3M company current goals are to improve energy efficiency per pound of product by 20 while reducing waste by 20 3M discovered a potentially new way to satisfy student needs by creating a new product by observing students in the future 3M will make use of product extension to attract new customers Windorski started with his idea and then investigated if there was a market for it chart 1 4 the marketing program was designed for the initial introduction of two new 3M products the reader can conclude that the promotion strategy is designed to increase awareness amongst potential users the purpose of the introduction of a 3M inventor s post it flag highlighter was to capitalize on previous success and extend the 3M product line why did 3M stop the production of Scotchgard fabric protector traces of a potentially harmful chemical were found in humans so the production was voluntarily halted 80 20 Rule eighty percent of a firm s sales are obtained from twenty percent of its customers 1 800 flowers com good example of a direct channel of distribution Ace Shoe Company Fixed cost is 6 million and unit variable is 5 a pair Ace earn a profit of 2 mill they must sell 800 000 kits at 15 Account Management Policies policies that specify whom salespeople should contact what kinds of selling and customer service activities should be engaged in and how these activities should be carried out policies might include which individuals in a buying organization should be contacted the amount of sales and service effort that different customers should receive and the kinds of information salespeople should collect before or during a sales call Activeion the lonator s key benefits using Activeion technology are Safety simplicity sustainability savings and fun Activeion s Obstacles it was difficult to define clean to customers relative to competitive household products Adaptive Selling example the prospect says What I really want is reliable transportation at the lowest price I can get The salesperson stops asking questions and pulls out a comparative price list that shows her company s transportation is the lowest priced and most reliable on the market Administered Vertical Marketing System example Kraft selling its mayo in Acme stores Procter and Gamble represents this type of vertical system Advertising advertising can be used to reach a very large audience or to reach a much smaller specialized audience pretests are conducted before advertisements are placed in a medium example McDonalds as and Rolex ad Pioneering Advertising most likely used to inform key objective is to tell people what a product is what it can do and where it can be found Internet Advertising can use rich media to create interactive ads television can target specific audiences magazine the ability to target specific audiences TIME magazine it costs 320 100 for a 4 color one page ad disadvantage is its relatively high cost African American Buying Patterns buying power is still affected by the negative consequences of disparities in employment and educational opportunities in earlier American history buying patterns when socioeconomic status difference between African Americans and Caucasians are removed there are more similarities than points of difference the mahogany line is designed to appeal to African Americans demographic segmentation Agent any intermediary with legal authority to act on behalf of the manufacturer Airlines inventory carrying costs is high because of high salaried pilot and very expensive equipment Idle production capacity once the plane takes off the other 96 seats are of no value to the airline load factor refers to the percentage of available seats flown one mile occupied by a paying customer Air Carriers are most commonly used for perishable flowers clothing and electronic parts Alicia Silverstone promoted vegetarianism sex appeals in ads may get attention but they may also be rejected by media or audiences who are upset by such appeals Alternative Product Life Cycle low learning that results from products that are easily limited by competitors consumers who readily understand their benefits and for which the appropriate marketing strategy Ancillary Service example seen in a B2B market favorable credit terms Analysis gap analysis a type of analysis that compares the difference between consumers expectations about a service and their experience with the service based on dimensions of service quality Ann Taylor started losing sales to its Loft outlets featuring moderately priced casual clothes they were dealing with cannibalism Apple original market share was zero eighteen months later it was 8 Aspiration Group the American Express advertising claim that membership has its privileges Aspiration Group a group that a person wishes to be a member of or wishes to be identified with Asian Free Trade Agreements have reduced tariffs among countries and promoted trade Assumptive Close asking the prospect to make choices concerning delivery warranty or financing terms Attitude a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way AT T representative called to make sure a customer was satisfied and asked if he had any question concerning his new service example of a follow up Authentic Offerings 1 manage any dimension of a firm s reputation that might influence perception of authenticity facilitate customer customization 2 3 provide personal interactions rather than automation 4 create a social process that allows consumers to share their interests Average Net after tax profits for retailers 2 3 B2B Buying the focus on buying criteria is and quality issues important because firms are making less in house and buying more from suppliers Baby Boomers are important to the consumer market because of their increased earning and participation in the workforce the generation of children born between 1946 and 1964 represent nearly 25 of the US population an important consumer market concern for their children and grandchildren their own health and their retirement example Olay s promotion for fighting signs of aging targeted at baby boomers Littleton hospital the number of people in your geographic area who are 60 years or older will increase by 23 during the next 5 years the age segment in America expected to almost double in size by 2030 is composed of people aged 65 and over Barter the practice of exchanging products and services for other products and services