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Promoting

MKT eight hundred fifty Study Guidebook Chapter 5 * SWOT Analysis: * One of the most valuable tools in analyzing advertising data and information * Links company’s situation research and development of marketing prepare * Uses structured info to uncover competitive advantages and guide collection of the proper focus of the marketing strategy. * Broken down in: * Talents, Weaknesses, Possibilities & Dangers * Fruitful SWOT (manager should¦): * Use a number of SWOT analyses focusing on specific product/market combinations * Search for competitors the two present and future Work together with other functional areas simply by sharing info and viewpoints * Examine issues in the customers point of view by asking employees: 5. What do consumers believe tentang kami as a business? * Which of our disadvantages translate into a decreased ability to provide customers? 2. Looks for triggers not attributes considering the businesses resources for every part * Separate external and internal issues making use of this key test out: * Might this issue can be found if the firm did not are present? * If you do, issue classified as exterior * Strong points & Weaknesses: Exist as a result of resources by the firm, or perhaps due to the characteristics of crucial relationships between your firm and its customers/employees/outside agencies * May be leveraged in capabilities (strengths) or overcome (weaknesses) 5. Meaningful only when they support or hinder the organization in rewarding customer demands * Possibilities & Hazards: * Not really potential advertising actions. Issues/situations that result from the firm’s external surroundings.

* Certainly not ignored as the firm gets swept up in growing strengths and capabilities intended for fear of creating an efficient, although ineffective organization. Stem from changes in the competitive, customer, economical, political/legal, technological, and sociocultural environments. 5. SWOT Matrix: * Permits marketing administrator to visualize the analysis 5. Serves as a catalyst to guide the creation of marketing approaches that will generate desired results. * Permits manager to determine how strengths and chances might be linked to create functions that are step to meeting consumer needs 5. Assesses the magnitude and importance of each strength/weak/opp/threat. 5. Competitive Benefits: Capabilities in relations to people held by competition 2. Based on both internal and external factors * Based upon reality and customer perception * Depending on the basic strategies of operational quality, product leadership, and buyer intimacy. 2. Strategic Target Establishment 2. Based on growing an overall strategy or style that manuals the company as it weaves various marketing elements together into a coherent strategy 2. Tied to business competitive benefits * Work with results of SWOT as firm looks at four directions of tactical efforts: 2. Aggressiveness Diversity * Turnaround * Defensiveness * Assures the company does not step beyond key strengths to consider opportunities outside the capabilities 2. Visualized by making use of a strategy painting where the aim is to build a value contour that is unique from the competition * Downplay traditional sector competitive elements in favor of fresh approaches 2. Lays foot work for development of marketing goals and aim, connects SWOT outcomes for the rest of the promoting plan. 5. Marketing Desired goals: Broad, desired accomplishments started in general conditions. * Show the path the organization attempts to advance in, plus the set of priorities will use in evaluating alternative and making decisions. 2. Should be achievable, realistic, inside consistent, thorough, and explain the tasks of all celebrations in the business. * Consists of some degree of intangibility 2. Marketing Objectives: * Specific and quantitative benchmarks which can be used to evaluate progress toward the accomplishment of the promoting goals 2. Should be attainable with fair effort Constant or unsuccessive[obs3], broken, interrupted depending on the level to which that they depart via present aims * Designated to specific areas, departments, or a poor00 the responsibility to perform them Chapter Six * Buyer Behavior in Consumer Markets: * Often reasonless and capricious as customers say something and do an additional * Improvement through five stages: * Need Identification * Data Search 2. Evaluation of Alternatives 5. Purchase Decision * Post Purchase Analysis Don’t often follow these stages in order or may well skip phases * Might be characterized by loyalty where consumers simply pick the same item that they bought last time * Entails parallel sequencing of activities with seeking the most suitable merchant. * Considercarefully what product they really want, and where to get it * Can happen if a customer is increasingly loyal to a merchant * Can be afflicted with: * Difficulty of the obtain and making decisions process * Demographics, Psychographics, and Sociocultural factors 2. Social affects: culture, social class, relatives, opinion market leaders, reference groupings. Situational impacts: physical and spatial influences, social and private influences, period, purchase task/usage, consumer predisposition * Customers Wants & Needs: * Shouldn’t determine needs since necessities since everyone has a different perspective on what creates a need 2. Needs occur when a customers current level of satisfaction won’t equal their very own desired level * Wishes are consumers desire for a particular product that could satisfy a specific need * Firm need to understand fundamental needs satisfied by usana products. Allows organization to part markets and create promoting programs that show needs into wishes for their product * The majority of products are marketed based on wants not want fulfillment 2. Wants are not the same as require * Require: occurs when the customers ability and willingness to pay backs a want for a certain product 5. Information Search: * Passive and Energetic: * Passive- consumer be attentive and receptive to information 2. Active- buyer engages more aggressive searching for information search * Depends upon several problems: Degree of risk * Level of expertise * Actual expense of search (time and money) * Culminates in an evoked set of suited buying alternatives * Evaluation of Alternatives: * Explicates needs in wants for specific goods or brands * Examine products as bundles of attributes that contain varying abilities to satisfy the requirements * Top priority of each consumers choice requirements can change 5. Want the item to be in the evoked group of potential alternatives * Continuously remind them with their company and products * Purchase Stage: Intent to purchase and the actual act of buying are distinctive concepts 5. Key problems: * merchandise availability: just how easy is it to get the merchandise where the consumer is 2. possession electricity: how easy is it to transfer control * Postpurchase Evaluation: 5. Outcome of getting process is linked to the progress long-term consumer relationships. Closely follow consumers’ responses to monitor functionality and capability to meet customers’ expectations 5. Will knowledge one potential outcomes: Delight, satisfaction, dissatisfaction, or intellectual dissonance * Business Market segments: * Purchase products because of their use in their operations, just like buying recycleables, buying business office supplies, or leasing vehicles * Contains four types of potential buyers: * Industrial markets * Reseller markets * Authorities markets 2. Institutional marketplaces * Four unique qualities not seen in consumer marketplaces: * The buyer center: financial buyers, technological buyers, and users * Hard and soft costs are equally important Hard- economic price or perhaps purchase costs * Soft- downtime, chance costs, HR costs 5. Reciprocity: business buyers and sellers often buy products coming from each other * Mutual dependence: sole-source or limited-source obtaining makes equally buying and selling firms mutually based mostly * Organization Buying Process: * Pattern of Periods: * Issue Recognition * Development of item specifications * Vendor identification and diploma * Solicitation of plans and prices for bids * Vendor selection Order processing 2. Vendor functionality review * Can be impacted by several elements including: environmental conditions, organizational factors, and interpersonal/individual factors * Marketplace Segmentation: means of dividing the whole market for a particular product or product category into relatively homogeneous portions or groups * Teams should have comparable members, but groups should be dissimilar coming from each other 2. Fundamental decision of whether to segment by any means Allows businesses to be more fortunate due to the fact that they will tailor products to meet the needs of any particular market segment 5. Traditional market segmentation procedure: * Applied successfully for many years, not out of date, and are used by many of present most good firms * Can be used along with newer methods by the company, depending on the brand/product or marketplace in question 5. Successful segmentation: Must be recognizable and measureable * Significant * Accessible * Receptive * Viable and eco friendly * Avoid ethical/legally sensitive segments 5. Avoid viable segments that don’t meet firm’s objective * Mass Marketing: not any segmentation and is also aimed at the entire market for a product * Undifferentiated procedure assumes every customers have similar needs/wants * Works best when needs are fairly homogeneous Advantage- production effectiveness and decrease marketing costs * Disadvantage- risky must be standardized product is vulnerable to competitors that offer specialised products that better meet customers’ requirements * Differentiated Marketing: divides the total marketplace into sets of customers having relatively homogenous needs, looking to develop a marketing program that appeals to one or more of those groups 2. Necessary once customer requirements are similar within a single group, but the needs differ around groups * Two choices: * Multi-segment approach 5. Market attentiveness approach Niche Marketing: focusing initiatives on one small , well identified market segment or specific niche market that has a exceptional, specific pair of needs 2. Requires that firms appreciate and meet up with needs of target clients. Although little in size, organizations substantial reveal makes the section highly lucrative * Customized Segmentation Techniques: * Practical due to improvements in technology especially in conversation and the net * Businesses can now track customer having a high degree of specificity * Allows firms to combine demographic data with past/current getting behavior. Fine-tune marketing programs in ways that allow them to specifically match customers’ needs, wishes, and tastes * Are more important in the foreseeable future because their very own focus on person customers makes them critical towards the development and maintenance of long term relationships 5. Expensive to supply * Two important considerations: 2. Automated delivery of the program * Personalization One-to-one Promoting: involves the creation of an entire unique product or marketing program for each and every customer in the target portion * Common in business markets where unique programs and systems are designed for each consumer * Developing rapidly in consumer market segments, in luxurious or tailor made products or services * Mass customization: providing exclusive products and solutions to individual consumers on a mass scale 2. Cost-effective and practical due to advances in supply-chain supervision. real time inventory control) * Used usually in business markets, especially electric procurement systems * Authorization Marketing: unlike one-to-one advertising because consumers choose to become a member of the firm’s target market * Commonly performed via select in mailing lists * Benefit: customers previously interested in companies offerings 5. Allows specific target of people, eliminating the condition of squandered marketing work and expense * Recognize Market Portions: selecting best variables to identify and define the target marketplace, many of that can come from the condition analysis of the marketing prepare. Isolation of individual features that differentiate one or more sections from the total market (must have homogeneous needs) 2. Consumer marketplaces involved examination of factors of just one of these categories: * Behavioral segmentation: most effective approach because it uses genuine consumer patterns or merchandise usage helps you to make variations among industry segments Demographic segmentation: splits markets applying factors just like gender, age group, income, and education * Psychographic segmentation: state-of-mind issues such as motives, attitudes, opinions, values, lifestyles, interests, and personality 2. Geographic segmentation: most useful when combined with various other segmentation factors, geodemographic segmentation or geoclustering. * Business markets derive from types of market or perhaps on things like: organization, qualities, benefits sought/buying process, personal/psych characteristics, or perhaps relationship depth. Top Marketing plans: * Based on evaluation of the attractiveness of each segment and whether each offers options that match firms capabilities and resources * One segment targeting, selective focusing on, mass market targeting, product specialization, and market specialty area. * Contemplate issues related to noncustomers, just like why they cannot buy and finding methods to remove road blocks to purchase. Section 7 Item Strategy: in the middle of every business and that defines the actual organization really does and why it is present * Creating a productive supplying that is a package deal of physical (tangible), services (intangible), and symbolic (perceptual) attributes created to satisfy consumer wants/needs. * Strives to overcome commoditization by differentiating product offerings via the support and symbolic elements of the offering 2. Product Collection: * Found in both customer (convenience, purchasing, specialty, etc . and business markets (raw materials, method materials, installations, etc . ) * Used in most companies due to the benefits of selling a variety of products * Consists of a selection of closely related product items (product lines) and the total group of items offered by a good (product mix) * Involves strategic decisions such as selection and choice of offerings 2. Can make benefits which includes: economies of scale, package uniformity, standardization, sales and distribution effectiveness, etc . Assistance Products Problems: stem from your intangibility of services. Other characteristics include simultaneous production/consumption, and perish ability/client structured relationships * Other concerns: * Experience problems in balancing source and demand * Some place reliant because buyers must be present for delivery * Consumers have a difficult time assessing quality of service prior to it is purchased * Quality of service is often inconsistent and hard to standardize * Need for some providers are not always apparent to customers.

Support marketers frequently have trouble tying or braiding offerings to needs 2. New Product Expansion: vital component to a business’s efforts to sustain expansion and income * Six strategic options related to newness of products: * New-to-world items (discontinuous innovations)- which require a pioneering effort with a firm that leads to the creation of an entirely new industry * Cool product lines- represent new offerings by the organization, but they become introduced in to established market segments * Products extensions- supplement an existing production with fresh styles, versions, features, or flavors 5. Improvements/Revisions of existing products- offer customers improved performance or increased perceived value * Repositioning- targeting existing products in new market segments or sections * Cost reductions- enhancing products to supply performance similar to competing goods at a lower price 2. Depends on businesses ability to produce differential advantage for the new product * Earnings through five stages: * Idea generation * Screening process and evaluation * Creation * Check marketing 5. Commercialization * Branding Approach: selecting the right combination of name, symbol, term, and design that identifies a particular product 5. Two parts: * Brand: words, words, and amounts * Brand mark: symbols, figures, or maybe a design * Critical to product recognition and aspect used by internet marketers to distinguish a product from the competition 5. Successful- capture product offering in a way that answers a question in consumers brain *

Entails many characteristics that make up the way customers think about brands: * People (employees and endorsers) * Spots (country of origin) 5. Things (events, causes, third party endorsements) * Other brands (alliances, the company, extensions) * Advantage- make it easier can be to find and buy products * Four essential issues: 2. Manufacturer versus private-label brands- private label brands are more profitable than company brands to get the retailers that carry them. Created brands possess built-in demand, recognition, and product commitment. * Brand loyalty- positive attitude toward a brand that creates customers to have a consistent inclination for that manufacturer over all contending brands within a product category. Three levels: brand acknowledgement, brand preference, and company insistence * Brand equity- the value of your brand or the marketing and financial value associated with a brand’s location in the marketplace. 2. Brand alliances- branding tactics, such as co branding that involve growing close interactions with other businesses. * Presentation and labels: * Component to developing a product, its rewards, its differentiation, and its picture * Issues such as color, shape, size, convenience of the package or perhaps container 2. Are often employed in product modifications/co branding to reposition the product or provide new features. * Vital in assisting customers generate proper product selections * Important environmental and legal consequences 2. Differentiation and Positioning: Creating differences in the firm’s product offering that set that apart from contending offerings (product differentiation) as well as the development and maintenance of a family member position to get a product for the target market (product positioning) * Could be monitored through perceptual mapping- a visual, space display of customer perceptions on several key measurements * Based upon the brand, but also merchandise descriptors, customer care services and image * Includes positioning strategies to strengthen current location, reposition, or reposition the competition * Managing Products and Brands over time: 2. Traditional support life cycle five stages: Expansion: a time of no sales revenue, unfavorable cash flow and high risk 2. Introduction: time of rising buyer awareness, intensive marketing bills, and speedily increasing revenue revenue 5. Growth: moments of rapidly elevating sales revenue, rising profits, market enlargement, and more and more competitors 2. Maturity: time of sales and profit plateaus, a shift from buyer acquisition to customer retention, and approaches aimed at having or thieving market share 2. Decline: moments of persistent product sales and profit decreases, attempts to put off the decrease, or approaches aimed at harvesting or divesting the product * Influence simply by shifts in the market, or actions of the businesses within the sector as they frequently reinvent themselves. Chapter almost eight * Pricing: * Key factor in making revenue for the firm 2. Easiest of most marketing factors to change 5. Important concern in competitive intelligence 2. Only real method of differentiation in mature markets that are commoditized * Between most complicated decisions to become made in developing a marketing prepare * Vendors Actions with regards to Price: Are likely to inflate prices to receive whenever you can in exchange * Consider several issues in pricing technique: * Costs * Demand * Consumer value * Competitors’ prices * Possess increased electrical power over buyers when goods are lacking, high demand, or good monetary times. 5. Buyers Actions regarding Value: * Find prices as being lower than the marketplace reality dictates * Two issues: 5. perceived value * value sensitivity 5. Considered benefit to be the percentage of benefits to costs. “More bang intended for the buck * Improved power above sellers once large number of retailers, economy can be weak, item information easy to obtain, or perhaps price evaluations are easy to generate * Cutting prices: Feasible means of increasing sales, moving excess products on hand, or making short-term cash flow * Based on two standard pricing misconceptions: * When ever business excellent, a price slice will get greater business * When ever business is definitely bad, a price cute is going to stimulate sales * Dangerous because a price cut must be counter by an increase in sales volume to maintain the same level of low margin 5. Not always ideal strategy, could be build value into the product instead. 5. Pricing technique issues: 5. Pricing targets * Character of source and demand in the market 5. Firms price structure 2. Nature of competition and the structure in the industry 5. Stage in the product life cycle * Companies cost structure: Typically associated with pricing through breakeven analysis or cost-plus pricing * Not end up being the driving force behind pricing strategy mainly because different businesses have different buildings * Accustomed to establish a floors below which will prices cannot be set pertaining to an extended period of time * Pricing Strategy in Services: * Critical as price can be the only cue to quality in advance of the purchase experience * Turns into important plus more difficult when: * Service quality hard to discover prior to obtain * Costs associated with providing the service happen to be difficult to determine * Consumers are unfamiliar with the service process 2. Brand names aren’t well established 5. Customers is capable of doing the support themselves 2. Service provides poorly defined units of consumption Advertising and marketing within a service category is limited * Total price with the service encounter is challenging to state ahead of time * Typically based on deliver management devices allowing a strong to both control capacity and require in order to take full advantage of revenue and capacity usage * Deliver management: understanding when and where to boost prices to enhance revenue or lower prices to enhance sales amount. * Implemented by restricting the readily available capacity for certain prices, controlling require through value changes, and overbooking capacity * Prevalent in services characterized by substantial fixed costs and low variable costs, like flight companies, hotels, rental cars, cruises, and so forth Allows organization to offer same basic product to different market segments by different prices * Selling price elasticity of demand: * Customers’ responsiveness or awareness to within price * Inelastic: variety demanded will not respond to value changes * Elastic: volume demanded is sensitive to price changes * Unitary: changes in selling price and require offset, keeping total earnings the same 5. Not standard over time make because demand is not uniform 2. Price Level of sensitivity Increases: 5. Substitute items are widely available * Total expenditure is usually high 5. Changes in selling price are apparent to clients * Price matching among competitive products is straightforward Price Level of sensitivity Decreases: 5. Substitute products are not offered * Items are highly differentiated from the competition * Buyers perceive items as being requirements * Prices of complementary products go lower * Consumers believe the product is worth the retail price * Time pressures or purchase risk are involved pertaining to consumers 2. Major base pricing tactics include: * Market launch pricing: applied of value skimming or perhaps penetration prices when products are first introduced into the industry * Reputation pricing: purposely setting rates at the top end of all competitive products in order to promote a picture of exclusivity and high-quality Value-based pricing (EDLP)- establishing reasonably low prices, but still supplying high quality products and adequate customer care * Competitive matching- recharging what is thought to be the “going rate for the market * Nonprice strategies- building a marketing program about factors aside from price 5. Strategies for changing prices in consumer markets: * Marketing discounting: putting products available for purchase * Reference pricing: comparing the actual selling price to an inner or exterior reference value * Odd-even pricing: establishing prices in odd amounts, rather than entirely, round figures * Price bundling: bringing together two or more contributory products for the single selling price * Strategies for adjusting rates in business markets: Trade discounts: reducing prices for certain intermediaries in the source chain depending on the capabilities that they conduct * Discount rates and allowances: giving customers price breaks, including discounts for cash, variety or volume discounts, seasonal discounts, or perhaps trade allowances for participation in promoting or sales support programs * Geographic pricing: quotes prices based on transportation costs (distance) * Transfer prices: pricing the moment one device in an firm sells items to another unit * Barter and countertrade: full or partial repayments in goods/services/buying agreements rather than in cash * Price discrimination: asking different rates to different clients * Active Pricing: 2. Started to substitute fixed prices in many item categories 5. Growing in importance and popularity due to the growth of online auction organizations * Three pricing amounts: * Opening position 2. Aspiration cost Price limit * Lengthy procedure, but is quite logical and systematic way for two functions that no longer initially accept to reach arrangement * Legal & Moral Issues of Pricing: 2. Price discrimination: different rates to different buyers. Illegal until its basis is the real cost variations in selling products to 1 customer relative to another. * Price repairing: when two or more competitors collaborate to set rates at an man-made level * Predatory charges: firm sets prices to get a product below the variable price to drive out competitors or out of the industry * Deceptive pricing: organization intentionally mislead customers with price offers.