Basic Marketing – Chapter 02 Supplementary PowerPoint Archive This is an archive of photos and exhibits from the text and additional graphics and exhibits as referenced in the Basic Marketing Multimedia Lecture Guides. See the Basic Marketing Multimedia Lecture Support Package for additional detail and teaching suggestions. For use only with Perreault/Cannon/McCarthy. These images may not be redistributed or used for any other purpose without permission of the publisher, McGraw-Hill/Irwin, The McGraw-Hill Companies, Inc. William D. Perreault Jr. and E. Jerome McCarthy McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. For use only with Perreault and McCarthy texts. © 2010 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

Cirque du Soleil opening photo 2-2 Cirque du Soleil opening photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-2

Exhibit 2-1: The Marketing Management Process 2-3 Exhibit 2-1: The Marketing Management Process Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-3

Exhibit 2-2: A Marketing Strategy 2-4 Exhibit 2-2: A Marketing Strategy Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-4

Multimedia Lecture Support Package to Accompany Basic Marketing 2-5 Exhibit 2-3: Production-Oriented and Marketing-Oriented Managers Have Different Views of the Market. Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-5

Multimedia Lecture Support Package to Accompany Basic Marketing 2-6 Exhibit 2-4: A Marketing Strategy—Showing the Four Ps of a Marketing Mix Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-6

Exhibit 2-5: Strategy Decision Areas Organized by the 4 Ps 2-7 Exhibit 2-5: Strategy Decision Areas Organized by the 4 Ps Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-7

Multimedia Lecture Support Package to Accompany Basic Marketing 2-8 British Airways Ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-8

Exhibit 2-6: Four Basic Channels of Distribution for Consumer Products 2-9 Exhibit 2-6: Four Basic Channels of Distribution for Consumer Products Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-9

Multimedia Lecture Support Package to Accompany Basic Marketing 2-10 Toddler University ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-10

Multimedia Lecture Support Package to Accompany Basic Marketing 2-11 Campbell Soup at Hand ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-11

Multimedia Lecture Support Package to Accompany Basic Marketing 2-12 Campbell Healthy Request Soup ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-12

Multimedia Lecture Support Package to Accompany Basic Marketing 2-13 Campbell Select Soup ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-13

Multimedia Lecture Support Package to Accompany Basic Marketing 2-14 Exhibit 2-7: Relation of Strategy Policies to Operational Decisions for Baby Shoe Company Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-14

Exhibit 2-8: Elements of a Firm’s Marketing Program 2-15 Exhibit 2-8: Elements of a Firm’s Marketing Program Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-15

Sony Blu-ray Disc photo 2-16 Sony Blu-ray Disc photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-16

Multimedia Lecture Support Package to Accompany Basic Marketing 2-17 Timex Ironman ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-17

Multimedia Lecture Support Package to Accompany Basic Marketing Exhibit 2-9: Distribution of Different Firms Based on Their Marketing Performance 2-18 Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-18

Multimedia Lecture Support Package to Accompany Basic Marketing 2-19 Diet Coke Plus ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-19

Multimedia Lecture Support Package to Accompany Basic Marketing 2-20 Kleenex Moist Cloths ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-20

Exhibit 2-10: Overview of Marketing Strategy Planning Process 2-21 Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-21

Multimedia Lecture Support Package to Accompany Basic Marketing 2-22 Johnson & Johnson Natural Colour contact lenses ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-22

Market Penetration Coleman cooler with NASCAR sticker photo 2-23 Market Penetration Coleman cooler with NASCAR sticker photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-23

Exhibit 2-11: Four Basic Types of Opportunities 2-24 Exhibit 2-11: Four Basic Types of Opportunities Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-24

Multimedia Lecture Support Package to Accompany Basic Marketing 2-25 Heinz ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-25

Multimedia Lecture Support Package to Accompany Basic Marketing 2-26 Crocs ad Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-26

Multimedia Lecture Support Package to Accompany Basic Marketing 2-27 Lipton Ice Tea website Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-27

Lipton Ice Tea Asia Street Scene photo 2-28 Lipton Ice Tea Asia Street Scene photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-28

Dell with huge flat-screen TV photo 2-29 Dell with huge flat-screen TV photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-29`

Target Marketing vs. Mass Marketing 2-30 Target Marketing vs. Mass Marketing TARGET MARKETING Marketing mix is tailored to fit specific target customer(s) MASS MARKETING Vaguely aims at everyone with the same marketing mix Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-30

The Four Ps and Marketing Mix Planning 2-31 The Four Ps and Marketing Mix Planning Why is the Four Ps idea helpful? Provides an organizing framework Helps to bring many, more detailed decisions together in a logical fashion Focuses thinking on the idea that all marketing decisions must work together as a whole Focuses on a managerial orientation—and what a marketing manager/firm can do about needs of target customers Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-31

Multimedia Lecture Support Package to Accompany Basic Marketing 2-32 Lufthansa and Lay’s Dip ads Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-32

Multimedia Lecture Support Package to Accompany Basic Marketing 2-33 The Marketing Plan Marketing plan: a written statement of a marketing strategy and the time related details for carrying out the strategy. Spells out, in detail: What marketing mix is to be offered To what target market For how long What resources (costs) are needed at what rate What results are expected What control procedures will be used. Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-33

Multimedia Lecture Support Package to Accompany Basic Marketing 2-34 Three Gillette Products photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-34

Multimedia Lecture Support Package to Accompany Basic Marketing 2-35 Marketing Program Marketing program: blends all of the firm's marketing plans into one big plan—which is an integrated part of the whole-company strategic plan Program requires an effective building up process A good program must be based on good plans Each plan must be carefully developed Each plan is based on a marketing strategy Each strategy is based on a marketing mix and a target market Plans in overall program should work together to enhance a competitive advantage Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-35

Marketing Manager’s Framework 2-36 Marketing Manager’s Framework Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-36

Multimedia Lecture Support Package to Accompany Basic Marketing 2-37 Customer Equity Increases as a Firm Attracts Customers, Retains Them, and Increases Earnings with Them Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-37

Multimedia Lecture Support Package to Accompany Basic Marketing 2-38 Timex electronic navigation add Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-38

Competitive Advantage 2-39 Competitive Advantage Competitive advantage: the firm has a marketing mix that the target market sees as better than a competitor's mix A better marketing mix offers target customers better customer value Note: customers who are not in the target market may not see the marketing mix as offering better value Requires that the firm: understand current competitors' offerings anticipate competitors' likely plans monitor effects of changes in competition REALLY understand the target customers' needs Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-39

Multimedia Lecture Support Package to Accompany Basic Marketing 2-40 Yoplait breakfast bars photo Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-40

Focusing Marketing Strategy and Evaluating Market Opportunities 2-41 Focusing Marketing Strategy and Evaluating Market Opportunities Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-41

Marketing Strategy Planning Process 2-42 Marketing Strategy Planning Process Narrowing down from broad market opportunities that a firm might pursue to a specific strategy Marketing strategy specifies a specific target market and a specific marketing mix Not just some strategy, but one that will offer target customers superior value Segmentation helps pinpoint a specific target market Differentiation helps pinpoint a marketing mix that is different from and better than what is available from a competitor Screening criteria make it clear why you select a specific strategy (and why others are screened out) S.W.O.T. analysis identifies and lists a firm’s strengths and weaknesses and its opportunities and threats S.W.O.T helps identify relevant screening criteria (what is needed to get a competitive advantage) Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-42

Examples of Different Types of Opportunities 2-43 Market Penetration Arm & Hammer promotes new uses of its baking soda Market Development Marriott Hotels target families for weekend get-aways to rent rooms filled by business travelers during the week Product Development Microsoft develops a new version of its Windows operating system to appeal to the people who bought an earlier version but now want more features Diversification RJR, the cigarette producer, adds baked goods to its product line to appeal to new customers Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-43

Multimedia Lecture Support Package to Accompany Basic Marketing 2-44 Product Development Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-44

Creative Strategy Planning Needed for Survival 2-45 Death-wish marketing Best-practices marketing (Below average) (Above average) Summary Overview Planning is crucial because it sets the course the company will follow in everything else it does. Good plans implemented poorly might still be profitable. Ill-conceived plans, even implemented well, can lose money and even threaten the survival of the organization. Key Issues Creative strategy planning is needed for survival. Dramatic shifts in strategy are increasingly the norm in fast-moving markets.  Marketers should focus on best practices for improved results. The average marketing program does not produce great results. It’s important to do better than what’s typical! Discussion Question: Based on your experience as a consumer, can you suggest an organization that, in your opinion, seems to be heading down the road toward “death-wish” marketing? Now, can you think of another organization that seems to be pursuing “best practices?” Compare and contrast the two organizations. 68% (Average Marketing Program) (Well below average) (Well above average) 2% 14% 14% Failure Poor Fair Good Exceptional 2% Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-45

The Importance of Marketing Strategy Planning 2-46 Strategy Decisions Usually Determine Success and Failure Strategy Decisions Usually Determine Success and Failure Timex had captured a large market share Summary Overview  Strategy decisions dictate what business a company is in and what strategies it follows. Marketing strategy planning is emphasized in this presentation because strategy decisions usually determine success and failure. Key Issues Case history--the watch industry Through the years, Timex had captured a large share of market.  The company combined low price and dependability with a catchy advertising slogan and intensive distribution.  In the 1980s and 1990s, Timex faced increased competition.  By the year 2000, Timex designers were refining the product to include other uses. Today, Timex faces competition from the makers of cell phones and/or MP3 players which also have a time display. The case history demonstrates that changes in the market are always occurring and that planning must be ongoing. Low price, dependability, good ads, unconventional channels Stiff competition arose New product refinements Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-46

Multimedia Lecture Support Package to Accompany Basic Marketing 2-47 Product Development Summary Overview 3M practices product development by offering a new or improved product—a transparent duct tape—for its present markets. Key Issues In creating a tape that is tight and also six times stronger than ordinary gray duct tape, 3M is offering an improved product to its present markets. It may be a good example of market development as well since a new group of consumers who had never used gray duct tape before are now using the improved product because of its “out of sight” benefit. Manufacturers, such as 3M, have ongoing new-product development processes to meet emerging needs. Many manufacturers have accelerated their new-product development in recent years, including new packaging for improved customer convenience. Service firms also practice “product” development, by offering new services. Discussion Question: Can you provide an example of a service firm that practices “product” development? Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-47

Multimedia Lecture Support Package to Accompany Basic Marketing The Product Element of the Marketing Mix 2-48 Summary Overview The Claritas Corporation helps companies to develop the right products for their customers by providing software that enables users to query a market or site. This software returns a descriptive analysis drawn from Claritas' databases of demographics, lifestyle behaviors, consumer spending, etc. based on any geography in the country. Key Issues The product can be a tangible good or an intangible service, like the software product shown in the Claritas ad. Discussion Question: What are the tangible and intangible elements of the IMark software promoted in this ad? Product considerations include: physical characteristics, branding, packaging, warranties; after-sale service; managing the product assortment; new product development; management of the product throughout its life cycle. Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-48

Multimedia Lecture Support Package to Accompany Basic Marketing 2-49 Market Penetration Summary Overview Playtex Products’ new Wet Ones travel pack is a good example of market penetration. Playtex practices market penetration in this ad by attempting to increase sales of the firm’s present products in its present markets. Key Issues By packaging Wet Ones in convenient carry-along units, Playtex can target away-from-home use as well as at-home use. In doing so, it strengthens its relationship with its customers and increases their rate of use of its Wet Ones product. Discussion Question: Can a company pursue a market penetration strategy and simultaneously pursue other types of opportunities (market development, product development, or diversification)? Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 2-49