9 471.13 Fall 2012

1. IB 9 471.13 Fall 2012

2. Quiz • How many people remembered? • ch 12 • understanding marketing processes & consumer behaviour • ch 13 • developing & promoting goods & services • ch 14 • pricing & distributing goods & services

3. Product Value • giving satisfaction • form utility • time utility • place utility • ownership (possession) utility • consumption utility

4. Product Value • giving satisfaction • How is this satisfaction given? • goods • relatively straightforward

5. Product Value • giving satisfaction • How is this satisfaction given? • goods • services • focus options • customer • their possessions • what they value

6. Product Value • giving satisfaction • How is this satisfaction given? • goods • services • usually more • customized • intangible • perishable

7. Product Value • giving satisfaction • How is this satisfaction given? • goods • services • evaluated differently • subjective but not arbitrary • service • process • outcome

8. Product Value • giving satisfaction • How is this satisfaction given? • goods • services • management usually more complex • quality crucial but • hard to define • hard to make consistent

9. Product Value • giving satisfaction • How is this satisfaction given? • goods • services • management usually more complex • production  process  consumption  outcome • employeeproductcompany

10. Product Value • giving satisfaction • How is this satisfaction given? • goods • services t

11. Product Classification • industrial goods • consumer goods

12. Product Classification • industrial goods • expense items • consumed rapidly & regularly • support materials • supplies • capital items • expensive, long-lasting • used in producing other goods or services

13. Product Classification • consumer goods • convenience goods • shopping goods • speciality goods

14. Product Classification • consumer goods • convenience goods • purchased • quickly • frequently • with little thought

15. Product Classification • consumer goods • shopping goods • purchased • infrequently • by “shopping around” • moderate cost

16. Product Classification • consumer goods • specialty goods • purchased • rarely • slowly • usually expensive

17. Product Classification • consumer goods • convenience goods • shopping goods • speciality goods • confusing classifications • not objective • not based on the product • in the consumer’s mind • the product • it’s use • it’s meaning

18. Pricing • Fundamentally either • Profit-maximizing • Market-share maximizing • Tools • Cost-oriented pricing • Break-even analysis

19. Pricing • jargon • price skimming • penetration pricing • price lining • psychological pricing • odd-even pricing • discounting

20. Distribution Mix • Intermediaries • Wholesalers • Retailers • Distribution channel • Direct channel

21. Distribution • distribution strategies • intensive distribution • exclusive distribution • selective distribution • distribution jargon • channel conflict • channel captain

22. Intermediaries • wholesaler • sales agent • broker • telemarketer • e-intermediary • shopping agent (e-agent) • syndicated seller

23. Distribution channels intermediaries manufacturer wholesaler retailer consumer

24. Distribution channels • Wholesalers • Agents/brokers • Merchant wholesalers • full-service • limited-function • drop-shipper • rack-jobber

25. Distribution channels • Warehousing • private • public • storage • distribution centre

26. Distribution channels • warehousing costs • basic • inventory control • materials control • unitization

27. Distribution channels • hubs • supply side/pre-staging • supplier-coordinated • distribution-side

28. Distribution channels • transportation • common carriers • freight forwarders • private carriers

29. Distribution channels • transportation • intermodal • containerization

30. Distribution channels • channel conflict • when intermediaries & producer disagree on how channel should function • methods to control conflict • channel leadership • channel captain • Vertical Marketing Systems

31. Distribution channels • Vertical Marketing Systems • VMS • corporate • contractual • administered

32. Distribution Channels • e-intermediaries • customers to producers • information to producers • producers to customers • information to customers

33. Distribution Channels • e-intermediaries • syndicated seller • shopping agent • B2B brokers

34. Distribution Strategies • intensive distribution • convenience goods • selective distribution • shopping goods • exclusive distribution • speciality goods

35. Retailing • main source of goods & services • most retailers are small businesses • but don’t do most volume anymore

36. Retailing • product line retailers • department stores • supermarkets • specialty stores • category killers

37. Retailing • bargain retailers • discount houses • catalogue showrooms • factory outlets • warehouse clubs • convenience stores

38. Non-store • & non-web • direct selling • telemarketing • multi-level • catalogue • TV shopping • web • B2B • B2C • site-based • e-mail based

39. Pricing • cost-oriented pricing • markup • 2 ways to calculate • % of selling price • % of cost

40. Pricing • goal-based pricing • the question is: What’s the goal? • maximize • # of customers? • customer loyalty? • prestige? • money? • profit?

41. Pricing • goal-based pricing • 2 basic goals • grow market share • maximize profit penetration pricing price skimming

42. Pricing • relative to market • at market • below market • above market

43. Pricing • psychological • odd-even pricing • threshold pricing • price-lining • prestige pricing “price point”

44. Pricing • psychological • cash discount • seasonal discount • trade discount • quantity discount • “psychological” • shortage premium • disaster premium Completely Irrational Discount

45. Is Pricing an Ethical Matter? • cost-plus? • market rate?

46. Business Plans