1. Review MKT 102 HAUT Spring 2015

3. What Is a Product? Levels of Product and Services

4. Services Marketing Nature and Characteristics of a Service

5. New-Product Development Reasons for new product failure Overestimation of market sizePoor designIncorrect positioningWrong timingPriced too highIneffective promotionManagement influenceHigh development costsCompetition

6. Branding Strategy: Building Strong Brands Brand Development Strategies

7. Channel Design Decisions Identifying Major Alternatives

8. Factors to Consider When Setting Prices Everyday low pricing (EDLP) involves charging a constant everyday low price with few or no temporary price discounts High-low pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items Customer Perceptions of Value

9. Online Marketing Business to consumer (B2C) Business to business (B2B) Consumer to consumer (C2C) Consumer to business (C2B) Online Marketing Domains

10. The Promotion Mix Major Promotion Tools

11. Product and Service Decisions Brand is the name, term, sign, or design—or a combination of these—that identifies the maker or seller of a product or service Brand equity is the differential effect that the brand name has on customer response to the product and its marketing Individual Product and Service Decisions

12. Product and Service Decisions Product line length is the number of items in the product line Line stretching Line filling Product Line Decisions

13. What Is a Product? Consumer products are products and services for personal consumption Classified by how consumers buy them – Convenience products – Shopping products – Specialty products – Unsought products Product and Service Classifications

14. Supply Chains and the Value Delivery Network Upstream partners include raw material suppliers, components, parts, information, finances, and expertise to create a product or service Downstream partners include the marketing channels or distribution channels that look toward the customer Supply Chain Partners

15. Channel Behavior and Organization Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers. Each seeks to maximize its own profits, and there is little control over the other members and no formal means for assigning roles and resolving conflict. Conventional Distributions Systems

16. Channel Behavior and Organization Vertical marketing systems (VMSs) provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system and consist of: Corporate marketing systems Contractual marketing systems Administered marketing systems Vertical Marketing Systems

17. Channel Behavior and Organization Corporate vertical marketing system integrates successive stages of production and distribution under single ownership Vertical Marketing Systems

18. Channel Behavior and Organization Contractual vertical marketing system consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies or sales impact than each could achieve alone. The most common form is the franchise organization. Vertical Marketing Systems

19. Channel Behavior and Organization Franchise organization links several stages in the production distribution process –Manufacturer-sponsored retailer franchise system –Manufacturer-sponsored wholesaler franchise system –Service firm-sponsored retailer franchise system Vertical Marketing Systems

20. Channel Behavior and Organization Administered vertical marketing system has a few dominant channel members without common ownership. Leadership comes from size and power. Vertical Marketing Systems

21. Growth and Benefits of Direct Marketing Convenience Ready access to many products Access to comparative information about companies, products, and competitors Interactive and immediate Benefits to Buyers

22. Growth and Benefits of Direct Marketing Tool to build customer relationships Low-cost, efficient, fast alternative to reach markets Flexible Access to buyers not reachable through other channels Benefits to Sellers

23. New-Product Pricing Strategies Market-skimming pricing is a strategy with high initial prices to “skim” revenue layers from the market Product quality and image must support the price Buyers must want the product at the price Costs of producing the product in small volume should not cancel the advantage of higher prices Competitors should not be able to enter the market easily

24. New-Product Pricing Strategies Market-penetration pricing sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share Price sensitive market Inverse relationship of production and distribution cost to sales growth Low prices must keep competition out of the market Pricing Strategies