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Part 5 Chapter 12 Marketing: Developing Relationships © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. CHAPTER 11 Customer-Driven Marketing CHAPTER 12 Dimensions of Marketing Strategy CHAPTER 13 Digital Marketing and Social Networking © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2 Learning Objectives LO 12-1 Describe the role of product in the marketing mix, including how products are developed, classified, and identified. LO 12-2 Define price and discuss its importance in the marketing mix, including various pricing strategies a firm might employ. LO 12-3 Identify factors affecting distribution decisions, such as marketing channels and intensity of market coverage. LO 12-4 Specify the activities involved in promotion as well as promotional strategies and promotional positioning. LO 12-5 Evaluate an organization’s marketing strategy plans. © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 3 The Marketing Mix • The marketing mix is the part of the marketing strategy that involves decisions regarding controllable variables After selecting a target market, marketers develop and manage the dimensions of the marketing mix to give their firm an advantage over competitors Successful companies offer at least one dimension of the marketing mix that surpasses all competitors These companies must also maintain acceptable, and if possible distinguishable, differences in the other dimensions as well © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 4 Product Strategy Thousands of new products are introduced annually, few succeed It takes time to get a new product to market Sometimes a product or idea is shelved, only to be returned to later © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Inspiration for FedEx While attending Yale in 1966, FedEx founder Fred Smith: Studied a mathematical discipline called topology Inspired his vision for creating the company Realized potential efficiencies of connecting all points on a network through a central hub Used what he learned to get FedEx off the ground © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Developing New Products (1 of 2) • Idea Development – New ideas come internally from marketing research or employees and from external sources such as ad agencies, consultants and customers • New Idea Screening – Management looks at company’s resources and ability to produce and market the product; most ideas are rejected in this phase • Business Analysis – Analyze the product’s affects on sales, costs and profits © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 Developing New Products (2 of 2) • Product Development – The few products to reach this stage get prototypes and the development of a marketing strategy • Test Marketing – A trial mini-launch of a 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 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 8 Idea Development Nike has a separate division (Nike Sport Research Lab) Scientists, athletes, engineers, and designers work together to develop technology of the future Teams research ideas in biomechanics, perception, athletic performance, and physiology to create unique relevant and innovative products Final products are tested in environmental chambers with real athletes to ensure functionality and quality before being introduced in the market © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. ACNielsen Market Decisions © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Classifying Products Consumer products are products intended for household or family use – Convenience Products – items bought frequently with no planning, such as eggs, milk, bread and newspapers – Shopping Products – purchased after consumer has “shopped around” – Specialty Products – require greater research and shopping effort; consumers unwilling to accept a substitute © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Product Line and Product Mix Business Products ♦ Used directly or indirectly in the operation or manufacturing processes of businesses Product Line ♦ A group of closely related products that are treated as a unit because of similar marketing strategy, production or end-use considerations Product Mix ♦ All the products offered by an organization © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Product Life Cycle Like people, products are born, grow, mature and eventually die With redesign or new uses, products can be reborn © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. The Product Life Cycle Introduction Growth Maturity Decline Google Glass Tablet computer Laptop computer Desktop computer Smartwatch LEGO Friends Print newspaper CD player Electric car Ford Focus Chevrolet Corvette PT Cruiser © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Stages of the Product Life Cycle Introductory Stage Marketers focus on making consumers aware of the product and its benefits Growth Stage The firm tries to strengthen its market position by emphasizing benefits Maturity Stage Severe competition and heavy costs Decline Stage Firms may eliminate models, cut costs and finally phase out products © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Finding New Markets for Old Products Baking soda Only used for cooking and reached maturity stage quickly Once discovered it could be used as deodorizer, baking soda moved back into growth stage Acer Focus on value by offering quality products inexpensively Iconia One 7 costs significantly less than competition Also introduced hybrid laptop/tablet Aiming for middle of market position for comeback © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Product Identification • Branding is the process of naming and identifying products A brand is a name, term, symbol, design or combination that identifies a product A brand name is the part that can be spoken and consists of letters, words and numbers A brand mark is the part of the brand that is a distinctive design, such as McDonald’s arches • Trademark is a brand registered with the U.S. Patent and Trademark Office and is thus legally protected from use by any other firm © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 17 Identifying Products Manufacturer Brands Initiated and owned by the manufacturer to identify products from the point of production to the point of purchase Private Distributor Brands May cost less than manufacturer brands, they are owned and controlled by a wholesaler or retailer Generic Products Products with no brand name that often come in simple packages and carry only their generic name © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 18 Packaging, Labeling, Quality Packaging The external container that holds and describes the product; influences consumers’ attitudes Provides: protection, economy, convenience and promotion Labeling The presentation of important information on a package; closely associated with packaging Contains: ingredients, nutrition facts, warnings, instructions and manufacturer’s address Quality The degree to which a good, service or idea meets the demands and requirements of customers © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 19 General Motors Recall ♦ Service quality is judged by consumers, not the service providers ♦ It is quite common for perceptions of quality to fluctuate from year to year ♦ General Motors recalled millions of vehicles due to quality control issues Problems included faulty ignition switches that prompted GM to issue recall on Chevy Cobalt These recalls have a negative impact on consumers’ perceptions of GM’s brand © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Google’s Brand Value Google is the most valuable brand worldwide Owns a variety of brands: search engine Google, web browser Chrome, video sharing site YouTube, and social networking site Google+ © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Calculating the Value of a Product o Almost anything of value can be assessed by a price o Consumers vary in their response to price o The product’s perceived value in the marketplace added to the production costs help determine price © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Pricing • Price – A key element in the marketing mix as it related directly to revenue and profits – Probably the most flexible variable; can be set or changed in a few minutes • Pricing Objectives – Specify the role of price in an organization’s marketing mix and strategy – Four common pricing objectives: maximizing profits, boosting market share, maintaining the status quo, and survival © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 23 Pricing New Products Price Skimming – Charging the highest possible price buyers who want the product will pay Penetration Price – A low price designed to help a product enter the market and gain market share rapidly © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 24 Psychological Pricing Psychological Pricing encourages purchasing based on emotional rather than rational responses to price Even/Odd Pricing assumes people will buy more of a product for $9.99 than $10 because it seems to be a bargain at the odd price Symbolic/Prestige Pricing assumes that high prices connote high quality Perfume and cosmetics prices are set artificially high to give the impression of superior quality © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Reference Pricing and Price Discounting Reference pricing A type of psychological pricing in which a lower-priced item is compared to a more expensive brand in hopes that the consumer will use the higher price as a comparison price Discounts Temporary price reductions often employed to boost sales o o o Quantity discounts Seasonal discounts Promotional discounts © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Distribution Strategy • Marketing Channel – A group of organizations that moves products from their producer to customers; also called a channel of distribution – Makes products available to customers when and where they desire to purchase them • Middlemen – Also called intermediaries, are organizations that bridge the gap between a product’s manufacturer and the ultimate consumer – Create time, place and ownership utility © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Retailers • Retailers – Intermediaries who buy products from manufacturers (or other intermediaries) and sell them to consumers for home and household use rather than for resale or for use in producing other products Move products from producers to a convenient retail establishment (place utility) Maintain hours of operation (time utility) Assume the risk of inventories (ownership utility) © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Wholesalers • Wholesalers – Intermediaries who buy from producers or from other wholesalers and sell to retailers © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. General Merchandise Retailers Department store Discount store Convenience store Supermarket Superstore Hypermarket Warehouse club Warehouse showroom © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Major Wholesaling Functions Supply Chain Management Creating long-term partnerships among channel members Promotion Providing a sales force, advertising, sales promotion, and publicity Warehousing, shipping, and product handling Receiving, storing, and stockkeeping Packaging Shipping outgoing orders Materials handling Arranging/making local and long-distance shipments Inventory control and data processing Processing orders Controlling physical inventory Recording transactions Tracking sales data for financial analysis Risk taking Assuming responsibility for theft, product obsolescence, and excess inventories Financing and budgeting Extending credit Making capital investments Forecasting cash flow Marketing research and Information systems Providing information about market Conducting research studies Managing computer networks to facilitate exchanges and relationships © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Marketing Channels for Consumer Products © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Distribution Decisions • Intensive Distribution – Product made available in as many outlets as possible – Used for frequently purchased items • Selective Distribution – Only a small number of all available outlets are used to expose products – Used most often when consumers buy only after shopping and comparing price, quality and style © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Zoom Systems ► To saturate market, wholesalers and retailers try to make the product available at every location where a consumer might desire to purchase it ► Zoom Systems vending machines for products beyond candy 1,500 machines in airports and hotels across U.S. Selling Apple iPods, Neutrogena hair and skin products, Sony products The vending machines accept credit cards and allow sales to occur in places where storefronts would be impossible Today’s ZoomShops sell a variety of brands, including products from Sephora, Best Buy, Macy’s, and Rosetta Stone © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Types of Distribution • Exclusive Distribution – The awarding by a manufacturer to an intermediary of the sole right to sell a product in a defined geographic territory – Includes high-quality merchandise • Physical Distribution – All the activities necessary to move products from producers to customers – inventory control, transportation, warehousing and materials handling – Both goods and services require physical distribution © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Transportation The shipment of products to buyers Railways – least expensive Motor vehicles – greater flexibility Inland waterways – cheap but slow Pipelines – transport petroleum and natural gas Airways – costly but speedy • Factors affecting choice – Cost – Capability – Reliability – Availability © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Warehousing and Materials Handling ♦ Warehousing is the design and operation of facilities to receive, store and ship products Companies can own their own warehouse, lease a private warehouse or rent space in a public warehouse ♦ Materials handling refers to the physical handling and movement of products in warehousing and transportation Handling processes vary significantly due to product characteristics © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Packaging Medication bottles have been problematic… Incidents of children taking medication because the bottle was easy for them to open led to the child-proof feature of the cap design Elderly also affected by insufficient packaging All the bottles look the same and the dosage directions are difficult to read ClearRx was designed specifically for this problem: ♦ It has a larger flat front surface where the label can be easily read and comes with colored bands so the patient can differentiate between medications based on color © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Promotion Strategy • Promotion encourages consumers to accept products and influences opinions and attitudes Advertising, personal selling, publicity and sales promotion are collectively known as the promotion mix • Integrated Marketing Communications Coordinating the promotion mix elements and synchronizing promotion as a unified effort This approach results in delivery of the desired message to consumers © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 39 Advertising Advertising – A paid form of non-personal communication transmitted through a mass medium, such as television commercials or magazine advertisements Advertising Campaign – Designing a series of advertisements and placing them in various media to reach a particular target mark – Several factors affect the campaign, including: product features, target audience, marketing objectives and the choice of media used © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Advertising Campaign ♦ Characteristics of the people in the target audience influence both content and form ♦ A product’s features, uses, and benefits affect content of campaign message and individual ads ♦ When Procter & Gamble promotes Crest toothpaste to children, the company emphasizes daily brushing and cavity control, whereas it promotes tartar control and whiter teeth when marketing to adults ♦ Hot Wheels uses colorful packaging and fun advertisements to appeal to children © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Personal Selling • Direct, two-way communication with buyers and potential buyers o Most flexible promotional method but expensive o Three categories of salesperson: Order takers – retail sales clerks Creative salespersons – automobiles sales Support salespersons – customer educators © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 42 Six-Step Process of Personal Selling 1. 2. 3. 4. 5. 6. Prospecting Approaching Presenting Handling objections Closing Following up © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Publicity Non-personal communication transmitted through mass media but not paid for directly by the firm Message is presented as a news story and the company is not seen as the originator of the message Most companies have a public relations department trying to gain favorable publicity and minimize negative publicity © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. How Advertising and Publicity Differ ♦ Purpose • ♦ Impact • ♦ Advertising calls for action; publicity rarely does Cost • ♦ Advertising informative, persuasive; publicity informative Companies pay for advertising; publicity is free Duration • Advertising is repeated often; publicity appears once © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Buzz Marketing • A variation of traditional advertising where marketers attempt to create a trend Companies seek out trend setters in a community and get them to “talk up” their product The idea is that accepted members of a group have more credibility than any form of paid communication Works best as part of an integrated marketing plan A related concept is viral marketing, which gets Internet users to pass on ads and promotions to others © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 46 Sales Promotion • Direct inducements offering added value or some other incentive for buyers to enter into an exchange Easier to measure and less expensive than advertising Includes: store displays, premiums, samples and demonstrations, coupons, contests and sweepstakes, refunds, and trade shows Used to enhance and supplement other forms of promotion © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 47 Strategies Push Strategy – An attempt to motivate intermediaries to push the product down to their customers Pull Strategy – Uses promotion to create consumer demand so consumers exert pressure on marketing channel members to make it available © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Push and Pull Strategies • Personal selling indicates a push strategy • The exclusive use of advertising is a pull strategy © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Objectives of Promotion ♦ Stimulate demand Often through ads and sales promotion, particularly important when using a pull strategy ♦ Stabilize sales Decreasing sales call for sales promotions and ads ♦ Inform, remind and reinforce customers ♦ Promotional positioning uses promotion to create and maintain an image of a product in buyers’ minds © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. The Importance of Marketing Strategy Marketing creates value through the marketing mix o The marketing mix must be carefully integrated into an effective marketing strategy o Companies with an effective marketing mix gain competitive advantage o Advantages often come when a company excels at one or more elements of the marketing mix o Companies must monitor demand and adapt the marketing mix when needed © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Solve the Dilemma (1 of 3) Better Health with Snacks • Deluxe Chips’ Deluxos tortilla chips are the number-one selling brand in North America and its Ridgerunner potato chips is also a market share leader ► Wants to stay on top of the market by changing marketing strategies to: ♦ Match changing consumer needs and preferences ► As middle-aged consumers modify their snacking habits, Deluxe Chips is considering new product line of light snack food ♦ With less fat and cholesterol ♦ Targeted at 35 to 50-year-old consumers who want to be more health conscious © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 52 Solve the Dilemma (2 of 3) Better Health with Snacks New healthy chips – Will succeed if taste good and consumers may be willing to pay more – More advertising to overcome competition – Possible to analyze customer profiles and retail store characteristics – Match right product with right neighborhood – Store-specific micromarketing spend promotional dollar more efficiently © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 53 Solve the Dilemma (3 of 3) Better Health with Snacks Discussion Questions – Design a marketing strategy for the new product line. – Critique your marketing strategy in terms of its strengths and weaknesses. – What are your suggestions for implementation of the marketing strategy? © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 54 Discussion ? ? ? ? What is the product life cycle? How does a product’s life cycle stage affect its marketing strategy? How do publicity and advertising differ? How are they related? Distinguish between the two ways to set the base price for a new product. What does the personal selling process involve? Briefly discuss the process. © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.