Chapter 13 Dimensions of Marketing Strategy Asst. Prof. Dr. Serdar AYAN

1. Chapter 13 Dimensions of Marketing Strategy Asst. Prof. Dr. Serdar AYAN 1

3. The Marketing Mix Key to developing marketing strategy Maintain right mix satisfy target market Long-term customer relations Competitive Advantage Dimension of value surpassing all others: • Wal-Mart – price • Procter & Gamble – top consumer brands • Domino’s Pizza – distribution via home delivery

4. Developing New Products – Multi-step process Idea development Screening of new ideas Business analysis Product development Test marketing Commercialization Product Strategy

5. Test marketing – a trial mini-launch of a new product in limited areas that represent the potential market. Product Development Commercialization – The full introduction of a complete marketing strategy and the launch of the product for commercial success.

6. Classifying Products Consumer Products • Convenience products • Shopping products • Specialty products • Business Products • Raw materials • Major equipment • Accessory equipment • Component parts • Processed materials • Industrial services

7. 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 Marketing Mix

8. Product Life-Cycle The Life Cycle of a Product

9. Product Life Cycle 45 years of strong sales – Mattel’s Barbie doll’s life cycle is waning. Today, edgier dolls like Bratz dolls give Barbie a run for her money.

10. Branding The Most Valuable Brands in the World Identifying Products

11. Brands Manufacturer brands – initiated and owned by the manufacturer to identify products from production to point of purchase. Private distributor brands – cost less than manufacturer brands; owned and controlled by wholesaler or retailer Generic brands – no brand name often come in simple packages and carry their generic name.

12. Packaging External container holds & describes the product: Protection Economy Convenience Promotion

13. Product Quality Product quality -- Degree to which a good, service, or idea meets the demands and requirements of customers

14. Pricing Strategies New Product Pricing Price skimming Penetration pricing Psychological Pricing Odd/Even Prestige pricing Price Discounting Quantity discounts Seasonal discount Promotional discounts

15. Distribution Strategies Marketing Channels Retailers (Wal-Mart, Sears) Wholesalers (food brokers to restaurants) E-tailers (Amazon.com) Physical distribution -- includes all the activities necessary to move products from producers to customers. Inventory control Transportation Warehousing Materials handling

16. Retailers

17. Promotion Strategy • Promotion mix • Advertising • Personal selling • Publicity • Sales promotion • Integrated marketing communications • The process of coordinating the promotion mix elements and synchronizing promotion as a unified effort

18. Personal Selling • Direct, two-way communication with sellers & potential buyers • Prospecting • Approaching • Presenting • Handling objections • Closing – asking for the order • Following up

19. Promotion Strategies: To Push or Pull