McGraw-Hill/Irwin 7-1 © 2006 The McGraw-Hill Companies, Inc All rights reserved Chapter Developing Market Strategies Marketing Concept Market Research Marketing Strategy Product Life Cycle Packaging And Pricing Services Vs Goods USDA/ARS, Photo by Scott Bauer 7-2 Superior Marketing Moves Quickly Pricing Differential Attention to Packaging Build Customer Loyalty Ryan McVay/Getty Images Samples/Demonstrations Educate Customers McGraw-Hill/Irwin 7-3 © 2006 The McGraw-Hill Companies, Inc All rights reserved Marketing Concept “…Giving Special Consideration To The Needs, Desires, And Wishes Of Present And Prospective Customers.” McGraw-Hill/Irwin 7-4 © 2006 The McGraw-Hill Companies, Inc All rights reserved Elements Of Marketing Concept 1) Customer Orientation 2) Goal Orientation 3) Systems Approach Jack Star/PhotoLink/Getty Images McGraw-Hill/Irwin 7-5 © 2006 The McGraw-Hill Companies, Inc All rights reserved Application Of Marketing Concept Conscious Of Image Product Benefits Company “Fit” Offer Research Unique Expertise Not Pushy Speak With Integrity C Borland/PhotoLink/Getty Images Practice Consumerism Aware Of Danger Signals McGraw-Hill/Irwin 7-6 © 2006 The McGraw-Hill Companies, Inc All rights reserved E-Commerce “…Technology-Mediated Exchanges Between Parties As Well As The Electronically Based Intra- Or Interorganizational Activities That Facilitate Such Exchanges.” McGraw-Hill/Irwin 7-7 © 2006 The McGraw-Hill Companies, Inc All rights reserved Marketing Research Areas Identify Customers Determine Needs Evaluate Sales Potential Select Appropriate Channel Of Distribution Evaluate Advertising & Promotion McGraw-Hill/Irwin PhotoLink/Getty Images 7-8 © 2006 The McGraw-Hill Companies, Inc All rights reserved Steps In Marketing Research Define Problem Gather/Evaluate Information McGraw-Hill/Irwin 7-9 © 2006 The McGraw-Hill Companies, Inc All rights reserved Sources Of Information Existing Information Primary Research Specialized Techniques Web Keith Brofsky/Getty Images Computerized Databases McGraw-Hill/Irwin 7-10 © 2006 The McGraw-Hill Companies, Inc All rights reserved Shifting MarketsOlder Consumers McGraw-Hill/Irwin 7-15 © 2006 The McGraw-Hill Companies, Inc All rights reserved Shifting MarketsSenior Spenders McGraw-Hill/Irwin 7-16 © 2006 The McGraw-Hill Companies, Inc All rights reserved Marketing Mix (4 Ps) Product Place Promotion Price McGraw-Hill/Irwin 7-17 © 2006 The McGraw-Hill Companies, Inc All rights reserved Product Life Cycle McGraw-Hill/Irwin 7-18 © 2006 The McGraw-Hill Companies, Inc All rights reserved Packaging Product Promotes Protects Identification Improves Product Convenience Promotes Brand Recognition Influences Buying Decision McGraw-Hill/Irwin 7-19 © 2006 The McGraw-Hill Companies, Inc All rights reserved Pricing (4 Cs) Customer Company Competition Constraints McGraw-Hill/Irwin Rob Melnychuk/Getty Images 7-20 © 2006 The McGraw-Hill Companies, Inc All rights reserved Influences On Pricing Policies Stage Of Product Life Cycle Competition Cost-Oriented Flexibility Suggested Retail Price List Price McGraw-Hill/Irwin Prestige Pricing Leader Pricing Bait Pricing Odd Pricing Psychological Pricing Price Lining Demand-Oriented Pricing 7-21 © 2006 The McGraw-Hill Companies, Inc All rights reserved Markup Markup As Percentage Of Cost McGraw-Hill/Irwin $ Amount Of Markup = Cost Of The Item 7-22 © 2006 The McGraw-Hill Companies, Inc All rights reserved Discounts And Allowances %Discount- Reduction On List Price As Incentive To Buy %Allowance- Given When Accepting Quality/Quantity Reduction Artvilee/Getty Images McGraw-Hill/Irwin 7-23 © 2006 The McGraw-Hill Companies, Inc All rights reserved Types Of Discounts/Allowances Cash Functional/Trade Quantity Promotional Trade-Ins Push/Prize Money McGraw-Hill/Irwin NE O Y U B NE O T E G FREE Joshua Ets-Hokin/Getty Images 7-24 © 2006 The McGraw-Hill Companies, Inc All rights reserved Small Business Price Setting $Service Firms $Retailers ¢Customary Price ¢Unit Price ¢Loss Leader PhotoLink/Getty Images $Wholesalers $Producers $Building Contractors- Cost-Plus McGraw-Hill/Irwin 7-25 © 2006 The McGraw-Hill Companies, Inc All rights reserved Marketing Services Nature Of Service Personal Business Differentiating Services McGraw-Hill/Irwin Adam Crowley/Getty Images 7-26 © 2006 The McGraw-Hill Companies, Inc All rights reserved Marketing Service Strategy Level Of Customer Contact Primacy Pricing Quality Degree Of Expertise/Specialty Value To Buyer Rob Melnychuk/Getty Images Promotion McGraw-Hill/Irwin 7-27 © 2006 The McGraw-Hill Companies, Inc All rights reserved Strategy ImplementationIntroductory Stage Analyze Situation Present Future Ryan McVay/Getty Images Fit Product To Market Evaluate Resources McGraw-Hill/Irwin 7-28 © 2006 The McGraw-Hill Companies, Inc All rights reserved Strategy ImplementationGrowth Stage New Classes Of Customers Penetration Of Existing Market Maintain Market Share By Design & Manufacturing Innovation C Borland/PhotoLink/Getty Images McGraw-Hill/Irwin 7-29 © 2006 The McGraw-Hill Companies, Inc All rights reserved ... Joshua Ets-Hokin/Getty Images 7-24 © 2006 The McGraw-Hill Companies, Inc All rights reserved Small Business Price Setting $Service Firms $Retailers ¢Customary Price ¢Unit Price ¢Loss Leader PhotoLink/Getty... Research Marketing Strategy Product Life Cycle Packaging And Pricing Services Vs Goods USDA/ARS, Photo by Scott Bauer 7-2 Superior Marketing Moves Quickly Pricing Differential Attention to Packaging... The McGraw-Hill Companies, Inc All rights reserved Marketing Services Nature Of Service Personal Business Differentiating Services McGraw-Hill/Irwin Adam Crowley/Getty Images 7-26 © 2006 The McGraw-Hill