Chapter 7: The Marketing Mix & Product Promotion

Vocabulary (1) Mix-things put together Mix-things put together –Product mix or product mix or product assortment supplied by an enterprise Item---thing for sale. Item---thing for sale. Life cycle Life cycle –The product profit changing processes from prosperity to decline, and then from decline to prosperity. Channels of distribution Channels of distribution –Channels of sale. Promotion Promotion –To promote the sales or to push the sales.

Vocabulary (2) Specification sheets Specification sheets –Formal instructions Sales literature Sales literature –Sales document such as sales confirmation Product manuals Product manuals –Product instructions Sales brochures Sales brochures –Sales catalogues or catalogues

1. The Marketing Mix Definition----marketing program or strategy Definition----marketing program or strategy Marketing mix Marketing mix -how to develop the firms products (product) -how to price those products (price) -how to sell those products (promotion) -how to distribute those products to the firm customers.(place)

2. Product Planning They see it as a total product, consisting of a physical unit and the satisfaction it will give them ； They see it as a total product, consisting of a physical unit and the satisfaction it will give them ； Choosing satisfactory products is important because it helps a firm replace old ones that have lost their market appeal ； Choosing satisfactory products is important because it helps a firm replace old ones that have lost their market appeal ； Increasing life cycle. Increasing life cycle.

6-7 Product Life Cycle Theory Describes the evolution of marketing strategies Describes the evolution of marketing strategies Stages Stages –New product –Maturing product –Standardized product

6-8 Stages in the Product Life Cycle New Product Stage Maturing Product Stage Standardized Product Stage

6-9 Figure 6.4a The International Product Life Cycle: Innovating Firm’s Country

6-10 Figure 6.4b The International Product Life Cycle: Other Industrialized Countries

6-11 Figure 6.4c The International Product Life Cycle: Less Developed Countries

16-12 Market Strategy Must Support Business Strategy Differentiation Focus Cost leadership

3. Product Pricing Fair price Fair price –Evaluating their own costs –Current pricing laws –What the competition is doing –Types of discounts and terms of sales

国际企业一般会采取以下 3 种价格政策之一： 1. 标准 价格政策； 2. 双层定价； 3. 市场定价 16-16

1. 采取以全球为中心的国际市场营销战略的企业 ，会采用标准价格策略，不论在哪里或面对怎样的 顾客，企业对其产品和服务均收取相同的价格； ( 快餐） 2. 采取以种族为中心的市场营销策略的国际企业 ，会采用双层定价策略，企业对国内销售的产品制 定一个价格，而对国际销售的产品采取另一个价格 （例：奢侈品，留学学费） 3. 采取多中心国际市场营销的国际企业，会采用 市场定价策略。市场定价是 3 个价格策略中最复杂 、最常用的。采用市场定价的企业，会根据每个市 场客户制定不同的价格，以保证利润最大化 ( 能源 ) 16-17

16-18 Risks to Market Pricing Policy Charges of dumping Development of a gray market Consumer resentment Damage to brand name Copyright 2010 Pearson Education, Inc.

5. Product Promotion Promotion----aims to stimulate demand for the company ’ s products; Promotion----aims to stimulate demand for the company ’ s products; Common promotional techniques include advertising, packaging, branding,personal selling, sales manuals and so on. Common promotional techniques include advertising, packaging, branding,personal selling, sales manuals and so on.

16-24 Promotion Mix AdvertisingPersonal Selling Sales Promotion Public Relations Copyright 2010 Pearson Education, Inc.

16-25 Factors Affecting Advertising Strategy The message it wants to convey The message it wants to convey The media available for conveying the message The media available for conveying the message The extent to which the firm wants to globalize its advertising effort The extent to which the firm wants to globalize its advertising effort Copyright 2010 Pearson Education, Inc.

16-26 Personal Selling 私人销售：在私人合同的基础上销售产品。 通过销售代表拜访潜在消费者，并试图向 其出售企业的产品或者服务，是私人销售 最常见的方法。 (Amway ，美容业 ) 私人销售：在私人合同的基础上销售产品。 通过销售代表拜访潜在消费者，并试图向 其出售企业的产品或者服务，是私人销售 最常见的方法。 (Amway ，美容业 ) Copyright 2010 Pearson Education, Inc.

16-27 Advantages of Personal Selling for International Firms Local sales representatives understand local culture, norms, and customs Local sales representatives understand local culture, norms, and customs Personal selling promotes close, personal contact with customers Personal selling promotes close, personal contact with customers Personal selling makes it easier for firm to adopt valuable market information Personal selling makes it easier for firm to adopt valuable market information Copyright 2010 Pearson Education, Inc.

16-28 Sales Promotion Sales promotion: comprises specialized marketing efforts designed to offer an incentive for behavior such as coupons, in- store promotions, sampling, direct mail campaigns, cooperative advertising, and trade fair attendance. Copyright 2010 Pearson Education, Inc.

16-29 Public Relations Public Relations consists of efforts aimed at enhancing a firm’s reputation and image with the general public, as opposed to touting the specific advantages of an individual product or service. Copyright 2010 Pearson Education, Inc.

6. Advertising Definition Definition –It is a major mode of communicating with customer throughout the world Advertising agency Advertising agency –Familiar with the foreign environment is critical to the success. If sell industrial products, assortment of magazines covering international market is helpful. If sell industrial products, assortment of magazines covering international market is helpful. Other forms of advertising and promotion Other forms of advertising and promotion

7. Product Packaging Designed to attract buyer ’ s attention Designed to attract buyer ’ s attention Identify the product Identify the product Provide a reason to buy Provide a reason to buy Redesign for foreign tastes Redesign for foreign tastes Designing packages for foreign shipment Designing packages for foreign shipment

8. Breaking the Language Barriers Clearly present product and instructions in the language of the user Clearly present product and instructions in the language of the user The cost and effort required to translate is minimal compared to the liability they could incur for misinterpreted information The cost and effort required to translate is minimal compared to the liability they could incur for misinterpreted information

Comprehension questions (Page 62)