BUAD 479 Exam 1 (Note On Marketing Strategy)
How much customization?
i.e. at which point on the continuum from….
4) Customer’s behavior / relationship with product (i.e. user vs. non-user, loyalty, etc.)
Answers the question “If we pursue this segment, how would we approach it and how would we want potential buyers to see us?”
*Solving positioning problems allows you to solve marketing mix problems.
4) Channels of Distribution
5) Personal Selling
11) Physical Handling
12) Fact-Finding and Analysis – Market Research
ex: Under Armour offers a lacrosse line, a hockey line, a football line, a running line etc.
ex: In Under Armour’s running line there are 16 different running shoes from $50 – $180.
Some shoes are considered in the ‘elite’ segment (over $120) and some are considered in the ‘intermediate’ ($75-$119) and some are in the ‘beginner’ segment (under $75).
ex: In Under Armour’s running line there is a shoe that sells for $50 that comes in three styles or colors, etc.
Will this line compliment other products?
Is there an opportunity to differentiate from competitors?
3) Testing – surveys, taste tests, this is important for the product itself but also for determining elements of the marketing mix, such as price.
4) Product Introduction – decisions on markets, “rolling out the product)
5) Life Cycle Mgmt. – continue to learn more about the customers and their reactions, the marketing environment is always changing so LCM is a dynamic process.
2) Product Customization
3) Product Quality Assurance
4) Lot Size (e.g. the ability to buy in small quantities)
5) Product Assortment (refers to breadth, length and width of product lines)
7) After-Sale Service
Direct – No 3rd party
Indirect – There is a third party
**Also ‘Dual Distribution’ exists and that is where a firm uses both forms of distribution to reach different markets.
2) Mission – What is the objective of the communication?
3) Message – What are the specific points to be communicated?
4) Media – Which vehicles to use?
5) Money – How much?
6) Measurement – How will impact be assessed?
2) Trade promotions – used by manufacturer and addressed to the wholesaler or retailer (e.g. temporary off -invoice price discounts)
3) Retail promotions – Displaying brand in store, sales
Pull – The end consumer develops such an insistence on the product that he or she “pulls” it through the channel of distribution, and the retailers’ role is merely to make the product conveniently available.
Perceived value is determined by Product, Place and Promotion.
Penetration – Firm sets a lower price to generate lots of sales quickly. Designed to preempt competition and obtain a lot of customers early on.
Price customization can be achieved by…
Developing a product line – such as hardcover/softcover book situation, same books but one is considered ‘nicer’ or ‘more elite’ and is priced higher.
Varying price based on observable buyer characteristics – ex: pay more to ‘upgrade’ to the better software, etc.
2) Decider – Makes the choice
3) Influencer – Has input
4) Purchaser – Consummates the transaction
5) User -Consumer the product
ex: Think about when your family bought a car. Maybe you mom was the initiator, your dad was the purchaser, you (being old enough to drive it) were the influencer and both your mom and dad were the deciders.
Objects is what the market buys
Objectives is why the market buys
Organizations are who participates in the buying
Operations is how the market buys
Occasion is when the market buys
Outlets are where the market buys
2) Market Development
3) Product Development
2) Market Challenger – 30%
3) Market Follower – 20%
4) Market Nicher – 10%
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