Transcript Market share

The Marketing Mix
Marketing Mix
Product
Price
Marketing
Communications
Distribution
Consumer
Public Image
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-1
Product Strategy
A product may have tangible and intangible
characteristics. Product decisions are numerous
and embrace:

Quality

Size and Format

Features

Service

Brand Name

Guarantees
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-2
Product Differentiation
“A strategy that focuses marketing activity on
the unique features or differential advantages of
a brand in order to distinguish it from other
brands.”
Visa…All You Need
Sunlight…Go Ahead. Get Dirty.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-3
Pricing Strategy
Establishing a fair and equitable pricing
structure for consumers while being
profitable for the organization.
Wal-Mart…Low prices everyday. Always.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-4
Marketing Communications
Strategy
The goal of communications is to create
awareness, interest, desire and action among
potential customers. Communications tools
include:

Advertising

Sales Promotion

Direct Response/Online

Personal Selling

Public Relations

Event Marketing
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-5
Distribution Strategy
The selection and management of
marketing channels and the physical
distribution of products.
 Mode of transportation
 Degree of Coverage in a market
 Inclusion of direct channels (Internet)
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-6
Public Image and Its Influence
A good reputation is an important asset.
Reputation is earned through good marketing.

Customer Sensitivity
 Community Support
 Social Responsibility Marketing
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-7
External Influences on Marketing
Competition
Social and
Demographic
Economy
Marketing
Strategy
Technology
Laws and
Regulations
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-8
Economic Influences
A variety of factors contribute to the state of
the economy:
Disposable Income
Employment
Canadian $
Interest Rates
Inflation
 Recession
 Depression
 Recovery
 Prosperity
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-9
Canada’s Market Structures
Monopoly
One firm serves market
Oligopoly
A few firms serve market
Monopolistic
Competition
Many firms; unique marketing
mixes to differentiate offerings
Pure Competition
Many firms; similar products
with no differential advantage
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-10
Competitor Classifications
Direct
Competition
Competition from alternate
or substitute products:
Coke, Pepsi, 7Up, Hires.
Indirect
Competition
Competition from
products offering similar
benefits: Coke, Clearly
Canadian, Gatorade.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-11
Market Share
The strength of a brand (company) relative to its
competition is determined by market share.
Market share is:
“the sales volume of a company or brand
expressed as a percentage of total market sales
volume.”
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-12
Competitive Position
Competitive position often determines nature
of strategy:

Market Leader
 Market Challenger
 Market Follower
 Market Nicher
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-13
Social and Demographic Trends
Demographics is the study of the characteristics
of a population.
Staying in touch with demographic trends and
adapting marketing strategies to the trends
presents challenges to an organization.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-14
Social and Demographic Trends
 Size and Age
 Location
 Family Formation
 Spending Power and Wealth
 Education
 Multiculturalism
 Lifestyle and Environmental Concerns
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-15
Technological Influence
Perhaps the greatest single force to shape and
reshape the marketplace:
 Internet communications and transactions
 ATMs, debit cards and P2P payment systems (by e-mail)
 Direct distribution channels
 New economy versus old economy companies
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-16
Laws and Regulations
Industry Canada and the Competition Act
govern business practices in Canada. The objectives
of the Competition Act are:

To maintain and encourage competition

To ensure participation by small business

To provide consumers with choice and fair prices.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
2-17
Inputs for Satisfying Customers
Uncontrollable
Environment
• Competition
• Economy
• Legal
• Technology
• Social
Company
Resources
Marketing Plan
Consumer
Controllable
Environment
• Marketing Mix
• Corporate
Culture
• Nature of
Business
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
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