1. 7-1 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

2. 7-2 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

3. 7-3 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Superior Marketing Moves Quickly Moves Quickly Pricing Differential Pricing Differential Attention to Packaging Attention to Packaging Build Customer Loyalty Build Customer Loyalty Samples/Demonstrations Samples/Demonstrations Educate Customers Educate Customers Ryan McVay/Getty Images

4. 7-4 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Marketing Concept “…Giving Special Consideration To The Needs, Desires, And Wishes Of Present And Prospective Customers.”

5. 7-5 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Elements Of Marketing Concept 1)Customer Orientation 2)Goal Orientation 3)Systems Approach Jack Star/PhotoLink/Getty Images

6. 7-6 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Application Of 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

7. 7-7 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. E-Commerce “…Technology-Mediated Exchanges Between Parties As Well As The Electronically Based Intra- Or Interorganizational Activities That Facilitate Such Exchanges.”

8. 7-8 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Marketing Research Areas Identify Customers Determine Needs Evaluate Sales Potential Select Appropriate Channel Of Distribution Evaluate Advertising & Promotion PhotoLink/Getty Images

9. 7-9 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Steps In Marketing Research Define Problem Gather/Evaluate Information

10. 7-10 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Sources Of Information Existing Information Primary Research Specialized Techniques Web Computerized Databases Keith Brofsky/Getty Images

11. 7-11 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Marketing Research On The Internet

12. 7-12 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Checkout Automation

13. 7-13 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Marketing Strategy  Set Objectives  Choose Target Market  Market Segmentation  Shifting Target Markets  Regional Purchasing Differences Jason Reed/Getty Images

14. 7-14 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Shifting Markets- Population/Household Source: U.S. Census Bureau

15. 7-15 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Shifting Markets- Older Consumers

16. 7-16 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Shifting Markets- Senior Spenders

17. 7-17 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Marketing Mix (4 Ps) P roduct P lace P romotion P rice

18. 7-18 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Product Life Cycle

19. 7-19 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Packaging ProductPromotesProtectsIdentification Improves Product Convenience Promotes Brand Recognition Influences Buying Decision

20. 7-20 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Pricing (4 Cs) C ustomer C ompany C ompetition C onstraints Rob Melnychuk/Getty Images

21. 7-21 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. 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

22. 7-22 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Markup Markup As Percentage Of Cost = $ Amount Of Markup Cost Of The Item

23. 7-23 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Discounts And Allowances %Discount- Reduction On List Price As Incentive To Buy %Allowance- Given When Accepting Quality/Quantity Reduction Artvilee/Getty Images

24. 7-24 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Types Of Discounts/Allowances  Cash  Functional/Trade  Quantity  Promotional  Trade-Ins  Push/Prize Money Joshua Ets-Hokin/Getty Images BUY ONE GET ONE FREE

25. 7-25 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Small Business Price Setting $Service Firms $Retailers ¢Customary Price ¢Unit Price ¢Loss Leader $Wholesalers $Producers $Building Contractors- Cost-Plus PhotoLink/Getty Images

26. 7-26 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Marketing Services Nature Of Service PersonalBusiness Differentiating Services Adam Crowley/Getty Images

27. 7-27 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Marketing Service Strategy  Level Of Customer Contact  Primacy  Pricing  Quality  Degree Of Expertise/Specialty  Value To Buyer  Promotion Rob Melnychuk/Getty Images

28. 7-28 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Strategy Implementation- Introductory Stage  Analyze Situation  Present  Future  Fit Product To Market  Evaluate Resources Ryan McVay/Getty Images

29. 7-29 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.  New Classes Of Customers  Penetration Of Existing Market  Maintain Market Share By Design & Manufacturing Innovation Strategy Implementation- Growth Stage C. Borland/PhotoLink/Getty Images