marketing management models
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Management modelsTRANSCRIPT
Marketing ManagementMarketing ManagementModelsModels
Eleventh EditionEleventh Edition
Marketing ManagementMarketing ManagementModelsModels
Eleventh EditionEleventh Edition
DEFINING DEFINING MARKETING FOR THE MARKETING FOR THE 2121STST CENTURY CENTURY
CHAPTER 1
Simple Marketing System
Industry(a collectionof sellers)
Industry(a collectionof sellers)
Market(a collectionof buyers)
Market(a collectionof buyers)
Communication
Goods / Services
Money
Information
Structure of Flow of Modern For-Ex
Resourcemarkets
Manufacturemarkets
Consumermarkets
Intermediarymarkets
Governmentmarkets
Resources
Taxes, goods
Money
Goods and Services
Resources
Goods and Services
MoneyMoney
Money
Services
Taxes
Taxes, goods
Services, money
Services, money
Services, money
Taxes, goods
4 P’s of Marketing Mix
Product
Place
Promotion
Price
Product Variety
Quality
Design
Features
Brand Image
Sales Promotion
Advertising
Sales Force
Public Relation
Direct Marketing
List Price
Discounts
Allowances
Payment period
Credit terms
Packaging
Sizes
Services
Warranties
Returns
Channels
Coverage
Assortment
Location
Inventory
Transport
Marketing Mix Strategy
Sales promotion
Advertising
Sales force
PublicRelation
Direct mail, telemarketing, and Internet
CompanyProductServicesPrices
Target Customer
Distributionchannel
Promotion Mix
Offering Mix
Sales Concept vs Marketing Concept
Starting Point
Focus Means Ends
Factory Products Selling and
promotion
Profits through sales volume
Profits through customer
satisfaction
Integrated marketing
Customer needs
Target market
(a) The Selling Concept
(b) The Marketing Concept
Customer Concept
Starting Point
Focus
Means Ends
Individual customer
One-to-one marketing integration and value chain
Profitable growth through capturing customer share, loyalty, and lifetime value
Customer needs and values
Marketing’s Role in Company
Production Finance
Marketing Human Resources
Marketing as an equal function
First -
Marketing’s Role in Company
Production
Finance
Marketing
Human Resources
Marketing as an more important function
Second -
Marketing’s Role in Company
Production
Finance
Human Resources
Marketing as the major function
Third -
Marketing
Marketing’s Role in Company
Production Finance
Human Resources
Marketing as the major function
Fourth -
Marketing
Customer
Marketing’s Role in Company
Production
Fina
nce
Hum
an
Resources
The customer as the controlling function and marketing as the integrative function
Fifth -
Marketing
Customer
ADAPTING ADAPTING MARKETING TO THEMARKETING TO THENEW ECONOMYNEW ECONOMY
CHAPTER 2
Supplier – Customer Relationship
SALES BUYING
CustomerSupplier
Executives
Merchandise
Systems
Buyers
Finance
Warehousing
Executives
Marketing
Systems
Sales
Finance
Manufacturing
TRADITIONAL STRUCTURE
Supplier – Customer Relationship
CustomerSupplier
Executives
Merchandise
Systems
Buyers
Finance
Warehousing
Executives
Marketing
Systems
Sales
Finance
Manufacturing
NEW ECONOMY STRUCTURE
BUILDING CUSTOMERBUILDING CUSTOMERSATISFACTION, SATISFACTION, VALUE VALUE ANDANDRETENTIONRETENTION
CHAPTER 3
Determinants of Customer-Delivered Value
Customer delivered value
Total customer value Total customer cost
Product value
Service value
Personnel value
Image value
Monetary cost
Time cost
Energy cost
Psychic cost
The Generic Value Chain
Firm infrastructure
Human Resource Management
Technology Development
Procurement
Inbound Logistics
Operations Outbound Logistics
Marketing & Sales
Service
Margin
Mar
gin
Primary Activities
Support Activities
The Customer-Development Process
Partners
Advocates
Members
Clients
Repeatcustomer
First-Timecustomer
ProspectSuspect
Disqualifiedprospect
Inactive or ex-customer
Levels of Relationship
Many customers/ distributors
Accountable Reactive Basic or reactive
Medium number of customers/ distributors
Proactive Accountable Reactive
Few customers/ distributors
Partnership Proactive Accountable
High Margin Medium Margin Low Margin
Customer-Product Profitability Analysis
P1 + + + Highly profitable product
P2 + Profitable product
P3 - - Losing product
P4 + - Mixed-bag product
C1 C2 C3
High–profit
customer
Mixed-bag
customer
Losing customer
PPRROODDUUCCTTSS
CUSTOMERCUSTOMERSS
WINNING MARKETS WINNING MARKETS THROUGH THROUGH MARKET-ORIENTED MARKET-ORIENTED STRATEGIC PLANNINGSTRATEGIC PLANNING
CHAPTER 4
The Strategic-Planning Implementation and Control Process
Corporate planning
Division planning
Business planning
Product planning
Measuring results
Diagnosing results
Taking correctiveaction
Organizing
Implementation
Planning Implementation
Controlling
BCG’s Growth-Share Matrix
StarsStars Question MarksQuestion Marks
Cash CowsCash Cows DogsDogs
Relative Market Share
Rela
tive M
ark
et
Sh
are
10x
0.1x1x
0
20%
10%
4
53
2
1
6 7
8
The Strategic-Planning Gap
Time (years)
Sale
s
0 5
Strategic-planning gap
Three Intensive Growth Strategies:Ansoff’s Product-Market Expansion Grid
1. Market-penetration strategy
3. Product-development
strategy
2. Market-development
strategy
(Diversification strategy)
Current Products
New Products
Current Markets
New Markets
The Business Strategic-Planning Process
Business mission
External Environment(opportunity &threat analysis)
Internal Environment(strength/weaknesses
analysis)
SWOT analysis
Goal formulation
Strategy formulation
Program formulation
Implementation
Feedback and Control
McKinsey 7-S Framework
StructureStructure
SharedSharedvaluesvalues
StaffStaff
SystemsSystems
StyleStyleSkillsSkills
StrategyStrategy
Hardware of Success
- Strategy
- Structure
- Systems
Software of Success
- Skills
- Skills
- Staff
- Shared values
Factors Influencing Company Marketing Strategy
Demographic/ economic environment
Political/ legal environment
Social/ cultural
environment
Technological/ physical
environment
Competitors
Suppliers Publics
Marketing Intermediarie
s
Targetcustomers
Product
Promotion
PricePlace
Marketing control
systemMar
ketin
g or
gani
zatio
n
and
impl
emen
tatio
n
syst
em
Marketing planning
system
Mar
ketin
g in
form
atio
n
syst
em
GATHERING GATHERING INFORMATION AND INFORMATION AND MEASURING MARKET MEASURING MARKET DEMANDDEMAND
CHAPTER 5
The Market Research Process
Defining theproblem
andresearchobjective
Defining theproblem
andresearchobjective
Develop the
research plan
Develop the
research plan
Collect the
information
Collect the
information
Analyze the
information
Analyze the
information
Present the findings
Present the findings
Make thedecision
Make thedecision
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
SCANNING THE SCANNING THE MARKETING MARKETING ENVIRONMENTENVIRONMENT
CHAPTER 6
Major Macro-environment Forces
Forces
DEMOGRAPHIC ENVIRONMENT
Worldwide population growthPopulation age mixEthnic and other marketsEducational groupsHousehold patternsGeographical shifts in populationFrom mass mkt to micro mkts
ECONOMIC ENVIRONMENT
Income distributionSavings, debt, and credit availability
POLITICAL-LEGAL ENVIRONMENTGrowth of special-interest groups
NATURAL ENVIRONMENT
Shortage of raw materialsIncreased energy costAnti-population pressuresChanging role of government
SOCIO-CULTURAL ENVIRONMENTHigh persistence of core cult valuesExistence of sub-cultureShifts of secondary cultural values through time
TECHNOLOGICAL ENVIRONMENT
Acceleration pace of changeUnlimited opportunity for innovationVarying R&D budgetsIncreased regulation of technological change
ANALYSING ANALYSING CONSUMER MARKET CONSUMER MARKET AND AND BUYING BEHAVIOURBUYING BEHAVIOUR
CHAPTER 7
Model of Buying Behaviour
Marketingstimuli
Otherstimuli
Buyer’scharacteristics
Buyer’s decision process
Buyer’sdecision
ProductPricePlacePromotion
EconomicTechnologicalPoliticalCultural
CulturalSocialPersonalPsychological
Problem recognitionInformation searchEvaluation of alternativesPurchase decisionPost-purchase behaviour
Product choiceBrand choiceDealer timingPurchase timingPurchase amount
The VALS Framework
Actualizers
Strugglers
Achievers Experiencers
Strivers Makers
Fulfilleds
Believers
Principle oriented
Status oriented
Action oriented
High Resources High Innovation
Low Resources Low Innovation
U r a Mouse Potato or a Techno-Striver..?
Mouse Potatoes(willing to spend for the
latest in technotainment)
New Age Nurtures(big spender, focused ontechnology for home use)
Fast forwards(biggest spenders, early
adopters of new technologyfor all use)
Gadget-Grabbers(favor online entertainment
but have less cash to spend)
Digital Hopefuls(limited budget but still interested in new tech)
Techno-Strivers(use technology from cell phones and pagers to
online services primarily)
Media Junkies(seek entertainment, cannot find online, prefer TV and
other older media)
Traditionalists(willing to use tech but
slow to upgrade)
Hand-Shakers(older consumer, do not touch computers, leave
them to assistants)
SIDELINED CITIZENS (not interested in technology)
CAREER FAMILY ENTERTAINMENT
OP
TIM
ISTS
PES
SIM
ISTS
MORE AFFLUENT LESS AFFLUENT
Maslow’s Hierarchy of Needs
Physiological needs(Food, water, shelter)
(security, protection)
(sense of belonging, love)
(self esteem, recognition, status)
(self development and realization)
Safety needs
Social needs
Esteem needs
Self- actualization
needs
1
2
3
4
5
Types of Buying Behaviour
Complex buying behaviour
Variety-seeking buying behaviour
Dissonance-reducing buying behaviour
Habitual buying behaviour
High Involvement
Low Involvement
Significant Difference between Brands
Few Difference between Brands
5-Stage Model of Consumer Buying Process
Problemrecognition
Informationsearch
Evaluation ofalternatives
Purchasedecision
Post-purchasebehaviour
Purchaseintention
Attitudesof others
UnanticipatedSituational
factors
Purchase decision
Successive Sets Involved in Consumer Decision Making
Total set Awareness set
Consideration set
Choice set Decision
IBMAppleDellHewlett- PackardToshibaCompaqNECTandy....
IBMAppleDellHewlett- PackardToshibaCompaq
IBMAppleDellToshiba
IBMAppleDell
?
ANALYSING ANALYSING BUSINESS MARKETS BUSINESS MARKETS AND BUSINESS AND BUSINESS BUYING BEHAVIOUR BUYING BEHAVIOUR
CHAPTER 8
Factors Influencing Industrial Buying Behaviour
ENVIRONMENT
Level of demandEconomic outlookInterest rateRate of techno- logical changePolitical and regulatory developmentCompetitive developmentSocial responsibility
ORGANIZATIONAL
Objectives
Policies
Procedures
Organizational structures
Systems
INTERPERSONAL
Interests
Authority
Status
Empathy
Persuasiveness
INDIVIDUAL
AgeIncomeEducationJob positionPersonalityRisk attitudesCulture
BUSINESSBUYER
DEALING WITH DEALING WITH THE THE COMPETIONCOMPETION
CHAPTER 9
Michael Porter’s 5-Competitive Forces Model
IndustryCompetitors(Segment
Rivalry)
Buyers(BuyerPower)
Suppliers(SupplierPower)
PotentialEntrants
(Threats ofMobility)
Substitutes(Threat of
Substitutes)
Barriers and Profitability
Low, stablereturns
Low, riskyReturns
High, stablereturns
High, riskyreturns
Exit Barriers
En
try B
arr
iers Low
Low
High
High
Hypothetical Market Structure
40%40%
20%20%
10%10%
30%30%
Market Leader
Market Challenger
Market Follower
Market Nicher
Defense Strategies
ATTACKER(3) Preemptive
(4) CounteroffensiveDEFENDER
(6)Contraction
(2) Flank
(5)Mobile
(1)Position
ATTACKER(3) Preemptive
(4) Counteroffensive
(6)Contraction
(2) Flank
(5)Mobile
(1)Position
Attack Strategies
ATTACKERDEFENDER
(3) Encirclement attack
(1) Frontal attack
(2) Flank attack
(3) Bypass attack
(5) Guerrilla attack
IDENTIFYING MARKET IDENTIFYING MARKET SEGMENTS AND SEGMENTS AND SELECTING SELECTING TARGET MARKETSTARGET MARKETS
CHAPTER 10
Basic Market-Preference Patterns
(a) Homogeneous preferences
(b) Diffused preferences
(c) Clustered preferences
Sweetness Sweetness Sweetness
Cre
am
iness
Steps in Segmentation Process
Needs-based SegmentationNeeds-based Segmentation
Segment IdentificationSegment Identification
Segment AttractivenessSegment Attractiveness
Segment ProfitabilitySegment Profitability
Segment PositioningSegment Positioning
Segment ‘Acid Test’Segment ‘Acid Test’
Marketing-Mix StrategyMarketing-Mix Strategy
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Major Segmentation Variables for Consumer Markets
GEOGRAPHIC
Region
City or metro size
Density
Climate
DEMOGRAPHIC
AgeFamilyFamily sizeFamily life cycleGenderIncomeOccupationEducationReligionRaceGenerationNationalitySocial class
PSYCHOLOGICAL
Lifestyle
Personality
BEHAVIORIAL
Occasions
Benefits
User status
Usage rates
Loyalty status
Readiness status
Attitude towards product
Major Segmentation Variables for Business Markets
DEMOGRAPHIC
IndustryCompany sizeLocation
PURCHASING APPROCHES
Purchasing-function organization
Power structure
Nature of existing relationship
General purchase policy
Purchasing criteria
SITUATIONAL FACTOR
UrgencySpecific applicationSize of order
OPERATING VARIABLES
TechnologyUser or non-userCustomer capabilities
PERSONAL CHARACTERISTICS
Buyer-seller similarityAttitude towards riskLoyalty
5-Patterns of Target Market Selection
P1
P2
P3
M1 M2 M3
Single-segment concentration
P1
P2
P3
M1 M2 M3
Selective specialization
P1
P2
P3
M1 M2 M3
P1
P2
P3
M1 M2 M3
P1
P2
P3
M1 M2 M3
Product specialization
Market specialization
Full market coverage
P – ProductP – Product
M - MarketM - Market
Segment-by-Segment Invasion Plan
Company A Company B Company C
Airlines Railroads Truckers
Large computer
s
Midsize computer
s
Personal computer
s
Product variety
Customer group
POSITIONING AND POSITIONING AND DIFFERENTIATING DIFFERENTIATING THE MARKET THE MARKET OFFERINGS THROUGH OFFERINGS THROUGH PRODUCT LIFE CYCLEPRODUCT LIFE CYCLE
CHAPTER 11
Method for Competitive-Advantage Selection
Competitive Advantage Technology
Cost Quality
Service
Company Standing 8 6 8 4
Competitor Standing 8 8 6 3
Importance of Improving Standing (H-M-L)
L H L H
Affordability and Speed(H-M-L)
L M L H
Competitor’s Ability to Improve Standing (H-M-L)
M M H L
Recommendation Action Hold Monitor Monitor Invest
H = High M = Medium L = Low
The BCG Competitive Advantage Matrix
VOLUME
STALEMATED
SPECIALISED
FRAGMENTED
Larg
eSm
all
Few Many
Size of the Advantage
Number of Approaches to Achieve Advantage
Sales and Product Life-Cycle
I II III IVSale
s and P
rofits
Time
Introduction Growth Maturity Decline
Strategies for each Stage continued in next slides…
Strategies for PLC – Stage I (Introduction)
High Skimming
Low Skimming
Low Penetration
High Penetration
Price Promotion
Strategies for PLC – Stage II (Growth)
Lower prices to attract the next layer of price-sensitive buyersLower prices to attract the next layer of price-sensitive buyers
nnnnnn
Shift from product awareness advertising to product preference advertisingShift from product awareness advertising to product preference advertising
Increase its distribution coverage and enter new distribution channelsIncrease its distribution coverage and enter new distribution channels
Enter new market segmentsEnter new market segments
Add new models and flanker productsAdd new models and flanker products
Improve product quality, adds new product features, improved stylingImprove product quality, adds new product features, improved styling
Strategies for PLC – Stage III (Maturity)
Growth Maturity
Stable Maturity Decaying Maturity
Market Modification Product Modification Market-Mix Modification
Converting nonuser
Entering new market segment
Winning competitors’ customers
Improve Quality
Improve Feature
Price
Distribution
Advertising
Sales Promotion
Personal Selling
Services
Strategies for PLC – Stage IV (Decline)
Identify theDecline Stage(compulsory)
KILL
SHELL
SELL
Common Product Life-Cycle Patterns
Time TimeTime
Sale
s V
olu
me
(a) Growth-slump-maturity pattern
(b) Cycle-recycle pattern
(c) Scalloped pattern
Primary circle
Recycle
Time TimeTime
Fashion FadStyle
Sale
s
DEVELOPING NEW DEVELOPING NEW MARKET OFFERINGMARKET OFFERING
CHAPTER 12
The New-Product Development Decision Process
1. Idea generation
2. Idea screening
3. Conceptdevelopment & testing
4. Marketing strategydevelopment
DROPDROP
Yes
Yes
Yes
Yes
No
No
No
No
5. Business analysis
6. Product development
7. Market testing
8. Commercialization
DROPDROP
Should we send the idea back for
productdevelopment?
Would it help tomodify the product
or marketingprogram?
Yes
No
Yes
No
No No
Yes
No No
Yes
Yes
Yes
Layfutureplans
DESIGNING GLOBAL DESIGNING GLOBAL MARKET OFFERINGSMARKET OFFERINGS
CHAPTER 13
Major Decisions in International Marketing
Deciding whetherto go abroad
Deciding which marketto enter
Deciding how toenter the market
Deciding on the marketing program
Deciding on the marketing organization
How many market to enter
Regional free trade zones
Evaluating potential markets
Next Slide…
5-Modes of Entry into Foreign Markets
Amount of commitment, risk, control and profit potential
Indirectexporting
Directexporting
LicensingJoint
venturesDirect
investment
5-International Product andPromotion Strategies
StraightExtension
Communicationadaptation
Productadaptation
Dualadaptation
Productinvention
Product
Do Not Change Product
Adapt Product
Develop New
Product
Pro
moti
on
Do Not Change Promotion
Adapt Promotion
Whole-Channel Concept for International Marketing
Seller
Seller’sinternationalmarketing
headquarterChannelsbetweennations
Channelwithinforeignnations
Finalbuyers
SETTING THE SETTING THE PRODUCT AND PRODUCT AND BRANDING STRATEGYBRANDING STRATEGY
CHAPTER 14
Components of the Market Offering
Attractivenessof the market
Offering
Attractivenessof the market
Offering
Value-based prices
Product features and quality
Service mix and quality
5-Product Levels
Core benefit
Basic Product
Expected Product
Augmented Product
Potential Product
Product-Mix Width and Product-Line LengthFor Procter & Gamble Products (Including Dates of Introduction)
Product-Mix Width
Pro
du
ct-
Lin
e
Len
gth
Detergents
Ivory Snow (1930) Dreft (1933) Tide (1946) Cheer (1950) Oxydol (1954) Dash (1954) Bold (1965) Gain (1966) Era (1972)
Toothpaste
Gleem (1952) Crest (1955)
Disposable Bar Soap
Ivory (1879) Kirk’s (1885) Lava (1893) Camay (1926) Zest (1952) Safeguard (1963) Coast (1974) Oil of Olay (1993)
Diapers
Pampers (1961) Luvs (1976)
Paper Tissue
Charmin (1928) Puffs (1960) Banner (1982) Summit (1992)
An Overview of Branding Decision
BrandNo Brand
ManufacturerbrandDistributor(private) brandLicensed brand
Individual namesBlanket familynameSeparate family namesCompany-individualnames
Line extensionBrandextensionMulti-brandsNew brandsCo-brands
RepositioningNorepositioning
Branding Decision
Brand-Sponsor Decision
Brand-Name Decision
Brand-Strategy Decision
Brand-Repositioning
Decision
DESIGNING DESIGNING AND AND MANAGING SERVICESMANAGING SERVICES
CHAPTER 15
Service-Characteristics
SERVICE
Intangibility Inseparability
VariabilityPerishability
Elements in a Service Encounter
Service Business
Not visible to customer
InternalOrganizational
System
Physicalenvironment
Contractpersonal
Visible tocustomer
The Service Business as a System
Service X
OtherService
Customer A
OtherCustomer
Direct Interaction Secondary Interaction
AdvertisingBilling and paymentSales callMedia storiesWord-of-mouth comments
3-Types of Marketing in Service Marketing
Cleaning/ maintenance services
Financial/ banking services
Restaurant industry
Inte
rnal
Mar
ketin
g
External Marketing
Internal MarketingEmployees Customers
Company
Service-Quality ModelWord of mouthcommunication
Personal needs Past experience
Expected service
Perceived service
Service delivery(including pre & post-contract)
Management perception ofconsumer expectation
Translation of perceptionsinto service-quality specification
Externalcommunication
to consumer
GAP 5
GAP 3
GAP 2
GAP 1GAP 2
Consumer
Marketer
Importance-Performance Analysis
Extremely important
Slightly important
Exte
rnal p
erfo
rmanceFa
ir p
erf
orm
ance
A. Concentrated here
B. Keep up the good work
C. Low priceD. Possible overkill
DEVELOPING DEVELOPING PRICE STRATEGY PRICE STRATEGY AND AND PROGRAMPROGRAM
CHAPTER 16
Nine Price-Quality Strategies
1. Premium strategy
2. High-value strategy
3. Super-value
strategy
4. Overcharging
strategy
5. Medium-value
strategy
6. Good-value
strategy
7. Rip-off strategy
8. False economy strategy
9. Economy strategy
PriceP
rod
uct
Qu
ality
High
High
Medium
Medium
Low
Low
Price Should Align with Value
High
High
Low
Low
Pri
ce p
aid
Value received
Medium
Medium
Mixed opportunities
Price = value
Undelivered value
Setting Pricing Policy
1. Setting thepricing objectives
2. Determiningdemand
3. Estimating costs
4. Analyzing competitors,costs, prices & offers
5. Selecting a pricingmethod
6. Selecting the finalprice
PRICE SENSITIVITY ESTIMATING DEMAND CURVES PRICE ELASTICITY OF DEMAND
TYPE OF COSTS AND LEVELS OF PRODUCTION
MARKUP PRICING TARGET-RETURN PRICING PERCEIVED-VALUE PRICING VALUE PRICING GOING-RATE PRICING AUCTION-TYPE PRICING
Price-Reaction Program for Meeting a Competitor’s Price Cut
Has competitorCut his price?
Hold our price at presentlevel; continue to watch
competitor’s price
Is the price likelyto significantlyhurt our sales?
How much has hisprice been cut?
Is it likely to be apermanent price
cut?
By less than 2%Include a cents-off
coupon for thenext purchase
By more than 4%Drop price to
competitor’s price
By 2-4%Drop price by half
Of the competitor’sprice cut
No
NoNo
YesYes
Yes
DESIGNING AND DESIGNING AND MANAGING VALUE MANAGING VALUE NETWORKS AND NETWORKS AND MARKETING MARKETING CHANNELSCHANNELS
CHAPTER 17
How a Distributor Effects an Economy of Efforts
M
M
M
C
C
C
M
M
M
C
C
C
a) Number of contacts
M x C = 3 x 3 = 9
a) Number of contacts
M + C = 3 + 3 = 6
M = Manufacturer C = Customer D = Distributor
D
1
12
34
5
6
7 8
9
2
3
4
5
6
5-Marketing Flows in the Marketing Channels
S-Supplier T-Transporter, warehouses B-Banks M-Manufacturer D-Dealer C-Customer A-Adv Agency
1. Physical Flow
2. Title Flow
3. Payment Flow
4. Information Flow
5. Promotion Flow
SS
SS
SS
SS
SS
TT
BB
T,BT,B
AA
BB
T,BT,B
AA
TT
TT
TT
TTMM
MM
MM
MM
MM
CC
CC
CC
CC
CC
DD
DD
DD
DD
DD
Consumer Marketing Channels
Manufacturer ManufacturerManufacturerManufacturer
WholesalerWholesaler
Jobbler
RetailerRetailerRetailer
Consumer ConsumerConsumerConsumer
0-level 1-level 2-level 3-level
Industrial Marketing Channels
Manufacturer ManufacturerManufacturerManufacturer
Manufacturer’srepresentative
Manufacturer’srepresentative
Industrialdistributors
Industrialcustomer
Industrialcustomer
IndustrialcustomerIndustrial
customer
0-level 1-level 2-level 3-level
The Value-Adds vs Cost of Different Channels
High
High
Low
Low
Valu
e-a
dd
of
sale
s
Cost per transaction
Internet
Telemarketing
Retail stores
Distributors
Value-addedpartners
Sales forces
Direct sales
channels
Indirect channels
Direct marketing channels
Channels Value Added and Market Growth Rate
• Introductory - PC’s hobbyist stores - Designer apparel: boutiques
4. Declining - PC’s mail order - Designer apparel: off-price stores
2. Declining - PC’s specialty
retailers - Designer apparel: better departmental
stores
3. Declining - PC’s mass
merchandisers - Designer apparel: mass merchandisers
High
High Low
Low
Mark
et
Gro
wth
R
ate
Value Added by the Channels
MANAGING MANAGING RETAILING, RETAILING, WHOLESALING, AND WHOLESALING, AND MARKET LOGISTICSMARKET LOGISTICS
CHAPTER 18
Retail Positioning Map
Bloomingdale’s Wal-Mart
Tiffany Sunglass Hut
Narrow
High Low
Broad
Bre
ad
th o
f th
e p
rod
uct
lin
e
Value Added
Major Retail Types
Retail Types
Specialty Stores
Department Stores
Super-market
Convenience Stores
Discount Stores
Off-price Retailer
Superstore
Catalog Showroom
Retail – Marketing Decision
Target MarketProduct
Assortment &Procurement
Service andStore
AtmospherePrice Decision
PromotionDecision
Place Decision
Wholesale Type
MerchantWholesaler
Full-ServiceWholesaler
Limited-ServiceWholesaler
Broker and Agent
Agents
MiscellaneousWholesaler
Manufacturers’ and Retailers’Branches and Offices
Brokers
Wholesaler – Marketing Decision
Target MarketProduct
Assortment &Services
Price DecisionPromotionDecision
Place Decision
Market-Logistics Decision
OrderProcessing
Warehousing Inventory Transportation
MANAGING MANAGING INTEGRATED INTEGRATED MARKETING MARKETING COMMUNICATIONCOMMUNICATION
CHAPTER 19
Communication Process – Elements
SENDER
Encoding Decoding
RECEIVER
Media
Message
Feedback Response
Noise
Developing Effective Communication – Steps
Identify targetaudience
Manageintegratedmarketing
communication
Determiningobjectives
Measureresults
Selectchannels
Decide onmedia mix
Establishbudget
Designmessage
1
2
3
4 5
6
7
8
Response Hierarchy Models
Models
Stages
Cognitive stage
Affective stage
Behaviour stage
AIDA Model
Hierarchy-of-Effects Model
Innovation-Adoption
Model
Communications Model
Attention
Interest
Desire
Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Awareness
Interest
Evaluation
Trial
Adoption
Exposure
Cognitive response
Reception
Attitude
Intention
Behaviour
MANAGING MANAGING ADVERTISING, SALES ADVERTISING, SALES PROMOTION, PUBLIC PROMOTION, PUBLIC RELATION, AND DIRECT RELATION, AND DIRECT MARKETINGMARKETING
CHAPTER 20
5-Ms of Advertising
Mission
Sales goalsAdvertising objectives
Money
Factors to consider Stages in PLC Market share and consumer base Competition and clutter Advertising frequency Product substitutability
Messages
Message generationMessage evaluation and selectionMessage executionSocial-responsibility review
Media
Reach, frequency, impactMajor media typesSpecific media vehiclesMedia timingGeographical media allocation
Measurement
Communication impactSales impact
Major Media Types
Newspaper Television Direct Mail Radio
Magazine Outdoor Yellow Pages Newsletters
Brochures Telephone Internet
Classification of Advertising Timing Patterns
Level Rising Falling Alternating
Con
cen
trate
dC
on
tin
uou
sIn
term
itte
nt
Number of messages per month
Month
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10) (11) (12)
Formula for Measuring Sales Impact of Advertising
Share ofexpenditure
Share ofvoice
Share ofmind and
heart
Share ofmarket
Business and Sales Force Promotion Tools
Trade Showsand
ConventionsSpecialtyAdvertising
SalesContract
Major Tools in Marketing
PublicationsPublications
SpeechesSpeeches
SponsorshipsSponsorshipsEventsEvents
Public-ServicePublic-ServiceActivitiesActivities
NewsNews
IdentityIdentityMediaMedia
MANAGING MANAGING THE THE SALES FORCESALES FORCE
CHAPTER 21
Designing a Sales Force
Designing theSales Force
Sales forceobjectives
Sales forcestrategy
Sales forcestructure
Sales forcesize
Sales forcecompensation
Managing the Sales Force
Managing theSales Force
Recruiting andSelecting salesrepresentatives
Trainingsales
representatives
Supervisingsales
representatives
Motivatingsales
representatives
Evaluatingsales
representatives
Major Steps in Effective Selling
Prospectingand
qualifying
Pre-approach
Approach
Follow-upand
maintenance
Closing
Overcomingobjectives
Presentationand
demonstration
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Classic Bargaining Tactics
- Acting Crazy - Big Pot - Get Prestigious Ally - The Well Is Dry - Limited Authority - Whipsaw/Auction - Divide and Conquer - Get Lost/Stall for Time - Wet Noodles - Be Patient - Let’s Split the
Difference - Trial Balloon - Surprises
MANAGINGMANAGINGTHE THE TOTAL MARKETING TOTAL MARKETING EFFORTEFFORT
CHAPTER 22
Functional Organization
Marketingvice-president
Marketingvice-president
Marketingvice-president
Marketingvice-president
Marketingvice-president
Marketingvice-president
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