Transcript Product Mix - FBE Moodle

Ferrell Hirt Ferrell
A CHANGING WORLD
EIGHTH EDITION
FHF
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
part
Marketing: Developing
Relationships
5
Chapter 11 Customer-Driven Marketing
Chapter 12 Dimensions of Marketing Strategy
Chapter 13 Digital Marketing and Social Networking
FHF
12-2
The Marketing Mix
Keys to developing effective marketing strategy
 Maintain right marketing mix
 Satisfy target market
 Long-term customer relationships
 Successful companies have at least one dimension of value that
surpasses all others
FHF
12-3
Product
[
A good, service, or idea that has tangible
and intangible attributes that provide
satisfaction and benefit to consumers
]
The most visible variable of the marketing mix
FHF
12-4
Developing New Products
 Idea development





New idea screening
Business analysis
Product development
Test marketing
Commercialization
FHF
12-5
Classifying Products:
Consumer Products
Convenience Products
 Purchased without doing research into price
 Widely available
 Often for immediate consumption
 Example: A gallon of milk
…continued on next page
FHF
12-6
Classifying Products:
Consumer Products
Shopping Products
 Consumer has compared competitors’ prices and has
shopped around done
 Price, features, quality, style, service and image all influence
the decision to buy
 Example: clothing, furniture
…continued on next page
FHF
12-7
Classifying Products:
Consumer Products
Specialty Products
 Require the greatest level of research and
shopping effort
 Not willing to accept substitutes
 Consumers know exactly what they want and go out of their
way to find it
 Price not the strongest consideration
 Example: designer clothing, art, antiques
FHF
12-8
Classifying Products:
Business Products
 Used directly or indirectly in the operation or
manufacturing processes of a business
 e.g., raw materials, mmajor equipment, ccomponent parts
FHF
12-9
Product Line and Product Mix
Product Line
 Group of closely related products that are treated as a unit because of a
similar marketing strategy, production, or end-use
Product Mix
 All the products offered by the company
FHF
12-10
The Product Life Cycle
FHF
12-11
Identifying Products
Branding
 The process of identifying products
 Name
 Term
 Symbol
 Design
Trademark
• A brand registered with U.S. patent and trademark office
• Protected from use by any other firm
FHF
12-12
Pricing Strategy
Four Common Pricing Objectives
1. Maximize profits and sales
2. Boost market share
3. Maintain the status quo
4. Survival
FHF
12-17
Specific Pricing Strategies
New Product Pricing
 Price skimming
 Penetration pricing
Psychological Pricing
 Even/odd
 Symbolic/prestige pricing
Price Discounting
 Quantity discounts
 Seasonal discount
 Promotional discounts
FHF
12-18
Distribution Strategies
Marketing Channel
 A group of organizations that moves products from
their producer to consumers
Retailers
 Buy products from manufacturers and sell them to customers for uses other
than resale
 Many now compete online
Wholesalers
 Intermediaries that buy from producers or other wholesalers and sell to
retailers
 Also called middlemen
FHF
12-19
Distribution Strategy
 The least flexible element of marketing mix
 Commits resources and establishes contractual relationships
 Difficult to change
 Expansion into new markets may require new distribution
strategy
FHF
12-25
Promotion Strategy
 Goal is to communicate with individuals, groups and
organizations
 Encourages marketing exchanges
 Used to influence opinions and attitudes toward organizations,
people, or causes
FHF
12-26
The Promotion Mix




Advertising
Personal Selling
Publicity
Sales Promotion
FHF
12-27
Integrated Marketing Communication
[
The process of coordinating the promotion
mix elements and synchronizing promotion
as a unified effort
]
FHF
12-28
Advertising
 A paid non-personal communication communicated
through mass media
 Advertising campaign involves designing a series of
advertisements and positioning them to reach a target audience
 Online advertising is increasing
FHF
12-29
Personal Selling
 Direct two-way communication with
buyers/potential buyers
Avon uses personal selling
 Targets women as customers and salespeople
 Personal interaction with customers
 Salespeople earn commissions
 Flexible hours
 The internet is an increasingly important component
FHF
12-31
Publicity
A non-paid, non-personal communication
through mass media channels
 Mainly informative or descriptive
 News story forms
 Can be extremely important for a company
FHF
12-33
Sales Promotion
Direct inducements such items as coupons, contests
and free samples to persuade buyers to purchase products
 Stimulates customer purchasing
 Enhances other promotional efforts
 Generally less expensive than advertising
FHF
12-34
Promotion Strategies
FHF
12-35