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Unit Four Marketing Management 1 1 Learning Objectives Define marketing List the marketing management philosophies. Learn marketing mix Describe the product life cycle 2 2 Philip Kotler The S.C. Johnson they sell benefit packages. They dont sell purchase value only; they sell use value.“ - Philip Kotler in Kotler on Marketing 1010 MarketingMarketing MarketMarket MarketplaceMarketplace 1111 Marketing Management Philosophies 1212 production concept product concept selling concept marketing concept societal marketing concept 1313 Production Concept favor products available highly affordable management consumers improving production distribution efficiency. Demand supply products cost is too high improved productivity 1414 marketing myopia”. Customers Continuous improvement Product Concept most quality performance innovative features. 1515 Selling Concept consumers will not buy enough of the organizations products unless it undertakes a large-scale selling and promotion effort. overcapacity: 1616 Companys profits Customers value Marketers 1717 Marketing Concept Achieving organizational Goals Determine needs wants, interests of target markets. Deliver the desired Satisfactions to customers 1818 deliver superior value to customers in a way that maintains or improves the consumers and the societys well-being. The Societal Marketing Concept 1919 Marketing Process Analyzing marketing opportunities; Selecting target markets; Developing the marketing mix; Managing the marketing efforts. 2020 Product (e.g., What features do customers care most about?, Should we sell the same product to women and men, or have two different designs?) Price (e.g., How much should we charge? Should we offer quantity discounts?) Promotion (e.g., How should we advertise our product?; Which features should we emphasize? What is the best way to make customers aware of our product? What image do we want to project?) Place (e.g., Where should we sell this product - to wholesalers, to retailers, or directly to customers? Developing the Marketing Mix four Ps 2121 Product planners need to think about the product on 3 levels. Core products Actual products Augmented products augmented: adj. 扩张的 2222 Core Products The core product addresses the question: What is the buyer really buying? It consists of the problem- solving services or core benefits that consumers seek when they buy a product. 2323 Actual Products Actual products may have as many as five characteristics: quality level features design brand name packaging 2424 Augmented Products Finally, the product planner must build an augmented product by offering additional consumer services and benefits. 2525 Product Life Cycle Development stage. Introduction stage. Growth stage. Maturity stage. Decline stage. 2626 2727 Introduction Stage of the PLC Sales: Low sales Profits: Negative Product: Offer a basic product Price : Use cost-plus Distribution : Build selective distribution Advertising: Build product awareness among early adopters and dealers 2828 Growth Stage of the PLCGrowth Stage of the PLC Advertising: Build awareness and interest in the mass market Sales: Rapidly rising sales Profits : Rising profits Product: Offer product extensions, service, warranty Price: Price to penetrate market Distribution: Build intensive distribution 2929 Maturity Stage of the PLCMaturity Stage of the PLC Sales: Peak sales Profits: High profits Product : Diversify brand and models Price : Price to match best competitors Distribution: Build more intensive distribution Advertising :Stress brand differences and benefits 3030 Decline Stage of the PLCDecline Stage of the PLC Sales : Declining sales Profits : Declining profits Product : Phase out weak items Price : Cut price Distribution: Go selective phase out unprofitable outlets Advertising: Reduce to level needed to retain hard-core loyal customers 3131 II. Price Price is all around us and goes by many names: rent for your apartment, tuition for your education, fee to your physician or dentist. 3232 The airline, railway, taxi, and bus companies charge you a fare; the local utilities call their price a rate; the local bank charges you interest for the money you borrow. The price for driving your car on Floridas Sunshine Parkway is a toll. toll:n.通行税(费), 费 3333 New Product Pricing Strategies Price-Adjustment Strategies Setting Price 3434 New Product Pricing Strategies Market Skimming: Setting a high price for a new product to maximize revenues from the target market. Results in fewer, more profitable sales. Market Penetration: Setting a low price for a new product in order to attract a large number of buyers. Results in a larger market share. 3535 Certain conditions the market skimming makes sense The products quality and image must support its higher price, and enough buyers must want the product at that price. The costs of producing a smaller volume cant be so high. Competitors shouldnt be able to enter the market easily and undercut the high price. 3636 Certain conditions the market penetration favors The market must be highly price sensitive so that a low price produces more market growth. Production and distribution costs must fall as sales volume increases. The low price must help keep out the competition, otherwise the price advantage may be only temporary. 3737 Promotional Pricing Segmented Pricing Price-Adjustment Strategies 3838 Promotional Pricing: Temporarily reducing prices to increase short-run sales. 3939 Segmented Pricing: Adjusting prices to allow for differences in customers, products, or locations. Customer Product Form Location Time 4040 III. Place Consumer Marketing Channels Industrial Marketing Channels Direct marketing channel Indirect marketing channels intermediary level. 4141 Consumer Marketing Channels this conveys the idea that the on- line buying experience is boring. 4747 It can reach masses of geographically dispersed buyers at a low cost per exposure. It enables the seller to repeat a message many times, and it lets the buyer receive and compare the messages of various competitors. dispersed: adj. 分散的 Advantages 4848 Because of advertisings public nature, consumers tend to view advertised products as standard and legitimate. Large-scale advertising says something positive about the sellers size, popularity, and success. 4949 Advertising is also very expressive - it allows the company to dramatize its products through the artful use of visuals, print, sound, and color. On the one hand, advertising can be used to build up a long-term image for a product. On the other hand, it can trigger quick sales. 5050 dramatize:v.使戏剧化;夸张 artful: adj. 巧妙的作出或设计 build sth up: 增强某事物 eg. build up ones strength after an illness trigger: v. 发动,引发 5151 Although it reaches many people quickly, advertising is impersonal and cannot be as persuasive as company sales people. Disadvantages 5252 For the most part, advertising can carry on only a one-way communication with the audience, and the audience does not feel that it has to pay attention or respond. In addition, advertising can be very costly. for the most part: .在极大程度上 5353 Informative Advertising Persuasive Advertising Comparison Advertising Reminder Advertising Setting Objectives 5454 Personal Selling 5555 Sales Promotion Whereas advertising says “buy our product”, sales promotion says “buy it now”. 5656 Samples Coupons Patronage rewards Contests/Sweep stakes/games Advertising Specialties discount Consumer-Promotion Tools 5757 Cash refund Offers Price packs/ cents-off deals Premiums Point-of-purchase 5858 They attract consumer attention and provide information that may lead to a purchase. They offer strong incentive to purchase by providing inducements or contributions that give additional value to consumers. Advantages 5959 Sales promotions invite and reward quick response. Whereas advertising says “buy our product”, sales promotion says “buy it now”. Companies use sales- promotion tools to create a stronger and quicker response. 6060 Sales promotion can be used to dramatize product offers and to boost sagging sales. incentive (to do sth): n. 刺激,动 机 inducement (to do sth): n. 引诱 boost: v.提高、促进 6161 Sales promotion effects are usually short-lived, ho
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