1. Basic Marketing – Chapter 03 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. McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Bank of America opening photo 3-2

3. Exhibit 3-1: Marketing Strategy Planning, Competitors, Company and External Market Environment 3-3

4. 3M Post-It Notes ad 3-4

5. Exhibit 3-2: A Hierarchy of Objectives 3-5

6. Knorr ad 3-6

7. Minwax ad 3-7

8. Dirt Devil ad 3-8

9. Cashmere ad 3-9

10. Exhibit 3-3: Competitor Analysis (summary): Disposable Diaper Competition in Japan 3-10

11. Smart Car ad 3-11

12. SIRIUS ad 3-12

13. Adero ad 3-13

14. Mucinex D ad 3-14

15. Exhibit 3-4: Focus (mostly prohibitions) of Federal Antimonopoly Laws on the Four Ps 3-15

16. Citigroup ad for women (U.S.) 3-16

17. Citigroup ad for women (Japan) 3-17

18. Toyota ad 3-18

19. Exhibit 3-5: An Example of Product-Market Screening Criteria for a Small Retail and Wholesale Distributor ($10 million annual sales) 3-19

20. Exhibit 3-6: Expected Sales and Cost Curves of Two Strategies over Five-Year Planning Periods 3-20

21. Exhibit 3-7: General Electric’s Strategic Planning Grid 3-21

22. Honda Civic Hybrid ad 3-22

23. Honda Civic ad 3-23

24. Honda Jet ad 3-24

25. LambWeston ad 3-25

26. Click2Asia.co m ad 3-26

27. Exhibit 3-8: Continuum of Environmental Sensitivity 3-27

28. Bank of America photo 3-28

29. Liquid Paper ad 3-29

30. Mission Statement Provides Guidelines  Mission statement helps set the course of a firm by explicitly stating the organization’s basic purpose for being  May make it clear that some opportunities (target market or marketing mix alternatives) are not related to the mission  Some opportunities may be a good fit with mission, but not as good a fit or as high a priority as others  Mission statement works in combination with specific objectives and should relate to screening criteria used to evaluate strategy alternatives 3-30

31. Basic Objectives Provide Guidelines 3-31

32. Examples of Company Resources  Financial strength (Intel)  Producing flexibility (DaimlerChrysler)  Patents (IBM)  Channel relationships (Kraft)  Loyal customer base (Starbucks)  Technical capability (3M) 3-32

33. Harley- Davidson logo 3-33

34. Hanson ad 3-34

35. Smart Money and CNN Anderson Cooper ads 3-35

36. Examples of Effect of Technological Environment  Rapid changes in the Internet and World Wide Web  Robotics (better quality control, lower production costs)  Networked computer scanners at retail check-out counters  Worldwide satellites for data communication  Automated inventory control  Hybrid engines for vehicles  New drugs based on knowledge of genes 3-36

37. AT&T ad 3-37

38. Examples of Changes in the Political/Legal Environment  Deregulation of energy industries  Less emphasis on antitrust laws by federal government  Maturing of consumerism  More attention to laws governing international trade  Changes in labeling requirements  Increased concern about consumer privacy 3-38

39. Major Focus of Some Important Laws that Affect Marketing  Sherman Act (1890)  prohibits conspiracy to reduce competition  example: price fixing agreements among competing firms  Federal Trade Commission Act (1914)  prohibits unfair methods of competition  example: use of deceptive advertising  Robinson-Patman Act (1936)  prohibits most types of price-related discrimination  example: offering advertising allowances to some middlemen but not others (without cost justification) 3-39

40. Some Important U.S. Federal Regulatory Agencies Federal Trade Commission (FTC) Enforces laws and develops guidelines regarding unfair business practices Food and Drug Administration (FDA) Enforces laws and develops regulations to prevent distribution and sale of adulterated or misbranded foods, drugs, cosmetics, and hazardous consumer products Consumer Product Safety Commission (CPSC) Enforces the Consumer Product Safety Act—which covers any consumer product not assigned to other regulatory agencies Federal Communications Commission (FCC) Regulates interstate wire, radio, television, and telephone Environmental Protection Agency (EPA) Develops and enforces environmental protection standards 3-40

41. Examples of Trends in the Cultural Environment  More women in the work force  Aging of America, but accompanied by new growth in ethnic groups  More single-person households  More health consciousness  More concern about the environment 3-41

42. GE’s Strategic Planning Grid  A way of organizing business judgments about existing and/or proposed product-market plans  Business Strengths Dimension  Company size, market share  Profit margins  Technology position  Limiting factors (personnel, capital needed, etc.)  Industry Attractiveness Dimension  Size of market and growth trends  Competitive situation  Social impact  Industry profitability 3-42

43. Three Honda ads 3-43

44. Marketing Strategy Planning: Competitors, Company & External Market Environment (Ex. 3-1) 3-44

45. Marketing Strengths 3-45

46. Competitive Advantage 3-46