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

2. 2

3. The Marketing Mix Competitive Advantage
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 3

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

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

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 6

7. Marketing Mix 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 7

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

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. 9

10. The Most Valuable Brands in the World
Identifying Products
Branding
Rank
Brand
Brand Value ($ billions)
Brand Value Change 1
Google
86.1
30% 2
GE (General Electric)
71.4
15% 3
Microsoft
70.9
29% 4
Coca-Cola
58.2
17% 5
China Mobile
57.2
39%
The Most Valuable Brands in the World 10

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. 11

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

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

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

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 15

16. Retailers 16

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

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

19. Promotion Strategies: To Push or Pull19