1.

COMPANYWIDE STRATEGY PLANNING

l Strategic/Long-Range Planning [Chap 02, pg. 34]

Defining Setting Planning

Designing
Market- Company's Business Marketing and
Oriented Objectives and ther Functional
Portfolio
Mission Goals Strategies

Nike: Bring Monsanto:

inspiration and Improve profits
innovation to (to support
every athlete research)

 Designing Business Portfolio

o Best fits Company’s Strengths and Weaknesses to Opportunities in Environment
o Analysis of Current Portfolio – BCG Growth-Share Matrix [Chap 02, pg. 38]
 Identify SBU(s) (Company division/Product line/Single product or brand)
 Evaluation: Attractiveness of SBU's market and strength of SBU’s position
 Company cycle: ?  Star  Cash Cow  Dog

Star Question Mark

Market High Heavy investment High maintenance
Growth Cash Cow Dog
Rate Low Harvest/Little investment Divest
Large source ofRelative
cash Market Share
Self-support
High Low
o Strategies for Future Portfolio (Growth/Downsizing) – Product/Market
Expansion Grid [Chap 02, pg. 41]

Existing Markets Market Penetration Product Development

New Markets Market Development Diversification
Existing Products New Products
 Starbucks
 Market penetration via new stores, improved advertising, price, menu
selection, store design, wireless access, Starbucks Card, drive-through
windows
 Market development via new demographic groups (Seniors/Ethnic
groups), new geographical markets (U.S., China)
 Product development via calorie-reduced Frappuccino Light Blended
Beverages, Chantico (Indulgent chocolate beverage)
 Diversification via purchase of Hear Music to sell/play compiled music
and subsequent installation of Media Bars (Kiosks allowing
downloading/ burning of own CDs).

2. UNDERSTANDING THE MARKETPLACE AND CONSUMERS’ NEEDS AND WANTS

1
l TOWS Analysis [Chap 02, pg. 51]

l Marketing Environment
 Micro-Environment [Chap 03, pg 61]
o Company
o Suppliers
o Marketing Intermediaries (Reseller/Physical distribution firms/Marketing
services agencies/Financial intermediaries)
o Customers
o Competitors
o Publics (Financial/Media/Government/Citizen-action/Local/General/Internal)
 Macro-Environment [Chap 03, pg 64]
o Demographic
 Aging population
 Toyota: RV for Baby boomers
 Washington Mutual: Marketing campaign for Gen. X showing young home
buyers how they can simplify home buying process. The “Buying a Home”
page on WaMu’s website is an “all-you-ever-wanted-to-know” resource for
new home financing.
 Toyota: Virtual promotion of small boxy Scion in Whyville.net for Gen. Y to
influence their parents’ car purchases and grow up with some Toyota brand
loyalty.
 Higher divorce rates
 Increased women in workforce and stay-at-home dads
 Dream Dinners: Invitations to fellow busy mothers to their catering
kitchen to prepare make-ahead meals.
 Increased telecommuting
 FedEx Kinko: Services well-appointed office outside home. (Offers an
escape from the isolation of the home office)
 Better educated, more white-collar, more professional population
 Increasing diversity (Disabled/Gays/Lesbians/Racial make-up)
 PlanetOut Inc. (Leading global media company): Exclusively serves the
gay, lesbian, bisexual, and transgender community with successful
magazines (Out, The Advocate).
 Avis (Car rental company): Suite of products and services that make
vehicles more accessible to renters with disabilities.
o Economic
 Downturn
 Rich become richer; poor become poorer
 Income distribution and average income (Upper/Middle/Working/Under)
 Changes in consumer changing pattern (Engel’s Law)
 Nordstrom: High end
 Family Dollar stores: Middle end
 Wal-Mart: Low end

2
 o Natural
 Shortages of raw materials
 Increased pollution
 Increased government intervention
 Hewlett-Packard: Pushing legislation to force recycling of old TVs,
computers, and other electronic gear.
o Technological
 Rapid technological advancement (R&D)
 New technology  New markets and replacement of older ones
o Political
 Legislation regulating business
 Increased emphasis on ethics and socially responsible actions (Cause-related
marketing)
 Home Depot: Partnering with Swing-N-Slide to raise money by
contributing $30 to KaBoom! for each Brookview No-Cut backyard
playground kit sold.
o Cultural
 Persistence of cultural values (Primary/Secondary)
 Shifts in secondary cultural values
 Views of themselves: Adventurers/Do-It-Yourself
 MasterCard: Targets adventurers who might want to use their credit
cards to quickly set up experience of a lifetime.
 Views of others: “Cocooning”
 Views of organizations: Chore to earn money
 Views of society: Rising American patriotism
 Views of nature
 Earthbound Farm (World’s largest producer of organic
vegetables): Annual sales of $278 million and products available in
80% of America’s supermarkets.
 Views of universe: Renewed interest in spirituality

l Managing Marketing Information

 Assessing Marketing Information Needs [Chap 04, pg. 91]
o Marketing Information System (MIS): Balances information users would like
to have against what they really need and what is visible to offer
 Developing Marketing Information [Chap 04, pg 92]
o Internal Data
 Marketing dept.: Customer transactions, demographics, psychographics,
buying behavior
 Sales dept.: Reseller reactions, competitor activities
 Pizza Hut
 Tracks favorite toppings and usual order
 Tracks commercials people are watching and responding to
 Target coupon offers based on past buying behaviours and preferences

3
 o Marketing Intelligence
 Quiz own employees/suppliers/resellers/key customers
 Observe competitors and monitor their published information
 Buy/Analyze/benchmark competitors’ products
 Research internet
 Check for new patents
 Unilever: Widespread competitive intelligence training on collecting
intelligence information and protecting information from competitors.
o Marketing Research
 Define problem and research objectives
 Exploratory: Define problems and suggest hypotheses
 Descriptive: Describe marketing problems
 Causal: Test cause-and-effect relationships
 Develop research plan for collecting information
 Secondary
 Primary

Research Approaches Contact Methods Sampling Plan Research Instruments

Observation Mail Sampling Unit Questionnaire
Survey Telephone Sample size Mechanical Instruments
Experiment Personal Sampling Procedure -
- Online - -
Research Observation Survey Experiment
Approaches (Ethnographic) (Descriptive) (Causal)
Pros Richer understanding of consumers Flexibility -
Privacy, Fake
Cons - -
answers
McDonald’s might introduce new
Build-A-Bear: Founder and Chief
sandwich at 1 price in 1 city and
Executive Maxine Clark visits 2/3 of
another price in another city. If
her more than 200 stores each week,
Examples - cities are similar and all other
meeting customers and chatting with
marketing efforts are the same,
employees, and just getting to know
then differences could be due to
preteens who buy her products.
the prices.

Contact Approaches Mail Telephone Personal Online

(Focus group (Marketing
interviewing) research)
Flexibility Poor Good Excellent Good
Quantity of Data that can be collected Good Fair Excellent Good
Control of Interview Effects Excellent Fair Poor Fair
Control of Sample Fair Excellent Good Excellent
Speed of Data Collection Poor Excellent Good Excellent
Response Rate Fair Good Good Good
Cost Good Fair Poor Excellent
Research Instruments Questionnaires Mechanical Instruments

4
 Flexible
Open-end: Exploratory Monitor consumer behavior
Characteristics
Closed-end: Easier to interpret and Measure subjects’ physical responses
tabulate
Nielsen Media Research attaches people
Examples - meters to television sets in selected homes to
record who watches what programs.

 Implement research plan – Collect and analyze data

 Interpret and report findings
 Analyzing Marketing Information [Chap 04, pg. 105]
o Customer Relationship Management (CRM): Managing detailed information
about individual customers and carefully managing customer “touch points” in
order to maximize customer loyalty
 Harrah’s Entertainment (World’s largest casino operator): Vast customer
database and CRM system to manage day-to-day relationships with important
customers at its 43 casinos around the world.
 Distributing and Using Marketing Information [Chap 04, pg.107]
o Regular Performance Reports
o Intelligence Updates
o Research Reports
o Intranet
 iGo (Catalog and Web retailer): Integrates incoming customer service calls
with up-to-date database information about customers’ web purchases and
email enquiries.
o Extranet
 Wal-Mart: RetailLink extranet system provides suppliers with a two-year
history of every product’s daily sales in every Wal-Mart store worldwide,
letting them track when and where their products are selling and current
inventory levels.
 Other considerations [Chap 04, pg. 107]
o Small businesses/Non-profit organizations
 Observation
 Informal Survey
 Simple Experiments
 Secondary Data
 Bibbentuckers: Robert Byerley observed a dry-cleaning establishment in
practically every strip mall, spent an entire week at library researching the
industry, read through government reports and trade publications, held
focus groups on the store’s name/look/brochure, and took clothes to the 15
best cleaners in town and had focus-group members critique their work.
o International
 Secondary data from different sources on country-by-country basis

5
  Availability of research services
 Difficulty in reaching respondents from other parts of world
 Language
 Attitudes towards research
 Illiteracy rates
o Public Policy and Ethics
 Intrusions on customer privacy
 Misuse of research findings
 American Express: Online internet privacy statement tells customers in
clear terms what information it collects and how it uses it, how it safeguards
the information, and how it uses the information to market to its customers.

l Consumer Markets and Consumer Buying Behavior

 Model of Consumer Behaviour [Chap 05, pg. 122]

Marketing & Buyer's Black Buyer Responses

other stimuli Box

Product Buyer Product choice

Price characteristics Brand choice
Place Buyer decision Dealer choice
Promotion process Purchase timing
Economic Purchase amount
Technological
Political
Cultural

 Influences on Consumer Behaviour [Chap 05, pg. 123]

Personal Psychological
Cultural Social
Age and life-cycle Motivation
Culture Reference stage Perception
group Occupation (Selective
Subculture attention/
Social class Family Economic distortion/
Roles and situation retention)
status Lifestyle Learning
Personality and Beliefs and
self-concept attitudes

 Buying Decision Behavior [Chap 05, pg. 137]

o Complex: High consumer involvement and significant perceived brand
differences
o Dissonance-Reducing: High consumer involvement but few perceived brand
differences
o Habitual: Low consumer involvement and few significant perceived brand
differences

6
 o Variety-Seeking: Low consumer involvement but significant perceived brand
differences
 Buyer Decision Process
o Old Products [Chap 05, pg.139]

Purchase Postpurchase
Alternative
Need Decision Behavior
Evaluation
Recognition Others' Expectations
Information Individual
Internal/ attitudes vs. Perceived
Search
External Specific Unexpected performance
stimuli buying
situational Cognitive
situation
factors dissonance

o New Products [Chap 05, pg. 142]

Awareness Interest Evaluation Trial Adoption

 Individual differences in innovativeness

 Innovators
 Early adopters
 Early majority
 Late majority
 Laggards
 Influence of product characteristics on rate of adoption
 Relative advantage
 Compatibility
 Complexity
 Divisibility
 Communicability
 Initial and ongoing costs
 Risk and uncertainty
 Social approval

l Business Markets and Business Buying Behavior

 Differences from Consumer Markets [Chap 06, pg. 151]
o Fewer but Larger Buyers
o Geographically-Concentrated
o Business Demand = Derived Demand
o Inelastic Demand in the Short Run
o Fluctuating Demand
o More Decision Participants
o More Professional Purchasing Effort
o More Complex Buying Decisions
o More Formalized Buying Process

7
 o Interdependence between Buyer and Seller
o Networks of Supplier-Partner in the Long Run
 Buying Situations [Chap 06, pg. 153]
o Straight Re-buy
o Modified Re-buy
o New Task
o Systems Selling: Packaged solution to a problem
 ChemStation: Works closely with individual customer to concoct a soap
formula specially designed for that customer, delivers the custom-made
mixture to a tank installed at the customer’s site, and finally maintains the
tank by monitoring usage and automatically refilling the tank when supplies
run low
 Participants [Chap 06, pg. 156]
o Users
o Influencers
o Buyers
o Deciders
o Gatekeepers
 Influences on Business Buyer Behavior [Chap 06, pg. 158]

Environmental Organizational Interpersonal Individual

Economic Objectives Authority Age

developments Policies Status Income
Supply Procedures Empathy Education
conditions Organizational Persuasiveness Job position
Technological structure Personality
change Systems Risk attitudes
Political and
regulatory
developments
Competitive
developments
Culture and
customs

 Business Buying Process [Chap 06, pg. 159]

Problem Supplier Order-Routine
Recognition Selection Specification
Internal/External Negotiation Blanket contract
stimuli
Periodic
purchase orders
General Need Proposal Vendor-
Description managed
Solicitation inventory

Product
Supplier Performance
Specification Review
Research 8
Value analysis
 E-Procurement: Buying on the Internet [Chap 06, pg. 162]
o Company Buying Sites
 GE: Company trading site with posts on buying needs and invitations of bids,
term negotiations and order placements
 Hewlett-Packard: 1500 site areas and 1 million pages, providing product
overviews, detailed technical information, purchasing solutions, e-newsletters,
live chats with sales reps, online classes, and real-time customer support
o Extranet Links with Suppliers
 Direct procurement accounts with suppliers such as Dell/Office Depot through
which company buyers can purchase equipment, materials and supplies
o Lower Transaction Costs and Time Savings
o More Efficient Purchasing for both Buyers and Suppliers
o Focus People on Value-Added Activities
BUT
o Erosion of Decades-Old Customer-Supplier Relationships due to Sharing of Business
Data and Collaboration on Product Designs on Web
o Potential Security Disaster
 Institutional and Government Markets [Chap 06, pg. 164]

9
3. DESIGNING CUSTOMER-DRIVEN MARKETING STRATEGY
l Creating Value for Target Customers
 Marketing Segmentation [Chap 07, pg. 173]
o Consumer markets
 Geographic: Nations/Regions/States/Counties/Cities/Neighborhoods
 Wal-Mart: Small, supermarket-style Neighbourhood Market grocery
stores to complement its supercentres
 Demographic: Age/Gender/Family size/Family life cycle/Income/
Occupation/Education /Religion/Race/Generation/Nationality
 Nike: Overhauled women’s apparel line – Nike-women – to create
better fitting, more colorful, more fashionable workout clothes for
women
 Psychographic: Social class/Lifestyle/Personality
 American Express: Promises a “card that fits your life” via “My life.
My card.” campaign which provides glimpses into lifestyles of famous
people with whom consumers might want to identify with, such as screen
stars Kate Winslet
 Behavioral: Occasions/ Benefits sought/User status/Usage rate/Loyalty status
 Multiple Segmentation Bases
o Business markets
 Geographic
 Demographic (Industry/Company size)
 Benefits Sought
 User Status/Rate
 Loyalty Status
 Customer Operating Characteristics
 Purchasing Approaches
 Situational Factors
 Personal Characteristics
o International Markets
 Geographic
 Economic
 Political and Legal
 Cultural
 Inter-Market Segmentation
o Conditions for Effective Segmentation
 Measurable
 Accessible
 Substantial
 Differentiable
 Actionable
 Target Marketing [Chap 07, pg. 183]

10
 o Evaluating Market Segments
 Segment size and growth
 Segment structural attractiveness
 Company objectives and resources
o Selecting Market Segments
 Undifferentiated(Mass)
 Differentiated (Segmented)
 Concentrated (Niche)
 Micromarketing (Local/Individual)
o Choosing Targeting Strategy
 Company’s resources
 Market variability
 Marketing strategies
o Socially Responsible Target Marketing
 Choosing Value Proposition [Chap 07, pg. 191]
o Positioning Map
o Choosing a Differentiation and Positioning Strategy
 Identifying possible value differences and competitive advantages
 Product
 Service
 Channel
 People
 Image
 Choosing the Right Competitive Advantages
 Live the slogan (Delivers promised quality and service)
 Number of differences to promote
 Differences to promote
(Importance/Distinctiveness/Superiority/Communicability/Pre-
emptiveness/Affordability/Profitability)
 Selecting overall positioning strategy
Price
More Same Less
More for More for More for Less
More
More Same
Benefits Same Same for Less
Less for much
Less Less

 Developing positioning statement

 To <target segment and need> our <brand> is <concept> that <point of
difference>
 Communicating and Delivering the Chosen Position [Chap 07, pg. 198]

11
 l Creating Competitive Advantage
 Competitor Analysis [Chap 18, pg. 480]
o Identifying Competitors
 Avoid competitor myopia
 Industry/Market point of view
o Assessing Competitors
 Determining competitors’ objectives
 Identifying competitors’ strategies
 Assessing competitors’ strengths and weaknesses
 Secondary data
 Personal experience
 Word of mouth
 Primary market research with suppliers, dealers, or customers
 Benchmarking
 Estimating competitors’ reactions
o Selecting Competitors to Attack and Avoid
 Strong/Weak (Customer value analysis)
 Good/Bad
 Close/Distant
o Designing Competitive Intelligence System
 Smaller companies  Assign specific executives to watch specific
competitors

Send key
Identify vital
Collect Check information to
types of
information information Interpret relevant
competitive
from field and for validity and decision makers
information
and its best published data and Organize and respond to
continuously reliability managers'
sources
inquiries

 Competitive Strategies [Chap 18, pg. 486]

o Approaches
 Entrepreneurial
 Formulated
 Intrepreneurial
o Basic Competitive
 Overall cost leadership
 Differentiation
 Focus
 Operational excellence: Price and convenience
 Customer intimacy: Customers’ needs
 Product leadership: Continuous stream of leading-edge products/services

12
 Competitive Positions
10% Market Leader
Market
20% 40%
Challengers
Market Followers
30% Market Nichers

Market Leader Market Challenger Market Follower Market Nicher

By customer, market,
Expand total market Full frontal attack Follow closely
quality-price, service
Protect market share Indirect attack Follow at a distance Multiple niching
Expand market share - - -

 Balancing Customer and Competitor Orientations [Chap 18, pg. 498]

No Customer-centered Yes
Product Orientation Customer Orientation
Competitor- No
centered Competitor Orientation Market Orientation
Yes

13
 4. INTEGRATED MARKETING MIX
l Product, Services and Branding Strategy
 Products/Services [Chap 08, pg. 206]

Delivery
and After-Sale
Credit Service
Brand
Features
name
Augmented
Core
Actual Product
Product
Benefit
Quality Design
Level
Installation Warranty
Packaging

o Consumer

Marketing Type of Consumer Product

Considerations Convenience Shopping Specialty Unsought
Customer Buying  Frequent  Less frequent  Strong brand  Little product
Behavior purchase purchase preference and awareness,
 Little  Much planning loyalty knowledge (or,
planning and shopping  Special purchase if aware, little
 Little effort effort or even
comparison  Much brand  Little negative
or shopping comparison on comparison of interest)
effort price/quality/ brands
 Low style  Low price
customer sensitivity
involvement
Price Low Higher High Varies
Distribution Widespread in Selective in fewer Exclusive in only 1 Varies

14
 convenient outlets or few outlets per
locations market area
Promotion Mass Advertising and More carefully Aggressive
personal selling by targeted promotion advertising and
producer and by producer and personal selling by
resellers resellers producer and
resellers
Examples  Toothpaste  Major  Luxury goods  Life insurance
 Magazines appliances (Rolex watches)  Red Cross
 Laundry  Televisions Blood
detergent  Furniture Donations
 Clothing

o Industrial
 Material and parts
 Capital items
 Supplies and services
o Organizations, Persons, Places, and Ideas
 Product and Service Decisions [Chap 08, pg. 209]
o Individual product

Product Attributes Branding Packaging

Quality (Performance Product quality and Attract attention

and Conformance, consistency Describe product
Total Quality Legal protection for Instant recognition of
Management) unique product company/brand
Features features Boost sales
Style Allows for market
Design segmentation

Product Support Labeling

Services

Periodic survey to Identify product/brand

assess current value Describe product
and to obtain ideas for Promote product
new ones Support product's
Cost assessment positioning

o Product Line
 Nike: Several lines of athletic shoes and apparel

15
  Length influenced by company objectives/resources (Upselling/Cross-
selling)
 Product line stretching (High/Low end market)
 Toyota: Introduction of upmarket automobile – Lexus.
 Mercedes: Downward stretching due to slow-growth luxury car market
and attacks by Japanese automakers on its high end positioning.
 Marriott: 2-way stretching by adding Renaissance Hotels & Resorts for
top executives and Fairfield Inn for vacationers and business travellers
on a tight budget.
 Product line filling (Same market)
o Product Mix
 Width: Number of different product lines carried by company
 Length: Total number of items carried by company within its product line
 Depth: Number of versions offered of each product in the line
 Consistency: How closely related the various product lines are
 Colgate
 Building Strong Brands [Chap 08, pg. 217]
o Brand Equity
 Measured by the extent people are willing to pay more for the brand
 Brand valuation: Estimation of total financial value of a brand
 Coca-cola: $67 billion
 High equity
 High level of consumer awareness and loyalty
 Greater leverage in bargaining with resellers
 Easier launch of line and brand extensions
 Defence against fierce price competition
 Basis for strong and profitable customer relationships
 Creates customer equity
o Brand Strategy Decision

Brand Brand Name Brand Brand

Positioning Selection Sponsorship Development

Attributes Selection Manufacturer's Line extensions

Benefits (Benefits/ brand Brand
Beliefs and Qualities, easy Private brand extensions
Values to remember, Licensing Multibrands
distinctive, Co-branding New brands
extendable)
Protection

Product Category
Existing New
Existing Line Brand
Extension Extension
Brand Name

16
 New Multi- New
Brands Brands

o Managing Brands
 Brand experience (Wide range of contacts and touch points)
 Internal brand building (Live the brand)
 Brand asset management teams (Major brands)
 Brand equity managers
 Periodic audits of brands’ strengths and weaknesses
 Services Marketing [Chap 08, pg. 225]
o Nature and Characteristics of a Service

Intangibility

Variability Service Inseparability

Perishability

o Marketing Strategies for Service Firms

 Service-profit chain
 Internal service quality  Satisfied and productive Service employees 
Greater Service Value  Satisfied and loyal customers  Healthy
service profits and growth

Company

Internal External
Marketing Marketing
Interactive
Marketing
Employees Customers

 Managing service differentiation

 Offer
 Delivery
 Image (Symbols and branding)
 Managing service quality

17
  Good service recovery
 Empower front-line service employees
 Managing service productivity
 Train current employees better
 Hire more hardworking/skilful employees
 Increase quantity at the expense of quality (Least preferred)

l New-Product Development and Product Life-Cycle Strategies

 New-Product Development Process [Chap 09, pg. 238]

Idea
Generation Business
Analysis Product
Internal/External
Idea Sources Review of sales, Development
costs and profit R&D
projections

Idea Test Marketing

Screening Standard
Controlled
Marketing Simulated
Strategy
Development
Concept Target Market
Development Planned Product
and Testing Positioning
Commercialization
Sales, Market
Timing
Share, Profit
Goals Location

 Managing New Product Development [Chap 09, pg. 247]

o Customer-Centred: Finding new ways to solve customers’ problems and create
more customer-satisfying experiences
o Team-Based: Developing new products in which various company departments
work closely together, overlapping the steps in the product development process
to save time and increase effectiveness
o Systematic: Installation of innovation management system to collect, review,
evaluate, and manage new-product ideas
 Innovation-oriented company culture
 Larger number of new-product ideas
 Product Life Cycle Strategies [Chap 09, pg. 251]

Style

Fashion

18
 Fad

Characteristics Introduction Growth Maturity Decline

Sales Low Rapidly Rising Peak Declining
Costs/Customer High Average Low Low
Profits Negative Rising High Declining
Customers Innovators Early adopters Middle majority Laggards
Competitors Few Growing number Stable number Declining
Marketing Objectives
Maximize profits
Create product Maximize market Reduce expenditure
while defending
awareness and trial share and milk the brand
market share
Strategies
Product extensions, Diversify brand and Phase out weak
Product Basic
service, warranty models items
Price to penetrate Price to match/beat
Price Cost-plus Cut price
market competitors
Selective; Phase out
Distribution Selective Intensive More intensive
unprofitable outlets
Build product
Build awareness Stress brand Reduce to level
awareness among
Advertising and interest in mass differences and needed to retain
early adopters and
market benefits hard-core loyals
dealers
Reduce to take Increase to
Heavy promotion to Reduce to minimal
Sales Promotion advantage of heavy encourage brand
entice trial level
consumer demand switching

 Additional Product and Service Considerations [Chap 09, pg. 259]

o Product Decisions and Social Responsibility
o International Product and Services Marketing
 Standardization for consistent worldwide image
 Adaptation to differences in markets and consumers

l Pricing Products: Understanding and Capturing Customer Value

 Internal Factors [Chap 10, pg. 267]
o Value-Based Pricing
 Based on buyers’ perception of value
 Cost-based pricing
Customer Value Price Cost Product

 Good-value pricing: Right combination of quality and good service at a fair

price

19
  Value-added pricing: Value-added features and services to differentiate
company’s offers and to support charging higher prices
o Company and Production Costs
Unit Cost
 Cost-based pricing (Mark-up price = )
1−Desired Return on Sales
 Fixed (Overhead)/Variable/Total costs
 SRAC vs. LRAC curve
 Experience curve
 Break-even/Target-profit pricing (Break-even vol. =
¿ Cost
)
Price−Variable Cost
o Overall Marketing Strategies, Objectives, and Mix
 Target costing: Starts with ideal selling price and then targets costs to ensure
price is met
o Organizational Considerations
 External Factors [Chap 10, pg. 276]
o Market and Demand
 Perfect/Monopolistic/Oligopolistic/Monopoly
 Price elasticity of demand
 Elastic  Lower prices
 Low substitutability/price relative to income  Low elasticity
o Competitor’s Strategies and Price
 Market offerings (Value)
 Strength and pricing strategies
 Competitive landscape and price sensitivity
o Economy
o Resellers’ Reactions
o Government
o Social Concerns

l Pricing Products: Pricing Strategies

 New-Product [Chap 11, pg. 286]
o Market-Skimming: High price to skim maximum revenues layer by layer from
segments willing to pay  Fewer but more profitable sales
 Quality and image support higher prices
 Large-enough market segment
 Cost of producing smaller volume should not cancel the advantage of
charging more
 High barrier entry
o Market-Penetration: Low price to attract large number of buyers and market
share
 Market is highly price sensitive
 Falling production and distribution costs as sales volume increases

20
  Maintenance of low-price position to keep out competition
 Product Mix [Chap 11, pg. 287]
o Product Line: Price steps between product line items
o Optional-Product: Pricing of optional/accessory products along main products
o Captive-Product: Pricing complement products
o By-Product: Pricing by-products to increase main product’s price
competitiveness
o Product Bundle: Combining several products and offering bundle at a reduced
price
 Price-Adjustment [Chap 11, pg. 290]
o Discount (Cash/Functional/Seasonal)
o Allowance (Trade-in/Promotional)
o Segmented (Customer/Location/Product-form/Time)
o Psychological
 Higher prices  Higher quality
 Reference prices
o Promotional (Loss leaders/Special event pricing/Cash rebates/Low interest
financing/Longer warranties/Free maintenance)
o Geographical (FOB-origin/Uniform-delivered/Zone/Basing-point/Freight-
absorption)
o Dynamic
 Price Changes [Chap 11, pg. 298]
o Initiating
 Price cuts
 Excess capacity
 Strong price competition  Falling demand
 Market domination
 Price increases
 Cost inflation
 Over-demand
 Increase sense of fairness around price increase
 Low-visibility price moves (E.g. Dropping discounts, Increasing
minimum order quantity)
 Buyer reactions
 Competitors’ reactions
o Responding

Hold current price;

continue to monitor
competitor’s price

21
 No
Has competitor cut price?

Yes Reduce price

Will lower price

negatively affect our No Raise perceived value
market share and profits?

Yes Improve quality and

increase price
No
Can/Should effective
action be taken? Yes Launch low-price
"fighting brand"

 Public Policy and Pricing [Chap 11, pg. 301]

o Within Channel Levels
 Price fixing and collusion
 Predatory pricing
o Across Channel Levels
 Unfair price discrimination
 Retail (Resale) price maintenance
 Deceptive pricing (Comparison/Scanner fraud/Price confusion)

l Marketing Channels and Supply Chain Management

 Supply Chains and Value Delivery Network [Chap 12, pg. 310]
o Company, Suppliers, Distributors, Customers
 Nature and Importance of Marketing Channels [Chap 12, pg. 311]
o Set of interdependent organizations that help make a product/service available for
use/consumption by consumer/business user

Producer Producer Producer Producer Producer Producer

Manufacturer's
Wholesaler Representative/
Sales Branch

Retailer Business Business

Retailer distributor Distributor

Business Business Business

Consumer Consumer Consumer Customer Customer Customer
Customer Marketing Channels Business Marketing Channels
o Direct/Indirect
o Adding Value
 Information

22
  Promotion
 Contact
 Matching
 Negotiation
 Physical distribution
 Financing
 Risk taking
 Channel Behavior and Organization [Chap 12, pg. 314]
o Channel Conflict
 High interdependence
 Horizontal: Same level of channel
 Vertical: Different levels of same channel
o Vertical Marketing System (VMS): Distribution channel structure in which
producers, wholesalers, and retailers act as a unified system and 1 of them either
owns the others, has contracts with them, or has so much power that they all
cooperate
 Corporate: Combines successive stages of production and distribution under
single ownership – channel leadership is established through common
ownership
 Zara
 Contractual: Independent firms at different levels of production and
distribution join together through contracts to obtain more economies/sales
impact than they could achieve alone
 Franchise: Member, called a franchiser, links several stages in the
production-distribution process
- Manufacturer-sponsored retailer
- Manufacturer-sponsored wholesaler
- Service-firm-sponsored retailer
 Administered: Coordinates successive stages of production and distribution
through size and power of one of the parties
 Wal-Mart
 Home Depot
o Horizontal Marketing System: Channel arrangement in which 2 or more
companies at 1 level join together to follow a new marketing opportunity
 Wal-Mart and McDonalds
o Multichannel Distribution System: Single firm sets up 2 or more marketing
channels to reach 1 or more customer segments
 Hewlett-Packard
 Direct purchases via phone/online
 Retailers such as Best Buy/Circuit City
 Distributors and resellers who sell to variety of business segments
o Changing Channel Organization

23
  Disintermediation: Cutting out of marketing intermediaries by
product/service producers, or the displacement of traditional resellers by
radical types of intermediaries
 Dell
 Southwest Airlines
 Channel Design Decisions [Chap 12, pg. 322]
o Analyzing Consumer Needs
o Setting Channel Objectives
o Identifying Major Alternatives
 Types of intermediaries
 Number of marketing intermediaries
 Intensive
 Selective
 Exclusive
 Responsibilities of channel members
 Price policies
 Conditions of sale
 Territorial rights
 Specific services
o Evaluating the Major Alternatives
 Economic (Sales/Costs/Profitability)
 Control (Company prefers to stay in as much control as possible)
 Adaptive (Environmental changes)
o Designing International Distribution Channels
 Channel Management Decisions [Chap 12, pg. 326]
o Selecting Channel Members
o Managing and Motivating Channel Members
 Partnership Relation Management (PRM)
 Supply Chain Management (SCM)
o Evaluating Channel Members
 Periodic requalification
 Public Policy and Distribution Decisions [Chap 12, pg. 327]
o Exclusive Distribution
o Exclusive Dealing
o Exclusive Territorial Agreements
o Full Line Forcing (Tying Agreement)
o Restricted Right in Terminating Dealers
 Marketing Logistics and Supply Chain Management [Chap 12, pg. 328]
o Nature and Importance of Marketing Logistics (Physical Distribution)
 Outbound/Inbound/Reverse distribution
 Supply chain management: Managing upstream and downstream value-added
flows of materials, final goods, and related information among suppliers, the
company, resellers, and final consumers

24
  Competitive advantage in giving better customer services
 Tremendous cost savings to company and customers
 Handles the explosion in product variety
 Improvements in IT have created opportunities for major gains in distribution
efficiency
o Goals
 Targeted level of customer service at the least cost
 Maximize profits, not sales
o Major Logistics Functions
 Warehousing
 Storage warehouses
 Distribution centers
 Inventory management
 RFID or “smart tag” technology
 Transportation
 Trucks
 Railroads
 Water carriers
 Pipelines
 Air carriers
 Internet
 Intermodal
 Logistics information management
 Sharing of information among channel partners
 Mail/Telephone/Salespeople
 Electronic Data Interchange (EDI)
 Wal-Mart
 Krispy Kreme: Turn around 1000 supplier invoices and process the
checks in 1 week instead of the usual 8 using EDI.
o Integrated Logistics Management
 Cross-functional teamwork inside company
 Building logistics partnerships
 Shared projects
 Cross-functional/company teams
 Third-party logistics
 Cost savings
 Greater focus on core business
 Greater understanding of increasingly complex logistic environment 
Helpful for global market coverage expansion
 UPS Supply Chain Solutions
 FedEx Logistics

l Retailing and Wholesaling

 Types of Retailers [Chap 13, pg. 341]

25
 o Amount of Service
 Self-service: Customers perform their own “locate-compare-select” process
 Wal-Mart
 Limited service
 Full service
o Product Line
 Specialty: Narrow product line with deep assortment within the line
 Department: Wide variety of product lines which are operated as a separate
department managed by specialist buyers/merchandisers
 Supermarket: Large, low-cost, low-margin, high-volume, self-service store
that carries a wide variety of grocery and household products
 Convenience: Located near a residential area and carries a limited line of
high-turnover convenience goods
 Super store: Much larger than supermarket and offers a large assortment of
routinely purchased food products, non-food items and services
 Category killer: Giant specialty store that carries very deep assortment of a
particular line and is staffed by knowledgeable employees
o Relative Prices
 Discount store: Sells at lower prices by accepting lower margins and selling
at high volumes
 Off-price retailer: Buys at less-than-regular wholesale prices and sells at
less-than-retail (E.g. Factory outlets, Warehouse clubs)
 Independent off-price retailer: Off-price retailer owned and run by
entrepreneurs/division of a larger retail corporation
 Factory outlet: Off-price retailing operation owned and operated by a
manufacturer and that normally carries the manufacturer’s surplus,
discontinued, or irregular goods
 Warehouse club: Off-price retailer selling limited selection of brand name
grocery items, appliances, clothing and other goods at deep discounts to
members who pay annual membership fees
o Organizational Approach
 Corporate chains
 Voluntary chains
 Retailer cooperatives
 Franchise organizations
 Merchandizing conglomerates
 Retailer Marketing Decisions [Chap 13, pg. 349]
o Target Market and Positioning
o Product Assortment, Services Mix, Store Atmosphere
o Price
o Promotion
o Place
 Future of Retailing [Chap 13, pg. 355]

26
 o New Retail Forms and Shortening Retail Life Cycles
 Wheel-of-retailing concept
o Growth of Non-Store Retailing
 Online retailing (Click-and-brick marketers)
o Retail Convergence
 Merging of consumers, products, prices, and retailers
 May benefit smaller companies
o Rise of Mega-Retailers
o Better merchandise selections, good services, and strong price savings
o Squeeze out smaller, weaker competitors
o Growing Importance of Retail Technology
 Touch-screen kiosks
 Customer-loyalty cards
 Self-scanning systems
 Online transaction processing
 Electronic data exchange
o Global Expansion of Major Retailers
 Carrefour (French discount retailer): Outpacing Wal-Mart in several
emerging markets such as China and Pacific Rim.
o Retail Stores as “Communities” or “Hangouts”
 Starbucks/Coffee Bean
 Mind’s Cafe
 Adding Value through Wholesaling [Chap 13, pg. 360]
o Selling and Promoting
o Buying and Assortment Building
o Bulk-Breaking
o Warehousing
o Transportation
o Financing
o Risk-Bearing
o Market Information
o Management Services and Advice
 Type of Wholesalers [Chap 13, pg. 360]
o Merchant Wholesalers: Independently owned business that takes title to
merchandise it handles
o Brokers and Agents: Brings buyers and sellers together and assists in
negotiations
o Manufacturers’ and Retailers’ Branches and Offices : Wholesaling by
sellers/buyers rather than through independent wholesalers
 Wholesalers Marketing Decisions [Chap 13, pg. 362]
o Target Marketing and Positioning
o Marketing Mix

27
  Trends in Wholesaling [Chap 13, pg. 363]
o Fierce Resistance to Price Increases
o Winnowing of Suppliers who fail to add Value based on Cost and Quantity
o Rising Costs and Demand of Increased Services put Squeeze on Profits
 Increase Efficiency and Effectiveness of Marketing Channel
o Slow Growth in Domestic Markets
o Developments such as North American Free Trade Agreement
 Going Global

l Communicating Customer Value: Integrated Marketing Communications Strategy

 Integrated Marketing Communications/Promotion Mix [Chap 14, pg. 371]
o New Marketing Communications Landscape
 Fragmented mass markets  Focused marketing programs
 Vast improvements in IT  Segmented marketing
o Shifting Marketing Communications Model
 Less broadcasting
 More narrow-casting (Specialized and highly-targeted media to reach
smaller customer segments with more personalized messages)

Advertising

Sales Personal
Promotion Consistent , Selling
Clear, and
Compelling
company and
brand
messages

Direct Public
Marketing Relations

 Communication Process [Chap 14, pg. 374]

Noise (Unplanned static/distortion)

28
  Developing Effective Communication [Chap 14, pg. 376]
o Identify Target Audience
o Determine Communication Objectives
 Buyer-readiness stage

Awareness Knowledge Liking Preference Conviction Purchase

o Design Message
 Content
 Rational
 Emotional (Humor)
 Moral
 Structure
 Draw conclusion/Leave conclusion to audience
 Present strongest arguments first/last
 1/2-sided argument
 Format
o Choose Media
 Personal communication channels
 Face-to-face
 Phone
 Mail
 E-mail
 Internet “Chat”
 Word-of-mouth influence
 Buzz marketing
 Non-personal communication channels
 Major media (Print/Broadcast/Display/Online)
 Atmospheres
 Events
o Select Message Source
 Professionals (Doctors/Dentists)
 Colgate
 Celebrities
o Collect Feedback
 Setting Total Promotion Budget and Mix [Chap 14, pg. 384]
o Setting Budget
 Affordable

29
  Percentage-of-sales
 Competitive-parity
 Objective-and-task
o Shaping Overall Promotion Mix
 Nature of each promotion tool

Advertising Personal Selling Sales Promotion Public Direct

Relations Marketing
Pros  Low cost per  Build up  Attract consumer  Seem real  Non-public
exposure buyers’ attention and  Immediate
 Repetitive preferences,  Offer strong believable  Customized
 Target masses convictions and incentives to to readers  Interactive
 Expressive actions purchase  Reach
 Long-term  Personal  Dramatize product many
image interactions offers prospects
 Quick sales  Customer  Boost sagging  Expressive
 Reflective of relationship sales  Economical
seller’s size,  Greater need to  Invite and reward
success and listen and quick responses
popularity respond
Cons  Impersonal  Longer term  Short lived
 1-way commitment  Less effective in
communication  Most expensive building long run
 Costly brand preference
and customer
relationships

 Promotion mix strategies

 Pull (B2C – Advertising)
 Push (B2B – Personal Selling)

o Integrating Promotion Mix (Checklist)

 Analyze trends — internal and external — that can affect company’s ability
to do business

30
  Audit pockets of communications spending throughout organization
 Identify all customer touch points for company and its brands
 Team up in communications planning
 Create compatible themes, tones and quality across all communication
media
 Create performance measures that are shared by all communications
elements
 Appoint a director responsible for company’s persuasive communications
efforts
 Socially Responsible Marketing Communication [Chap 14, pg. 390]
o Advertising and Sales Promotion
 No false/deceptive advertising
 No bait-and-switch advertising
 Promotional allowances and services to all resellers on proportionately equal
terms
o Personal Selling
 “Fair competition”
 No lying/misleading
 Three-day cooling-off rule

l Advertising and Public Relations

 Advertising [Chap 15, pg. 396]
o Objectives Setting
 Communication objectives
 Sales objectives

Objectives Informative Persuasive Reminder

 Communicate customer value
 Tell market about new
product
 Explain how product works
 Suggest new uses for a
product
 Inform market of price
changes
 Describe available services
 Correct false impressions
 Build a brand and company
image
 Build brand preference
 Encourage switching to
your brand
 Change customers’
perception of product’s
attributes
 Persuade customers to
purchase now
 Persuade customers to
receive a sales call
 Convince customers to
tell others about the brand
 Maintain customer
relationships
 Remind customers
that product may be
needed in the near
future
 Remind customers
where to buy the
product
 Keep the brand in
customers’ minds
during off-seasons

o Budget Decisions
 Affordable approach
 Percentage of sales
 Competitive parity
 Objective and task
 Depends on stage in product life cycle and market share

31
 o Message Decisions
 Breaking through the clutter
 Message strategy
 Identify customer benefits
 Creative concept (Meaningful, believable, and distinctive)
 Message execution
 Styles (Slice of life/Lifestyle/Fantasy/Mood/Image/ Musical/Personality
symbol/Technical expertise/ Scientific evidence/Testimonial
evidence/endorsement)
 Tone
 Format
 Copy
o Media Decisions
 Reach, frequency, and impact
 Major media types
 Specific media vehicles
 Media timing (Continuity/Pulsing)
o Advertising Evaluation
 Communication effects
 Pre/Post-evaluations
 Sales and profits effects
 Compare past sales and profits with past expenditures
 Experiments
 Return on advertising investment
 Other Advertising Considerations [Chap 15, pg. 409]
o Organizing for Advertising
 Advertising agency
o International Advertising Decisions
 Standardizations with minor adjustments to suit local culture
 Media characteristics (Costs/Availability)
 Advertising regulation
 Public Relations [Chap 15, pg. 411]
o Major Tools
 News
 Speeches
 Special events
 Written materials
 Audiovisual materials
 Corporate identity materials
 Public service activities
 Social networking and buzz marketing
 Mobile tour marketing
 Company’s website

32
 l Personal Selling and Sales Promotion
 Managing Sales Force [Chap 16, pg. 422]

Design Sales Force Recruit & Select Train Salespeople

Strategy & Structure Salespeople

Different types of
Sales force structure Intrinsic motivation customers and needs
(Territorial/Product/ Disciplined work Buying motives
Customer/Complex) style Buying habits
Sales force size (Work Ability to close a sale
load approach) Company's objectives
Ability to build Competitor's
Outside/Inside sales customer relationships
force strategies
Team selling

Evaluate Sales People Supervise Sales Compensate Sales

People People

Sales reports Target customers Fixed/Variable

Call reports Set call norms amount
Expense reports Weekly/Monthly/Annual Expenses
Personal observation call plan Fringe benefits
Customer surveys Time-and-Duty analysis
Talks with other Sales force automation
salespeople system
Organizational climate,
sales quota and incentives

 Personal Selling Process [Chap 16, pg. 434]

Prospecting Presentation
Pre- Handling Follow-
and Approach and Closing
Approach Objection Up
Qualifying Demonstration

 Sales Promotion [Chap 16, pg. 437]

o Rapid Growth
 Greater pressure to increase current sales
 Greater competition
 Declining advertising efficiency due to rising costs, media clutters and legal
restraints
 Greater demands from more deal-oriented consumers and larger retailers
o Objectives
 Reinforce product position
 Build long term customer relationships
o Tools
 Consumer: Urge short-term customer purchase
 Samples

33
  Coupons
 Cash refunds
 Price packs
 Premiums
 Advertising specialties
 Patronage rewards
 Point-of-purchase displays and demonstrations
 Contests, sweepstakes, and games
 Trade: Persuade resellers to carry a brand, give it shelf space, promote it in
advertising, and push it to consumers
 Contests, premiums, and displays
 Price-off/Off-invoice/Off-list discounts
 Allowance
 Free goods and push money
 Free specialty advertising items
 Business: Generate business leads, stimulate purchases, reward customers,
and motivate salespeople
 Conventions
 Trade shows
 Sales contests
o Development
 Size and conditions for incentives
 Promotion and distribution of promotion program
 Before/During/After-sales comparison

l Direct and Online Marketing: Building Direct Customer Relationships

 Growth and Benefits [Chap 17, pg. 447]
o Buyers
 Convenient, easy, and private
 Ready access to products
 Ready access to comparative information
 Interactive and immediate
 Greater measure of control
o Sellers
 Target small groups/individual customers
 Promote offers through personalized communications
 Tailor products/services to specific customer tastes
 Low-cost, efficient and speedy
 Greater flexibility
 Access to buyers who were once inaccessible
 Customer Databases and Direct Marketing [Chap 17, pg. 449]
 Wal-Mart: Data captured on every item, for every customer, for every store,
everyday.
 Forms [Chap 17, pg. 450]

34
o Direct-Mail: Send an offer/announcement/reminder to a person at a particular
address
o Catalog: Mail print/video/electronic catalogs to selected customers
o Telephone
o Direct-Response Television
o Kiosk
o New Digital Direct Marketing Technologies
 Mobile phone
 Podcasts and Vodcasts
 Interactive TV (ITV)
o Online
 Marketing and Internet
 Online Marketing Domains

Targeted to consumer Targeted to business

Initiated by B2C B2B
business Business-to-Consumer Business-to-Business
Initiated by C2C C2B
consumer Consumer-to-Consumer Consumer-to-Business

 Online Marketers
 Click-Only companies
 Click-and-Mortar companies (Convenience, assortment,
personal/hands-on experience)
 Online Marketing Presence
 Creating Web Site (Corporate/Marketing)
- Context: Layout and design
- Content: Text, pictures, sound, and video
- Community: User-to-user communication
- Customization: Ability to tailor itself to different users/ to allow for
personalization
- Communication: Site-to-user/User-to-site/Two-way
- Connection: Linkage between sites
- Commerce: Capabilities to enable commercial transactions
- Constant change
 Online Ads and Promotions
- Display ads (Banners/Interstitials/Pop-unders/Rich media)
- Search-related ads
- Online classifieds
- Content sponsorships
- Alliances and Affiliate programs
- Viral marketing
 Burger King: Now-classic Subservient Chicken viral campaign
at www.subservientchicken.com.

35
  Web Communities
 E-Mail
 Integrated Direct Marketing [Chap 17, pg. 471]
 Ernst & Young: Integration of email efforts with other media, including direct mail,
which are weaved into interactive elements on the company’s site.
 Public Policy Issues [Chap 17, pg. 472]
o Irritation, Unfairness, Deception, and Fraud
o Invasion of Privacy
o Need for Action

l The Global Market place

Look at Global Decide Whether To Decide Which

Marketing Go Global Markets to Enter
Environment

International Trade Foreign preferences Sales volume

System (World Trade and buying behaviors Number and types of
Organization, GATT, Foreign culture countries
Regional Free Trade International Market size and
Zones) experience growth
Economic Regulations and Business risk and cost
Cultural political Competitive
Political-Legal environments advantage

Decide on Global Decide on Global Decide How to Enter

Marketing Marketing Program Markets
Organization

Export department Exporting (Direct/Indirect)

Standardized/Adapted
International divisions/ Joint venturing
marketing mix
Subsidiaries (Licensing/Contract
Product manufacturing/
Global organizations Promotion Management
Price contracting/Joint
Distribution channels ownership)
(Number/Types of Direct investment
intermediaries, (Assembly/ Manufacturing
Size/Character of retail facilities)
units)

 Product
Don’t change
Develop new
product
product

36
 Adapt product
Don’t change
Straight Product
communication
Extension Adaptation
Product
Adapt Invention
communications Communication Dual
Adaptation Adaptation

 Distribution Channel

Seller's HQ
organization Channels Channels
Final
Seller for between within
international nations nations user/buyer
marketing

5. BUILDING PROFITABLE RELATIONSHIPS, CREATING CUSTOMER DELIGHT, AND

CAPTURING VALUE FROM CUSTOMERS
l Customer Relationship Management (CRM) [Chap 01, pg. 13]
 Customer Value: Evaluation of difference between all benefits and all costs of a market
offering relative to those of competing offers
 Customer Satisfaction: Extent to which product’s perceived performance matches
buyer’s expectations

l Changing Nature of Customer Relationships [Chap 01, pg. 16]

 Relating with more Carefully Selected Customers
o Selective Relationship Management
 Relating for Long Term (Falling population means lesser customers to go around)
 Butterflies True Friends Relating
Good fit between company’s Good fit between company’s Directly
offerings and customers’ needs; offerings and customers’ needs;
High profit potential Highest profit potential
l Marketing Ethics
Strangers Barnacles
And Social Little fit between company’s Limited fit between company’s
offerings and customers’ needs; offerings and customers’ needs;
Lowest profit potential Low profit potential
Responsibility
 Impact on Individual Consumers [Chap 20, pg. 531]
o High Prices
o Deceptive Practices
o High-Pressure Selling
o Shoddy/Harmful/Unsafe Products
o Poor Service to Disadvantaged Consumers
 Impact on Society [Chap 20, pg. 537]

37
 o False Wants and Too Much Materialism
o Too Few Social Goods
o Cultural Pollution
o Too Much Political Power
 Impact on other Business [Chap 20, pg. 540]
o Acquisitions of Competitors
o Creation of Barrier Entry
o Unfair Competitive Marketing Practices
 Citizen and Public Actions to Regulate Marketing [Chap 20, pg. 541]
o Consumerism
o Environmentalism
 New environmental technology
 Sustainability vision
 Pollution prevention
 Product stewardship: Minimizing environmental impacts throughout
product’s life cycle
o Public Attention and Legislative Proposals
 Business Actions toward Socially Responsible Marketing [Chap 20, pg. 546]
o Enlightened Marketing
 Consumer-oriented
 Customer-value
 Innovative
 Sense-of-mission: Defining mission in broad social terms
 Societal

Salutary Desirable
Long-Run High Products Products
Consumer
Benefit Low Deficient Pleasing
Products Products
Low High
Immediate Satisfaction
o Marketing Ethics
 Corporate marketing ethics policies
 Total corporate commitment

l Creating Customer Loyalty and Retention [Chap 01, pg. 20]

 Customer Delight
 Customer Lifetime Value: Value of the entire stream of purchases that a customer
would make over a lifetime of patronage
 Customer Equity: Combined discounted customer lifetime values of all the company’s
current and potential customers

38