11/7/2015

Learning Objectives
• Define the terms marketing, marketing concept,
Marketing: and marketing strategy
Providing Value to Customers • Outline how to select a target market
• Identify the four Ps of the marketing mix
• Discuss various branding strategies and explain
the benefits of packaging and labeling
• Identify pricing strategies that are appropriate for
new and existing products
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Learning Objectives
Marketing
• Explore various product-distribution strategies
• Describe the elements of the promotion mix “…is the activity , set of institutions, and
• Explain how companies manage customer processes for creating, communicating,
relationships delivering, and exchanging offerings that have
• Explain how a product moves through its life cycle value for customers, clients, partners, and
and how this brings about shifts in marketing-mix society at large.”
strategies
• Describe the external marketing environment in
which businesses operate
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Marketing Marketing Strategy

Ideas
Customer Features &
relationship Benefits

PRODUCT Price
Delivery

Get people Target

to buy market
Make
customers
aware

Comparing B2B and Consumer Buying

Markets: Consumer vs. B2B
Behavior
• Consumer market: all individuals or
households that want goods and services for
personal consumption or use
• Business-to-business (B2B) market: all
individuals and organizations that want goods
and services to use in producing other goods
and services or to sell, rent, or supply goods to
others
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Marketing Mix
Market Segmentation Categories
Demographic – Age, marital status, gender, ethnic
background, income, occupation, education
Geographic – Climate, region, population density
Behavioral – Attitudes toward product, user status,
usage rate
Psychographic – Interests, activities, attitudes,
values
Clustering segments – Determining target markets
by combining, or “clustering,” segmenting criteria
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Marketing Research
Total Product Offer
• Collecting and analyzing data relating to a • Consists of everything consumers evaluate
specific marketing situation when deciding whether to buy something
• Data • Also called a value package
– Secondary: company documents, government
data
– Primary: survey (telephone, online, mail),
personal interview, focus group
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Categories of
Consumer & Industrial Goods

Industrial Goods and Services

Consumer Goods and Services
Production goods Support goods

Consumer goods/services

Component parts Production

Raw material
(engines) materials

Specialty Convenience Unsought Shopping

Installations (buildings, Service
Accessory Supplies (office
equipment, capital (repair,
equipment supplies)
rentals) maintenance)
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Packaging & Labeling

• Packaging - “…container that holds your
product.”
• Labeling – “…what you say about the
product on your packaging…”
Branding
• Brand: some word, letter, sound or symbol
that would differentiate their product from
similar products in the market
• Trademark: word, symbol, other mark to
identify a product and legally protect a
product from being copied

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Brand Categories Product Life Cycle

• Manufacturers’ brands – using manufacturers’

brand names
• Dealer (private-label) brands – using a distributor
or retailer’s name
• Generic goods – no brand name is used
• Knockoff brands – illegal copies of branded goods

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Pricing Strategies Distribution

• Cost-based pricing
• Demand-based pricing (target costing) • All activities involved in getting the right
• Competition-based pricing quantity of a product to the right customer at
• Skimming the right time and at a reasonable cost
• Penetration
• Distribution channels
• Everyday low pricing
• Physical distribution
• High-low pricing
• Prestige
• Odd-even
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Distribution Channels Promotion Mix

Promotional
Tools

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Customer Relationship Management

Selecting Promotional Strategy
• Nurture & maintain strong relationship with
• What’s the main purpose of promotion? customers
• What’s the target market? – Keep customers happy
• Which product features (quality, price, service, – Treat them well
availability, innovativeness) to emphasize? – Give what they want
• How much can the company afford the – Listen to them
promotion? – Reward them with discounts
• How do competitors promote their products? – Deal effectively with their complaints
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Marketing Environment