BUSN 70 Chapter Notes - Chapter 12: Business Analysis, Market Segmentation, Integrated Marketing Communications
The Marketing Mix
Part of the marketing strategy involving decisions regarding
controllable variables
i.
I)
Product Strategy
Developing New Products
Multi-step process before introducing a product
1)
Idea Development
Come from marketing research, engineers, and outside
sources such as advertising agencies and management
consultants
1)
i.
New Idea Screening
Marketing managers look at the organization's resources and
objectives and assess the firm's ability to produce and market
the product
1)
Products succeed because they solve a problem better than
an existing product or they add variety to the product
selection
2)
ii.
Business Analysis
Basic assessment of a product's compatibility in the
marketplace and its potential profitability
1)
iii.
Product Development
iv.
Test Marketing
A trial mini-launch of a product in limited areas that represent
the potential market
1)
v.
Commercialization
The full introduction of a complete marketing strategy and
the launch of the product for commercial success
1)
Firm gears up for full-scale production, distribution, and
promotion
2)
vi.
a.
Classifying Products
Consumer Products - Household or family use; they are not
intended for any purpose other than daily living
Convenience Products - bought frequently, without a
lengthy search, and often for immediate consumption
a)
Shopping Products - Purchased after the consumer has
compared competitive products
b)
Specialty Products - consumers know what they want
and go out of their way to find it
c)
1)
Business Products - Used directly or indirectly in the operation
or manufacturing process of businesses
Raw materialsa)
Major equipmentb)
Accessory equipmentc)
Component partsd)
Processed materialse)
Suppliesf)
Industrial serviceg)
2)
b.
Product Line and Product Mix
Product Line - is a group of closely related products that are
treated as a unit because of a similar marketing strategy
1)
Product Mix - all the products offered by an organization2)
c.
Product Life Cycle
Introductory Stage
Consumer awareness and acceptance of the product
are limited, sales are zero, and profits are negative
a)
Profits still negative because the firm has spent money
on research, development, and marketing to launch the
product
b)
1)
Growth Stage
Sales increase rapidly and profits peak, then start to
decline
a)
New companies enter market, drive prices down and
increasing marketing expenses
b)
2)
Maturity Stage
Sales curve peaks and starts to decline while profits
continue to decline
a)
Severe competition and heavy expendituresb)
3)
Decline Stage
Sales continue to fall rapidlya)
Profits also decline and may even become losses as
prices are cut and necessary marketing expenditures
are made
b)
4)
d.
Identifying Products
Branding
The process of naming and identifying products1)
Brand - a name, term, symbol, or design or combination that
identifies a product and distinguishes it from other products
2)
Trademark - a brand that is registered with the US Patent and
Trademark Office and is thus legally protected from use by
any other firm
3)
Manufacturer Brands - brands initiated and owned by the
manufacturer to identify products from the point of
production to the point of purchase
4)
Private Distributor Brands - may be less expensive than
manufacturer brands, they are owned and controlled by a
wholesaler or retailer
5)
Generic Products - no brand name at all6)
i.
Packaging
External container that holds and describes the product,
influences consumers' attitudes and their buying decisions
1)
Can provide protection, convenience, promotion etc.2)
ii.
Labeling
Presentation of important information on the package, and is
closely associated with packaging
1)
Often required by law, includes ingredients or content,
nutritional facts, care instructions, suggestions for use,
manufacturers address etc.
2)
iii.
Product Quality
Reflects the degree to which a good, service, or idea meets
the demands and requirements of the customer
1)
Difficult to gauge because it depends on the customers'
perception of how well the service meets or exceeds their
expectations
2)
iv.
e.
II)
Pricing Strategy
Price is a key element in the marketing mix because it relates
directly to generation of revenue and profits
i.
Pricing Objectives
Specify the role of price in an organization's marketing mix
and strategy
1)
a.
Specific Pricing Strategies
Pricing New Products
Price Skimming - charging the highest possible price that
buyers who want the product will pay
1)
Penetration Price - low price designed to help a product enter
the market and gain market share rapidly
2)
i.
Psychological Pricing
Encourages purchases based on emotional rather than
rational responses to price
1)
Even/Odd Pricing - people will buy more of a $9.99 product
than a $10.00 product
2)
Symbolic/Prestige Pricing - High prices connote quality3)
ii.
Reference Pricing
Lower priced item is compared to a more expensive brand in
hopes that the consumer will use the highest price as a
comparison price
1)
iii.
Price Discounting
Discounts - temporary price reductions employed to boost
sales
Quantity - reflect the economies of purchasing in large
volumes
a)
Seasonal - to buyers who purchase goods or services
our of season to help even out production capacity
b)
Promotional - attempt to improve sales by advertising
price reductions on selected products to increase
customer interest
c)
1)
iv.
b.
III)
Distribution Strategy
Marketing Channels
Channel of distribution, a group of organizations that moves
products from their producers to customers
1)
Make products available to consumers when and where they
desire to purchase them
2)
Middlemen - organizations that bridge the gap between a
product's manufacturer and the ultimate consumer
3)
Retailers - buy products from manufacturers and sell them to
consumers for home and household use rather than for resale
or for use in producing other products
4)
Wholesalers - intermediaries who buy products from
producers or from other wholesalers and sell to retailers
5)
Supply Chain Management
Creates alliances between channel members in an effort to
improve distribution channel relationships among
manufacturers and other channel intermediaries
1)
Selling through the channel to the customer instead of to the
next person in the channel
2)
i.
Channels for Consumer Products
See Figure 12.6 on page 4001)
Producer---Consumer2)
Producer---Agents---Wholesalers---Retailers---Consumers3)
ii.
Channels for Business Products
More than half of all business products, especially expensive
equipment or technically complex products, are sold through
direct marketing channels
1)
iii.
a.
Intensity of Market Coverage
Intensive Distribution - makes a product available in as many
outlets as possible
1)
Saturate markets by making the product available at every
location a consumer may want to buy it
2)
Selective Distribution - Uses only a small number of all
available outlets to expose products
Used for products that consumers buy only after
shopping and comparing price, quality and style
a)
3)
Exclusive Distribution - exists when a manufacturer gives an
intermediary the sole right to sell a product in a defined
geographic territory
Exclusivity provides an incentive for a dealer to handle a
product that has a limited market
a)
4)
b.
Physical Distribution
Includes all the activities necessary to move products from
producers to consumers-inventory control, transportation,
warehousing, and materials handling
1)
Transportation
The shipment of products to buyers, creates time and pace
utility for products and thus is a key element in the flow of
good and services from producer to consumer
1)
i.
Warehousing
The design and operation of facilities to receive, store, and
ship products
1)
Companies often own and operate their own private
warehouses that store, handle, and move their own products
Provide customers with more control over goodsa)
2)
ii.
Materials Handling
The physical handling and movement of products in
warehousing and transportation
1)
iii.
c.
Importance of Distribution in a Marketing Strategy
Least flexible types of decisions that are hard if not impossible
to change
1)
d.
IV)
Promotion Strategy
Role of promotion is to communicate with individuals, groups and
organizations to facilitate an exchange directly or indirectly
i.
Not only sell products, but also to influence opinions and attitudes
toward an organization, person or cause
ii.
The Promotion Mix
Advertising, Personal Selling, Publicity and Sales promotion
are collectively known ad the promotion mix because a strong
promotion program results from the careful selection and
blending of these elements
1)
Integrated Marketing Communications - the process of
coordinating the promotion mix elements and synchronizing
promotion as a unified effort
2)
Advertising
Paid form of non-personal communication transmitted
through a mass medium, such as commercials, magazine ads,
or online ads
1)
Advertising Campaign - involves designing a series of
advertisements and placing them in various media to reach a
particular target audience
Basic content and form of an ad campaign are a
function of several factors
Product's features uses and benefitsi)
Characteristics of target audienceii)
a)
2)
i.
Personal Selling
Direct, two-way communication with buyers and potential
buyers
1)
For certain products, this interaction is the most important
tool as it can zero in on a prospect and attempt to persuade
that person to make a purchase
2)
Six Step Process:
Prospectinga)
Approachingb)
Presentingc)
Handling Objectionsd)
Closinge)
Following Upf)
3)
ii.
Publicity
Non-personal communication transmitted through the mass
media but not paid for directly by the firm
1)
Companies can benefit greatly from it, and have public
relations departments precisely for this
2)
iii.
Sales Promotion
Involves direct inducements offering added value or some
other incentive for buyers to enter into an exchange
1)
iv.
a.
Promotion Strategies: To Push or to Pull
Push Strategy - attempt to motivate intermediaries to push
the product down to their customers
Attempts to motivate wholesalers and retailers to make
the product more available to customers
a)
1)
Pull Strategy - uses promotion to create consumer demand
for a product so that consumers exert pressure on marketing
channel member to make it available
2)
b.
Objectives of Promotion
Typically to stimulate demand, stabilize sales, and to inform,
remind and reinforce customers
1)
c.
Promotional Positioning
Uses promotion to create and maintain an image of a product
in buyers' minds
1)
Natural result of market segmentation, a company will target
a given product or brand at a portion of the total market
2)
d.
V)
Saturday, May 5, 2018
4:02 PM
The Marketing Mix
Part of the marketing strategy involving decisions regarding
controllable variables
i.
I)
Product Strategy
Developing New Products
Multi-step process before introducing a product1)
Idea Development
Come from marketing research, engineers, and outside
sources such as advertising agencies and management
consultants
1)
i.
New Idea Screening
Marketing managers look at the organization's resources and
objectives and assess the firm's ability to produce and market
the product
1)
Products succeed because they solve a problem better than
an existing product or they add variety to the product
selection
2)
ii.
Business Analysis
Basic assessment of a product's compatibility in the
marketplace and its potential profitability
1)
iii.
Product Developmentiv.
Test Marketing
A trial mini-launch of a product in limited areas that represent
the potential market
1)
v.
Commercialization
The full introduction of a complete marketing strategy and
the launch of the product for commercial success
1)
Firm gears up for full-scale production, distribution, and
promotion
2)
vi.
a.
Classifying Products
Consumer Products - Household or family use; they are not
intended for any purpose other than daily living
Convenience Products - bought frequently, without a
lengthy search, and often for immediate consumption
a)
Shopping Products - Purchased after the consumer has
compared competitive products
b)
Specialty Products - consumers know what they want
and go out of their way to find it
c)
1)
Business Products - Used directly or indirectly in the operation
or manufacturing process of businesses
Raw materials
a)
Major equipment
b)
Accessory equipment
c)
Component parts
d)
Processed materials
e)
Supplies
f)
Industrial service
g)
2)
b.
Product Line and Product Mix
Product Line - is a group of closely related products that are
treated as a unit because of a similar marketing strategy
1)
Product Mix - all the products offered by an organization
2)
c.
Product Life Cycle
Introductory Stage
Consumer awareness and acceptance of the product
are limited, sales are zero, and profits are negative
a)
Profits still negative because the firm has spent money
on research, development, and marketing to launch the
product
b)
1)
Growth Stage
Sales increase rapidly and profits peak, then start to
decline
a)
New companies enter market, drive prices down and
increasing marketing expenses
b)
2)
Maturity Stage
Sales curve peaks and starts to decline while profits
continue to decline
a)
Severe competition and heavy expenditures
b)
3)
Decline Stage
Sales continue to fall rapidly
a)
Profits also decline and may even become losses as
prices are cut and necessary marketing expenditures
are made
b)
4)
d.
Identifying Products
Branding
The process of naming and identifying products1)
Brand - a name, term, symbol, or design or combination that
identifies a product and distinguishes it from other products
2)
Trademark - a brand that is registered with the US Patent and
Trademark Office and is thus legally protected from use by
any other firm
3)
Manufacturer Brands - brands initiated and owned by the
manufacturer to identify products from the point of
production to the point of purchase
4)
Private Distributor Brands - may be less expensive than
manufacturer brands, they are owned and controlled by a
wholesaler or retailer
5)
Generic Products - no brand name at all6)
i.
Packaging
External container that holds and describes the product,
influences consumers' attitudes and their buying decisions
1)
Can provide protection, convenience, promotion etc.2)
ii.
Labeling
Presentation of important information on the package, and is
closely associated with packaging
1)
Often required by law, includes ingredients or content,
nutritional facts, care instructions, suggestions for use,
manufacturers address etc.
2)
iii.
Product Quality
Reflects the degree to which a good, service, or idea meets
the demands and requirements of the customer
1)
Difficult to gauge because it depends on the customers'
perception of how well the service meets or exceeds their
expectations
2)
iv.
e.
II)
Pricing Strategy
Price is a key element in the marketing mix because it relates
directly to generation of revenue and profits
i.
Pricing Objectives
Specify the role of price in an organization's marketing mix
and strategy
1)
a.
Specific Pricing Strategies
Pricing New Products
Price Skimming - charging the highest possible price that
buyers who want the product will pay
1)
Penetration Price - low price designed to help a product enter
the market and gain market share rapidly
2)
i.
Psychological Pricing
Encourages purchases based on emotional rather than
rational responses to price
1)
Even/Odd Pricing - people will buy more of a $9.99 product
than a $10.00 product
2)
Symbolic/Prestige Pricing - High prices connote quality3)
ii.
Reference Pricing
Lower priced item is compared to a more expensive brand in
hopes that the consumer will use the highest price as a
comparison price
1)
iii.
Price Discounting
Discounts - temporary price reductions employed to boost
sales
Quantity - reflect the economies of purchasing in large
volumes
a)
Seasonal - to buyers who purchase goods or services
our of season to help even out production capacity
b)
Promotional - attempt to improve sales by advertising
price reductions on selected products to increase
customer interest
c)
1)
iv.
b.
III)
Distribution Strategy
Marketing Channels
Channel of distribution, a group of organizations that moves
products from their producers to customers
1)
Make products available to consumers when and where they
desire to purchase them
2)
Middlemen - organizations that bridge the gap between a
product's manufacturer and the ultimate consumer
3)
Retailers - buy products from manufacturers and sell them to
consumers for home and household use rather than for resale
or for use in producing other products
4)
Wholesalers - intermediaries who buy products from
producers or from other wholesalers and sell to retailers
5)
Supply Chain Management
Creates alliances between channel members in an effort to
improve distribution channel relationships among
manufacturers and other channel intermediaries
1)
Selling through the channel to the customer instead of to the
next person in the channel
2)
i.
Channels for Consumer Products
See Figure 12.6 on page 4001)
Producer---Consumer2)
Producer---Agents---Wholesalers---Retailers---Consumers3)
ii.
Channels for Business Products
More than half of all business products, especially expensive
equipment or technically complex products, are sold through
direct marketing channels
1)
iii.
a.
Intensity of Market Coverage
Intensive Distribution - makes a product available in as many
outlets as possible
1)
Saturate markets by making the product available at every
location a consumer may want to buy it
2)
Selective Distribution - Uses only a small number of all
available outlets to expose products
Used for products that consumers buy only after
shopping and comparing price, quality and style
a)
3)
Exclusive Distribution - exists when a manufacturer gives an
intermediary the sole right to sell a product in a defined
geographic territory
Exclusivity provides an incentive for a dealer to handle a
product that has a limited market
a)
4)
b.
Physical Distribution
Includes all the activities necessary to move products from
producers to consumers-inventory control, transportation,
warehousing, and materials handling
1)
Transportation
The shipment of products to buyers, creates time and pace
utility for products and thus is a key element in the flow of
good and services from producer to consumer
1)
i.
Warehousing
The design and operation of facilities to receive, store, and
ship products
1)
Companies often own and operate their own private
warehouses that store, handle, and move their own products
Provide customers with more control over goodsa)
2)
ii.
Materials Handling
The physical handling and movement of products in
warehousing and transportation
1)
iii.
c.
Importance of Distribution in a Marketing Strategy
Least flexible types of decisions that are hard if not impossible
to change
1)
d.
IV)
Promotion Strategy
Role of promotion is to communicate with individuals, groups and
organizations to facilitate an exchange directly or indirectly
i.
Not only sell products, but also to influence opinions and attitudes
toward an organization, person or cause
ii.
The Promotion Mix
Advertising, Personal Selling, Publicity and Sales promotion
are collectively known ad the promotion mix because a strong
promotion program results from the careful selection and
blending of these elements
1)
Integrated Marketing Communications - the process of
coordinating the promotion mix elements and synchronizing
promotion as a unified effort
2)
Advertising
Paid form of non-personal communication transmitted
through a mass medium, such as commercials, magazine ads,
or online ads
1)
Advertising Campaign - involves designing a series of
advertisements and placing them in various media to reach a
particular target audience
Basic content and form of an ad campaign are a
function of several factors
Product's features uses and benefitsi)
Characteristics of target audienceii)
a)
2)
i.
Personal Selling
Direct, two-way communication with buyers and potential
buyers
1)
For certain products, this interaction is the most important
tool as it can zero in on a prospect and attempt to persuade
that person to make a purchase
2)
Six Step Process:
Prospectinga)
Approachingb)
Presentingc)
Handling Objectionsd)
Closinge)
Following Upf)
3)
ii.
Publicity
Non-personal communication transmitted through the mass
media but not paid for directly by the firm
1)
Companies can benefit greatly from it, and have public
relations departments precisely for this
2)
iii.
Sales Promotion
Involves direct inducements offering added value or some
other incentive for buyers to enter into an exchange
1)
iv.
a.
Promotion Strategies: To Push or to Pull
Push Strategy - attempt to motivate intermediaries to push
the product down to their customers
Attempts to motivate wholesalers and retailers to make
the product more available to customers
a)
1)
Pull Strategy - uses promotion to create consumer demand
for a product so that consumers exert pressure on marketing
channel member to make it available
2)
b.
Objectives of Promotion
Typically to stimulate demand, stabilize sales, and to inform,
remind and reinforce customers
1)
c.
Promotional Positioning
Uses promotion to create and maintain an image of a product
in buyers' minds
1)
Natural result of market segmentation, a company will target
a given product or brand at a portion of the total market
2)
d.
V)
Saturday, May 5, 2018 4:02 PM
The Marketing Mix
Part of the marketing strategy involving decisions regarding
controllable variables
i.
I)
Product Strategy
Developing New Products
Multi-step process before introducing a product1)
Idea Development
Come from marketing research, engineers, and outside
sources such as advertising agencies and management
consultants
1)
i.
New Idea Screening
Marketing managers look at the organization's resources and
objectives and assess the firm's ability to produce and market
the product
1)
Products succeed because they solve a problem better than
an existing product or they add variety to the product
selection
2)
ii.
Business Analysis
Basic assessment of a product's compatibility in the
marketplace and its potential profitability
1)
iii.
Product Developmentiv.
Test Marketing
A trial mini-launch of a product in limited areas that represent
the potential market
1)
v.
Commercialization
The full introduction of a complete marketing strategy and
the launch of the product for commercial success
1)
Firm gears up for full-scale production, distribution, and
promotion
2)
vi.
a.
Classifying Products
Consumer Products - Household or family use; they are not
intended for any purpose other than daily living
Convenience Products - bought frequently, without a
lengthy search, and often for immediate consumption
a)
Shopping Products - Purchased after the consumer has
compared competitive products
b)
Specialty Products - consumers know what they want
and go out of their way to find it
c)
1)
Business Products - Used directly or indirectly in the operation
or manufacturing process of businesses
Raw materialsa)
Major equipmentb)
Accessory equipmentc)
Component partsd)
Processed materialse)
Suppliesf)
Industrial serviceg)
2)
b.
Product Line and Product Mix
Product Line - is a group of closely related products that are
treated as a unit because of a similar marketing strategy
1)
Product Mix - all the products offered by an organization2)
c.
Product Life Cycle
Introductory Stage
Consumer awareness and acceptance of the product
are limited, sales are zero, and profits are negative
a)
Profits still negative because the firm has spent money
on research, development, and marketing to launch the
product
b)
1)
Growth Stage
Sales increase rapidly and profits peak, then start to
decline
a)
New companies enter market, drive prices down and
increasing marketing expenses
b)
2)
Maturity Stage
Sales curve peaks and starts to decline while profits
continue to decline
a)
Severe competition and heavy expendituresb)
3)
Decline Stage
Sales continue to fall rapidlya)
Profits also decline and may even become losses as
prices are cut and necessary marketing expenditures
are made
b)
4)
d.
Identifying Products
Branding
The process of naming and identifying products
1)
Brand - a name, term, symbol, or design or combination that
identifies a product and distinguishes it from other products
2)
Trademark - a brand that is registered with the US Patent and
Trademark Office and is thus legally protected from use by
any other firm
3)
Manufacturer Brands - brands initiated and owned by the
manufacturer to identify products from the point of
production to the point of purchase
4)
Private Distributor Brands - may be less expensive than
manufacturer brands, they are owned and controlled by a
wholesaler or retailer
5)
Generic Products - no brand name at all
6)
i.
Packaging
External container that holds and describes the product,
influences consumers' attitudes and their buying decisions
1)
Can provide protection, convenience, promotion etc.
2)
ii.
Labeling
Presentation of important information on the package, and is
closely associated with packaging
1)
Often required by law, includes ingredients or content,
nutritional facts, care instructions, suggestions for use,
manufacturers address etc.
2)
iii.
Product Quality
Reflects the degree to which a good, service, or idea meets
the demands and requirements of the customer
1)
Difficult to gauge because it depends on the customers'
perception of how well the service meets or exceeds their
expectations
2)
iv.
e.
II)
Pricing Strategy
Price is a key element in the marketing mix because it relates
directly to generation of revenue and profits
i.
Pricing Objectives
Specify the role of price in an organization's marketing mix
and strategy
1)
a.
Specific Pricing Strategies
Pricing New Products
Price Skimming - charging the highest possible price that
buyers who want the product will pay
1)
Penetration Price - low price designed to help a product enter
the market and gain market share rapidly
2)
i.
Psychological Pricing
Encourages purchases based on emotional rather than
rational responses to price
1)
Even/Odd Pricing - people will buy more of a $9.99 product
than a $10.00 product
2)
Symbolic/Prestige Pricing - High prices connote quality3)
ii.
Reference Pricing
Lower priced item is compared to a more expensive brand in
hopes that the consumer will use the highest price as a
comparison price
1)
iii.
Price Discounting
Discounts - temporary price reductions employed to boost
sales
Quantity - reflect the economies of purchasing in large
volumes
a)
Seasonal - to buyers who purchase goods or services
our of season to help even out production capacity
b)
Promotional - attempt to improve sales by advertising
price reductions on selected products to increase
customer interest
c)
1)
iv.
b.
III)
Distribution Strategy
Marketing Channels
Channel of distribution, a group of organizations that moves
products from their producers to customers
1)
Make products available to consumers when and where they
desire to purchase them
2)
Middlemen - organizations that bridge the gap between a
product's manufacturer and the ultimate consumer
3)
Retailers - buy products from manufacturers and sell them to
consumers for home and household use rather than for resale
or for use in producing other products
4)
Wholesalers - intermediaries who buy products from
producers or from other wholesalers and sell to retailers
5)
Supply Chain Management
Creates alliances between channel members in an effort to
improve distribution channel relationships among
manufacturers and other channel intermediaries
1)
Selling through the channel to the customer instead of to the
next person in the channel
2)
i.
Channels for Consumer Products
See Figure 12.6 on page 4001)
Producer---Consumer2)
Producer---Agents---Wholesalers---Retailers---Consumers3)
ii.
Channels for Business Products
More than half of all business products, especially expensive
equipment or technically complex products, are sold through
direct marketing channels
1)
iii.
a.
Intensity of Market Coverage
Intensive Distribution - makes a product available in as many
outlets as possible
1)
Saturate markets by making the product available at every
location a consumer may want to buy it
2)
Selective Distribution - Uses only a small number of all
available outlets to expose products
Used for products that consumers buy only after
shopping and comparing price, quality and style
a)
3)
Exclusive Distribution - exists when a manufacturer gives an
intermediary the sole right to sell a product in a defined
geographic territory
Exclusivity provides an incentive for a dealer to handle a
product that has a limited market
a)
4)
b.
Physical Distribution
Includes all the activities necessary to move products from
producers to consumers-inventory control, transportation,
warehousing, and materials handling
1)
Transportation
The shipment of products to buyers, creates time and pace
utility for products and thus is a key element in the flow of
good and services from producer to consumer
1)
i.
Warehousing
The design and operation of facilities to receive, store, and
ship products
1)
Companies often own and operate their own private
warehouses that store, handle, and move their own products
Provide customers with more control over goodsa)
2)
ii.
Materials Handling
The physical handling and movement of products in
warehousing and transportation
1)
iii.
c.
Importance of Distribution in a Marketing Strategy
Least flexible types of decisions that are hard if not impossible
to change
1)
d.
IV)
Promotion Strategy
Role of promotion is to communicate with individuals, groups and
organizations to facilitate an exchange directly or indirectly
i.
Not only sell products, but also to influence opinions and attitudes
toward an organization, person or cause
ii.
The Promotion Mix
Advertising, Personal Selling, Publicity and Sales promotion
are collectively known ad the promotion mix because a strong
promotion program results from the careful selection and
blending of these elements
1)
Integrated Marketing Communications - the process of
coordinating the promotion mix elements and synchronizing
promotion as a unified effort
2)
Advertising
Paid form of non-personal communication transmitted
through a mass medium, such as commercials, magazine ads,
or online ads
1)
Advertising Campaign - involves designing a series of
advertisements and placing them in various media to reach a
particular target audience
Basic content and form of an ad campaign are a
function of several factors
Product's features uses and benefitsi)
Characteristics of target audienceii)
a)
2)
i.
Personal Selling
Direct, two-way communication with buyers and potential
buyers
1)
For certain products, this interaction is the most important
tool as it can zero in on a prospect and attempt to persuade
that person to make a purchase
2)
Six Step Process:
Prospectinga)
Approachingb)
Presentingc)
Handling Objectionsd)
Closinge)
Following Upf)
3)
ii.
Publicity
Non-personal communication transmitted through the mass
media but not paid for directly by the firm
1)
Companies can benefit greatly from it, and have public
relations departments precisely for this
2)
iii.
Sales Promotion
Involves direct inducements offering added value or some
other incentive for buyers to enter into an exchange
1)
iv.
a.
Promotion Strategies: To Push or to Pull
Push Strategy - attempt to motivate intermediaries to push
the product down to their customers
Attempts to motivate wholesalers and retailers to make
the product more available to customers
a)
1)
Pull Strategy - uses promotion to create consumer demand
for a product so that consumers exert pressure on marketing
channel member to make it available
2)
b.
Objectives of Promotion
Typically to stimulate demand, stabilize sales, and to inform,
remind and reinforce customers
1)
c.
Promotional Positioning
Uses promotion to create and maintain an image of a product
in buyers' minds
1)
Natural result of market segmentation, a company will target
a given product or brand at a portion of the total market
2)
d.
V)
Saturday, May 5, 2018 4:02 PM
Document Summary
Part of the marketing strategy involving decisions regarding controllable variables. Come from marketing research, engineers, and outside sources such as advertising agencies and management consultants ii. Marketing managers look at the organization"s resources and objectives and assess the firm"s ability to produce and market the product. Products succeed because they solve a problem better than an existing product or they add variety to the product selection iii. Basic assessment of a product"s compatibility in the marketplace and its potential profitability iv. v. A trial mini-launch of a product in limited areas that represent the potential market vi. The full introduction of a complete marketing strategy and the launch of the product for commercial success. Firm gears up for full-scale production, distribution, and promotion b. Consumer products - household or family use; they are not intended for any purpose other than daily living intended for any purpose other than daily living a) b) c)