Marketing Management

Models
Eleventh Edition

CHAPTER 1

DEFINING MARKETING
FOR THE
21ST CENTURY

Simple Marketing System

Communication

Industry
Industry
(a
(a collection
collection
of
of sellers)
sellers)

Goods / Services

Money

Information

Market
Market
(a collection
collection
(a
of buyers)
buyers)
of

Structure of Flow of Modern For-Ex

Resources
Money

Resource
markets
Taxes,
goods

Manufacture
markets

Services,
money
Taxes, goods

Goods and Services

Money

Services,
money

Government
markets

Services,
money
Money

Resources

Taxes

Services

Consumer
markets

Taxes,
goods

Intermediary
markets

Money
Goods and Services

4 Ps of Marketing Mix
Product

Promotion

Product Variety

Sales Promotion

Packaging

Quality

Advertising

Sizes

Design

Sales Force

Services

Features

Public Relation

Warranties

Brand Image

Direct Marketing

Returns

Price

Place

List Price

Channels

Discounts

Coverage

Allowances

Assortment

Payment period

Location

Credit terms

Inventory
Transport

Marketing Mix Strategy

Promotion Mix
Sales
promotion

Offering
Mix
Product
Company Services
Prices

Advertising

Sales force
Public
Relation
Direct mail,
telemarketing,
and Internet

Distribution
channel

Target
Customer

Sales Concept vs Marketing Concept

Starting Point

Factory

Focus

Products

Means
Selling and
promotion

Ends
Profits through
sales volume

(a) The Selling Concept

Target
market

Customer
needs

Integrated
marketing

(b) The Marketing Concept

Profits through
customer
satisfaction

Customer Concept

Starting
Point

Individual
customer

Focus

Customer
needs and
values

Means

One-to-one
marketing
integratio
n and
value
chain

Ends

Profitable
growth
through
capturing
customer
share, loyalty,
and lifetime
value

Marketings Role in Company

First -

Production

Finance

Marketing

Human
Resources

Marketing as an equal function

Marketings Role in Company

Second Finance

Production
Human
Resources

Marketing

Marketing as an more important function

Marketings Role in Company

Third Production

Marketing
Finance
Human
Resources

Marketing as the major function

Marketings Role in Company

Fourth -

Finance

Production

Customer

Marketing

Human
Resources

Marketing as the major function

Marketings Role in Company

Fifth Production
Marketing

an es
c
um r
H ou
es
R

Fi
na

nc
e

Customer

The customer as the controlling function and marketing as the

integrative function

CHAPTER 2

ADAPTING MARKETING
TO THE
NEW ECONOMY

Supplier Customer Relationship

Supplier

Customer

Executives

Executives

Merchandise

Marketing
Systems
Sales

SALES

BUYING

Systems
Buyers
Finance

Finance

Warehousing

Manufacturing

TRADITIONAL STRUCTURE

Supplier Customer Relationship

Supplier

Customer

Executives
Marketing
Systems
Sales
Finance
Manufacturing

Executives
Merchandise
Systems
Buyers
Finance
Warehousing

NEW ECONOMY STRUCTURE

CHAPTER 3

BUILDING CUSTOMER
SATISFACTION, VALUE
AND
RETENTION

Determinants of Customer-Delivered Value

Customer delivered value

Total customer value

Total customer cost

Product value

Monetary cost

Service value

Time cost

Personnel value

Energy cost

Image value

Psychic cost

The Generic Value Chain

Support Activities

Firm infrastructure
gi
ar
M

Human Resource Management

Technology Development

Inbound
Logistics

Operations Outbound
Logistics

Primary Activities

Marketing
& Sales

Service

M
ar
gi
n

Procurement

The Customer-Development Process

Suspect

Prospect

First-Time
customer
Repeat
customer

Disqualified
prospect

Clients
Inactive or
ex-customer
Members

Advocates

Partners

Levels of Relationship
High Margin

Many customers/
distributors
Medium number
of customers/
distributors

Few customers/
distributors

Medium Margin

Low Margin

Accountable

Reactive

Basic or
reactive

Proactive

Accountable

Reactive

Partnership

Proactive

Accountable

Customer-Product Profitability Analysis

CUSTOMERS

P
R
O
D
U
C
T
S

C1

C2

C3

P1

P2

P3
P4

Profitable
product
-

+
High
profit
customer

Highly profitable
product

Mixed-bag
customer

Losing
product

Mixed-bag
product

Losing
customer

CHAPTER 4

WINNING MARKETS
THROUGH
MARKET-ORIENTED
STRATEGIC PLANNING

The Strategic-Planning Implementation and

Control Process
Planning

Implementation

Corporate planning

Organizing

Division planning

Implementation

Controlling
Measuring results

Diagnosing results
Business planning

Product planning

Taking corrective
action

BCGs Growth-Share Matrix

Relative Market Share

20%

Stars

Question Marks
4

1
3

5
10%

Cash Cows

Dogs

7
8

0
10x

1x

Relative Market Share

0.1x

The Strategic-Planning Gap

Sales

Strategicplanning
gap

5
Time (years)

Three Intensive Growth Strategies:

Ansoffs Product-Market Expansion Grid
Current
Products

New
Products

Current
Markets

1. Market-penetration
strategy

3. Productdevelopment strategy

New
Markets

2. Marketdevelopment strategy

(Diversification
strategy)

The Business Strategic-Planning Process

Business mission

External Environment
(opportunity &
threat analysis)

SWOT
analysis

Internal Environment
(strength/weaknesses
analysis)

Goal formulation
Strategy formulation
Program formulation
Implementation
Feedback and Control

McKinsey 7-S Framework

Hardware of Success

Structure

- Strategy
- Structure

Strategy

Systems
Shared
values

- Systems

Software of Success
- Skills

Skills

Style

- Skills
- Staf

Staff

- Shared values

Factors Influencing Company

Marketing Strategy
Demographic/
economic
environment

Technological/
physical
environment

Marketing
Intermediaries

rm
o
f
in m
g e
in yst
t
ke s
r
a

Suppliers

io
at

Place

Product

Target
customers

ar
ke
ti
sy n g
st pla
em n
n

Price

in
g

M
nt
co
g m
tin te
ke ys
ar s

l
ro

d
n
a
n m
o
ti ste
a
iz s y
n
Promotion
ga tion
r
o ta
g
in e n
t
ke lem
r
a p
M im

Publics

Political/
legal
environment

Competitors

Social/
cultural
environment

CHAPTER 5

GATHERING
INFORMATION AND
MEASURING MARKET
DEMAND

The Market Research Process

Step 6
Step 5
Step 4
Step 3
Step 2

Collect
Collect
the
the
Develop
information
Develop information
Step 1
the
the
Defining
the
research
Defining the research
problem
plan
problem
plan
and
and
research
research
objective
objective

Analyze
Analyze
the
the
information
information

Present
Present
the
thefindings
findings

Make
Makethe
the
decision
decision

CHAPTER 6

SCANNING THE
MARKETING
ENVIRONMENT

Major Macro-environment Forces

DEMOGRAPHIC ENVIRONMENT

ECONOMIC ENVIRONMENT

Worldwide population growth

Population age mix
Ethnic and other markets
Educational groups
Household patterns
Geographical shifts in population
From mass mkt to micro mkts

Income distribution
Savings, debt, and credit availability
POLITICAL-LEGAL ENVIRONMENT
Growth of special-interest groups

Forces
TECHNOLOGICAL ENVIRONMENT
Acceleration pace of change
Unlimited opportunity for innovation
Varying R&D budgets
Increased regulation of technological
change

NATURAL ENVIRONMENT
Shortage of raw materials
Increased energy cost
Anti-population pressures
Changing role of government
SOCIO-CULTURAL ENVIRONMENT
High persistence of core cult values
Existence of sub-culture
Shifts of secondary cultural values
through time

CHAPTER 7

ANALYSING
CONSUMER MARKET
AND
BUYING BEHAVIOUR

Model of Buying Behaviour

Marketing
stimuli

Product
Price
Place
Promotion

Other
stimuli

Economic
Technological
Political
Cultural

Buyers
Buyers
characteristics decision process

Cultural
Social
Personal
Psychological

Problem
recognition
Information
search
Evaluation of
alternatives
Purchase decision
Post-purchase
behaviour

Buyers
decision

Product choice
Brand choice
Dealer timing
Purchase timing
Purchase amount

The VALS Framework

Actualizers

High Resources
High Innovation

Principle
oriented

Status
oriented

Action
oriented

Fulfilleds

Achievers

Experiencers

Believers

Strivers

Makers

Strugglers

Low Resources
Low Innovation

PESSIMISTS

OPTIMISTS

U r a Mouse Potato or a Techno-Striver..?

CAREER

FAMILY

ENTERTAINMENT

Fast forwards
(biggest spenders, early
adopters of new technology
for all use)

New Age Nurtures

(big spender, focused on
technology for home use)

Mouse Potatoes
(willing to spend for the
latest in technotainment)

Techno-Strivers
(use technology from cell
phones and pagers to
online services primarily)

Digital Hopefuls
(limited budget but still
interested in new tech)

Gadget-Grabbers
(favor online entertainment
but have less cash to spend)

Hand-Shakers
(older consumer, do not
touch computers, leave
them to assistants)

Traditionalists
(willing to use tech but
slow to upgrade)

Media Junkies
(seek entertainment, cannot
find online, prefer TV and
other older media)

SIDELINED CITIZENS (not interested in technology)

MORE AFFLUENT

LESS AFFLUENT

Maslows Hierarchy of Needs

5
Selfactualization
needs
(self development
and realization)
4

Esteem needs
(self esteem, recognition, status)
3

Social needs
(sense of belonging, love)
Safety needs
(security, protection)
Physiological needs
(Food, water, shelter)

Types of Buying Behaviour

High Involvement

Significant Difference
between Brands

Few Difference
between Brands

Complex buying
behaviour

Low Involvement

Variety-seeking
buying behaviour

Dissonance-reducing Habitual buying

buying behaviour
behaviour

5-Stage Model of Consumer Buying Process

Post-purchase
behaviour

Purchase
decision
Evaluation of
alternatives

Information
search

Problem
recognition

Attitudes
of others

Purchase
intention
Unanticipated
Situational
factors

Purchase
decision

Successive Sets Involved in Consumer

Decision Making
Total set

IBM
Apple
Dell
HewlettPackard
Toshiba
Compaq
NEC
Tandy
.
.
.
.

Awareness
set

IBM
Apple
Dell
HewlettPackard
Toshiba
Compaq

Consideration
set

IBM
Apple
Dell
Toshiba

Choice set

IBM
Apple
Dell

Decision

CHAPTER 8

ANALYSING BUSINESS
MARKETS AND
BUSINESS
BUYING BEHAVIOUR

Factors Influencing Industrial Buying Behaviour

ENVIRONMENT

Level of demand
Economic
outlook
Interest rate
Rate of technological change
Political and
regulatory
development
Competitive
development
Social
responsibility

ORGANIZATIONAL

Objectives
Policies
Procedures
Organizational
structures
Systems

INTERPERSONAL

Interests
Authority
Status
Empathy
Persuasiveness

INDIVIDUAL

Age
Income
Education
Job position
Personality
Risk attitudes
Culture

BUSINESS
BUYER

CHAPTER 9

DEALING WITH
THE
COMPETION

Michael Porters 5-Competitive Forces Model

Potential
Entrants
(Threats of
Mobility)

Suppliers
(Supplier
Power)

Industry
Competitors
(Segment
Rivalry)

Substitutes
(Threat of
Substitutes)

Buyers
(Buyer
Power)

Barriers and Profitability

Exit Barriers

Entry Barriers

Low

Low

High

High

Low, stable

Low, risky

returns

Returns

High, stable

High, risky

returns

returns

Hypothetical Market Structure

40%
40%

Market Leader

30%
30%

Market Challenger

20%
20%

Market Follower

10%
10%

Market Nicher

Defense Strategies

(2) Flank

ATTACKER

(3) Preemptive
(4) Counterofensive

(1)
Position

(6)
Contraction

DEFENDER

(5)
Mobile

Attack Strategies
(3) Bypass attack
(2) Flank attack

(1) Frontal attack

ATTACKER
(3) Encirclement attack

(5) Guerrilla attack

DEFENDER

CHAPTER 10

IDENTIFYING MARKET
SEGMENTS AND
SELECTING
TARGET MARKETS

Basic Market-Preference Patterns

(b) Difused
preferences

(c) Clustered
preferences

Creaminess

(a) Homogeneous
preferences

Sweetness

Sweetness

Sweetness

Steps in Segmentation Process

Step 7
Step 6
Step 5
Step 4
Step 3
Step 2
Step 1

Marketing-Mix Strategy
Segment Acid Test
Segment Positioning
Segment Profitability

Segment Attractiveness
Segment Identification
Needs-based Segmentation

Major Segmentation Variables for

Consumer Markets
GEOGRAPHIC

DEMOGRAPHIC

PSYCHOLOGICAL

BEHAVIORIAL

Region

Age
Family
Family size
Family life cycle
Gender
Income
Occupation
Education
Religion
Race
Generation
Nationality
Social class

Lifestyle

Occasions

Personality

Benefits

City or metro size

Density
Climate

User status
Usage rates
Loyalty status
Readiness status
Attitude towards
product

Major Segmentation Variables for

Business Markets
DEMOGRAPHIC
Industry
Company size
Location

PURCHASING
APPROCHES

SITUATIONAL
FACTOR

Purchasing-function
organization

Urgency
Specific application
Size of order

Power structure
Nature of existing
relationship
OPERATING
VARIABLES
Technology
User or non-user
Customer capabilities

General purchase
policy
Purchasing criteria

PERSONAL
CHARACTERISTICS
Buyer-seller similarity
Attitude towards risk
Loyalty

5-Patterns of Target Market Selection

M1

M2

M3

M1

M2

M3

M1

P1

P1

P1

P2

P2

P2

P3

P3

P3

Single-segment
concentration
M1

M2

Selective
specialization

M3

M1

P1

P1

P2

P2

P3

P3

Market
specialization

M2

M2

M3

Product
specialization

M3

P Product
M - Market

Full market
coverage

Segment-by-Segment Invasion Plan

Customer group
Airlines

Railroads

Truckers

Large
computers

Product
variety

Midsize
computers

Personal
computers

Company A

Company B

Company C

CHAPTER 11

POSITIONING AND
DIFFERENTIATING
THE MARKET
OFFERINGS THROUGH
PRODUCT LIFE CYCLE

Method for Competitive-Advantage Selection

Competitive Advantage

Technology

Cost

Quality

Service

Company Standing

Competitor Standing

Importance of Improving Standing

(H-M-L)

Afordability and Speed

Competitors Ability to Improve

Standing (H-M-L)

Recommendation Action

Hold

Monitor

Monitor

Invest

(H-M-L)

H = High

M = Medium

L = Low

The BCG Competitive Advantage Matrix

Number of Approaches to
Achieve Advantage

Large

Few

Small

Size of the
Advantage

Many

VOLUME

SPECIALISED

STALEMATED

FRAGMENTED

Sales and Product Life-Cycle

II

III

IV

Introduction

Growth

Maturity

Decline

Sales and Profits

Time
Strategies for each Stage continued
in next slides

Strategies for PLC Stage I (Introduction)

Price
High Skimming

Low Skimming

High Penetration

Low Penetration

Promotion

Strategies for PLC Stage II (Growth)

Improve product quality, adds new product features, improved styling
Add new models and flanker products
Enter new market segments
Increase its distribution coverage and enter new distribution channels
Shift from product awareness advertising to product preference advertising
nnn
Lower prices to attract the next layer of price-sensitive buyers

Strategies for PLC Stage III (Maturity)

Growth Maturity

Market Modification

Stable Maturity

Product Modification

Decaying
Maturity

Market-Mix
Modification

Converting nonuser

Improve Quality

Price

Entering new market

segment

Improve Feature

Distribution

Winning competitors
customers

Advertising
Sales Promotion
Personal Selling
Services

Strategies for PLC Stage IV (Decline)

Identify the
Decline Stage
(compulsory)

KILL

SHELL

SELL

Common Product Life-Cycle Patterns

Sales Volume

(a) Growth-slumpmaturity pattern

(b) Cycle-recycle
pattern

Primary
circle

(c) Scalloped
pattern

Recycle

Time

Time

Style

Fashion

Fad

Time

Time

Time

Sales

Time

CHAPTER 12

DEVELOPING NEW
MARKET OFFERING

The New-Product Development Decision Process

1. Idea generation

No

Yes
2. Idea screening

No

Yes
3. Concept
development & testing

DROP
No

Yes
4. Marketing strategy
development
Yes

No

No

5. Business analysis
Yes

No

6. Product development

Yes

Yes
7. Market testing

DROP

No

Should we send
the idea back for
product
development?

No

No

Would it help to
modify the product
or marketing
program?

No

Yes
8. Commercialization
Yes

Yes
Lay
future
plans

CHAPTER 13

DESIGNING GLOBAL
MARKET OFFERINGS

Major Decisions in International Marketing

Deciding whether
to go abroad
Deciding which market
to enter

How many market to enter

Regional free trade zones
Evaluating potential markets

Deciding how to
enter the market
Deciding on the
marketing program
Deciding on the
marketing organization

Next Slide

5-Modes of Entry into Foreign Markets

Amount of commitment, risk, control and profit potential

Indirect
exporting

Direct
exporting

Licensing

Joint
ventures

Direct
investment

5-International Product and

Promotion Strategies

Promotion

Product

Do Not Change
Promotion

Do Not Change
Product

Adapt
Product

Straight
Extension

Product
adaptation

Develop New
Product

Product
invention
Adapt
Promotion

Communication
adaptation

Dual
adaptation

Whole-Channel Concept for

International Marketing
Seller
Sellers
international
marketing
headquarter

Channels
between
nations

Channel
within
foreign
nations
Final
buyers

CHAPTER 14

SETTING THE PRODUCT

AND
BRANDING STRATEGY

Components of the Market Offering

Value-based prices

Attractiveness
Attractiveness
ofofthe
themarket
market
Ofering
Ofering

Product features
and quality

Service mix
and quality

5-Product Levels
Potential Product
Augmented Product
Expected Product
Basic Product
Core
benefit

Product-Mix Width and Product-Line Length

For Procter & Gamble Products (Including Dates of Introduction)

Product-Line Length

Product-Mix Width
Detergents

Toothpaste

Ivory Snow
Gleem (1952)
(1930)
Crest (1955)
Dreft (1933)
Tide (1946)
Cheer
(1950)
Oxydol (1954)
Dash (1954)
Bold (1965)
Gain (1966)
Era (1972)

Disposable
Bar Soap
Ivory (1879)
Kirks (1885)
Lava (1893)
Camay
(1926) Zest
(1952)
Safeguard
(1963)
Coast
(1974) Oil of
Olay (1993)

Diapers

Paper Tissue

Pampers
(1961)
Luvs (1976)

Charmin (1928)
Pufs (1960)
Banner (1982)
Summit (1992)

An Overview of Branding Decision

Branding
Decision

Brand
No Brand

Brand-Sponsor
Decision

Brand-Name Brand-Strategy
Decision
Decision

Individual
names
Manufacturer
Blanket family
brand
name
Distributor
Separate
(private) brand
family names
Licensed
Companybrand
individual
names

BrandRepositioning
Decision

Line extension
Brand
Repositioning
extension
No
Multi-brands
repositioning
New brands
Co-brands

CHAPTER 15

DESIGNING
AND
MANAGING SERVICES

Service-Characteristics

Inseparability

Intangibility

SERVICE

Perishability

Variability

Elements in a Service Encounter

The Service Business as a System

Service Business

Physical
environment
Internal
Organizational
System
Contract
personal

Not visible to customer

Visible to
customer

Direct Interaction

Customer A

Service X

Other
Service
Advertising
Billing and payment
Sales call
Media stories
Word-of-mouth
comments

Other
Customer

Secondary Interaction

3-Types of Marketing in Service Marketing

Company

In
te
rn

al
M

tin
ke
ar
M

ar
ke
tin
g

al
rn
te
Ex

Cleaning/
maintenance
services

Employees

Financial/
banking
services

Internal Marketing

Restaurant
industry

Customers

Service-Quality Model
Word of mouth
communication

Personal needs

Past experience

Expected service

GAP 5
Perceived service
Consumer
Marketer

Service delivery
(including pre & post-contract)

GAP 1

GAP 3
Translation of perceptions
into service-quality specification

GAP 2
Management perception of
consumer expectation

GAP 2

External
communication
to consumer

Importance-Performance Analysis
Extremely important
A. Concentrated
here

B. Keep up the
good work

Fair performance

External performance

C. Low price

D. Possible overkill

Slightly important

CHAPTER 16

DEVELOPING
PRICE STRATEGY
AND
PROGRAM

Nine Price-Quality Strategies

Price

Product Quality

High

Medium

Low

High

Medium

Low

1. Premium
strategy

2. High-value
strategy

3. Supervalue strategy

4.
Overcharging
strategy
7. Rip-of
strategy

5. Medium- 6. Good-value
value strategy
strategy
8. False
economy
strategy

9. Economy
strategy

Price Should Align with Value

Price paid

High

Mixed opportunities

Medium

Price = value

Undelivered value

Low
Low

Medium
Value received

High

Setting Pricing Policy

1. Setting the
pricing objectives
2. Determining
demand
3. Estimating costs

PRICE SENSITIVITY
ESTIMATING DEMAND CURVES
PRICE ELASTICITY OF DEMAND
TYPE OF COSTS AND
LEVELS OF
PRODUCTION

4. Analyzing competitors,
costs, prices & ofers
5. Selecting a pricing
method
6. Selecting the final
price

MARKUP PRICING
TARGET-RETURN PRICING
PERCEIVED-VALUE PRICING
VALUE PRICING
GOING-RATE PRICING
AUCTION-TYPE PRICING

Price-Reaction Program for Meeting a

Competitors Price Cut

Yes

Is the price likely

to significantly
hurt our sales?

By less than 2%
Include a cents-off
coupon for the
next purchase

Hold our price at present

level; continue to watch
competitors price

No

Has competitor
Cut his price?
No

Yes

No

Is it likely to be a
permanent price
cut?

By 2-4%

Drop price by half

Of the competitors
price cut

Yes

How much has his

price been cut?

By more than 4%
Drop price to
competitors price

CHAPTER 17

DESIGNING AND
MANAGING VALUE
NETWORKS AND
MARKETING CHANNELS

How a Distributor Effects an

Economy of Efforts

3
4
5

6
7

8
9

C
6

a) Number of contacts

a) Number of contacts

MxC=3x3=9

M+C=3+3=6

M = Manufacturer

C = Customer

D = Distributor

5-Marketing Flows in the Marketing Channels

1. Physical Flow

SS

TT

MM

TT

DD

TT

CC

2. Title Flow

SS

MM

DD

CC

3. Payment Flow

SS

BB

MM

BB

DD

TT

CC

MM

T,B
T,B

DD

TT

CC

MM

AA

4. Information Flow

SS

T,B
T,B

5. Promotion Flow

SS
S-Supplier

AA

T-Transporter, warehouses

B-Banks

M-Manufacturer

DD
D-Dealer

C-Customer

CC
A-Adv Agency

Consumer Marketing Channels

0-level

1-level

2-level

3-level

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Wholesaler

Wholesaler

Jobbler

Consumer

Retailer

Retailer

Retailer

Consumer

Consumer

Consumer

Industrial Marketing Channels

0-level

1-level

2-level

3-level

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturers
representative

Manufacturers
representative

Industrial
customer

Industrial
customer

Industrial
distributors

Industrial
customer

Industrial
customer

The Value-Adds vs Cost of Different Channels

High
Sales forces

Value-add of sales

Value-added
partners
Distributors

Direct sales
channels

Retail stores
Indirect channels
Telemarketing
Internet

Direct marketing
channels

Low
Low

High

Cost per transaction

Channels Value Added and Market Growth Rate

Value Added by the Channels
High

Market Growth Rate

Low

Introductory

Low

4.

- PCs hobbyist stores

- PCs mail order

- Designer apparel:

- Designer apparel:

boutiques
2.
High

Declining

Declining

of-price stores
3.

Declining

- PCs specialty
retailers

- PCs mass
merchandisers

- Designer apparel:

- Designer apparel:

better departmental
stores

mass merchandisers

CHAPTER 18

MANAGING RETAILING,
WHOLESALING, AND
MARKET LOGISTICS

Retail Positioning Map

Breadth of the product line

Broad

Bloomingdales

Wal-Mart

Tifany

Sunglass Hut

Narrow
Value Added

High

Low

Major Retail Types

Of-price
Retailer

Superstore

Catalog
Showroom

Specialty
Stores

Retail Types

Discount
Stores

Department
Stores

Supermarket

Convenience
Stores

Retail Marketing Decision

Product
Assortment &
Procurement

Target Market

Service and
Store
Atmosphere

Promotion
Decision

Price Decision

Place Decision

Wholesale Type
Limited-Service
Wholesaler
Brokers

Agents

Full-Service
Wholesaler

Broker and Agent

Merchant
Wholesaler

Miscellaneous
Wholesaler
Manufacturers and Retailers
Branches and Offices

Wholesaler Marketing Decision

Product
Assortment &
Services

Target Market

Promotion
Decision

Price Decision

Place Decision

Market-Logistics Decision

Order
Processing

Warehousing

Inventory

Transportation

CHAPTER 19

MANAGING INTEGRATED
MARKETING
COMMUNICATION

Communication Process Elements

Encoding

Message

Decoding

Media

SENDER

RECEIVER
Noise

Feedback

Response

Identify target
audience

Developing Effective
Communication Steps
1

Determining
objectives

Measure
results

Design
message

Select
channels

Manage
integrated
marketing
communication

Decide on
media mix

Establish
budget

Response Hierarchy Models

Models
Stages

AIDA
Model

Hierarchy-ofEffects Model

InnovationAdoption Model

Exposure

Awareness

Cognitive
stage

Attention

Communications
Model

Awareness

Reception

Knowledge
Cognitive response
Interest

Affective
stage

Interest

Attitude

Preference
Desire

Behaviour
stage

Liking

Conviction

Evaluation

Intention

Trial
Action

Behaviour

Purchase
Adoption

CHAPTER 20

MANAGING ADVERTISING,
SALES PROMOTION,
PUBLIC RELATION, AND
DIRECT MARKETING

5-Ms of Advertising
Messages

Money
Mission
Sales goals
Advertising
objectives

Factors to consider
Stages in PLC
Market share and
consumer base
Competition and
clutter
Advertising
frequency
Product
substitutability

Message generation
Message evaluation
and selection
Message execution
Social-responsibility
review

Measurement

Media
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical media
allocation

Communication
impact
Sales impact

Major Media Types

Newspaper

Television

Direct Mail

Radio

Magazine

Outdoor

Yellow Pages

Newsletters

Brochures

Telephone

Internet

Classification of Advertising Timing Patterns

Intermittent

Continuous

Concentrated

Level

Rising

Falling

Alternating

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)
Number of
messages
per month

Month

Formula for Measuring Sales Impact of

Advertising
Share of
mind and
heart

Share of
expenditure

Share of
voice

Share of
market

Business and Sales Force Promotion Tools

Specialty
Advertising

Trade Shows
and
Conventions

Sales
Contract

Major Tools in Marketing

Speeches

Public-Service
Activities

Events
Publications

Identity
Media

Sponsorships
News

CHAPTER 21

MANAGING
THE
SALES FORCE

Designing a Sales Force

Designing the
Sales Force

Sales force
strategy

Sales force
objectives

Sales force
size

Sales force
structure

Sales force
compensation

Managing the Sales Force

Managing the
Sales Force

Recruiting and
Selecting sales
representatives

Supervising
sales
representatives

Training
sales
representatives

Motivating
sales
representatives

Evaluating
sales
representatives

Major Steps in Effective Selling

(4)

(3)

(2)

(1)

Approach

Pre-approach

Prospecting
and
qualifying

Presentation
and
demonstration

(5)

Overcoming
objectives

(6)

Closing

(7)

Follow-up
and
maintenance

Classic Bargaining Tactics

- Acting Crazy
- Big Pot
- Get Prestigious Ally
- The Well Is Dry
- Limited Authority
- Whipsaw/Auction
- Divide and Conquer
- Get Lost/Stall for Time
- Wet Noodles
- Be Patient
- Lets Split the
Difference
- Trial Balloon
- Surprises

CHAPTER 22

MANAGING
THE
TOTAL MARKETING
EFFORT

Functional Organization

Marketing
vice-president

Marketing
vice-president

Marketing
vice-president

Marketing
vice-president

Marketing
vice-president

Marketing
vice-president

Thank You