Bic Versus Gillette The Disposable Wars

ABOUT HALF OF ALL WESTERN men get up each morning, confront their stubble in the bathroom mirror and reach for a cheap disposable plastic razor. Schiek, Bic, Gillette, Wilkinson or whatever, most men think that one brand does as well as the next. Also, the razor makers seem always to have them on sale, so you can scoop up a dozen of them for next to nothing. The Gillette Company does not like this sort of thinking. Of course, women also use Gillette's razors, but Gillette worries about the...

Number of Channel Levels

Sales Channels

Distribution channels can be described by the number of channel levels involved. Each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer is a channel level. Because the producer and the final consumer both perform some work, they are part of every channel. The nitmher of intermediary levels indicates the length of a channel. Figure 21.2A shows several consumer distribution channels of different lengths. Channel 1. called...

Pieta Luxury Chocolates

PETER ABEL, THE YOUNG MANAGING director of his family's firm, was pleased with the way he had revitalized the firm after he took over in 1989. Since formed in 1923, Pieta had sold its luxury Belgian chocolates through its own small shops. It had a high reputation within the trade and many devoted customers. lr was the country's largest luxury chocolate manufacturer, but until Peter took over, the company had stagnated. In his opinion, Pieta should he more like other leading family firms such as...

Expanding the Total Market

The leading firm normally gains the most when the total market expands. If people take more pictures, then as the market leader, Kodak stands to gain the most. If Kodak can persuade more people to take pictures, or to take pictures on more occasions, or to take more pictures on each occasion, it will benefit greatly. Generally, the market leader should look for new users, new uses and more usage ofits products. NEW USERS. Every product class can attract buyers who are still unaware of the...

International Marketing Manners When in Rome

Consolidated Amalgamation, Inc., thinks it's time that the rest of the world enjoyed the same fine products it has offered American consumers for two generations. It dispatches vice-president Harry E. Slicksmile to Europe to explore the territory. Mr Slicksmile stops first in London, where he makes short work of some bankers - he rings them up on the phone. He bandies Parisians with similar ease after securing a table at La Tour d'Argent, he greets his luncheon guest, the director of an...

Undifferentiated Marketing

Broad Undifferentiated Marketing

Using an undifferentiated marketing strategy, a firm might decide to ignore market segment differences and go after the whole market with one offer. This can Three alternative market-coverage strategic be because there are weak segment differences or through the belief that the product's appeal transcends segments. The offer will focus on what is common in the needs of consumers rather than on what is different. The company designs a product and a marketing programme that appeal to the largest...

Setting the Total Promotion Budget and

Setting Total Promotion Budget And Mix

We have looked at the steps in planning and sending communications to a target audience. But how does the company decide on the total promotion budget and its division among the major promotional tools to create the promotion mix We now look at these questions. One of the hardest marketing decisions facing a company is how much to spend on promotion. John Wanamaker, an American department store magnate, once said 'J know that half of my advertising is wasted, but I don't know which half. I...

The Promise and Challenges of Online Marketing

Online marketing offers great promise for the future. Its most ardent supporters envision a time when the Internet and electronic commerce will replace magazines, newspapers and even stores as sources for information and buying. Yet despite all the hype and promise, online marketing may be years away from realizing its full potential. And even then, it is unlikely to fulfil such sweeping predictions. Instead, eventually, online marketing will become another important tactical tool, much like...

Defining the Channel Objectives and Constraints

Channel objectives should be stated in terms of the desired service level of target customers. Usually, a company can identify several segments wanting different levels of channel service. The company should decide which segments Co serve and the best channels to use in each ease. In each segment, the company wants to minimize the total channel cost of supplying customers, while also meeting their service requirements. The company's channel objectives are also influenced by the nature of its...

Exchange Transactions and Relationships

Marketing occurs when people decide to satisfy needs and wants through exchange. Exchange is the act of obtaining a desired object from someone by offering something in return. Exchange is only one of many ways people can obtain a desired object. For example, hungry people can find food by hunting, fishing or gathering fruit. They could beg for food or take food from someone else. Finally, they could offer money, another good or a service in return for food. As a means of satisfying needs,...

Designing the Competitive Intelligence System

We have described the main types of information that company decision-makers need to know about their competitors. This information needs collecting, interpreting, distributing and using. Although the cost in money and time of gathering competitive intelligence is high, the cost of not gathering it is higher. Yet 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 and...

Influence of Product Characteristics on Rate of Adoption

The characteristics of the new product affect its rate of adoption. Some products catch on almost overnight Virtual Pets , whereas others take a long time to gain acceptance Digital TV . Five characteristics are especially important in influencing an innovation's rate of adoption. For example, consider the characteristics of the MiniDisc in relation to the rate of adoption Relative advantage the degree to which the innovation appears superior to existing products. The greater the perceived...

Channel Behaviour and Organization

Distribution channels are more than simple collections of firms tied together by various flows. They are complex behavioural systems in which people and companies interact to accomplish individual, company and channel goals. Different forms of channel system exist. Some channel systems consist only of informal interactions among loosely organized firms, while others consist of formal interactions guided by strong organizational structures. Moreover, channel systems do not stand still - new...

Discussing the Issues

Thinking about the purchase of an audio hi-fi system, indicate die extent to which cultural, social, personal and psychological factors affect how a buyer evaluates hi-fi products and chooses a brand. 2. Describe and contrast any differences in the buying behaviour of consumers for the following produces Blur's new album a notebook computer a pair of jogging shoes and a breakfast cereal. Wliy might a detailed understanding of the model of the consumer buying decision process help marketers...

Designing International Distribution Channels

International marketers face many additional complexities in designing their channels. Each country has its own unique distribution system that has evolved over time and changes very slowly. These channel systems can vary widely from country to country. The relative significance of different members or elements of a channel system - for example, the role of wholesalers versus retailers or shopkeepers - can vary significantly across countries. For instance, in food and drinks retailing, contract...

Discount and Allowance Pricing

Discount Pricing And Allowance

Most companies adjust their basic price to reward customers for certain responses, such as early payment of bills, volume purchases and off-season buying. These price adjustments - called discounts and allowances - can take many forms. A cash discount is a price reduction to buyers who pay their bills promptly, A typical example is '2 10, net 30'. which means that although payment is due within 30 days, the buyer can deduct 2 per cent if the hill is paid within 10 days. The discount must be...

Nature and Importance of Physical Distribution and Marketing Logistics

To some managers, physical distribution means only trucks and warehouses. But modern logistics is much more than this. Physical distribution or 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 a profit. In short, it involves getting the right product to the right customer in the right place at the right time. Traditional physical...

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. Especially bothersome arc dinner-time or late-niglit phone calls. Beyond irritating consumers, some direct marketers have been accused of taking unfair advantage of impulsive or less sophisticated buyers. TV shopping shows and programme-long 'infomercials' seem to be the worst culprits. They feature smooth-talking hosts, elaborately...

Supervising Salespeople

New salespeople need more than a territory, compensation and training they need superuixiim. Through supervision, the company directs and motivates the sales force to do a better job. To what extent should sales management be involved in helping salespeople manage their territories It depends on everything from the company's size to the experience of its sales force. Consequently, companies vary widely in how closely they supervise their salespeople. Furthermore, what works for one company may...

Roberto Alvarez del Blanco and Jeff Rapaport

THE SPANISH COMPANY FREIXENET is the world's largest producer and exporter of ccfoa sparkling wines . In September 1985, management needed to decide a new distribution .strategy for the US market. There wss much concern and uncertainty regarding the decision. Freixenet had enjoyed spectacular growth from 1983 to 1985 and the management questioned the wisdom of implementing far-reaching changes so soon. The Freixenet management team had two main responsibilities for the US market. These were the...

Nature of the Buying Unit

Compared with consumer purchases, a business purchase usually involves more buyers and a more professional purchasing effort. Often, business buying is done by trained purchasing agents, who spend their working lives learning how to buy well. The more complex the purchase, the more likely that several people will participate in the dec is ion-making process. Buying committees made up of technical experts and top management are common in the buying of primary goods. Therefore, business marketers...