Download What Is Marketing?

Chapter 11
Developing
Product and
Pricing
Strategies
Copyright © 2009 Pearson Education Canada
11-1
What Is Marketing?
Conception
Pricing
Ideas
Individual
objectives
Copyright © 2009 Pearson Education Canada
Promotion
Services
Distribution
Goods
Organizational
objectives
11-2
Types of Marketing
Product marketing
Place marketing
Cause-related marketing
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11-3
The Role of Marketing
Needs and
wants
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Exchanges and
transactions
11-4
Form
Time
The Four
Utilities
Place
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Possession
11-5
The Marketing Concept
Customers
Profitability
Integration
Copyright © 2009 Pearson Education Canada
11-6
The Buyer’s
Decision-making Process
Need
recognition
Evaluation
of
alternatives
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Purchase
Information
search
Postpurchase
evaluation
11-7
Factors That Influence
the Buyer’s Decision
Culture
Social class
Reference groups
Self-image
Situational factors
Copyright © 2009 Pearson Education Canada
11-8
Analyzing Customer
Preferences
• Marketing Research
– Gathering and analyzing information about
customers and markets
– Research tools include:
•
•
•
•
•
Personal observations
Surveys and questionnaires
Experiments
Interviews
Focus groups
Copyright © 2009 Pearson Education Canada
11-9
Analyzing Customer
Preferences
• Database Marketing
– Recording and analyzing customer interactions,
preferences, and buying behavior for improved
communication.
– Information is gathered by:
• engaging in two-way dialogues with clients,
• customer purchase files
• e-mails, WebPages, fax machines, and toll-free
#’s.
Copyright © 2009 Pearson Education Canada
11-10
Building Customer
Relationships
Relationship
marketing
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One-to-one
marketing
11-11
Planning Marketing Strategies
1
Examine current
marketing situation
2
Assess opportunities
and set objectives
3
Develop marketing
strategy
Copyright © 2009 Pearson Education Canada
11-12
Examine the Current
Marketing Situation
Review
performance
Evaluate
the competition
Examine strengths
and weaknesses
Analyze the
external
environment
Copyright © 2009 Pearson Education Canada
11-13
Assess Opportunities
and Set Objectives
Market
penetration
New-product
development
Geographic
expansion
Diversification
Copyright © 2009 Pearson Education Canada
11-14
Develop the
Marketing Strategy
Segments and
niches
Target markets
Market position
Marketing mix
Copyright © 2009 Pearson Education Canada
11-15
Segmenting Markets
Demographics
Geographics
Psychographics
Geodemographics
Behavioural patterns
Usage patterns
Copyright © 2009 Pearson Education Canada
11-16
Target Market Strategies
Undifferentiated
(Mass)
Differentiated
Concentrated
(Niche)
Marketing Mix 1
Company
Marketing Mix
Marketing Mix 2
Company
Marketing Mix
Marketing Mix 3
Market
Copyright © 2009 Pearson Education Canada
Segment 1
Segment 1
Segment 2
Segment 2
Segment 3
Segment 3
11-17
Positioning the Product
• Features
• Services
• Image
• Category leadership
Copyright © 2009 Pearson Education Canada
11-18
Developing the Marketing Mix
Social Responsibility
Economics
Product
Society
Price
Target Market
Place
Technology
Nature
Promotion
Regulation
Business Ethics
Business Ethics
Competition
Politics
Social Responsibility
Copyright © 2009 Pearson Education Canada
11-19
The Product Continuum
Goods
Products
Salt
Shoes
Ideas
Services
DVD
Auto
Fast
Food
Tangible
Dominant
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Cruise
Consulting
Insurance
Education
Intangible
Dominant
11-20
Characteristics of
Service Products
Intangible
quality
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Perishable
nature
11-21
Consumer Products
Convenience
products
Shopping
products
Specialty
products
Unsought
goods
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11-22
Organizational
Products
Raw
materials
Installations
Components
Supplies
Equipment
Business
services
Copyright © 2009 Pearson Education Canada
11-23
The Product Life Cycle
Sales Volume (units)
Introduction Growth
+
0

Hybrid
GasElectric
Cars
Maturity
DVD’s
I-Pod
Decline
VCRs
Sales
Profits
Time
Copyright © 2009 Pearson Education Canada
11-24
Product Identities
Branding
Packaging
Labelling
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11-25
Branding Products
Brand names
National
brands
Co-branding
Brand marks
Generic
products
Private
brands
Trade marks
Copyright © 2009 Pearson Education Canada
11-26
Selecting Products
Product Line
Product Mix

Line filling

Width

Line extension

Length

Brand extension

Depth

Line stretching

Risks and rewards
Copyright © 2009 Pearson Education Canada
11-27
Developing Pricing
Strategies
Marketing
objectives
Government
regulations
Customer
perceptions
Consumer
demand
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11-28
Pricing Approaches
Cost-based
Price-based
Skimming
Penetration
Discounting
Copyright © 2009 Pearson Education Canada
11-29