1. 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

2. Cirque du Soleil opening photo
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Cirque du Soleil opening photo
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3. Exhibit 2-1: The Marketing Management Process
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Exhibit 2-1: The Marketing Management Process
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4. Exhibit 2-2: A Marketing Strategy
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Exhibit 2-2: A Marketing Strategy
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Exhibit 2-3: Production-Oriented and Marketing-Oriented Managers Have Different Views of the Market.
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Exhibit 2-4: A Marketing Strategy—Showing the Four Ps of a Marketing Mix
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7. Exhibit 2-5: Strategy Decision Areas Organized by the 4 Ps
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Exhibit 2-5: Strategy Decision Areas Organized by the 4 Ps
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8. Multimedia Lecture Support Package to Accompany Basic Marketing
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British Airways Ad
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9. Exhibit 2-6: Four Basic Channels of Distribution for Consumer Products
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Exhibit 2-6: Four Basic Channels of Distribution for Consumer Products
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Toddler University ad
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Campbell Soup at Hand ad
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Campbell Healthy Request Soup ad
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Campbell Select Soup ad
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Exhibit 2-7: Relation of Strategy Policies to Operational Decisions for Baby Shoe Company
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15. Exhibit 2-8: Elements of a Firm’s Marketing Program
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Exhibit 2-8: Elements of a Firm’s Marketing Program
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16. Sony Blu-ray Disc photo
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Sony Blu-ray Disc photo
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Timex Ironman ad
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Exhibit 2-9: Distribution of Different Firms Based on Their Marketing Performance
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Diet Coke Plus ad
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Kleenex Moist Cloths ad
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21. Exhibit 2-10: Overview of Marketing Strategy Planning Process
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Johnson & Johnson Natural Colour contact lenses ad
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23. Market Penetration Coleman cooler with NASCAR sticker photo
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Market Penetration Coleman cooler with NASCAR sticker photo
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24. Exhibit 2-11: Four Basic Types of Opportunities
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Exhibit 2-11: Four Basic Types of Opportunities
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Heinz ad
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Crocs ad
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Lipton Ice Tea website
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28. Lipton Ice Tea Asia Street Scene photo
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Lipton Ice Tea Asia Street Scene photo
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29. Dell with huge flat-screen TV photo
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Dell with huge flat-screen TV photo
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30. Target Marketing vs. Mass Marketing
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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
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31. The Four Ps and Marketing Mix Planning
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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
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Lufthansa and Lay’s Dip ads
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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.
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Three Gillette Products photo
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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
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36. Marketing Manager’s Framework
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Marketing Manager’s Framework
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Customer Equity Increases as a Firm Attracts Customers, Retains Them, and Increases Earnings with Them
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Timex electronic navigation add
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39. Competitive Advantage
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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
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40. Multimedia Lecture Support Package to Accompany Basic Marketing
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Yoplait breakfast bars photo
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41. Focusing Marketing Strategy and Evaluating Market Opportunities
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Focusing Marketing Strategy and Evaluating Market Opportunities
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42. Marketing Strategy Planning Process
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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)
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43. Examples of Different Types of Opportunities
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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
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Product Development
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45. Creative Strategy Planning Needed for Survival
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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%
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46. The Importance of Marketing Strategy Planning
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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
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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?
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The Product Element of the Marketing Mix
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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.
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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)?
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