Transcript MARKETING WWW Advantages vs. Disadvantages

Chapter Ten
Marketing for Small Business
Chapter Focus
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Describe the evolution of business philosophies
Explain the need for market segmentation and its process
Describe the “Black Box model” of consumer behavior
Identify the five forms that a product can take
Explore how “efficiencies” affect channels of
distribution
• Outline how small businesses put together a promotion
mix
• Identify the possible objectives of advertising
• List the seven steps in personal selling
The Black Box Model of
Consumer Behavior
STIMULI
Marketing Mix
•Product
•Place
•Promotion
Other
•Demographic
•Economic
•Situational
•Social
•Lifestyle
Fig. 10-1
TRANSFORMER
Black Box
(Buyer’s Mind)
Internal Influences
•Beliefs/Attitudes
Values
•Learning
•Motives/Needs
•Perception
•Personality
•Lifestyle
RESPONSES
Purchase
•Product
Decision-Making
•Brand
Process
•Source
•Problem solving
•Amount
•Information search •Method of
•Alternate evaluation payment
•Purchase
No Purchase
•Postpurchase
evaluation
Spectrum of Goods and Services
TANGIBLE
GOODS
Clothing
INTANGIBLE
GOODS
Fast
Food
Furniture
Automobile
(assembled,
not delivered)
Fig. 10-2
Fine
Dining
Vacation
Package
Education
Advertising
Lawn
Mowing
Levels of Products
Potential
Augmented
Expected
Generic
Core
Fig. 10-3
The Channels of Distribution
Originators
(producers of raw materials, farmers,
miners, fisheries, foresters, etc.)
Wholesalers
Manufacturers
Agents
Direct Channel
Merchant wholesalers
Retailers
Fig. 10-4
Consumers
Indirect Channel
Ad Dollars Spent by Business Type (1 of 3)
INDUSTRY
Air cond, heating, refrig equip
Air transport, scheduled
Apparel and other finished products
Beverages
Bolt nut screw rivets washers
Bottled and canned soft drinks, water
Can/frozen preserved, fruit, veg
Carpets and rugs
Catalog, mail-order houses
Computer and office equipment
Cutlery hand tools, general hardware
Educational services
Electronic computers
Table 10-1a
AD DOLLARS AS
PERCENT OF SALES
1.5
1.8
2.9
9.5
0.9
2.9
6.9
0.7
5.7
1.2
10.9
5.0
5.1
Ad Dollars Spent by Business Type (2 of 3)
INDUSTRY
Games, toys, child vehicles except dolls
Groceries and related products - wholesale
Grocery stores
Guided missiles and space vehicles
Hospitals
Industrial inorganic chemicals
Investment advice
Iron and steel foundries
Lawn, garden tractors, equipment
Lumber and other building materials - retail
Membership sport and rec clubs
Motion picture, videotape distributors
Perfume, cosmetic
Table 10-1b
AD DOLLARS AS
PERCENT OF SALES
14.2
1.5
1.3
5.3
5.0
16.5
8.6
1.2
4.0
1.8
11.0
13.0
10.4
Ad Dollars Spent by Business Type (3 of 3)
INDUSTRY
Phono records, audio tape disc
Prepackaged software
Radio, TV consumer electronic stores
Retail stores, all
Security brokers and dealers
Sugar and confectionary products
Women’s clothing stores
Table 10-1c
AD DOLLARS AS
PERCENT OF SALES
8.3
4.8
5.3
5.8
3.1
10.6
2.7
The Relationship Between Marketing
and Public Relations
TARGET
PR ACTIVITIES
BENEFITS TO MARKETING
Customers
Press releases
Event sponsorship
Increase name awareness
Increase credibility
Employees
Newsletters
Social activities
Suppliers
Improve comm. to decrease
absenteeism and product defects
Increase morale
Articles in trade pubs. Improve image
Promo incentives
Improve delivery schedule
General Public News releases
Plant tours
Support for comm.
activities
Government
Lobbying
Direct mail
Personal calls
Table 10-2
Attract better employees
Improve image to customers
Improve local relations
Favorable legislation
Less regulation
Short-term Ratchet Effect on Sales
Promotion
Sales
Fig. 10-5
MARKETING MIX
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Product
Price
Place
Promotion
MARKETING
ADVERTISING MEDIA
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Newspaper
Television
Direct mail
Radio
Magazines
Outdoor
Yellow Pages
WWW
MARKETING
Newspaper Advantages vs. Disadvantages
• Advantages
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Covers trade area
Timely
Adaptable
Can save
Can use illustrations
• Disadvantages
– Short life
– Ad missed by
skimmers
– Expensive in big
papers
– Low pass-through
value
MARKETING
Television Advantages vs. Disadvantages
• Advantages
– Reaches large
audiences
– Combines, sight, sound
and motion
– Perceived to be
prestige medium
• Disadvantages
– Very expensive
– Ad clutter
– Short exposure time
MARKETING
Direct Mail Advantages vs. Disadvantages
• Advantages
– Can be precisely
targeted
– Message can be
personalized
– Less space limitations
than other media
• Disadvantages
– Perceived as “junk
mail”
– Postage can be high
– Mailing lists can be
expensive and
inaccurate
MARKETING
Radio Advantages vs. Disadvantages
• Advantages
– Can be targeted to
specific audiences
– Low relative costs
– Short lead time
• Disadvantages
– Message is fleeting
– Must be repeated to
gain benefits
– Hard to grasp complete
message
MARKETING
Magazine Advantages vs. Disadvantages
• Advantages
– Can target
geographically and
demographically
– Long life, high pass
through
– High quality photos
and graphics
• Disadvantages
– Long lead time
– No guarantee of ad
placement
– Higher relative cost
than other media
MARKETING
Outdoor Advantages vs. Disadvantages
• Advantages
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High repeat exposure
Low cost
Little competition
Can appeal to transient
traffic
• Disadvantages
– Limited message due
to long placement time
– Not timely
– Good sites hard to find
– Affected by adverse
weather
MARKETING
Yellow Pages Advantages vs. Disadvantages
• Advantages
– Wide distribution
– Viewers are likely to
be interested buyers
– Easy to measure ad
effectiveness
– Especially good for
services
• Disadvantages
– Competitors are listed
in same place
– Not timely
– May need big ad to be
noticed
– Fairly expensive
MARKETING
WWW Advantages vs. Disadvantages
• Advantages
– Can reach huge market
– Can display color,
sound and motion
– Can explain benefits
and features
– Can communicate
immediately to order or
get more information
• Disadvantages
– Hard to get noticed,
must come to front of
search engines
– Many people still not
on-line
– Must update frequently