Review MKT 102

1. Review MKT 102 HHU Spring 2013

3. What Is a Product? Levels of Product and Services

4. Branding Strategy: Building Strong Brands Brand Development Strategies

5. Factors to Consider When Setting Prices Good-value pricing offers the right combination of quality and good service to fair price Existing brands are being redesigned to offer more quality for a given price or the same quality for less price Customer Perceptions of Value

6. Retailing Amount of service Self-service Limited service Full service Types of Retailers

7. Online Marketing Online Marketing Domains

8. Product Life-Cycle Strategies Product Life Cycle

9. Product Life-Cycle Strategies • Product development • Sales are zero and investment costs mount • Introduction • Slow sales growth and profits are nonexistent • Growth • Rapid market acceptance and increasing profits. • Maturity • Slowdown in sales growth and profits level off or decline • Decline • Sales fall off and profits drop

10. Product Life-Cycle Strategies Market modifying Product modifying Marketing mix modifying Maturity Stage Modifying Strategies

11. New-Product Pricing Strategies Market-skimming pricing Market- penetration pricing Pricing Strategies

12. New-Product Pricing Strategies Market-skimming pricing is a strategy with high initial prices to “skim” revenue layers from the market Product quality and image must support the price Buyers must want the product at the price Costs of producing the product in small volume should not cancel the advantage of higher prices Competitors should not be able to enter the market easily

13. New-Product Pricing Strategies Market-penetration pricing sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share Price sensitive market Inverse relationship of production and distribution cost to sales growth Low prices must keep competition out of the market Pricing Strategies

14. Channel Behavior and Organization Channel Behavior Marketing channel consists of firms that have partnered for their common good with each member playing a specialized role Channel conflict refers to disagreement over goals, roles, and rewards by channel members • Horizontal conflict • Vertical conflict

15. What Is a Product? Consumer products are products and services for personal consumption Classified by how consumers buy them • Convenience products • Shopping products • Specialty products • Unsought products Product and Service Classifications

16. What Is a Product? Industrial products are products purchased for further processing or for use in conducting a business Classified by the purpose for which the product is purchased • Materials and parts • Capital • Raw materials Product and Service Classifications

17. Channel Behavior and Organization Conventional Distributions Systems Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers. Each seeks to maximize its own profits, and there is little control over the other members and no formal means for assigning roles and resolving conflict.

18. Channel Behavior and Organization Vertical Marketing Systems Vertical marketing systems (VMSs) provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system and consist of: • Corporate marketing systems • Contractual marketing systems • Administered marketing systems

19. Channel Behavior and Organization Vertical Marketing Systems Corporate vertical marketing system integrates successive stages of production and distribution under single ownership

20. Channel Behavior and Organization Vertical Marketing Systems Contractual vertical marketing system consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies or sales impact than each could achieve alone. The most common form is the franchise organization.

21. Channel Behavior and Organization Vertical Marketing Systems Franchise organization links several stages in the production distribution process • Manufacturer-sponsored retailer franchise system • Manufacturer-sponsored wholesaler franchise system • Service firm-sponsored retailer franchise system

22. Channel Behavior and Organization Vertical Marketing Systems Administered vertical marketingsystem has a few dominant channel members without common ownership. Leadership comes from size and power.

23. Channel Design Decisions Identifying Major Alternatives

24. Public Policy and Distribution Decisions Exclusive distribution is when the seller allows only certain outlets to carry its products Exclusive dealing is when the seller requires that the sellers not handle competitor’s products Exclusive territorial agreements are where producer or seller limit territory Tying agreements are agreements where the dealer must take most or all of the line

25. The Promotion Mix Major Promotion Tools

26. The Promotion Mix Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Broadcast Print Internet Outdoor Major Promotion Tools

27. The Promotion Mix Sales promotion is the short-term incentives to encourage the purchase or sale of a product or service Discounts Coupons Displays Demonstrations Major Promotion Tools

28. The Promotion Mix Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Press releases Sponsorships Special events Web pages Major Promotion Tools

29. The Promotion Mix Personal selling is the personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships Sales presentations Trade shows Incentive programs Major Promotion Tools

30. The Promotion Mix Direct marketing involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—through the use of direct mail, telephone, direct-response television, e-mail, and the Internet to communicate directly with specific consumers Catalog Telemarketing Kiosks Major Promotion Tools