Slide 1Slide 2Slide 3Concord Music Group (CMG): A savvy flair for marketing.The Marketing MixSlide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Product Life-CycleProduct Life CycleSlide 17Identifying ProductsBrandingBrandsPackagingSlide 22Slide 23Product QualitySlide 25Pricing StrategyPricing StrategiesA Green Marketing StrategyDistribution StrategiesRetailersSlide 31Slide 32Slide 33Slide 34Promotion Strategies: To Push or Pull13-1Business in aChanging WorldMcGraw-Hill/IrwinCopyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.Chapter 13Dimensions of Marketing Strategy213-313-4Concord Music Group (CMG): A savvy flair for marketing.Merger between Concord Records and Fantasy Records in 2004; added Telarc Records in 2005. Together, largest and fastest growing independent music companies in the world.13-5The Marketing MixKey to developing marketing strategy•Maintain right mix•satisfy target market•Long-term customer relations13-6Dimension of value surpassing all others:•Wal-Mart – price•Procter & Gamble – top consumer brands•Domino’s Pizza – distribution via home deliveryThe Marketing MixCompetitive Advantage13-7Product Strategy – •Fred Smith and Federal Express•Professor said “Smith’s idea would never fly”The Marketing Mix13-8Developing New Products – Multi-step process•Idea development•Screening of new ideas•Business analysis•Product development•Test marketing•CommercializationProduct Strategy13-9Test marketing – a trial mini-launch of a new product in limited areas that represent the potential market. Product Development13-10Commercialization – The full introduction of a complete marketing strategy and the launch of the product for commercial success. Product Development13-11ACNielsen Market DecisionsProduct Development13-12Classifying ProductsConsumer Products•Convenience products•Shopping products•Specialty products13-13Classifying ProductsBusiness Products•Raw materials•Major equipment•Accessory equipment•Component parts•Processed materials•Industrial services13-14Product line–Group of closely related products that are treated as a unit because of a similar marketing strategy, production, or end-useProduct Mix – All the products offered by the companyMarketing Mix13-15Product Life-CycleThe Life Cycle of a Product13-16Product Life Cycle45 years of strong sales – Mattel’s Barbie doll’s life cycle is waning. Today, edgier dolls like Bratz dolls give Barbie a run for her money.13-17U.S. Hybrid Vehicle Sales 1999-2008Product Life Cycle13-18Identifying ProductsBranding – process of identifying products•Name•Term•Symbol•Design13-19BrandingThe Most Valuable Brands in the World13-20BrandsManufacturer brands – initiated and owned by the manufacturer to identify products from production to point of purchase.Private distributor brands – cost less than manufacturer brands; owned and controlled by wholesaler or retailerGeneric brands – no brand name often come in simple packages and carry their generic name.13-21PackagingExternal container holds & describes the product:•Protection•Economy•Convenience•Promotion13-22BrandsCoca-Cola is the most valuable brand in the world13-23BrandingLabeling (often by law):•Ingredients or content•Nutrition facts (calories, fat, etc.)•Care instructions•Suggestions or use (such as recipes)•The manufacturer’s address and toll-free number•Web site•Other useful information13-24Product QualityProduct quality --Degree to which a good, service, or idea meets the demands and requirements of customers13-25QualityCustomer Satisfaction with Airlines1 AirTran2 JetBlue3 Southwest4 Northwest5 Frontier6 Continental7 Alaska8 United9 American10 Delta13-26Pricing StrategyFour Common Pricing Objectives:•Maximize profits and sales•Boost market share•Maintain the status quo•Survival13-27Pricing StrategiesNew Product PricingPrice skimming Penetration pricingPsychological Pricing Odd/EvenPrestige pricingPrice DiscountingQuantity discountsSeasonal discountPromotional discounts13-28A Green Marketing Strategy•Target Market-consumers that want to make eco-friendly decisions •Product-designed to reduce impact on the environment•Price-includes added costs•Promotion- electronic media to reduce the use of natural resources •Distribution-reduce emissions through efficient transport, communication, & supply chain management13-29Distribution StrategiesMarketing Channels•Retailers (Wal-Mart, Sears)•Wholesalers (food brokers to restaurants)•E-tailers (Amazon.com)13-30Retailers13-31Intensity of Market CoverageIntensive distributionMakes a product available in as many outlets as possibleSelective distributionUses only a small proportion of all available outlets to expose productsExclusive distributionExists when a manufacturer gives a middleman the sole right to sell a product in a defined geographic territory13-32DistributionPhysical distribution -- includes all the activities necessary to move products from producers to customers.•Inventory control•Transportation•Warehousing•Materials handling13-33Promotion StrategyPromotion mix•Advertising•Personal selling•Publicity•Sales promotion Integrated marketing communicationsThe process of coordinating the promotion mix elements and synchronizing promotion as a unified effort13-34Personal SellingDirect, two-way communication with sellers & potential buyers •Prospecting•Approaching•Presenting•Handling objections•Closing – asking for the order•Following up13-35Promotion Strategies: To Push or