****************** Part 3: How to Market Goods and Services 8.Developing Marketing Strategies 9.Promoting and Distributing

****************** Chapter 8 Developing Marketing Strategies McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

****************** Developing Market Strategies Marketing Concept Marketing Concept Market Research Market Research Marketing Strategy Marketing Strategy Product Life Cycle Product Life Cycle Packaging And Pricing Packaging And Pricing Services vs. Goods Services vs. Goods Chapter 7 USDA/ARS, Photo by Scott Bauer 8 - 3

****************** McGraw-Hill/Irwin Superior Marketing  Moves Quickly  Pricing Differential  Attention to Packaging  Build Customer Loyalty  Samples/Demonstrations  Educate Customers Ryan McVay/Getty Images

****************** Marketing Concept “…Giving Special Consideration To The Needs, Desires, And Wishes Of Present And Prospective Customers.”

****************** Elements Of Marketing Concept 1)Customer Orientation 2)Goal Orientation 3)Systems Approach Jack Star/PhotoLink/Getty Images

****************** Implementing the Marketing Concept  Conscious Of Image  Product Benefits  Company “Fit”  Offer Research  Unique Expertise  Not Pushy  Speak With Integrity  Practice Consumerism  Aware Of Danger Signals C. Borland/PhotoLink/Getty Images

****************** E-Commerce “…Technology-Mediated Exchanges Between Parties As Well As The Electronically Based Intra- Or Interorganizational Activities That Facilitate Such Exchanges.”

****************** Marketing Research Areas Identify Customers Determine Needs Evaluate Sales Potential Select Appropriate Channel Of Distribution Evaluate Advertising & Promotion PhotoLink/Getty Images

****************** Steps In Marketing Research Define Problem Gather/Evaluate Information

****************** Sources Of Information Existing Information Primary Research Specialized Techniques Web Computerized Databases Keith Brofsky/Getty Images

****************** Marketing Research On The Internet

****************** Checkout Automation

****************** Marketing Strategy  Set Objectives  Choose Target Market  Market Segmentation  Shifting Target Markets  Regional Purchasing Differences Jason Reed/Getty Images

****************** Shifting Markets- Population/Household Source: U.S. Census Bureau

****************** Shifting Markets- Older Consumers

****************** Shifting Markets- Senior Spenders

****************** Marketing Mix (4 Ps) P roduct P lace P romotion P rice

****************** Product Life Cycle

****************** Packaging ProductPromotesProtectsIdentification Improves Product Convenience Promotes Brand Recognition Influences Buying Decision

****************** Pricing (4 Cs) C ustomer C ompany C ompetition C onstraints Rob Melnychuk/Getty Images

****************** Influences On Pricing Policies  Stage Of Product Life Cycle  Competition  Cost-Oriented  Flexibility  Suggested Retail Price  List Price  Prestige Pricing  Leader Pricing  Bait Pricing  Odd Pricing  Psychological Pricing  Price Lining  Demand-Oriented Pricing

****************** Markup Markup As Percentage Of Cost = $ Amount Of Markup Cost Of The Item

****************** Discounts And Allowances %Discount- Reduction On List Price As Incentive To Buy %Allowance- Given When Accepting Quality/Quantity Reduction Artvilee/Getty Images

****************** Types Of Discounts/Allowances  Cash  Functional/Trade  Quantity  Promotional  Trade-Ins  Push/Prize Money Joshua Ets-Hokin/Getty Images BUY ONE GET ONE FREE

****************** Small Business Price Setting $Service Firms $Retailers ¢Customary Price ¢Unit Price ¢Loss Leader $Wholesalers $Producers $Building Contractors = Cost-Plus PhotoLink/Getty Images

****************** Marketing Services Nature Of Service PersonalBusiness Differentiating Services Adam Crowley/Getty Images

****************** Marketing Service Strategy  Level Of Customer Contact  Primacy  Pricing  Quality  Degree Of Expertise/Specialty  Value To Buyer  Promotion Rob Melnychuk/Getty Images

****************** Strategy Implementation- Introductory Stage  Analyze Situation  Present  Future  Fit Product To Market  Evaluate Resources Ryan McVay/Getty Images

******************  New Classes Of Customers  Penetration Of Existing Market  Maintain Market Share By Design & Marketing Innovation Strategy Implementation- Growth Stage C. Borland/PhotoLink/Getty Images