Immediate Satisfaction

The goal Create desirable products those that create both immediate customer satisfaction and a long-run customer benefit. An example is Haworth's Zody chair, which is both good for your body and good for the environment. Companies should try to turn all of their products into desirable products. The challenge posed by pleasing products is that they sell very well but may end up hurting the consumer. The product opportunity therefore, is to add long-run benefits without reducing the product's...

Capitalizing On Market Leadership

Just as Honda used strength gained from selling motorbikes in emerging countries to establish itself as a manufacturer of virtually every kind of passenger vehicle, Nokia aims to do the same in the mobile phone industry. Although Nokia remains committed to the entry-level market and to emerging nations, it has developed a comprehensive global strategy. According to the company's own vision statement, that strategy has three facets growing the number of people using Nokia devices, transforming...

Market Challenger Strategies

Firms that are second, third, or lower in an industry are sometimes quite large, such as Colgate, Ford, Lowe's, Avis, and Verizon. These runner-up firms can adopt one of two competitive strategies They can challenge the leader and other competitors in an aggressive bid for more market share (market challengers). Or they can play along with competitors and not try to outdo them (market followers). A market challenger must first define which competitors to challenge and its strategic objective....

Product Line

Retailers can also be classified by the length and breadth of their product assortments. Some retailers, such as specialty stores, carry narrow product lines with deep assortments within those lines. Today, specialty stores are flourishing. The increasing use of market segmentation, market targeting, and product specialization has resulted in a greater need for stores that focus on specific products and segments. In contrast, department stores carry a wide variety of product lines. In recent...

Placing Ads and Promotions Online

As consumers spend more and more time on the Internet, many companies are shifting Online advertising more of their marketing dollars to online advertising to build their brands or to attract Advertising that appears while consumers visitors to their Web sites. Online advertising is becoming a major medium. Last year, are surfing the Web, including display U.S. companies alone spent more than 21 billion on online advertising, up an incredible ads, search-related ads, online classifieds, 26...

Environmentalism

An organized movement of concerned citizens and government agencies to protect and improve people's current and future living environment. Whereas consumerists consider whether the marketing system is efficiently serving consumer wants, environmentalists are concerned with marketing's effects on the environment and with the environmental costs of serving consumer needs and wants. Environmentalism is an organized movement of concerned citizens, businesses, and government agencies to protect and...

Procurement Buying on the Internet

Advances in information technology have changed the face of the B-to-B marketing process. Electronic purchasing, often called e-procurement, has grown rapidly in recent years Virtually unknown less than a decade ago, online purchasing is standard procedure for most companies today. E-procurement gives buyers access to new suppliers, lowers purchasing costs, and hastens order processing and delivery. In turn, business marketers can connect with customers online to share marketing information,...

Podcasts and Vodcasts

Podcasting and vodcasting are the latest on-the-go, on-demand technologies. The name podcast derives from Apple's now-everywhere iPod. AWith podcasting, consumers can download audio files (podcasts) or video files (vodcasts) via the Internet to an iPod or other handheld device and then listen to or view them whenever and wherever they wish. They can search for podcast topics through sites such as iTunes or through podcast networks such as PodTrac, Podbridge, or PodShow. These days, you can...

Info

Harnessing consumer-generated marketing When the food company H,J. Heinz recently invited consumers to submit homemade ads for its ketchup brand on YouTube, it received more than 8,000 entries some very good but most only so-so or even downright dreadful. commercial content over the past few years would easily beat out any single advertising agency's offering. Today, as in our cola fountain story, not only do everyday people make the videos that earn that oh-so-coveted water-cooler buzz, they...

Price

Companies also face many considerations in setting their international prices. For example, how might Black & Decker price its power tools globally It could set a uniform price all around the world, but this amount would be too high a price in poor countries and not high enough in rich ones. It could charge what consumers in each country would bear, but this strategy ignores differences in the actual costs from country to country. Finally, the company could use a standard markup of its costs...

Marketing Mix Decisions

Like retailers, wholesalers must decide on product and service assortments, prices, promotion, and place. Wholesalers add customer value though the -products and services they offer. They are often under great pressure to carry a full line and to stock enough for immediate delivery. But this practice can damage profits. Wholesalers today are cutting down on the number of lines they carry, choosing to carry only the more-profitable ones. They are also rethinking which services count most in...

Interactive TV ITV

Interactive TV (ITV) lets viewers interact with television programming and advertising using their remote controls. In the past, ITV has been slow to catch on. However, the technology now appears poised take off as a direct marketing medium. A recent poll indicated that 66 percent of viewers would be very interested in interacting with commercials that piqued their interest.32 And satellite broadcasting systems such as DIRECTV, EchoStar, and Time Warner are now offering ITV capabilities....

Identifying Competitors

Normally, identifying competitors would seem a simple task. At the narrowest level, a company can define its competitors as other companies offering similar products and services to the same customers at similar prices. Thus, Zara's might see Gap as a major competitor, but not Harrods or House of Fraser. Ritz-Carlton might see Four Seasons hotels as a major competitor, but not Tulip Inn Hotels, the Hampton Inn, or any of the thousands of bed-and-breakfasts. Identifying competitors isn't as easy...

Discussing applying the concepts

List and briefly describe the five major promotion mix tools. 2. Discuss the three major factors changing the face of today's marketing communications. 3. Name and briefly describe the nine elements of the communications process. Why do marketers need to understand these elements 4. List the steps in developing effective marketing communications. 5. Name and describe the common methods for setting promotion budgets. 6. Compare and contrast push and pull promotion strategies. Which promotion...

Developing the Research Plan

Once the research problems and objectives have been defined, researchers must determine the exact information needed, develop a plan for gathering it efficiently, and present the plan to management. The research plan outlines sources of existing data and spells out the specific research approaches, contact methods, sampling plans, and instruments that researchers will use to gather new data. Research objectives must be translated into specific information needs. A For example, suppose Unilever...

Advantage

In previous chapters, you explored the basics of marketing. You've learned that the aim of marketing is to create value for customers in order to capture value from consumers in return. Good marketing companies win, keep, and grow customers by understanding customer needs, designing customer-driven marketing strategies, constructing value-delivering marketing programs, and building customer and marketing partner relationships. In the final three chapters, we'll extend this concept to three...

Video Case

It's mind-boggling to think that only 15 years ago, a company like Google was not within the realm of possibility. Yet when the World Wide Web went online, the foundation was set for Google's mission to organize the world's information and make it universally accessible and useful. Google was not the first search engine. But it has become the most successful. Its primary reason for success has been its customer-focused strategy. For Google, there are two basic types of customers. For the...

Segmentation Targeting Differentiation and Positioning Decisions

Like retailers, wholesalers must segment and define their target markets and differentiate and position themselves effectively they cannot serve everyone. They can choose a target group by size of customer (only large retailers), type of customer (convenience stores table i 13,3 Major Types of Wholesalers Independently owned businesses that take title to the merchandise they handle. In different trades they are called jobbers, distributors, or mill supply houses. They include full-service...

Cultural Environment

Each country has its own folkways, norms, and taboos. When designing global marketing strategies, companies must understand how culture affects consumer reactions in each of its world markets. In turn, they must also understand how their strategies affect local cultures. The Impact of Culture on Marketing Strategy The seller must understand the ways that consumers in different countries think about and use certain products before planning a marketing program. There are often surprises. For...

Gathering Secondary Data

Researchers usually start by gathering secondary data. The company's internal database provides a good starting point. However, the company can also tap into a wide assortment of external information sources, including commercial data services and government sources (see Table 4.1). Companies can buy secondary data reports from outside suppliers. For example, ACNielsen sells buyer data from a consumer panel of more than 260,000 households in 27 countries worldwide, with measures of trial and...

Business Actions Toward Sustainable Marketing

At first, many companies opposed consumerism, environmentalism, and other elements of sustainable marketing. They thought the criticisms were either unfair or unimportant. But by now, most companies have grown to embrace the new consumer rights, at least in principle. They might oppose certain pieces of legislation as inappropriate ways to solve specific consumer problems, but they recognize the consumer's right to information and protection. Many of these companies have responded positively to...

Nonpersonal Communication Channels

Nonpersonal communication channels are media that carry messages without personal contact or feedback. They include major media, atmospheres, and events. Major media include print media (newspapers, magazines, direct-mail), broadcast media (radio, television), display media (billboards, signs, posters), and online media (e-mail, company Web sites, online social and sharing networks). Atmospheres are designed environments that create or reinforce the buyer's leanings toward buying a product....

Real

Targeting Niches of Like-Minded People Marketers who think bigger is better may want to reconsider, at least when it comes to online social networks. Although giant networks such as MySpace and Facebook get all the attention these days, social networks focused on topics as remote as knitting or bird watching can present marketers with strong targeting opportunities When jet-setters began flocking to an exclusive social-networking Web site reserved for the rich, they got the attention of an...

Retail Stores as Communities or Hangouts

With the rise in the number of people living alone, working at home, or living in isolated and sprawling suburbs, there has been a resurgence of establishments that, regardless of the product or service they offer, also provide a place for people to get together. These places include coffee shops and caf s, shopping malls, bookstores, children's play spaces, superstores, and urban greenmarkets. For example, today's bookstores have become part bookstore, part library, part living room, and part...

Shaping the Overall Promotion

The concept of integrated marketing communications suggests that the company must blend the promotion tools carefully into a coordinated promotion mix. But how does the company determine what mix of promotion tools it will use Companies within the same industry differ greatly in the design of their promotion mixes. For example, Mary Kay Cosmetics spends most of its promotion funds on personal selling and direct marketing, whereas competitor CoverGirl spends heavily on consumer advertising. We...

Sustainable Marketinq pp 608609

Sustainable marketing calls for meeting the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. Figure 20.1 compares the sustainable marketing concept with other marketing concepts we studied in earlier chapters.4 The marketing concept recognizes that organizations thrive from day to day by determining the current needs and wants of target group customers and fulfilling those needs and wants more effectively and...

Technological Environment

The technological environment is perhaps the most dramatic force now shaping our destiny. A Technology has released such wonders as antibiotics, robotic surgery, miniaturized electronics, laptop computers, and the Internet. It also has released such horrors as nuclear missiles, chemical weapons, and assault rifles. It has released such mixed blessings as the automobile, television, and credit cards. Our attitude toward technology depends on whether we are more impressed with its wonders or its...

Telephone Marketing

Telephone marketing involves using the telephone to sell directly to consumers and business customers. Telephone marketing now accounts for nearly 20 percent of all direct marketing-driven sales. We're all familiar with telephone marketing directed toward consumers, but business-to-business marketers also use telephone marketing extensively, accounting for more than 55 percent of all telephone marketing sales.14 Marketers use outbound telephone marketing to sell directly to consumers and...

The International Trade System

Trade barriers U.S. and other Western banks have been effectively fenced out of China's huge retail banking market by protectionist regulations. It's a big and beautiful but threatening world out there for marketers Most large firms have made the world their market. For example, once all-Amerioan McDonald's now captures 65 percent of its sales from outside the For years U.S. financial houses have dreamed of the day when they'll be allowed to offer banking services to individual Chinese savers....

The Nature of Each Promotion Tool

Each promotion tool has unique characteristics and costs. Marketers must understand these characteristics in shaping the promotion mix. Advertising. Advertising can reach masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times. For example, television advertising can reach huge audiences. An estimated 97.5 million Americans tuned in to watch the most recent Super Bowl (America's championship football game), about 32 million...

The Promise and Challenges of Online Marketing

Online marketing continues to offer both great promise and many challenges for the future. Its most ardent apostles still envision a time when the Internet and online marketing will replace magazines, newspapers, and even stores as sources for information and buying. Most marketers, however, hold a more realistic view. To be sure, online marketing will become a successful business model for some companies Internet firms such as Amazon, com, eBay, and Google and direct marketing companies such...

The Rise of Megaretailers

The rise of huge mass merchandisers and specialty superstores, the formation of vertical marketing systems, and a rash of retail mergers and acquisitions have created a core of superpower megaretailers. Through their superior information systems and buying power, these giant retailers can offer better merchandise selections, good service, and strong price savings to consumers. As a result, they grow even larger by squeezing out their smaller, weaker competitors. The megaretailers have shifted...

The Shifting Marketing Communications Model

The explosive developments in communications technology and changes in marketer and customer communication strategies have had a dramatic impact on marketing communications. Just as mass marketing once gave rise to a new generation of mass-media communications, the new digital media have given birth to a new marketing communications model. Although television, magazines, and other mass media remain very important, their dominance is declining. Advertisers are now adding a broad selection of...

V

Create value for customers and build customer relationships Understand the marketplace and customer needs and wants Design a customer-driven marketing strategy Construct an integrated marketing program that delivers superior value Capture value from customers in return Build profitable 1 relationships and I J create customer delight Capture value from customers to create profits and customer equity FIGURE I 1.1 A Simple Model of the Marketing Process In this chapter and the next, we will...

Gdn

A Web site designed to build customer goodwill, collect customer feedback, and supplement other sales channels, rather than to sell the company's products directly. A Web site that engages consumers in interactions that will move them closer to a direct purchase or other marketing outcome. Setting up online I social networks ,S .-, Setting up online I social networks ,S .-, Types of Web Sites. Web sites vary greatly in purpose and content. The most basic type is a corporate (or brand) Web site....

Whole Planet

We believe companies, like individuals, must assume their share of responsibility as tenants of Planet Earth, professes the company's value statement. While this might seem simple, the exten-siveness of Whole Foods' environmental program illustrates just how complex a genuine Earth first philosophy can be. For starters, Whole Foods actively supports organic farming on a global basis. This, it believes, is the best way to promote sustainable agriculture and protect both the environment and farm...

World Trade Organization

The WTO and GATT The General Agreement on Tariffs and Trade (GATT) promotes world trade by reducing tariffs and other International trade barriers. The WTO oversees GATT, imposes trade sanctions, and mediates global disputes. The World Trade Organization and GATT The General Agreement on Tariffs and Trade (GATT) is a 61-year-old treaty designed to promote world trade by reducing tariffs and other international trade barriers. A Since the treaty's inception in 1947, member nations (currently...

Marketing by the numbers

China's fast-paced economic growth and the Chinese's increasing levels of disposable incomes have had a major impact on the pet industry. The latest research suggests that pet ownership is on the rise in China. The demand for pet food products in the country is also growing. Although the pet food market in China is still small by Western standards, it offers high growth potential. 1. Refer to Appendix 2 Marketing by the Numbers. Carry out research to estimate what the potential market for dog...

Direct Response Television Marketing

Direct-response television marketing takes one of two major forms. The first is direct-response television advertising (DRTV). Direct marketers air television spots, often 60 or 120 seconds long, which persuasively describe a product and give customers a toll-free number or Web site for ordering. Television viewers also often encounter full 30-minute or longer advertising programs, or infomercials, for a single product (see Real Marketing 17.1). Some successful direct-response ads run for years...

Finding Uncontested Market Spaces

Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. Called a blue ocean strategy, the goal is to make competition irrelevant 7 Companies have long engaged in head-to-head competition in search of profitable growth. They have flocked for competitive advantage, battled over market share, and struggled for differentiation. Yet...

Deciding on the Global Marketing Organization PP 5996

Companies manage their international marketing activities in at least three different ways Most companies first organize an export department, then create an international division, and finally become a global organization. A firm normally gets into international marketing by simply shipping out its goods. If its international sales expand, the company organizes an export department with a sales manager and a few assistants. As sales increase, the export department can expand to include various...

Types of Wholesalers

Wholesalers fall into three major groups (see Table 13.3) merchant wholesalers, agents and broker, and manufacturers' sales branches and offices. Merchant wholesalers are the largest single group of wholesalers, accounting for roughly 50 percent of all wholesaling. Merchant wholesalers include two broad types full-service wholesalers and limited-service wholesalers. Full-service wholesalers provide a full set of services, whereas the various limited-service wholesalers offer fewer services to...

Message Content

The marketer has to figure out an appeal or theme that will produce the desired response. There are three types of appeals rational, emotional, and moral. Rational appeals relate to the audience's self-interest. They show that the product will produce the desired benefits. Examples are messages showing a product's quality, economy, value, or performance. Thus, in one ad, natural foods marketer Kashi proclaims 7 whole grains on a mission and asks consumers why use fake flavors and additives when...

Private Nonregulated Monopoly Example

The product can be uniform (steel, aluminum) or nonuniform (cars, computers). There are few sellers because it is difficult for new sellers to enter the market. Each seller is alert to competitors' strategies and moves. If a steel company slashes its price by 10 percent, buyers will quickly switch to this supplier. The other steelmakers must respond by lowering their prices or increasing their services. In a pure monopoly, the market consists of one seller. The seller may...

Deciding on the Global Marketing

Companies that operate in one or more foreign markets must decide how much, if at all, to adapt their marketing strategies and programs to local conditions. At one extreme are global companies that use Standardized global marketing, using largely the same marketing strategy approaches and marketing mix worldwide. At the other extreme is an adapted global marketing. In this case, the producer adjusts the marketing strategy and mix elements to each target market, bearing more costs but hoping for...

Personal Communication Channels

In personal communication channels, two or more people communicate directly with each other. They might communicate face to face, on the phone, through mail or e-mail, or even through an Internet chat. Personal communication channels are effective because they allow for personal addressing and feedback. Some personal communication channels are controlled directly by the company. For example, company salespeople contact target buyers. But other personal communications about the product may reach...

The Anatomy Of The Price Of A Gallon Of

Consumers like Joe Tyler wonder not only what makes the price of petrol go up, but just how much of the price of each gallon they buy goes into Big Oil's coffers. They might be surprised to learn the breakdown on the price of a gallon of petrol. Roughly 58 percent of the retail price of gas covers the cost of crude. In 2004, the price of crude was only about 35 a barrel. That price nearly quadrupled by 2008. Thus, it should come as no surprise that petrol prices have risen in tandem. Of course,...

Viagogo As A New Intermediary

Viagogo Seizing The Resale Opportunity Eric Baker, the co-creator of online ticket reseller StubHub Inc., effectively declared war on himself when he launched an online ticket reselling business, viagogo. It is a British-based secondary ticket sales service that offers sporting and entertainment tickets. This was in August 2006, and Baker was at that time still a 10 percent owner of StubHub. He had co-founded the business in 2000 under the original name of Liquid Seats. In 2000, Baker and his...

Legislation Regulating Business

Even the most liberal advocates of free-market economies agree that the system works best with at least some regulation. Well-conceived regulation can encourage competition and ensure fair markets for goods and services. Thus, governments develop public policy to guide commerce sets of laws and regulations that limit business for the good of society as a whole. Almost every marketing activity is subject to a wide range of laws and regulations. Increasing Legislation. Legislation affecting...

Marketing

In this final chapter, we'll examine the concepts of sustainable marketing, meeting the needs of consumers, businesses, and society now and in the future through socially and environmentally responsible marketing actions. We'll start by defining sustainable marketing and then look at some common criticisms of marketing as it impacts individual consumers and other businesses. Next, we'll examine consumerism, environmentalism, and other citizen and public actions that promote sustainable...

Marketings Impact on Other Businesses

Critics also charge that a company's marketing practices can harm other companies and reduce competition. Three problems are involved acquisitions of competitors, marketing practices that create barriers to entry, and unfair competitive marketing practices. Critics claim that firms are harmed and competition reduced when companies expand by acquiring competitors rather than by developing their own new products. The large number of acquisitions and the rapid pace of industry consolidation over...

Irritation Unfairness Deception and Fraud

Direct marketing excesses sometimes annoy or offend consumers. Most of us dislike direct-response TV commercials that are too loud, too long, and too insistent. Our mailboxes fill up with unwanted junk mail, our e-mailboxes bulge with unwanted spam, and our computer screens flash with unwanted banner or pop-under ads. Beyond irritating consumers, some direct marketers have been accused of taking unfair advantage of impulsive or less-sophisticated buyers. TV shopping channels and program-long...

Distribution Channels

The international company must take a whole-channel view of the problem of distributing products to final consumers. Figure 19.4 shows the two major links between the seller and the final buyer. The first link, channels between nations, moves company products from points of production to the borders of countries within which they are sold. The second link, channels within nations, moves the products from their market entry points to the final consumers. The whole-channel view takes into account...

Increased Emphasis on Ethics and Socially Responsible Actions

Written regulations cannot possibly cover all potential marketing abuses, and existing laws are often difficult to enforce. However, beyond written laws and regulations, business is also governed by social codes and rules of professional ethics. Socially Responsible Behavior. Enlightened companies encourage their managers to look beyond what the regulatory system allows and simply do the right thing. These socially responsible firms actively seek out ways to protect the long-run interests of...

Expanding the Total Demand

The leading firm normally gains the most when the total market expands. If Americans, for example, eat more fast food, McDonald's stands to gain the most because it holds more than three times the fast-food market share of nearest competitor Burger King. If McDonald's can convince more Americans that fast food is the best eating-out choice in these economic times, it will benefit more than its competitors. Market leaders can expand the market by developing new users, new uses, and more usage of...

List Of Social Criticisms Of Automotive Industry

The automotive industry has seen better days. Many auto companies are now facing declining revenues and negative profits. Additionally, because of its primary dependence on products that consume petroleum, the auto industry has a big environmental black eye, especially companies that primarily make gas-guzzling trucks and SUVs. During the past few years, however, Land Rover has experienced tremendous growth in revenues and profits. It Is currently selling more vehicles than ever worldwide. How...

The True Advantage

For starters, P amp G's CBD structure is broader and more comprehensive, making it more multifunctional than similar team structures employed by other companies. But perhaps more important, P amp G's structure is designed to accomplish four key objectives. So important are these objectives that they are referred to internally as the core work of CBD. These four objectives are Align Strategy to create opportunities for both P amp G and the customer to benefit by collaborating in strategy...

Sustainable Marketing Principles

Under the sustainable marketing concept, a company's marketing should support the best long-run performance of the marketing system. It should be guided by five sustainable marketing principles consumer-oriented marketing, customer-value marketing, innovative marketing, sense-of-mission marketing, and societal marketing. Consumer-oriented marketing means that the company should view and organize its marketing activities from the consumer's point of view. It should work hard to sense, serve, and...

Designing a Competitive Intelligence System

We have described the main types of information that companies need about their competitors. This information must be collected, interpreted, distributed, and used. The cost in money and time of gathering competitive intelligence is high, and the company must design its competitive intelligence system in a cost-effective way. The competitive intelligence system first identifies the vital types of competitive information needed and the best sources of this information. Then, the system...

Changing Consumer Spending Patterns

Food, housing, and transportation use up the most household income. However, consumers at different income levels have different spending patterns. Some of these differences were noted over a century ago by the German economist Ernst Engel, who studied how people shifted their spending as their income rose. He found that as family income rises, the percentage spent on food declines, the percentage spent on housing remains about constant except for such utilities as gas, electricity, and public...

Mrf

100,000 200,000 400,000 800,000 Accumulated production If a downward-sloping experience curve exists, this is highly significant for the company. Not only will the company's unit production cost fall, but it will fall faster if the company makes and sells more during a given time period. But the market has to stand ready to buy the higher output. And to take advantage of the experience curve, TI must get a large market share early in the product's life cycle. This suggests the following pricing...

Strong or Weak Competitors

The company can focus on one of several classes of competitors. Most companies prefer to compete against weak competitors. This requires fewer resources and less time. But in the process, the firm may gain little. You could argue that the firm also should compete with strong competitors in order to sharpen its abilities. Moreover, even strong competitors have some weaknesses, and succeeding against them often provides greater returns. A useful tool for assessing competitor strengths and...

Integrating the Promotion

Having set the promotion budget and mix, the company must now take steps to see that all of the promotion mix elements are smoothly integrated. Here is a checklist for integrating the firm's marketing communications.20 Start with customers. Identify all customer touch points for the company and its brands. Work to ensure that communications at each touch point are consistent with the overall communications strategy and that communications efforts are occurring when, where, and how customers...

Back To The Bowl

Where does a company turn when it wants to make a big ad splash For Coca-Cola, its thoughts turned to the marquee of all advertising events the Super Bowl. The company had certainly had success with the ad venue before. But scoring big with a Super Bowl ad isn't guaranteed. In fact, many cynics view the ad venue as a waste of money. One team of researchers found that average brand recall one week after the 2008 Super Bowl was an unimpressive 7 percent. Recall for specific commercials and the...

Trends in Wholesaling

Today's wholesalers face considerable challenges. The industry remains vulnerable to one of the most enduring trends of the last decade fierce resistance to price increases and the winnowing out of suppliers who are not adding value based on cost and quality. Progressive wholesalers constantly watch for better ways to meet the changing needs of their suppliers and target customers. They recognize that, in the long run, their only reason for existence comes from adding value by increasing the...

Marketing Channels

We now arrive at the third marketing mix tool distribution. Firms rarely work alone in creating value for customers and building profitable customer relationships. Instead, most are only a single link in a larger supply chain and marketing channel. As such, an individual firm's success depends not only on how well it performs but also on how well its entire marketing channel competes with competitors' channels. To be good at customer relationship management, a company must also be good at...

Changing Age Structure of the Population

The U.S. population stood at over 302 million in 2007 and may reach almost 364 million by the year 2030.7 The single most important demographic trend in the United States is the changing age structure of the population. The U.S. population contains several generational groups. Here, we discuss the three largest groups the baby boomers, Generation X, and the Millennials and their impact on today's marketing strategies. The Baby Boomers. The post-World War n baby boom produced 78 million baby...

The Need for Integrated Marketing Communications

Carefully Blended Mix Promotion Tools

The shift toward a richer mix of media and communication approaches poses a problem for marketers. Consumers today are bombarded by commercial messages from a broad range of sources. But consumers don't distinguish between message sources the way marketers do. In the consumer's mind, messages from different media and promotional approaches all become part of a single message about the company. Conflicting messages from these different sources can result in confused company images, brand...

Wholesaler Marketing Decisions

Wholesalers now face growing competitive pressures, more-demanding customers, new technologies, and more direct-buying programs on the part of large industrial, institutional, and retail buyers. As a result, they have taken a fresh look at their marketing strategies. As with retailers, their marketing decisions include choices of segmentation and targeting, differentiation and positioning, and the marketing mix product and service assortments, price, promotion, and distribution see Figure 13.2...

Whole Lot Of Customers

Each element of the three-part philosophy underlying the Whole Foods strategy just happens to appeal strongly to a carefully targeted segment of consumers. Whole Foods is not for everyone intentionally. Whole Foods customers are affluent, liberal, educated people often living in university towns. In the United States, for example, their median annual household income exceeds the average by almost 8,000. Whole Foods customers live a health-conscious lifestyle, care about the food they eat, and...

No End In Sight

The creative ads have continued to flow, including the humorous series to promote the Western Whopper. The spots, based on the tagline, Bring out your inner cowboy, featured people from all walks of life developing huge handlebar mustaches after eating Burger King fare. The ads were accompanied by a link to www.petmoustache.com, where people could register, upload a photo, and design a custom mustache. The mustache would then take on a life of its own. It sends you e-mails that say, 'Hey, I...

How To Develop An Integrated Marketing Plan For Tylenol

A Johnson amp Johnson does, a big provider of health-care and other products, this well. Its concern for societal interests is summarized in a company document called Our Credo, which stresses honesty, integrity, and putting people before profits. Under this credo, Johnson amp Johnson would rather take a big loss than ship a bad batch of one of its products. Consider the tragic tampering case in which eight people died in 1982 from swallowing cyanide-laced capsules of Tylenol, a Johnson amp...

Promotion Mix Strategies

Marketers can choose from two basic promotion mix strategies push promotion or pull promotion. Ill Figure 14.4 contrasts the two strategies. The relative emphasis on the specific promotion tools differs for push and pull strategies. A push strategy involves pushing the product through marketing channels to final consumers. The producer directs its marketing activities primarily personal selling and trade promotion toward channel members to induce them to carry the product and to promote it to...

Ii

Test marketing gives management the information needed to make a final decision about whether to launch the new product. If the company goes ahead with commercialization introducing the new product into the market it will face high costs. The company may need to build or rent a manufacturing facility. And, in the case of a major new consumer packaged good, it may spend hundreds of millions of dollars for advertising, sales promotion, and other marketing efforts in the first year. For example,...

Growth of Nonstore Retailing

Most of us still make most of our purchases the old-fashioned way We go to the store, find what we want, wait patiently in line to plunk down our cash or credit card, and bring home the goods. However, consumers now have a broad array of alternatives, including mailorder, television, phone, and online shopping. People are increasingly avoiding the hassles and crowds at malls by doing more of their shopping by phone or computer. As we'll discuss in Chapter 17, direct and online marketing are now...

Promotion Decision

Retailers use any or all of the promotion tools advertising, personal selling, sales promotion, public relations, and direct marketing to reach consumers. They advertise in newspapers, magazines, radio, television, and on the Internet. Advertising may be supported by newspaper inserts, catalogs, and direct mail. Personal selling requires careful training of salespeople in how to greet customers, meet their needs, and handle their complaints. Sales promotions may include in-store demonstrations,...

Domestic Manufacturing Pays

The same philosophy that has produced such good results for Zara has led parent company Inditex to diversify. Its other chains now include underwear retailer Oysho, teen-oriented Bershka and Stradivarius, children's Kiddy's Class, menswear Massimo Duti, and casual and sportswear chain Pull amp Bear. Recently, Inditex opened its first nonclothing chain, Zara Home. Each chain operates under the same style of vertical integration perfected at Zara. Making speed the main goal of its supply chain...

Relative Prices

Retailers can also be classified according to the prices they charge see Table 13.1 . Most retailers charge regular prices and offer normal-quality goods and customer service. Others offer higher-quality goods and service at higher prices. The retailers that feature low prices are discount stores and off-price retailers. Discount Stores. A discount Store sells standard merchandise at lower prices by accepting lower margins and selling higher volume. The early discount stores cut expenses by...

Fashion Revolution

Beyond these changes in presentation, Rubel focused on the ultimate product. He implemented a House of Brands strategy, shifting the Payless product line from one comprised almost entirely of store brands to one dominated by well-known national brands. Payless now sells shoes under numerous brand names that it either owns or licenses, including Airwalk, Champion, Spalding, Dexter, Shaquille O'Neal-endorsed Dunkman, and various Disney brands. Rubel also acquired the Stride Rite chain and all its...

Do You Think Marketers Are To Blame For Kgoy

KGOY stands for kids getting older younger, and marketers are getting much of the blame. Kids today see all types of messages, especially on the Internet, that children would never have seen in the past. Whereas boys may give up toys at an earlier age to play war games on their xBox 360s, the greater controversy seems to surround claims of how girls have changed, or rather, how marketers have changed girls. Critics describe clothing designed for young girls aged 8-11 as floozy and sexual, with...

Objective Outline

Refine marketing and outline the steps in the marketing proc I Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. - .' ' ' ' v ' -t- 7 7 7-,7 '7 ' 7'7. raSBSO Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return, , y .r 7y v . ' - 7'7 7' 7 . . - - v7' .' 77 7 '' 7 ' '7 '777 ' gt ' V7j7 7 f Describe the major...

Many Marketers Are Now Using New Simulated Marketing Technologies Such As Frito-lay S Online Virtual Convenience Store

Frito Lay Pos

Discuss two additional product issues socially responsible product decisions and international product and services marketing. Author I New products are the Comment lifeblood of a company. As old products mature and fade away, companies must develop new ones to take their place. For example, only seven years after it unveiled its first Pod, half of Apple's revenues come from iPods and Tunes. The development of original products, product improvements, product modifications, and new brands...

What Impact Will Rfid Tags Have On Each Of The Major Logistical Functions

Describe the major types of vertical marketing systems and provide an example of each. 5. Discuss the complexities international marketers face when designing channels in other countries. 6. List and briefly describe the major logistics functions. Provide an example of a decision a logistics manager would make for each major function. 1. ExerWise, a new company marketing a high-end ab toner exercise machine, is considering direct marketing versus selling through Strongs, a national sporting...

Focus on Technology

Undoubtedly customer feedback is the best testimonial to any company's success. In Britain, the electrical retailer Comet in August 2008 launched its new website. They encouraged customers to take a thorough look around before it went live, it also asked them to provide Comet with feedback through a specially set-up online forum. The website itself was linked to their current home page and was fully functional. Customers could pass through the whole of the purchasing process on the new site. At...

Straight Rebuy For Air Asia

Major Influences Business Buyers

A business buying situation in which the buyer routinely reorders something without any modifications. A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers. A business buying situation in which the buyer purchases a product or service for the first time. Systems selling or solutions selling Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation....

Tabasco Product Life Cycle

Products The Mature Stage

Product life cycle Some products die quickly others stay in the mature stage for a long, long time. TABASCO hot sauce is over 130 years old and yet still able to totally whup your butt The course of a product's sales and profits over its lifetime. It involves five distinct stages product development, introduction, growth, maturity, and decline. Management is aware that each product will have a life cycle, although its exact shape and length is not known in advance. Figure 9.2 shows a typical...

Marketing Department Organization

The company must design a marketing organization that can carry out marketing strategies and plans. If the company is very small, one person might do all of the research, selling, advertising, customer service, and other marketing work. As the company expands, a marketing department emerges to plan and carry out marketing activities. In large companies, this department contains many specialists. They have product and market managers, sales managers and salespeople, market researchers,...

Objective 4

Tesco Intermediaries

Discuss the natur and importance of mark -ting logistics and integrated supply chain man jgement Marketing Logistics and Supply Chain Management 380-387 Value delivery network In making and marketing iPod Touch products, Apple manages an entire network of people within Apple plus suppliers and resellers outside the company who work effectively together to give final customers So much to touch. however, have traditionally focused on the downstream side of the supply chain on the...

Requirements for Effective Segmentation

Substantial Segmentation

Clearly, there are many ways to segment a market, but not all segmentations are effective. For example, buyers of table salt could be divided into blond and brunette customers. But hair color obviously does not affect the purchase of salt. Furthermore, if all salt buyers bought the same amount of salt each month, believed that all salt is the same, and wanted to pay the same price, the company would not benefit from segmenting this market. To be useful, market segments must be Measurable The...

Customer Value Proposition Range Rover

Arrows represent relationships that must be developed and managed to create customer value and profitable customer relationships. Although we normally think of marketing as being carried on by sellers, buyers also carry on marketing. Consumers do marketing when they search for products and interact with companies and obtain information and make their purchases. In fact, today's digital technologies, from Web sites and blogs to cell phones and other wireless devices, have empowered consumers and...

Titus Bicycle Advertisement Cubic Zirconia

Titus Advertisement Lofty Prices

Assumes fixed costs of 300,000 and constant unit variable costs of 10. Assumes fixed costs of 300,000 and constant unit variable costs of 10. Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met. Positioning on high price Titus features its lofty prices in its advertising suggested retail price 7,750.00. Positioning on high price Titus features its lofty prices in its advertising suggested retail price 7,750.00. made for other marketing mix...

Levels of Product and Services

Product planners need to think about products and services on three levels see Figure 8.1 . Each level adds more customer value. The most basic level is the core customer value, which addresses the question What is the buyer really buying When designing products, marketers must first define the core, problem-solving benefits or services that consumers seek. A woman buying lipstick buys more than lip color. Charles Revson of Revlon saw this early In the factory, we make cosmetics in the store,...

Fuze

Need Recognition

Buying behavior differs greatly for a tube of toothpaste, an iPod, financial services, and a new car. More complex decisions usually involve more buying participants and more buyer deliberation. Figure 5.5 shows types of consumer buying behavior based on the degree of buyer involvement and the degree of differences among brands. Consumers undertake complex buying behavior when they are highly involved in a purchase and perceive significant differences among brands. Consumers may be highly...

Multiply Everything You And Your Computer Can Do

THE WORLD'S BEST PROCESSORS. Derived demand Intel advertises heavily to personal computer buyers, selling them on the lirtues of Intel microprocessors both Intel and its ausiness partners benefit. The business marketer normally deals with far fezver but far larger buyers than the consumer marketer does. Even in large business markets, a few buyers often account for most of the purchasing. For example, when Michelin sells replacement tires to final consumers, its...

Segmenting International Markets

Few companies have either the resources or the will to operate in all, or even most, of the countries that dot the globe. Although some large companies, such as Coca-Cola or Sony, sell products in more than 200 countries, most international firms focus on a smaller set. Operating in many countries presents new challenges. Different countries, even those that are close together, can vary greatly in their economic, cultural, and political makeup. Thus, just as they do within their domestic...

We Will Examine These Steps For The Typical

The first stage of the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service. in the environment. Finally, culture and customs can strongly influence business buyer reactions to the marketer's behavior and strategies, especially in the international marketing environment see Real Marketing 6.2 . The business buyer must watch these factors, determine how they will affect the buyer, and try to turn these challenges...

Communicating and Delivering the Chosen Position

Once it has chosen a position, the company must take strong steps to deliver and communicate the desired position to target consumers. All the company's marketing mix efforts must support the positioning strategy. Positioning the company calls for concrete action, not just talk. If the company decides to build a position on better quality and service, it must first deliver that position. Designing the marketing mix product, price, place, and promotion involves working out the tactical details...

Service Profit Chain

Four Seasons Golden Rule

A major characteristic of services they cannot be seen, tasted, felt, heard, or smelled before they are bought. A major characteristic of services they are produced and consumed at the same time and cannot be separated from their providers. A major characteristic of services their quality may vary greatly, depending on who provides them and when, where, and how. Service intangibility means that services cannot be seen, tasted, felt, heard, or smelled before they are bought. For example, people...

What Is Ikea Promise Of Value

Lots of companies have idealistic missions. But IKEA's vision, ' To create a better everyday life for the many people, seems somewhat implausible. How can a company that makes furniture improve everyday life for the masses Interestingly, the most important part of that strategy is price. For every product that it designs, from leather sofas to plastic mugs, IKEA starts with a target price. The target price is one that's deemed affordable, making the product accessible to the masses. Only then...

Factors Marketing Must Consider When Setting Price

Ebrahim Currim

Identify and define the other important external and internal factors affecting a firm pricing decisions They should persuade customers that paying a higher price for the company's brand is justified by the greater value they gain. The challenge is to find the price that will let the company make a fair profit by getting paid for the customer value it creates. A Give people something of value, says Ronald Shaich, CEO of Panera Bread Company, and they'll happily pay for it.3 Pricing The...