When We Finish This Lecture You Should CHAPTER TWO Marketing Strategy .

When we finish this lecture you shouldCHAPTER TWOMarketing StrategyPlanning 1.Unfairtrade practiceUnderstand what a marketing manageractsdoes. 2.DumpingKnow what marketing strategy planning is— Phonyand listwhypricesit will be the focus of the book. 3.Wheeler-LeaUnderstand target marketing.4.AmendmentBe familiar with the four Ps in a marketing Pricemix.fixing 5.Robinson-PatmanAct between a marketingKnow the difference Pricediscriminationstrategy,a marketing plan, and a marketing6.For use only withPerreault/Cannon/McCarthyor Perreault/McCarthy texts. 2008 McGraw-HillCompanies, derstand what customer equity is andwhy marketing strategy planners seek toincrease it. 2005 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinWhen we finish this lecture you shouldThe Management Job in Marketing 7.Unfairtrade practiceBe familiar with the text’s framework foractsmarketing strategy planning—and why itDumpinginvolves a process of narrowing down fromPhonylistopportunitiespricesbroadto the most attractivemarketing strategy.Wheeler-Lea8.AmendmentKnow four broad types of marketingopportunitiesthat help in identifying new Pricefixingstrategies. Robinson-PatmanActUnderstandwhy strategies for opportunities 9.Pricediscriminationin international markets should beconsidered. MarketingPlanningControl MarketingPlan(s) and lement MarketingPlan(s) and Program 2005 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinWhat is Marketing Strategy Planning? (Exhibit 2-2)Selecting a Marketing-Oriented Strategy Is TargetMarketing (Exhibit 2-3)Themarketing mixCProduction-oriented manager seeseveryone as basically similar andpractices “mass marketing”Basic Marketing – Chapter 2Handout 2-1Marketing-oriented manager seeseveryone as different andpractices “target marketing”

An Application of Target MarketingDeveloping Marketing Mixes for Target Markets(Exhibit 2-4)ProductPlaceCPriceThe Product Element of the Marketing MixPromotionThe Place Element of the Marketing Mix (Exhibit 2-6)Examples of Channels of nsumerThe Promotion Element of the Marketing MixPersonalSellingThe Price Element of the Marketing MixAdvertisingCompetitionandSubstitutesTelling andSellingthe CustomerSalesPromotionPrice of OtherProducts Inthe LinePriceSensitivityPublicityBasic Marketing – Chapter 2Handout 2-2Cost mentPriceFlexibilityPrice ChangesOver the rms

Interactive Exercise: Marketing MixAll Four Ps Contribute to the ionof TargetMarketPromotionPriceUnderstanding the Target Market Leads to Good Strategies! 2008 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinChecking your knowledgeChecking your knowledgeGeneral Motors is considering increasing the length of its bumper-tobumper warranty on new vehicles from 3 years to 5 years. Themarketing mix variable being considered here ce.A. product.B. personnel.C. place.D. promotion.E. price.The Marketing Plan Guides Implementation andControlMarketingMix MarketingStrategy TimeRelatedDetailsChecking your knowledgeAn entrepreneurial teenager decides to start a new dog-walkingbusiness aimed at dog owners who have to leave their pets at homealone during regular working hours. The teenage develops a thoroughdescription of the people in her target market and their needs. Shethen comes up with a general outline of the services she will offer,some price ranges, the geographic area she will serve, and some lowcost promotion ideas. What has she developed so far?TargetMarket A television network is trying to generate interest in a new televisionshow in advance of its premiere. The network sends out pressreleases and makes the star of the new show available for guestappearances on TV and radio talk shows. The marketing mix variableinvolved here is: MarketingPlan OtherMarketingPlans A Firm’sMarketingProgramA. A marketing programB. A marketing planC. A SWOT analysisD. A marketing strategyE. Differentiation and segmentationBasic Marketing – Chapter 2Handout 2-3

Customer Equity (Exhibit 2-9)Checking your knowledgeA large consumer products company markets several different lines ofproducts, with many individual products in each line. Each product hasits own marketing plan. The company president wants to bring togetherall of the different marketing plans into a single integrated documentthat can become part of the company’s strategic plan. It appears thatthe company president needs a:A. marketing super-plan.B. marketing program.C. marketing strategy.D. operational plan.E. mass-marketing approach.Businessenters markettimeCCCurrentCustomersfirmNewCustomersCCAs Customer Equity Grows, so do Earnings!The Importance of Marketing Strategy PlanningStrategy Decisions Usually DetermineSuccess and Failure Creative Strategy Planning Needed for SurvivalDeath-wishmarketing(Belowaverage)Timex had captured a largemarket share Low price, dependability, goodads, unconventional channels Stiff competition arose New product refinementsWhat Are Attractive Opportunities?(Well verageMarketingProgram)14%PoorThe Importance of Good ResearchCompetitiveAdvantage 2008 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinBasic Marketing – Chapter 2Handout 2-4(Well aboveaverage)14%FairBreakthroughOpportunitiesAvoid l

Marketing Strategy Planning Process HighlightsOpportunities (Exhibit 2-11)Interactive Exercise: Marketing StrategyPresent productsNew lopmentNewmarketsMarketdevelopmentDiversification 2008 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinMarket PenetrationChecking your knowledgeA large metropolitan university has an established summer-schoolprogram that offers a wide variety of classes to its current students. Toexpand enrollment, the school started promoting its summer school tostudents who live in the area and are home for the summer, eventhough they attend other universities during the regular school year.This effort is an example of:A.B.C.D.E.Coffee so goodYou just can’t wait.market penetration.market development.product development.diversification.a breakthrough opportunity.Product DevelopmentChecking your knowledgeAn electronics superstore sends a special coupon to its currentcustomers offering them a special discount for purchases made duringan upcoming week that occurs during a traditionally slow sales period.This is an example of:A.B.C.D.E.market penetration.market development.product development.diversification.a breakthrough opportunityBasic Marketing – Chapter 2Handout 2-5

Product DevelopmentInternational Opportunities Should Be ConsideredSmallerWorldCompetitiveAdvantageEarly StartBetterTrends? 2008 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinGlobal Competitive AdvantageYou now 1.Unfairtrade practiceUnderstand what a marketing manageractsdoes. 2.DumpingKnow what marketing strategy planning is— Phonyand listwhypricesit will be the focus of the book. 3.Wheeler-LeaUnderstand target marketing.4.AmendmentAre familiar with the four Ps in a marketing Pricemix.fixing 5.Robinson-PatmanAct between a marketingKnow the difference Pricediscriminationstrategy,a marketing plan, and a marketing6.program.Understand what customer equity is andwhy marketing strategy planners seek toincrease it. 2005 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinYou nowKey Terms 7.Unfairtrade practiceBe familiar with the text’s framework foractsmarketing strategy planning—and why it Dumpinginvolves a process of narrowing down from Phonylistopportunitiespricesbroadto the most attractivemarketing strategy. Wheeler-Lea8.AmendmentKnow four broad types of marketingopportunitiesthat help in identifying new Pricefixingstrategies. Robinson-PatmanActUnderstandwhy strategies for opportunities 9.Pricediscriminationin international markets should beconsidered. 2005 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinBasic Marketing – Chapter 2Handout 2-6 Marketingmanagementprocess Strategic(management)planning Marketing strategy Target market Marketing mix Target marketing Mass marketing Channel ofdistribution Personal selling Customer serviceMass sellingAdvertisingPublicitySales promotionMarketing planImplementationOperationaldecisions Marketing program Customer equity Breakthroughopportunities

Key Terms Competitiveadvantage Differentiation S.W.O.T. analysis Market penetration Marketdevelopment Productdevelopment DiversificationBasic Marketing – Chapter 2Handout 2-7

Know what marketing strategy planning is— and why it will be the focus of the book. 3. Understand target marketing. 4. Be familiar with the four Ps in a marketing mix. 5. Know the difference between a marketing strategy, a marketing plan, and a marketing program. 6. Understand what customer equity is and why marketing strategy planners seek to