Chapter 3 Objectives The Marketing Environment

Chapter 3 Objectives The Marketing Environment
Describe the environmental forces that affect the company's ability to serve its customers. Explain how changes in the demographic and economic environment affect marketing decisions. Identify the major trends in the firm's natural and technological environments. Explain the key changes in the political and cultural environment. Discuss how companies can react to the marketing environment.

Microenvironment: internal forces
Marketing Intermediaries Customers For further details about this topic see page80 Suppliers Publics Company Competitors Company 7

The Company Top management Finance R & D Purchasing Manufacturing
Accounting Marketing For further details about this topic see page 100

Macroenvironment: external forces
Natural Technological For further details about this topic see page80 Economic Political Demographic Cultural Company 7

Demographics Family Population Shift Education Increasing Diversity

Demographics: Changing Age Structure in Canada
Median age up from 25 to 38 in 30 years Long-term slowing of birth rate (1.55) Increasing life expectancy “Baby dearth” of the 70’s Population bulge due to baby boom Growth rates vary for different age groups For further details about this topic see pages

Canada’s Boomer Bulge

Demographics BOOMERS 40 plus age now 45% bigger than 18-30 group
…will be 60% bigger by 2010 became biggest adult segment in history Control 50%+ of discretionary spending Control 75% of nation’s wealth About to inherit largest intergenerational wealth transfer in history

Demographic Environment: Increasing Diversity
Ethnicity: Ethnic purchasing power $300 billion Growing market size Avoid stereotyping Use native languages Choose ethnic media Sexual orientations Disabilities For further details about this topic see pages

Macroenvironment: external forces
Natural Technological For further details about this topic see page80 Economic Political Demographic Cultural Company 7

Economics Changes in Income
More Work = Less Leisure people are time starved Changing Consumer Spending Patterns

Consumer Confidence Consumer confidence fell to its lowest level since October 1983. Conference Board, Feb. 2003

Consumer Confidence The Decima Index of Consumer Confidence is based upon a series of survey questions that ask respondents about their perceptions of current and future economic conditions. The data from these questions are combined using a formula to calculate a single number - the Index of Consumer Confidence. Several of these questions that focus on the future are combined using a different formula to calculate the Index of Consumer Expectations. Consumer confidence tanked in February and has been rebounding since. Decima Research, 2003

Natural Environment Shortages of Raw Materials Increased Pollution
Increased Government Intervention e.g. Environmental Protection Act

Technological Environment
Fast pace of technological change High R&D Budgets

Political Environment
Legislation regulating business increased legislation increased emphasis on ethics and socially responsible actions

Cultural Environment Persistence of cultural values
Shifts in cultural values Subcultures

Chapter 18 Objectives Marketing and Society
Identify the major social criticisms of marketing. Define consumerism and environmentalism and explain how they affect marketing strategies. Describe the principles of socially responsible marketing. Explain the role of ethics in marketing.

Social Criticisms of Marketing
High Prices * Deceptive Practices * High-Pressure Selling Marketing’s Impact on Consumers Shoddy Products * Planned Obsolescence * Poor Service

Social Criticisms of Marketing
False Wants/Too Much Materialism * Too Few Social Goods Marketing’s Impact on Society Cultural Pollution * Too Much Political Power

Consumerism Consumer’s Association of Canada Fundamental Rights
The right to safety Right to be informed The right to choose The right to be heard The right to redress against damage The right to consumer education For further details about this topic see page688 9

Chapter 4 Objectives Marketing Research and Information Systems
Explain the importance of information to the company. Define the marketing information system and discuss its parts. Outline the four steps in the marketing research process. Compare the advantages and disadvantages of various methods of collecting information. Discuss the special issues some marketing researchers face.

Measuring & Forecasting Demand
1. As marketing manager for Cat's Pride cat litter, you have seen sales jump 50 percent in the last year after years of relatively stable sales. Explain how you will forecast sales for the coming year. 2. What are some leading indicators that might help you predict sales of diapers, cars, and hamburgers. Can you describe a general procedure for finding leading indicators or product sales?

The Importance of Information
Competitors Marketing Environment Research Needs Strategic Decision Making Customer Needs and Wants

Should you do Research? NO if: YES if:
being done before financial analysis complete a way to avoid making a decision results are not going to change your plans cheaper to try idea than conduct research YES if: data will be useful in a very specific way you can get the information you need to make decisions you can’t afford to make an uniformed decision you must convince others of something you already know

Market Research Process
Define problem and research objectives Implement collect and analyze data Interpret and report findings Develop plan to collect data For further details about this topic see page122 4-2 10 10

Step 1: defining the problem & research objectives
Exploratory research preliminary information helps better define problem Descriptive research expand understanding of factors Causal research test cause and effect hypothesis For further details about this topic see page122 11 11

Step 2: developing the plan for collecting information
Determine Specific Information Needs, e.g. Target customer characteristics Patterns of product use (which day-part?) Demand factors Response of marketing channels Customer reactions Projected sales For further details about this topic see page122 11 11

Gathering Secondary Data internal sources government sources books and periodicals commercial data services international data on-line databases and the internet syndicated research studies For further details about this topic see page122 11 11

Gathering Primary Data Research Approaches Observational Survey: phone, mail, in-person Experimental For further details about this topic see page122 11 11

Primary Data Collection Contact Methods: strengths & weaknesses
Mail Questionnaire Large volume, Low cost Honest answers, Slow, Not very flexible Telephone Interview For further details about this topic see page131 Fast, Controlled sample, Flexible, Higher Response, More expensive, Bias Personal Interview Very flexible, Fast, Very expensive, Bias 19

Step 3: implementing the research plan
Plan is put into action most expensive part of the process so: 1) important to watch for interviewer bias 2) accuracy For further details about this topic see page122 11 11

Step 4: interpreting and reporting findings
Present important findings Company ultimately must decide on correct interpretation and how to proceed For further details about this topic see page122 11 11

Difficulties in Asking Questions of Consumers
Do they really know whether they are likely to buy a particular product? Even if they know the answer, will they tell you? Will their actual purchase behaviour mirror their stated interests/intentions?

Chapter 5 Objectives Consumer Markets and Consumer Buying Behaviour
Define the consumer market and construct a simple model of consumer buyer behaviour. Name the four major factors that influence consumer buyer behaviour. List and understand the stages in the buyer decision process. Describe the adoption and diffusion process for new products.

Factors Affecting Consumer Behaviour
Cultural Culture Sub- culture Social class Social Reference groups Family Roles and status Personal Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Psycho- logical Motivation Perception Learning Beliefs and attitudes

Cultural Factors Culture Social Class Sub-culture 7 7

Social Factors Groups Family Roles & Status reference groups
aspirational groups Family Roles & Status 7 7

Personal Factors Age & Lifecycle Stage Occupation Economic situation
Personality & Self-Concept Lifestyle 7 7

Psychological Factors
Motivation Perception Learning Beliefs & Attitudes Self-Actualtization Social needs Esteem needs Safety needs Physiological needs 7 7

VALS2 Lifestyle Classification
Actualizers Abundant Resources Fulfilleds Achievers Experiencers Principle Oriented Status Oriented Action Oriented Believers Strivers Makers Strugglers Minimal Resources

Buyer Decision Process
Need recognition Information search For further details about this topic see page Evaluation of alternatives Purchase decision Post-Purchase behaviour 29 29

Types of Buying Behaviour
High involvement Low involvement Complex buying behaviour Variety- seeking behaviour Significant differences between brands For further details about this topic see page Dissonance reducing behaviour Habitual buying behaviour Few differences between brands 28 28

Adopter Categorization: relative time of adoption
34% Early majority 34% Late majority 13.5% 2.5% Innovators For further details about this topic see page184 Early adopters 16% Laggards Time of adoption of innovations 32 32

Chapter 6 Objectives Business Markets and Business Buying Behaviour
Define the business market and explain how business markets differ from consumer markets. Identify the major factors that influence business buyer behaviour. List and define the steps in the business buying-decision process. Compare the institutional and government markets and explain how institutional and government buyers make buying decisions.

Characteristics of Business Markets
Differences Between Business and Consumer Markets Market Structure and Demand Nature of the Buying Unit Types of Decisions & the Decision Process Other Characteristics

Differences Between Business and Consumer Markets Market Structure and Demand 1. Fewer but larger buyers 2. More geographically concentrated 3. Demand is more inelastic 4. Demand is derived 5. Demand fluctuates quickly

Differences Between Business and Consumer Markets Nature of the Buying Unit 1. Involves more buyers 2. More professional purchasing procedures

Differences Between Business and Consumer Markets 1. More complex 2. More formal 3. Buyer-seller relationships more dependent, long-term relationships Types of Decisions & the Decision Process

Differences Between Business and Consumer Markets 1. Buy direct v.s. via retailer 2. Practice reciprocity 3. Often lease v.s. purchase Other Characteristics

Business Buying Influences
Level of primary demand Economic outlook Cost of money Supply conditions Rate of technological change Political, regulatory developments Competitive Environmental Objectives Policies Procedures Organizational structure Systems Organizational Authority Status Empathy Persuasive- ness Interpersonal Age Education Occupation Personality Risk attitudes Individual For further details about this topic see page 12

Business Buying Process
1. Problem Recognition 2. General Need Description 3. Product Specification 4. Supplier Search 5. Proposal Solicitation 6. Supplier Selection 7. Order Routine Specification 8. Performance Review

Institutions & Government
Institutional Markets Low Budgets Captive Patrons Government Markets Centralized Buying Submitted Bids Public Review Outside Publics Non-economic Criteria

Chapter 7 Objectives Segmentation, Targeting, Positioning
Define the three steps of target marketing: segmentation, targeting, positioning. List and discuss the major levels of market segmentation and the bases for segmenting consumer and business markets. Explain how companies identify attractive market segments and choose a market-coverage strategy. Explain how companies can position their products for maximum competitive advantage.

Steps in Market Segmentation, Targeting, and Positioning
6. Develop marketing mix for each target segment Market positioning 5. Develop positioning for each target segment 4. Select the target segment(s) Market targeting For further details about this topic see page225 3. Develop measures of segment attractiveness 2. Develop profiles of resulting segments Market segmentation 1. Identify bases for segmenting the market 2 2

Geographic Demographic Psychographic Behaviouristic
Segmenting: 4 bases Geographic Demographic Psychographic Behaviouristic For further details about this topic see page230 11

Segmenting: geographic base
Divide market into separate geographic units Nations, regions provinces, cities, neighbourhoods, etc. Develop appropriate marketing programs For further details about this topic see page230 11

Segmenting: demographic base
Most popular method Divide market into groups based on: age sex family size & lifecycle income & occupation education religion ethnic background For further details about this topic see page 12

Demographics - age 14% of population over 65 90% of 50+ are debt free
48% of all luxury cars sold are purchased by 50+ group 50+ age group controls 80% of Canada’s personal wealth up have 2/3 of disposable income 25% of population Most healthy and active For further details about this topic see page159 11 11

Segmenting: psychographic base
Social class determines choice of home, car, clothes, leisure habits, etc. Lifestyle reflected in purchases e.g. couch potatoes, sports enthusiasts, or symphony lovers Personality express who they are For further details about this topic see page 14

Segmenting: behavioural base
Divide market into groups based on: Occasions User Status Usage Rate Loyalty Status Benefits sought For further details about this topic see page 15

Requirements for effective segmentation
Measurability Accessibility For further details about this topic see page Substantiality Actionability 23

Requirements for effective segmentation
Measurability - size, purchasing power, profiles of segments Accessibility - effectively reach and serve Substantiality - segments are large or profitable enough to serve Actionability - effective programs can be designed to attract segments For further details about this topic see page 23

Market Targeting: evaluating market segments
Segment size and growth Structural attractiveness Company objectives and resources For further details about this topic see page 23

Selecting Market Segments
Company marketing mix Market Undifferentiated marketing Company marketing mix 1 Segment 1 Company marketing mix 2 For further details about this topic see page Segment 2 Company marketing mix 3 Segment 3 Differentiated marketing Company marketing mix Segment 1 Segment 2 Segment 3 Concentrated marketing 24

Positioning Defined by consumers on important attributes
Place in mind relative to competing products Position happens - planned or not For further details about this topic see page247 25

Positioning Strategy: choosing and implementing
Communicate and deliver chosen position Select an overall positioning strategy For further details about this topic see page Select the right competitive advantage Identify possible competitive advantage 27

Positioning Against a Competitor Usage Occasions Away from Competitors
Product Attributes Class Benefits Offered Users B D C F A E 16

Positioning Statement
For (target customer) Who (statement of need or opportunity) The (product name) is a (product category) That (statement of key benefit) Unlike (primary competitive alternative) Our product (statement of primary differentiation) 18 18

Chapter 8 Objectives Product Strategies
Define product and the major classifications of products and services. Describe the roles of product and service branding, packaging, labelling, and product support services. Explain the decisions companies make when developing product lines and mixes. Identify the four characteristics of a service. Discuss the additional marketing considerations that services require.

Levels of Product Installation Augmented product Packaging
Actual product For further details about this topic see page266 Brand name Core benefit or service Features Delivery and credit Core product After- Sale service Quality level Design Warranty 8-1 5 5 5 5 5

Product Classifications: consumer products
Specialty products Unsought products Types of Consumer Products For further details about this topic see page267 Shopping products Convenience products 6 6 6 6 6

Product Decisions Branding Product attributes Packaging Support
services Labelling For further details about this topic see page270 9 9 9 9

Product Attributes Quality Features Sizes Design

Product Support Services
Services that augment the actual product e.g support for software program e.g. web/Internet technical support

Branding Name, term, sign, symbol or design or a combination intended to identify goods or services of a seller or group to differentiate them from competitors For further details about this topic see page273 12 12 12 12

Brand Name Selection: desirable qualities
Craftsman Suggest benefits and qualities Easy to pronounce recognize & remember Distinctive Translated easily Capable of registration & legal protection For further details about this topic see page 15 15 15 15

Major Branding Decisions
To brand or not to brand Brand No brand Figure 8- 3 Brand name selection Selection Protection For further details about this topic see page276 Brand sponsor Manufacturer’s brand Private brand Licensed brand Co-branding Brand strategy New brands Line extensions Brand extensions Multibrands Brand repositioning Brand repositioning No brand repositioning 16 16 16 16

Value of Branding Seller’s viewpoint Buyer’s viewpoint
Helps consumers shop more efficiently Aids repeat purchase Suggests quality of product Creates store loyalty Gives legal protection Helps in segmenting markets Symbol of ongoing promise For further details about this topic see page 13 13 13 13

Packaging/Labelling What should the package do for the product?
identify, describe, and promote Elements support position & strategy Environmental issues? For further details about this topic see page281 18 18 18 18

Chapter 9 Objectives New Product Development and Life Cycle Strategies
Explain how companies find and develop new product ideas. List and define the steps in the new-product development process. Describe the stages of the product life cycle. Describe how marketing strategies evolve during the product’s life cycle.

New Product Development Process:
Marketing strategy Concept Development & testing For further details about this topic see page315 Idea screening Idea generation 9-1 7

Marketing Strategy Development
Part one Target market Planned product positioning Sales, market share and profit goals (short term) Part two Outline price, distribution and first year marketing budget Part three Planned long-run sales Profit goals Marketing mix strategy For further details about this topic see page 12

New Product Development Process:
Marketing strategy Business analysis Concept Development & testing Product development For further details about this topic see page315 Idea screening Test marketing Commercialization Idea generation 9-1 7

Why do new products fail?
Overestimated market or target market is too small Poor design Poor product quality Incorrect positioning Error in pricing Poor marketing communication Competition For further details about this topic see page314 5

Product Life-Cycle Strategies
Sales Profit ($) Sales For further details about this topic see page Profits Loss ($) Growth Decline Development Introduction Maturity 9-2 23

New Product Life Cycle Strategies
Introduction Market Skimming Market Penetration

Growth New Features Improve Quality Add Channels New Segments

Maturity Product Modification Market Modification Modify Marketing Mix

Decline Maintain Harvest Drop

Chapter 10 Objectives Pricing Strategies
Identify and define the internal factors affecting a firm’s pricing decisions. Identify and define the external factors affecting pricing decisions. Contrast the three general approaches to setting prices. Describe the major strategies for pricing new products. Discuss the key issues related to price changes.

Factors Affecting Pricing
Internal factors Marketing objectives Marketing-mix strategy Costs Organizational considerations Pricing decisions External factors Nature of the market & demand Competition Other environmental factors (economy, resellers, government) For further details about this topic see page343 3

Internal Factors Internal factors Marketing objectives Marketing-mix
strategy Costs Organizational considerations Pricing decisions For further details about this topic see page343 3

External Factors External factors Types of markets Price-demand
Pricing decisions External factors Types of markets Price-demand relationship Competition Other environmental factors (economy, resellers, government) For further details about this topic see page343 3

Demand Curves P’2 P2 P’1 P1 Q2 Q1 Q’2 Q’1 Inelastic demand
Price P’1 P1 For further details about this topic see page351 Q2 Q1 Q’2 Q’1 Quantity demanded per period Inelastic demand Quantity demanded per period Elastic demand 10 2

External Factors External factors Types of markets Price-demand
Pricing decisions External factors Types of markets Price-demand relationship Competition Other environmental factors (economy, resellers, government) For further details about this topic see page343 3

General Pricing Approaches
1. Cost-Based Approaches Cost-Plus Break-Even Target Profit Pricing Analysis Pricing For further details about this topic see page353 11

1. Cost-Based Approaches 2. Value-Based Approaches For further details about this topic see page353 Perceived Value Pricing 11

1. Cost-Based Approaches 2. Value-Based Approaches For further details about this topic see page353 3. Competition-Based Approaches Going-Rate Pricing Sealed-Bid Pricing 11

New Product Pricing Strategies
Market Skimming setting a high price to maximize revenue makes sense when: product quality and image supports a higher price costs of producing a small volume are not too high to cancel the advantage of charging more company has a patent or technological advantage For further details about this topic see page 3

New Product Pricing Strategies
Market Penetration Setting a low price to attract a large number of buyers and gain a dominant market share makes sense when: market is highly price sensitive (low price stimulates sales and market growth) production costs must fall as volume increases low price must be an effective entry barrier for competitors For further details about this topic see page370 4

Product-Mix Pricing Strategies
Product Line Pricing $189.99 $149.99 $129.99 $89.99 $49.99

Captive Product Pricing
Product-Mix Pricing Strategies Product Line Pricing Captive Product Pricing

Product-Mix Pricing Strategies
Product Line Pricing Captive Product Pricing Product Bundle Pricing

Price Adjustment Strategies
Discount & Allowance Pricing Segmented Pricing Psychological Pricing Promotional Pricing Geographical Pricing International Pricing

Chapter 11 Objectives Distribution Channels and Logistics Management
Explain why companies use distribution channels and explain the functions that these channels perform. Discuss how channel members interact and organize to perform the work of the channel. Identify the major channel alternatives. Discuss the nature and importance of physical distribution Analyze integrated logistics management.

Chapter 12 Objectives Retailing and Wholesaling
Explain the roles of retailers and wholesalers in the distribution channel. Describe the major types of retailers and give examples of each. Identify the major types of wholesalers and give examples of each. Explain the marketing decisions facing retailers and wholesalers.

Distribution (Place) Good distribution is critical to the marketing success of products Three main types of channels: Direct Indirect Hybrid

Consumer Marketing Channels
Direct Manu- facturer Consumer Indirect Manu- facturer Retailer Consumer For further details about this topic see page399 Indirect Manu- facturer Whole- saler Retailer Consumer Indirect Manu- facturer Whole- saler Jobber Retailer Consumer 7

Hybrid Marketing Channel
Catalogues, telephone Consumer segment 1 Retailers Consumer segment 2 Producer For further details about this topic see page Distributors Dealers Business segment 1 Sales force Business segment 2 13

Distribution Channel Functions
Information: gathering and distributing marketing research Promotion Contact: finding and communicating with prospective buyers Matching offers to buyer’s needs Negotiation Physical distribution, financing, risk taking For further details about this topic see page 4

Why Use Marketing Intermediaries?
An intermediary reduces the number of channel transactions For further details about this topic see page396 # of contacts without a distributor M x C = 3 x 3 = 9 # of contacts with a distributor M x C = 3+ 3 =6 3

Vertical Marketing Systems (VMS)
Corporate VMS Contractual VMS Administered VMS Wholesaler-sponsored voluntary chains Retailer cooperatives Franchise organizations For further details about this topic see page Manufacturer-sponsored retailer franchise Manufacturer- sponsored wholesaler franchise Service-firm- sponsored franchise Figure 12-4 12

Major Logistics Functions
Nature of Distribution Order Processing Warehousing Inventory Transportation

Chapter 13 Objectives Integrated Marketing Communication Strategy
Name and define the five tools of the promotion mix. Discuss the processes and advantages of integrated marketing communications. Outline the steps in developing effective marketing communication. Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix.

Promotion Mix Promotion Mix Personal Selling Advertising
For further details about this topic see page468 Direct Marketing Sales Promotion Public Relations 3

Marketing Communications Mix
Advertising paid placement of a message in the media non-personal presentation and promotion of ideas, goods, or services identified sponsor For further details about this topic see page468 4

Sales Promotion short-term incentives to encourage the sale of a product or service For further details about this topic see page468 4

Personal Selling personal presentation by a firm’s sales force for the purpose of making sales and building customer relationships For further details about this topic see page469 5

Public Relations free placement of a message in the media on-going process of building good relations with the company’s various publics by: obtaining favourable publicity building a good corporate image handling stories or events heading off unfavorable rumours For further details about this topic see page469 6

Direct Marketing direct communications with carefully targeted individual consumers to obtain an immediate response using mail, telephone, fax, and other non-personal tools For further details about this topic see page469 7

Effective Communication
Steps in Developing Effective Communication 1. Identify the target audience For further details about this topic see page 11

Steps in Developing Effective Communication 1. Identify the target audience 2. Determine the desired response For further details about this topic see page 11

Buyer-Readiness Stages
Awareness Knowledge Liking For further details about this topic see page471 Preference Conviction Purchase 12 3

Steps in Developing Effective Communication 1. Identify the target audience 2. Determine the desired response 3. Design a message For further details about this topic see page 11

Designing a message Message Content
rational - emotional - moral appeal? Message Structure open vs. conclusion? one side or two sides? Message Format words - images - colour - sounds - expressions? For further details about this topic see page 13

Steps in Developing Effective Communication 1. Identify the target audience 2. Determine the desired response 3. Design a message 4. Choose the media For further details about this topic see page 11

Choosing media Personal channels face to face, phone, email, mail
allows personal contact and feedback Non-personal channels major media e.g. print, radio, tv, etc. no personal contact or feedback Opinion leaders key to reaching others For further details about this topic see page 14

Choosing Advertising Media
1. Reach # of people in your target market reached 2. Frequency how often people in your target market see your promotions 3. Impact

Steps in Developing Effective Communication 1. Identify the target audience 2. Determine the desired response 3. Design a message 4. Choose the media 5. Select the message source For further details about this topic see page 11

Selecting the message source
Credible sources more persuasive Credible people, e.g. doctors, dentists, health-care providers Celebrity endorsers For further details about this topic see page 15

Steps in Developing Effective Communication 1. Identify the target audience 2. Determine the desired response 3. Design a message 4. Choose the media 5. Select the message source 6. Collect feedback For further details about this topic see page 11

Collecting feedback Question target audience members Remember message?
Specific points? How they feel? Attitudes changed? Measure behaviour For further details about this topic see page478 16

Setting the Promotion Budget
Affordable method Percent of sales Competitive parity Objective and task For further details about this topic see page 17

Explain how sales promotion campaigns are developed and implemented.
Chapter 14 Objectives Advertising, Sales Promotion and Public Relations Define the roles of advertising, sales promotion, and public relations in the promotion mix. Describe the major decisions involved in developing an advertising program. Explain how sales promotion campaigns are developed and implemented. Explain how companies use public relations to communicate with their publics.

Promotion Tools The Nature of Each Promotion Tool Advertising
Legitimate Public Repetition Expensive The Nature of Each Promotion Tool

Legitimate Public Repetition Expensive The Nature of Each Promotion Tool Personal Selling Effective Costly Two Way Relationships

Legitimate Public Repetition Expensive The Nature of Each Promotion Tool Personal Selling Effective Costly Two Way Relationships Sales Promotion Timing Incentive Short Term

Legitimate Public Repetition Expensive The Nature of Each Promotion Tool Personal Selling Effective Costly Two Way Relationships Sales Promotion Timing Incentive Short Term Public Relations Credibility Under Used

Major Advertising Decisions
Campaign evaluation Communication impact Sales impact Message decisions Message strategy Message execution Budget decisions Affordable approach Percent of sales Competitive parity Objective and task Objectives setting objectives Sales Media decisions Reach, frequency, impact Major media types Specific media vehicles Media timing Figure 15-1 For further details about this topic see page501 4

Setting the Promotion Mix
Factors in Setting the Promotion Mix Type of Market Buyer Readiness Push or Pull Stage in Product Life Cycle

Type of Market Consumer Goods Industrial Goods Advertising
Relative importance Advertising Sales promotion Personal selling Public Rel. Consumer Goods Industrial Goods For further details about this topic see page483 24

Push versus Pull Strategy
Producer marketing activities Reseller marketing activities Producer Retailers and Wholesalers Consumers For further details about this topic see page482 Push strategy Demand Demand Producer Retailers and Wholesalers Consumers Producer marketing activities Pull strategy 23 4

Chapter 15 Objectives Personal Selling
Discuss the role of a company’s salespeople in creating value for customers and building customer relationships. Explain how companies design sales force strategy and structure. Explain how companies recruit, select, and train salespeople. Describe how companies compensate and supervise salespeople and how they evaluate sales-force effectiveness. Discuss the personal selling process.

Steps in Effective Selling
Prospecting and qualifying Pre-approach Approach Presentation and demonstration For further details about this topic see page Handling objections Closing Follow-up 16 16

Chapter 16 Objectives Direct and Online Marketing
Discuss the benefits of direct marketing to customers and companies and the trends fuelling its rapid growth. Define a customer database and list the four ways that companies use databases in direct marketing. Identify the major forms of direct marketing. Compare the two types of online marketing channels and explain the effect of the Internet on e-commerce. Identify the benefits of online marketing to consumers and marketers and the four ways that marketers can conduct online marketing. Discuss the public policy and ethical issues facing direct marketers.

What is Direct Marketing?
Communications with carefully targeted individual consumers to obtain an immediate response Cultivate relationships Often one-to-one interactive Precise targeting More effective results For further details about this topic see pages

Forms of Direct Marketing
Customers and prospects Face-to-face selling Tele- marketing Direct mail Kiosk Online Response TV Catalogue For further details about this topic see page574 Figure 17-1 8

Growth of Direct Marketing
Growing 8% annually vs. 6% for retail sales Canadian sales $50B 60% growth rate Online marketing 65% are Internet users Canadian sales $2.3B For further details about this topic see pages

Forms of Direct Marketing
Customers and prospects Face-to-face selling Tele- marketing Direct mail Kiosk Online Response TV Catalogue For further details about this topic see page574 Figure 17-1 8

Chapter 8 Objectives Product Strategies
Define product and the major classifications of products and services. Describe the roles of product and service branding, packaging, labelling, and product support services. Explain the decisions companies make when developing product lines and mixes. Identify the four characteristics of a service. Discuss the additional marketing considerations that services require.

Marketing is the process of helping others value your service.

Services are Different
Intangible services cannot be seen, tasted, felt, heard or smelled before purchase SERVICES

Inseparable services cannot be separated from their providers SERVICES

Variability (Inconsistency) quality of services depends on who provides them and when, where and how

Moments of Truth customers Front Line Employees Middle Management
Execs

Perishability (Inventory) services cannot be stored for later sale or use

Intangible services cannot be seen, tasted, felt, heard or smelled before purchase Inseparable services cannot be separated from their providers SERVICES Variable quality of services depends on who provides them and when, where and how Perishable services cannot be stored for later sale or use

Service-Profit Chain Which is most important? customers stockholders
employees

Chapter 17 Objectives The Global Marketplace
Discuss how the international trade system, economic, politico-legal, and cultural environments affect a company’s international marketing decisions. Describe three key approaches to entering international markets. Explain how companies adapt their marketing mixes for international markets. Identify the three major forms of international marketing organization.

International Marketing
Major Decisions in International Marketing Deciding Whether to go international which markets to enter Looking at the global marketing environment Deciding on the program organization Deciding how to enter the market For further details about this topic see page648 11 2

Global Marketing Environment
International Trade System Tariffs Quotas Embargos Exchange controls Non-tariff trade barriers For further details about this topic see page648 5

Economic Environment Income distribution Industrial structure: - subsistence economies - raw-material exporting economies - industrializing economies - industrial economies For further details about this topic see page648 5

Politico-Legal & Ethical Environment Attitude toward foreign businesses Extent of government bureaucracy Political stability Monetary regulations Countertrade Compensation Counterpurchase For further details about this topic see page648 5

Cultural Environment Language, customs Folkways, norms, taboos Business norms & behaviour e.g. Personal distance e.g. Meeting and greeting For further details about this topic see page648 5

Market Entry Strategies
Exporting Direct Indirect Joint venturing Licensing Contract manufacturing Management contracting Joint ownership Direct investment Assembly facilities Manufacturing facilities For further details about this topic see page Amount of commitment, risk, control, and profit potential 12 3

International Product &
Promotion Strategies Product Don’t change product Adapt product Develop new product Don’t Change promotion Straight extension Product adaptation Product invention For further details about this topic see page665 Promotion Communication adaptation Dual adaptation Adapt promotion 19

Global Marketing Organization
Methods of Organizing International Marketing Operations Export Department International Division Global Organization

Chapter 3 Objectives The Marketing Environment

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