Chapter 12 - slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Review MKT 102 Final Exam March 2012 HAUT

Chapter 12 - slide 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Behavior and Organization 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. Conventional Distributions Systems

Chapter 12 - slide 3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Behavior and Organization 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 Vertical Marketing Systems

Chapter 12 - slide 4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Channel Behavior and Organization 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 Vertical Marketing Systems

Chapter 12 - slide 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The New Direct Marketing Model Direct marketing is: A marketing channel without intermediaries An element of the promotion mix Fastest-growing form of marketing

Chapter 12 - slide 6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Growth and Benefits of Direct Marketing Convenience Ready access to many products Access to comparative information about companies, products, and competitors Interactive and immediate Benefits to Buyers

Chapter 12 - slide 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Growth and Benefits of Direct Marketing Tool to build customer relationships Low-cost, efficient, fast alternative to reach markets Flexible Access to buyers not reachable through other channels Benefits to Sellers

Chapter 12 - slide 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online Marketing Online Marketing Domains

Chapter 12 - slide 9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailing Amount of service Self-service Limited service Full service Types of Retailers

Chapter 12 - slide 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailing Product Line

Chapter 12 - slide 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Promotion Mix Major Promotion Tools

Chapter 12 - slide 12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Promotion Mix Strategies Setting the Total Promotion Budget and Mix

Chapter 12 - slide 13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Product Life-Cycle Strategies Product Life Cycle

Chapter 12 - slide 14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Product Life-Cycle Strategies

Chapter 12 - slide 15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall New-Product Development Reasons for new product failure

Chapter 12 - slide 16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall New-Product Development Process Major Stages in New-Product Development

Chapter 12 - slide 17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall New-Product Pricing Strategies Market-skimming pricing Market- penetration pricing Pricing Strategies

Chapter 12 - slide 18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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

Chapter 12 - slide 19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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

Chapter 12 - slide 20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Looking at the Global Marketing Environment General Agreement on Tariffs and Trade (GATT): A 61-year-old treaty Designed to promote world trade Reduces tariffs and other international trade barriers The International Trade System The World Trade Organization and GATT

Chapter 12 - slide 21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Looking at the Global Marketing Environment World Trade Organization Enforces GATT rules Mediates disputes Imposes trade sanctions The International Trade System The World Trade Organization and GATT