14Marketing Mix Blending of 4 elements Product Place Price Promotion When this is successful=satisfied customers=profit
15Product Brand Name Functionality Styling Quality Safety Packaging Repairs and SupportWarrantyAccessories and ServicesRefers to the tangable products as well as services. Examples of product decisions that need to be made.
16Place Distribution Channels Market Coverage Specific Channel members Inventory ManagementWarehousingDistribution CentersOrder ProcessingTransportationReverse LogicThis is about getting the products to the customers. These are some of the decisions that need to be made.
17Price Pricing Strategy Suggested Retail Price Volume discounts and wholesale pricingCash and early payment discountsSeasonal pricingBundlingPrice flexibilityPrice discriminationExamples of decisions that need to made.
18Promotion Promotional strategy Advertising Personal selling & sales forceSales promotionsPublic relations and publicityMarketing communications budgetCommunicate the information about the product with the goal of generating positive customer reponse. The activities include…
19Where do Companies go wrong Assume they know what the customer wants.Making a product – then trying to sell it to customers.Fail to think of possible drawbacks.
20Web TVWebTV (now MSN TV) offered consumers Internet connection via their television sets in the mid-1990s. A Cable World article by Andrea Figler describes it this way: The service grew quickly at first, attracting mainstream users that typically shied away from technology. But to WebTV's dismay, they became the dreaded consumer: a customer who failed to produce new revenue streams but insisted on creating expensive customer service problems. So Microsoft which bought WebTV in 1997, scrapped the brand. It never passed the one-million-subscriber mark.
21Touch of Yogurt Shampoo The Brand Failures blog says: The shampoo failed to attract consumers (in 1979) largely because nobody liked the idea of washing their hair with yogurt. Of those who did buy it, there were even some cases of people mistakenly eating it, and getting very ill as a result. The "Touch of Yogurt" concept is made even more remarkable because three years earlier Clairol introduced a similar shampoo called the "Look of Buttermilk." This product instantly bombed in test markets where consumers were left asking: what exactly is the "look of buttermilk" and why should I want it?
22Colgate Kitchen Entrees The Brand Failures blog explains: In what must be one of the most bizarre brand extensions ever Colgate decided to use its name on a range of food products called Colgate's Kitchen Entrees. Needless to say, the products did not take off and never left U.S. soil. The idea must have been that consumers would eat their Colgate meal, then brush their teeth with Colgate toothpaste. The trouble was that for most people the name Colgate does not exactly get their taste buds tingling.
23Kellogg's Breakfast Mates The idea behind Kellogg's Breakfast Mates was fairly simple -- pack a box of cereal with milk and a spoon, and you have a tasty meal on the go! Hey, it worked for Lunchables, right? Unfortunately, Kellogg's failed to take two things into account. First of all, though the milk included in the Cereal Mate did not require refrigeration, no one likes the idea of warm milk. And second, the ads showed parents sleeping while children helped themselves to Cereal Mates -- but the packaging was not child-friendly. The confusion associated with Breakfast Mates led to its ultimate failure.
24How to develop a successful marketing strategy Consider needs of consumers.Don’t assume – research!
25Step 1Study similarities and differencesStep 2Identify target MarketStep 3With this information develop a marketing mix
26Activity A Cruise Vacation - Option 1FamiliesWith small childrenOption 2Retired TravelersOption 3First time CruisersOption 4Coupleswith no childrenA Cruise Vacation -Create a marketing mix (the 4 P’s) for one of the above Cruise vacations.