Lecture Business: A changing world - Chapter 13: Dimensions of marketing strategy

After reading this chapter, you will be able to: Describe the role of product in the marketing mix, including how products are developed, classified, and identified; define price and discuss its importance in the marketing mix, including various pricing strategies a firm might employ; identify factors affecting distribution decisions, such as marketing channels and intensity of market coverage;...

Dimensions of Marketing Strategy

Business Analysis

Product Develop­

ment

Test Marketing

Commercial­ ization

Innovation 

at 3M

13-2

Classifications of  Consumer Products

• Tropicana Pure Premium  Juices

• Tropicana Season’s Best Juices

• Tropicana Pure Tropics Juices

• Tropicana Twister Juice  Beverages

• Dole Juices

• Fruit Smoothies and Healthy  Shakes

13-4b

Tropicana Brands

• Tropicana 100% Pure  Juices

• Baked Lay’s Brand Potato Crisps

• Baked Tostitos Brand Tortilla Chips

• Cheetos Brand Cheese flavored  Snacks

• Tostitos Brand Crackers

• Tostitos Brand Dip

• Tostitos Brand Tortilla Chips

• Baken­ets Brand Fried Pork  Skins

13-5

Sales Volume

Profit

Time 0

Sales $

• New­product strategies Price skimming 

Penetration pricing

• Psychological pricing strategies Odd/Even

Prestige pricing

• Price Discounting Quantity discounts Seasonal discounts Promotional discounts

13-7 Implement

Pricing Strategies

Consumer Products

Agents (Middlemen) Wholesalers (Middlemen) Retailers (Middlemen)

Consumers

Wholesalers (Middlemen) Retailers

(Middlemen) (Middlemen)Retailers

13-9

Activities

13-10

Customers Producers

Inventory Planning and Control Transportation Warehousing

Materials Handling

Personal Selling

Sales Promotion Advertising

13­13

1 McKinsey & Co.

Web sites that accept advertising

• Stimulate demand

• Stabilize sales

• Inform, remind, and reinforce customers

13-20

Do you think the role of marketing will continue to be important in the face of increasing technological advances? Should professional fields such as doctors, lawyers and dentists utilize marketing in the same way that manufacturing and retail do?

13-23

Additional Discussion  Questions and Exercises

3 What is the difference between a “brand mark” and a 

“trademark”?

13-24a

Additional Discussion  Questions and Exercises

4 What are the advantages of businesses using coupons and/or 

contests and sweepstakes for sales promotion purposes?

13-24b

a wholesalers.

b retailers.

c merchant middlemen.

d agent middlemen.