text. Summary Overview The marketing channel intermediaries are critical to the success of a company’s marketing program. Brokers, distributors, wholesalers, and retailers are all intermediaries or “middlemen” who play an important role in the marketing process. Use of this slide This slide can be used to introduce the various marketing intermediaries and discuss the important role they play in the marketing process.
Relation to text This slide refers to material on pp. 62-64 of the text. Summary Overview In developing its marketing strategy a company can use either a push or pull strategy. Programs designed to motivate the channel members and persuade them to stock merchandise, and promote a manufacturer’s products are part of a push strategy . A push strategy tries to encourage resellers to order merchandise and push it through to their customers. In contrast a promotional pull strategy involves spending money on advertising and sales promotion efforts directed toward the ultimate consumer. The goal of a pull strategy is to create demand among consumers and encourage them to request the product from the retailer. Use of this slide This slide can be used to explain the concepts of a push versus pull promotional strategy. The decision to use a push or pull strategy depends on a number of factors including the company’s relations with the trade, its promotional budget, and demand for the firm’s products. Companies can often use both of these strategies with the emphasis changing as the product moves through its product life cycle.
Relation to text This slide relates to material on pp. 62-64 of the text. Summary Overview This slide shows examples of the various forms of promotion used with a push strategy. These promotions are used to motivate the resellers to build demand for a company’s products. Some examples are point-of-purchase displays, discounts, premiums, cooperative advertising, spiffs, contests, and other incentives . Use of this slide This slide can be used to discuss the various promotion activities that might be used when a marketer is using a push strategy.
Relation to text This slide relates to material on pp. 62-64 of the text. Summary Overview This slide shows examples of the various forms of promotion used with a pull strategy. These promotions are used to create demand among consumers and encourage them to request the product from retailers. Some examples are free samples, coupons, premiums, contest, sweepstakes, rebates, premium offers and other incentives. Use of this slide This slide can be used to discuss the various promotions activities that might be used when a marketer is using a pull strategy.