MKT304_Marketing-Study_Guides-FINAL_PPT.pptx

Data collection and analysis
The four P's of marketing (product, promotion, price, place)
Developing effective marketing and communication strategies
Marketing mix elements
Customer behavior
Promotion
Marketing studies focus on collecting information about a specific market, such as its size, trends, and the needs of its target groups. The goal is to establish a balance between supply and demand.

1. QUIZ 2 : STUDY GUIDES —->Subjects covered in Quiz 2 Product New Product Development Pricing Concepts Pricing Strategies Distribution Channels Distribution Strategies Integrated Marketing Communication Public Relations Advertising Sales Promotion Competitive Strategies MKT304 MARKETING PRINCIPLES Franck VIGNERON, PhD David Nazarian College of Business & Economics

2. 2 PRODUCT MIX

3. 3 What is a Product? A Product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. Includes: Physical Objects Services Events Persons Places Organizations Ideas Combinations of the above

4. 4 The Total Product Concept Image of retail store Service after sale Color Attachments Image of the brand Warranty Packaging Instructions The Product Product Strategies

5. 5 Brand Name Quality Level Packaging Design Features Delivery & Credit Installation Warranty After- Sale Service Core Benefit or Service Actual Product Core Product Augmented Product Levels of Product: think on 3 levels

6. 6 Unsought Products New innovations Products consumers don’t want to think about these products Require much advertising & personal selling i.e Life insurance, blood donation Product Classifications Consumer Products Specialty Products Special purchase efforts High price Unique characteristics Brand identification Few purchase locations i.e Lamborghini, Rolex Shopping Products Buy less frequently Higher price Fewer purchase locations Comparison shop, time/effort i.e Clothing, cars, appliances Convenience Products Buy frequently & immediately Low priced Mass advertising Many purchase locations i.e Candy, newspapers, soap

7. 7 Width - number of different product lines Length - total number of items in product lines Depth - number of versions of each product Product Mix - all the product lines & items offered Consistency Product Mix Decisions

8. 8 Product-Line Width, Depth and Consistency Definitions : Width (Breadth) : the number of product lines carried. Length; refers to the total number of items the company carries within its product lines Depth: the assortment of sizes, colors, and models offered within each product line. Consistency: the consistent relationship between products in a product line. Trucks Cars Vans Passenger Commercial Farm related Passenger Passenger Sports Station wagons Commercial Leisure-Recreation Width (# of product lines) Depth (assortment variables within a line) Product Strategies

9. 9 Stretching Lengthen beyond current range Product Line Length Number of Items in the Product Line Two-Way Downward Upward Filling Lengthen within current range Product Line Decisions

10. 10 Intangibility Inseparability Variability Perishability Can’t be seen, tasted, felt, heard, or smelled before purchase. Can’t be separated from service providers. Quality depends on who provides them and when, where and how. Can’t be stored for later sale or use. NATURE OF SERVICE

11. 11 BRAND AWARENESS BRAND ASSOCIATIONS BRAND QUALITY BRAND LOYALTY Anchor to Which Other Associations Can Be Attached Familiarity Liking Signal of Commitment Brand to Be Considered Help Process & Retrieve Information Differentiate/ Position Reason-to-Buy Create Positive Attitudes/ Feelings Potential for Extensions Reason-to-Buy Differentiation/ Position Price Channel Member Interest Extensions Reduced Marketing Costs Trade leverage Attracting New Customers (create Awareness & Reassurance) Time to Respond to Competitive Threats Concepts in Brand Equity Brand Equity = Mostly means the image of a brand Recall versus Recognition = Brand Meanings Expected Performance Price Sensitivity & Purchase rate What is underlined is very important!

12. 12 Types of Brands Manufacturer’s Brands Distributor’s or Private Brands Generic Products Name is owned and advertised by the manufacturer Black & Decker tools Whirpool Appliances Name is owned and advertised by intermediary Craftsman Tools VONS products “No-Name” product in plain package with stark lettering Dog Food Product Strategies

13. 13 Strategic Choices of Brand Name Three brand name choices : A. B. C. family branding individual branding combinations - less expensive - more expensive VW Beetle - less effective - can be very effective - Philips - OMO POWER                 

14. 14 Strong Brands = Strength + Stature Strength Differentiation Relevance Stature Esteem Knowledge

15. 15 Dimensions of Brand Personality The set of human characteristics associated with a brand. It enables a customer to express his or her own self, or ideal self, on specific dimensions of the self through the use of the brand Brand Personality Sincerity Excitement Competence Sophistication Ruggedness Down-to earth Honest Wholesome Cheerful Daring Spirited Imaginative Up-to-date Reliable Intelligent Successful Upper class Charming Outdoorsy Tough

16. 16 Line Extension Dannon Yogurt Flavors Multibrands Seiko  Pulsar Brand Extension Barbie Electronics New Brands Toyota & Lexus Brand Name Existing New Product Category Existing New Four Brand Strategies + Co-Branding = brands bearing 2 or more brand names BMW + Michelin or Intel + Compaq

17. 17 NEW PRODUCT DEVELOPMENT

18. What is a New Product? New product lines/ established markets New to the world products Improvements to existing products Additions to existing product lines Cost reductions Repositionings Newness to the Market Low High Newness to the Firm High Low 1982 survey conducted by Booze, Allen & Hamilton 20% 10% 26% 26% 11% 7%

19. 19 Managing product lines and brands over time: The Product Life Cycle (PLC) Total Industry Sales time - Market Growth Market Maturity Market Introduction Market Decline Total Industry Profits + +

20. 20 Applications of the Product Life Cycle The PLC concept can describe a: Product class which has the longest life cycles (i.e. gas-powered cars), Product form which tend to have the standard PLC shape (i.e. minivans), Brand which can change quickly because of changing competitive attaches and responses (i.e. Ford Taurus), Style which is a basic and distinctive mode of expression, Fashion which is a popular style in a given field, Fad which is a fashion that enters quickly, is adopted quickly and declines fast.

21. 21 Product Life-Cycle Stages and Marketing Steps Time Sales INTRODUCTION awareness and trial GROWTH Maximize share, grow market Launch Takeoff Rapid growth Shakeout Maturity Decline MATURITY Maximize profit, Defend Mkt Share DECLINE Reduce/ Delete, milk the brand Product Strategies

22. 22 Speeding Up Development Step 1 Step 2 Step 3 Step 4 Step 1 Step 2 Step 3 Step 4 Sequential Simultaneous (Team-Based)

23. 23 Idea Generation Idea Screening Concept Development and Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialization Major Stages in New-Product Development

24. 24 Standard Test Market Full marketing campaign in a small number of representative cities. Controlled Test Market A few stores that have agreed to carry new products for a fee. Simulated Test Market Test in a simulated shopping environment to a sample of consumers. Step 7. Test Marketing 3 Methods

25. 25 PRICING CONCEPTS

26. 26 Marketing Objectives Survival Low Prices to Cover Variable Costs and Some Fixed Costs to Stay in Business. Current Profit Maximization Choose the Price that Produces the Maximum Current Profit, Etc. Market Share Leadership Low as Possible Prices to Become the Market Share Leader. Product Quality Leadership High Prices to Cover Higher Performance Quality and R & D. Internal Factors Affecting Pricing Decisions: Marketing Objectives

27. 27 Types of Cost Factors that Affect Pricing Decisions Total Costs Sum of the Fixed and Variable Costs for a Given Level of Production Variable Costs Costs that do vary directly with the level of production. Raw materials Fixed Costs (Overhead) Costs that don’t vary with sales or production levels. Executive Salaries, Rent

28. 28 Costs Considerations Cost per unit 1 2 3 4 SRAC (short-run average cost curve) LRAC Quantity Produced per Day 1,000 2,000 3,000 4,000 Cost Per Unit at Different Levels of Production Per Period B. The Experience Curve A. Economies of scale Costs fall with cumulative production Drops faster with volume increase. Risk of cheap image.

29. 29 Price Elasticity of Demand Price Quantity Demanded per Period A. Inelastic Demand - Demand Hardly Changes With a Small Change in Price . P 2 P 1 Q 1 Q 2 Price Quantity Demanded per Period P’ 2 P’ 1 Q 1 Q 2 B. Elastic Demand - Demand Changes Greatly With a Small Change in Price.

30. 30 Major Considerations in Setting Low price No possible profit at this price High price No possible demand at this price Competitors prices Other internal and External factors Consumer Perceptions Of value

31. 31 Cost-Based Pricing Certainty About Costs Pricing is Simplified Price Competition Is Minimized Unexpected Situational Factors Attitudes of Others Ethical Ignores Current Demand & Competition Cost-Plus Pricing is an Approach That Adds a Standard Markup to the Cost of the Product. Simplest Pricing Method Much Fairer to Buyers & Sellers

32. 32 Break-Even pricing Break-even pricing (target profit pricing) is an approach to setting price to break-even on the cost of making and marketing products or to make the target (desired) profit. a). It uses a break-even chart that shows the total cost and total revenue at different levels of sales volume. b). Although break-even analysis and target profit pricing can help the company to determine minimum prices needed to cover expected costs and profits, they do not take the price-demand relationship into account. c). When using this method, the company must also consider the impact of price on the sales volume needed to realize target profits and the likelihood that the needed volume will be achieved at each possible price.

33. 33 Value-Based Pricing Pricing developed early as part of overall marketing program Target price based on perceived value of the extended product: offering just the right combination of quality and good service at a fair price). In many instances, this has resulted in the organization introducing less expensive versions of established, brand-name products. Perceived value dictates design and cost: a redesign of existing brands in order to offer more quality for a given price or the same quality for less has been the result. A company using this approach must find out what value the buyer assigns to different competitive offers.

34. 34 Setting Prices Sealed-Bid Company Sets Prices Based on What They Think Competitors Will Charge . Going-Rate Company Sets Prices Based on What Competitors Are Charging. ? ? Competition-Based Pricing

35. 35 PRICING STRATEGIES

36. 36 Setting Pricing Policy 1. Selecting the pricing objective 2. Determining demand 3. Estimating costs 4. Analyzing competitors’ costs, prices, and offers 6. Selecting final price 5. Selecting a pricing method Pricing Strategies

37. 37 New Product Pricing Strategies Market Skimming Setting a High Price for a New Product to “Skim” Maximum Revenues from the Target Market. Results in Fewer, But More Profitable Sales. Use Under These Conditions: Product’s Quality and Image Must Support Its Higher Price. Costs Can’t be so High that They Cancel the Advantage of Charging More. Competitors Shouldn’t be Able to Enter Market Easily and Undercut the High Price.

38. 38 New Product Pricing Strategies Market Penetration Setting a Low Price for a New Product in Order to “Penetrate” the Market Quickly and Deeply. Attract a Large Number of Buyers and Win a Larger Market Share. Use Under These Conditions: Market Must be Highly Price-Sensitive so a Low Price Produces More Market Growth. Production/ Distribution Costs Must Fall as Sales Volume Increases. Must Keep Out Competition & Maintain Its Low Price Position or Benefits May Only be Temporary.

39. 39 Product Mix-Pricing Strategies: Product Line Pricing Involves setting price steps between various products in a product line based on: Cost differences between products, Customer evaluations of different features, and competitors’ prices.

40. 40 Product Mix- Pricing Strategies Optional-Product Pricing optional or accessory products sold with the main product. i.e camera bag. Captive-Product Pricing products that must be used with the main product. i.e. film.

41. 41 Product Mix- Pricing Strategies By-Product Pricing low-value by-products to get rid of them and make the main product’s price more competitive. i.e. sawdust, Zoo Doo Product-Bundling Combining several products and offering the bundle at a reduced price. i.e. theater season tickets.

42. 42 Discount and Allowance Pricing

43. 43 Segmented Pricing

44. 44 Special-Event Pricing Cash Rebates Low-Interest Financing Longer Warranties Free Merchandise Discounts Loss Leaders Temporarily Pricing Products Below List Price to Increase Short-Term Sales Through: Promotional Pricing

45. 45 Distribution Channels and Logistics Management

46. 46 What is a Distribution Channel? A set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption by the consumer or business user.

47. 47 Contact Financing Information Risk Taking Promotion Matching Negotiation Physical Distribution Members of the marketing channel perform many key functions. They are: Distribution Channel Functions

48. 48 M W J R C M W R C M R C M C Channel 1 Channel 2 Channel 3 Channel 4 Channel Level = Each Layer of Marketing Intermediaries that Perform Some Work in Bringing the Product and its Ownership Closer to the Final Buyer. Number of Channel Levels Direct Channel Indirect Channel

49. 49 Channel Behavior & Conflict For the channel to perform well, each channel member’s role must be specified and conflict must be managed. When this doesn’t happen, conflict occurs: Horizontal Conflict occurs among firms at the same level of the channel, i.e retailer to retailer. Vertical Conflict occurs between different levels of the same channel, i.e. wholesaler to retailer.

50. 50 Conventional Marketing Channel Vs. a Vertical Marketing System Conventional Marketing Channel Vertical Marketing System Manufacturer Retailer Wholesaler Manufacturer Wholesaler Retailer Consumer Consumer

51. 51 Contractual VMS Retailer Cooperatives Franchise Organizations Wholesaler Sponsored Voluntary Chain Service-Firm- Sponsored Franchise System Manufacturer- Sponsored Wholesaler Franchise System Manufacturer- Sponsored Retailer Franchise System Vertical Marketing Systems (VMS) Corporate VMS Administered VMS Types of Vertical Marketing Systems 40% of Retail Sales Ford + dealers Coca-Cola Hertz/Avis, McDo/Bking, H/R Inn

52. 52 Innovations in Marketing Systems Horizontal Marketing System Two or More Companies at One Channel Level Join Together to Follow a New Marketing Opportunity. Example: Banks in Grocery Stores Competitors helping each other E.g., Outside US Néstlé selling General Mills cereals Hybrid Marketing System A Single Firm Sets Up Two or More Marketing Channels to Reach One or More Customer Segments. Example: Retailers, Catalogs, and Sales Force

53. 53 1. Analyzing Consumer Service Needs 2. Setting Channel Objectives & Constraints Exclusive Distribution Selective Distribution Intensive Distribution 3. Identifying Major Alternatives 4. Evaluating the Major Alternatives 5. Designing International Distribution Channels Channel Design Decisions Rolls-Royce Maytag Fast Moving C. G. Review Economic, Control, and Adaptive Criteria

54. 54 Push and Pull Strategies Producer Wholesalers Retailers Customers Producer Wholesalers Retailers Customers Push Strategy Pull Strategy Push/Pull Strategies Producer Wholesalers Retailers Customers Advertising and Promotion Distribution Strategies

55. 55 Inventory When to order How much to order Just-in-time Costs Minimize Costs of Attaining Logistics Objectives Warehousing Storage Distribution Automated Order Processing Received Processed Shipped Logistics Functions Transportation Rail, Truck, Water, Pipeline, Air, Intermodal Major Logistics Functions

56. 56 Marketing Logistics Involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at profit. INBOUND + OUTBOUND = Market Logistics Supply Chain + value chain management

57. 57 Rail Nation’s largest carrier, cost-effective for shipping bulk products, piggyback Truck Flexible in routing & time schedules, efficient for short-hauls of high value goods Water Low cost for shipping bulky, low-value, non perishable goods, slowest form Pipeline Ship petroleum, natural gas, and chemicals from sources to markets Air High cost, ideal when speed is needed or distance markets have to be reached Transportation Modes

58. 58 1. Speed (door-to-door time) 2. Dependability (meet schedules) 3. Availability (area served) 4. Costs (per ton-distance) 5. Flexibility Checklist for Choosing Transportation Modes Choosing Transportation Modes (ability to handle various products)

59. 59 INTRODUCTION TO MARKETING MANAGEMENT Dr. Franck VIGNERON CSUN – School of Business & Economics Distribution Strategies

60. 60 What is Retailing? Retailing Includes all the activities Involved in Selling Goods or Services Directly to Final Consumers for Their Personal, Nonbusiness Use. Retailers - those firms engaged primarily in wholesaling activity.

61. 61 Product Assortment and Services Decisions Product Assortment Width and Depth of Assortment Quality of Products Product Differentiation Strategies Services Mix Key Tool of Nonprice Competition for Setting One Store Apart From Another Store’s Atmosphere Physical Layout “Feel” That Suits the Target Market and Moves Customers to Buy

62. 62 Retail Organizations Independent, Corporate, or Contractual Ownership Organization Amount of Service Self-Service, Limited-Service and Full-Service Retailer Product Line Depth/Length and Breadth of the Product Assortment Relative Prices Pricing Structure that is Used by the Retailer Classification of Retailing

63. 63 Breadth vs. Depth of Merchandise Lines Nike running shoes Florsheim dress shoes Top Sider boat shoes Adidas tennis shoes Amana refrigerator Sony TV sets JVC videocassette recorders General Electric dishwashers Sharp microwave ovens Classical Rock Jazz Country Western Suits Ties Jackets Overcoats Socks Shirts Depth: Number of items within each product line Breadth: Number of different product lines Shoes Appliances CDs Men’s Clothing

64. 64 Specialty Stores Department Stores Supermarkets Convenience Stores Superstores Discount Stores Narrow Product Line, Deep Assortment i.e. The Limited or Athlete’s Foot Wide Variety of Product Lines i.e. Clothing, Home Furnishings, Saks Fifth Avenue Wide Variety of Food, Laundry, & Household Products i.e. Kroger Limited Line of High-Turnover Convenience Goods i.e. 7-Eleven Large Assortment of Routinely Purchased Food & Nonfood Products i.e. Toys R Us Standard Merchandise at Lower Prices i.e. Wal-Mart Off-Price Retailers Changing Collection of Higher-Quality Goods at a Reduced Price i.e. T.J. Maxx Warehouse Clubs Limited Selection of Brand-Name Grocery Items, Appliances, Etc. i.e. Sam’s Club Classification of Retailing: Product Line Store Description E.g., + What is an Hypermarket ?

65. 65 What is Wholesaling? Wholesaling All the activities involved in selling goods and services to those buying for resale or business use. Wholesaler - those firms engaged primarily in wholesaling activity. Wholesalers buy mostly from producers and sell mostly to: Retailers, Industrial consumers, and Other wholesalers.

66. 66 Wholesaler Functions Management Services & Advice Selling and Promoting Market Information Buying and Assortment Building Risk Bearing Bulk Breaking Transportation Financing Warehousing Wholesalers are Often Better at Performing One or More of the Following Channel Functions: Why are Wholesalers Used?

67. 67 Types of Wholesalers Merchant Wholesaler Independently Owned Business that Takes Title to the Merchandise it Handles. Brokers/ Agents They Don’t Take Title to the Goods, and They Perform Only a Few Functions. Manufacturers’ Sales Branches and Offices Wholesaling by Sellers or Buyers Themselves Rather Than Through Independent Wholesalers.

68. 68 Consolidation within the Industry is Reducing # of Wholsalers Distinction Between Large Retailers and Wholesalers Blurs Wholesalers Will Continue to Increase the Services Provided Wholesalers Are Beginning to Go Global Trends in Wholesaling

69. 69 Integrated Marketing Communication

70. 70 Advertising PR Place (Distribution) Personal Selling Product Sales Promotion Promotion Place The Promotional Mix Advertising Strategies 4P’s Price Direct MKG

71. 71 Informative Advertising Inform Consumers or Build Primary Demand i.e CD Players Comparison Advertising Compares One Brand to Another i.e. Avis vs. Hertz Persuasive Advertising Build Selective Demand i.e Sony CD Players Reminder Advertising Keeps Consumers Thinking About a Product i.e. Coca-Cola Advertising Objective Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time Setting Advertising Objectives

72. 72 Figure 9.3 Comprehensive Communication Model Sender (Source) Receiver (Consumer) Message Channel (Medium) Encodes Decodes Feedback Responds Appropriately? Miscomprehends? Yes Yes No No Commercial Non-Profit Individual Formal vs. Informal Symbols Pictures Words Images Verbal vs. Nonverbal 1-sided vs. 2-sided Factual vs. Emotional Paid vs. Unpaid Print, Broadcast, Electronic Personal vs. Impersonal Pretests to Ensure Message Will be Received Posttests to Ensure Message Was Received Selective Exposure Individuals Target Audience Intermediary Audience Unintended Audiences Mediated by: Involvement Mood Experience Personal Charac.

73. 73 Step 1. Identifying the Target Audience Step 2. Determining the Communication Objectives Buyer Readiness Stages Purchase Conviction Preference Liking Knowledge Awareness Steps in Developing Effective Communication

74. 74 Step 3. Designing a Message Message Content Rational Appeals Emotional Appeals Moral Appeals Message Structure Draw Conclusions Argument Type Argument Order Message Format Headline, Illustration, Copy, & Color Body Language Steps in Developing Effective Communication Attention Interest Desire Action AIDA model. 1). Get attention 2). Hold interest 3). Arouse desire 4). Obtain action

75. 75 Appeal - the creative attempt to motivate consumers toward some form of activity, or to influence attitudes toward a product or service Rational appeal - a focus toward the consumer’s practical utility oriented needs Emotional appeal - a focus on psychological rather than utility needs (all appeals can be positive or negative and should be meaningful, distinctive, and believable to be effective) Humor Comparative Fear Sex Ego Oriented Appeals + Morale Appeal: Social causes & Human Rights

76. 76 Structure & Format The marketing communicator needs a strong structure and format for the message. 1). Three structure issues must be addressed: a). Whether to draw a conclusion or leave it to the audience. b). Whether to present a one-sided argument or a two-sided argument. c). Whether to present the strongest arguments first or last.

77. 77 Structure & Format (continuous) 2). The message format decides on the headline, illustration, copy, and color. 3). To attract attention the advertiser can use: a). Novelty and contrast. b). Eye-catching pictures and headlines. c). Distinctive formats. d). Message size and position. e). Color, shape, and movement.

78. 78 Nonpersonal Communication Channels Step 4. Choosing Media Personal Communication Channels Steps in Developing Effective Communication

79. Issues in Credibility Credibility of Informal Sources E.g., Word-of-mouth Credibility of Formal Sources Differ. Between for profit vs nfp Org. Credibility of Spokespersons and Endorsers Importance of perceived competency and expertise Message Credibility Past experience with organization

80. CREDIBILITY OF THE MEDIA CHANNELS SPONSORING VERSUS ADVERTISING +   -       CREDIBILITY OF THE SOURCES FOR-PROFIT Org. VERSUS NOT FOR PROFIT Org. -   +  

81. CREDIBILITY OF THE MEDIA CHANNELS IN RELATION WITH THE SOURCES   FOR-PROFIT Org. VERSUS NOT FOR PROFIT Org. SPONSORING +   ++ VERSUS       ADVERTISING --   -

82. Campaign Evaluation Communication Effects Is the Ad Communicating Well? Advertising Program Evaluation Sales Effects Is the Ad Increasing Sales?

83. 83 Affordable Based on What the Company Can Afford Objective-and-Task Based on Determining Objectives & Tasks, Then Estimating Costs Percentage of Sales Based on a Certain Percentage of Current or Forecasted Sales Competitive-Parity Based on the Competitor’s Promotion Budget One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on Promotion. Setting the Total Promotion Budget

84. 84 SALES PROMOTION Public Relations Advertising

85. 85 What is Sales Promotion ? Sales Promotion is a Mass Communication Technique That Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Offers Reasons to Buy Now. Stimulate earlier or stronger market response.

86. 86 Sample Coupons Cash Refunds Price Packs Premiums Advertising Specialties Trial amount of a product Savings when purchasing specified products Refund of part of the purchase price Reduced prices marked on the label or package Goods offered free or low cost as an incentive to buy a product Articles imprinted with an advertiser’s name given as gifts Major Consumer Sales Promotion Tools/1

87. 87 Patronage Rewards Point-of-Purchase Contests Sweepstakes Game Cash or other rewards for the use of a certain product Displays and demonstrations that take place at the point of sale Consumers submit an entry to be judged Consumers submit their names for a drawing Presents consumers with something every time they buy Major Consumer Sales Promotion Tools/2

88. 88 Trade-Promotion Objectives Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers Major Trade Sales Promotion Tools/1

89. 89 Major Trade Sales Promotion Tools/2 Trade-Promotion Tools Discounts a straight reduction in price on purchases during a stated period of time. Can be called price-off, off-invoice, or off-list .

90. 90 Major Trade Sales Promotion Tools/3 Promotional money paid by manufacturers to retailers who agree to feature the manufacturer’s products in some way. Forms include: a). An advertising allowance compensates retailers for advertising a product. b). A display allowance compensates them for using displays. c). Manufacturers may offer free goods , which are extra cases of merchandise, to resellers who buy a certain quantity or who feature a certain flavor or size. d). Manufacturers may give retailers free specialty advertising items that carry the company’s name (such as pens). Allowances Trade-Promotion Tools

91. 91 Business-Promotion Objectives Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople Business-Promotion Tools Conventions Trade Shows Sales Contests Major Business Sales Promotion Tools

92. 92 Decide on the Size of the Incentive Set Conditions for Participation Evaluate the Program Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program Developing the Sales Promotion Program

93. 93 What is Public Relations? Public Relations Involves Building Good Relations With the Company’s Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate Image, and Handling or Heading Off Unfavorable Rumors, Stories, and Events.

94. 94 Press Relations Product Publicity Public Affairs Lobbying Investor Relations Development Public Relations Departments May Perform Any of All of the Following Functions: Major Public Relations Functions

95. 95 News Speeches Special Events Written Materials Audiovisual Materials Corporate Identity Materials Public Service Activities Web Site Major Public Relations Tools

96. 96 Setting Public Relations Objectives Choosing the Public Relations Messages and Vehicles Implementing the Public Relations Plan Evaluating Public Relations Results Major Public Relations Decisions

97. 97 What is Advertising? Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.

98. 98 Media Selection Deciding on reach , frequency , and impact . a). Reach is the percentage of people in the target market exposed to an ad campaign during a given period. b). Frequency is the number of times the average person in the target market is exposed to an advertising message during a given period. c). Media impact is the qualitative value of an exposure through a given medium.

99. 99 6 major advertising media Television Radio Magazines Newspaper Internet And Outdoor (e.g., billboards)

100. 100 Copy and Message Direction Motivational Source Motivation = Product Performance Perf. Is representation of product Copy of Message Centered on Product 1. Message on Product Perf. is + than representation product Copy of Message Centered on Results from Product Motivation = Association with Product Universe Copy of Message Centered on Psyco -socio of Product 2. Message on Resultats 3. Message on Universe

101. 101 Competitive Strategies

102. 102 Customer Relationship Marketing Traditional marketing theory and practice have focused on attracting new customers rather than retaining existing ones. 1). The move today, however, is toward relationship marketing --creating,maintaining, and enhancing strong relationships with customers and other stakeholders. 2). Beyond designing strategies to attract new customers and create transactions with them, companies are going all out to retain current customers and build profitable, long-term relationships with them. 3). This new view is that marketing is the science and art of finding, retaining, and growing profitable customers.

103. 103 Satisfaying the Needs Retain Customer By Maintaining Satisfaction Create the Product NEEDS STAGES PRODUCTS Identify The needs to Satisfy Adapt and Deliver the Products to The Right Target

104. 104 Customer Delivered Value

105. 105 Customer Satisfaction Expectations are Based on Customer’s Past Buying Experiences, the Opinions of Friends, & Marketer and Competitor Information and Promises. Product Falls Short of Expectations Customer is Dissatisfied Product Matches Expectations Customer is Satisfied Product Exceeds Expectations Customer is Highly Satisfied or Delighted!

106. 106 Steps in Analyzing Competitors Identifying the company’s competitors Assessing competitor’s objectives, strategies, strengths and weaknesses, and reaction patterns Selecting which competitors to attack or avoid = BENCHMARKING

107. 107 Overall Cost Leadership Differentiation Focus Middle of the Road Basic Competitive Strategies

108. 108 Competitive Strategies: Value Disciplines Operational Excellence Alaska Airlines Customer Intimacy Ikea Product Leadership intel Companies Gain Leadership Positions by Delivering Superior Value to their Customers Through These Strategies:

109. 109 Market Leader Market Challenger Competitive Marketing Strategies Firms Competing in a Given Target Market Differ in their Objectives and Resources so May Choose the Following Forms: Market Follower Market Nicher