Table of Contents
Chap 1
2
Key terms:
Chap 2
3
4
1. Definition
2. Microenvironment
3. Macroenvironment
4. Market Research
Chap 3
4
4
5
6
7
1. Definition Consumer behaviors:
2. Factors that influence consumer behavior include:
Purchase decision-making process:
Major Types of Buying Situations
A Model of Business Buyer Behavior
Stages of the Business Buyer Decision Process
Chap 4
7
7
8
9
10
10
11
Types of market
Market’s needs:
Market Segmentation
Targeting
Types of targeting strategies:
Positioning
Chap 5
1. Product/ Service
11
11
11
12
12
13
14
14
Brand
Idea Generation
Product life cycle
Production Strategies:
Chap 6
16
17
18
19
20
Price
Pricing objectives:
Pricing methods
Pricing strategies
Product mix pricing strategies:
Price modification strategies
Chap 7:
1. Distribution strategies definition and roles
2. Distribution channel level
3. Channel behavior and organization
4. Channel design decisions
20
20
21
22
22
23
24
24
24
25
26
- Retailing
Wholesaling
Chap 8
27
30
32
Definition of promotion:
32
Steps in Developing Effective Marketing Communication
Setting the Total Promotion Budget and Mix
Advertising:
Sale promotion
Marketing, the Internet, and the Digital Age
Public relations
Personal selling:
Direct and digital marketing:
33
33
34
35
36
37
38
39
Chap 1
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Marketing The process by which companies engage customers, build strong customer
relationships, and create customer value in order to capture value from customers in return.
The Marketing Process: Creating and Capturing Customer Value
The first four steps in the marketing process create value for customers. In the final step, the company
reaps the rewards of its strong customer relationships by capturing value from customers.
Step 1: examine five core customer and marketplace concepts: (1) needs, wants, and demands; (2) market
offerings (products, services, and experiences); (3) value and satisfaction; (4) exchanges and
relationships; and (5) markets.
Step 2: What customers will we serve (what’s our target market)? and How can we serve these customers
best (what’s our value proposition)?
Step 3: consisting of a blend of the four Ps—that transforms the marketing strategy into real value for
customers. The company develops product offers and creates strong brand identities for them
Step 4: the most important step in the marketing process. Marketers engage customers in the process of
creating brand conversations, experiences, and community.
An Expanded Model of the Marketing Process
Key terms:
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Needs: are states of felt deprivation, Needs are natural and vital for human's survival (food,
clothing, warmth,safety,..)
Wants: are the form human needs take as they are shaped by culture and individual personality (food ,
American-> hamburger, Vietnamese -> pho
Demand: When backed by buying power, wants become demands
Products can be a physical product or a service:
Values. Costs, Satisfaction
• A product's values are consumers' evaluation about its overall ability to satisfy their
needs
• A product's costs are all of the expenses (money, time, efforts,etc.) that consumers pay
to obtain its values
• Consumers' satisfaction is their feelings when they compare the result of their product
consumption of to their expectation before buying
-Marketing mix: 4P (Product, Price, Promotion Place)
note:
*Marketing myopia The mistake of paying more attention to the specific products a company
offers than to the benefits and experiences produced by these products.
Chap 2
1. Definition
• A company’s marketing environment consists of the actors and forces outside marketing that affect marketing
management’s ability to build and maintain successful relationships with target customers.
• The marketing environment always changes and can either positively or negatively affect the company.
2. Microenvironment
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-
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The Company: All departments in a firm have to cooperate to carry out Marketing plans under
the guidance by the Board of Directors
Suppliers are organizations and individuals providing input products or services for a firm's
business activities.
Marketing intermediaries help the company promote, sell, and distribute its products to final
buyers.
• Types of Marketing intermediaries:
˗ Physical distribution firms: stock and move goods
˗ Marketing services agencies: marketing research firms, advertising agencies, media firms, and marke
consulting firms
˗ Financial intermediaries: banks, credit companies, insurance companies,etc
Customers: Individuals and organizations who buy a firm's products or services, The most important
• 5 types of markets: Consumer markets/ Business markets/ Reseller markets/ Government markets/
International markets
Competitors: 4 types of competitors:
˗ brand competitors
˗ product competitors
˗ generic competitors
˗ total budget competitors
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Publics: Groups or organizations who have interests in and can affect a firm's business activities.
Support or oppose the firm's business decision
• Public groups:
˗ Financial publics: banks, investment analysts, stockholders, etc.
˗ Media publics: newspapers, magazines, television stations, and blogs and other Internet media
˗ Government publics
˗ Citizen-action publics: consumer organizations, environmental groups, minority groups, etc.
˗ Local publics: neighborhood residents and community organizations
˗ Internal publics: This group includes workers, managers, volunteers, and the board of directors.
Customers
- Consumer markets consist of individuals and households that buy goods and services for personal
consumption.
- Business markets buy goods and services for further processing or use in their production processes
- reseller markets buy goods and services to resell at a profit
- Government markets consist of government agencies that buy goods and services to produce public s
transfer the goods and services to others who need them
- international markets consist of these buyers in other countries, including consumers, producers, rese
governments
3. Macroenvironment
1. Demographic environment: Including factors like: population size, population density, age, genders, races,
family structures, etc.
2. Economic environment:
• Economic status strongly affects people's buying power and money spending.
• When the conomy changes, companies have to adjust their marketing plans, redesign and reprice their products,etc
3. Natural environment:
• Includes: geographical locations, climates, land, river, rivers, sea, natural resources,etc.
• The scarcity of some materials can be a threat to some industries but an opportunity to others
4. Technological environment
• Technology is the decisive factor in productivity and quality improvement.
• It creates new products competing with current ones.
5. Legal environment: The regulation of the laws and action of public interest groups force marketing
activities to be more and more responsible to consumers
political environment: Laws, government agencies, and pressure groups that influence and limit various organizations an
individuals in a given society
6. Cultural environment
• The cultural environment consists of institution and other forces that affect a society’s basic
values, perceptions, preferences, and behaviors
• Customers' behaviors is greatly affected by the culture of their countries
4. Market Research
• is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing
situation facing an organization.
Exploratory research: Marketing research to gather preliminary information that will help define
problems and suggest hypotheses.
Descriptive research Marketing research to better describe marketing problems, situations, or markets,
such as the market potential for a product or the demographics and attitudes of consumers.
Causal research Marketing research to test hypotheses about cause-and-effect relationships.
Observational research Gathering primary data by observing relevant people, actions, and situations.
Ethnographic research A form of observational research that involves sending trained observers to
watch and interact with consumers in their “natural environments.”
Survey research Gathering primary data by asking people questions about their knowledge, attitudes,
preferences, and buying behavior.
Experimental research Gathering primary data by selecting matched groups of subjects, giving them
different treatments, controlling related factors, and checking for differences in group responses.
Focus group interviewing Personal interviewing that involves inviting small groups of people to gather
for a few hours with a trained interviewer to talk about a product, service, or organization. The
interviewer “focuses” the group discussion on important issues.
Online marketing research Collecting primary data through internet and mobile surveys, online focus
groups, consumer tracking, experiments, and online panels and brand communities.
Online focus groups Gathering a small group of people online with a trained moderator to chat about a
product, service, or organization and gain qualitative insights about consumer attitudes and behavior.
• Marketing research process:
• This first step is probably the most difficult but also the most important one. It guides the entire
research process
2 Research objectives
• Exploratory research is to gather preliminary information that will help define the problem
and suggest hypotheses.
• Descriptive research is to describe things.
• Causal research is to test hypotheses about cause-and-effect relationships
3 Developing the research plan
• Outlines sources of existing data
• Spells out the specific research approaches, contact methods, sampling plans, and instruments to
gather data
4. Data
• Secondary data is information that already exists somewhere, having been collected for
another purpose (the company's database, consumer reports, government sources, etc.)
• Primary data is information collected for the specific purpose at hand
Chap 3
1. Definition Consumer behaviors:
The study of the processes involved when individuals or groups select, purchase, use, or dispose of
products, services, ideas, or experiences to satisfy needs and desires.
2. Factors that influence consumer behavior include:
Total market strategy Integrating ethnic themes and crosscultural perspectives within a brand’s
mainstream marketing, appealing to consumer similarities across subcultural segments rather than
differences.
● Cultural: Culture; Sub-culture; Social class
Culture is the set of basic values, perceptions, wants, and behaviors learned by a member of society
from family and other important institutions
Each culture contains smaller subcultures, or groups of people with shared value systems based on
common life experiences and situation( nationalities, religions, racial groups, and geographic regions)
Social classes are society’s relatively permanent and ordered divisions whose members share similar
values, interests, and behaviors
● Social: Reference groups; Family; Roles and status
Reference groups are groups which can directly or indirectly influence customers' behaviours.
•3 types of reference groups:
– Membership reference groups (People the consumer actually knows)
– Aspirational reference groups (People the consumer doesn’t know but admire)
– Avoidance groups (motivation to distance oneself from other people/groups)
Luxury goods consumed in public are strongly affected by reference groups.
Neccessity goods consumed in private are much less affected by groups.
Marketers need to understand the influence of Key Opinion Leader (KOL)
Family members can strongly influence buyer behavior. Marketers are interested in the roles and influence of
husband, wife, and children on the purchase of different products and services.
A role consists of the activities people are expected to perform according to the people around them.
Each role carries a status reflecting the general esteem given to it by society.
People usually choose products appropriate to their roles and status
● Personal: Age and life cycle stage; Occupation; Economic situation; Lifestyle; Personality and
self-concept
Age: people from different age groups have different needs and wants
Life-Cycle Stages: in each stage, consumers have different needs and wants, financial status and preferences
Occupation affect consumers' way of spending
Economic status is the main determinant of a consumer's ability to buy goods and services
• A person's economic status is evaluated through 5 factors:
– disposable income
– savings
– assets
– ability to borrow money
– attitude towards spending and savings
• Personality refers to the unique psychological characteristics that distinguish a person or group
• Lifestyle is a person’s pattern of living as expressed in his or her psychographics.
• Customers usually choose products that are suitable for their personalities and lifestyles → Brand personality
● Psychological: Motivation; Perception; Learning; Belied and Attitudes
A motive is a need that is sufficiently pressing to direct the person to seek satisfaction.
• The theories of Sigmund Freud and Abraham Maslow
- Freud’s theory suggests that a person’s buying decisions are affected by subconscious
motives that even the buyer may not fully understand
- Maslow’s theory suggest that human needs are arranged in a hierarchy, from the most
pressing at the bottom to the least pressing at the top.
Perception is the process by which people select, organize, and interpret information to form a
meaningful picture of the world
Learning are changes in an individual’s behavior arising from experience.
• Most human behavior is learned.
• Learning types: classical consitioning, operant considitioning, cognitive learning, etc.
• Companies “teach” customers through advertising, product samples,...
Attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object
or idea.
Attitudes put people into a frame of mind of liking or disliking things, of moving toward or away
from them
Belief A descriptive thought that a person holds about something.
Purchase decision-making process:
Need recognition: The consumer recognizes a problem or need triggered by: Internal stimuli and
External stimuli
→ Information search: Information search is the stage of the buyer decision process in which the
consumer is motivated to search for more information ( Personal sources, Commercial sources, Public
sources, Experiential source)
→ Evaluation of alternatives: Alternative evaluation is the stage of the buyer decision process in which the
consumer uses information to evaluate alternative brands in the choice set. (Consumption
criteria, trendy criteria, Luxury criteria, Unique criteria)
→ Purchase decision: The purchase intention may not be the purchase decision due to:
- Attitudes of others (friends and family)
- Unexpected situational factors (store environment, sales offering,etc.)
Therefore, promotion activities are very importan especially when there is strong competition
→ Postpurchase behavior: is the stage of the buyer decision process in which consumers take further
action after purchase, based on their satisfaction or dissatisfaction.
• 2 situations: harmony or disharmony, satisfaction or dissatisfaction
Cognitive dissonance Buyer discomfort caused by postpurchase conflict.
Types of buying decision behavior
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Major Types of Buying Situations
Straight rebuy A business buying situation in which the buyer routinely reorders something without
modifications.
Modified rebuy A business buying situation in which the buyer wants to modify product specifications,
prices, terms, or suppliers.
New task A business buying situation in which the buyer purchases a product or service for the first
time.
Systems selling (or solutions selling) Buying a packaged solution to a problem from a single seller,
thus avoiding all the separate decisions involved in a complex buying situation.
Participants in the Business Buying Process
Buying center All the individuals and units that play a role in the purchase decision-making process.
users Members of the buying organization who will actually use the purchased product or service.
Influencers People in an organization’s buying center who affect the buying decision; they often help
define specifications and also provide information for evaluating alternatives.
Buyers People in an organization’s buying center who make an actual purchase.
Deciders People in an organization’s buying center who have formal or informal power to select or
approve the final suppliers.
gatekeepers People in an organization’s buying center who control the flow of information to others.
A Model of Business Buyer Behavior
Stages of the Business Buyer Decision Process
problem recognition The first stage of the business buying process in which someone in the company
recognizes a problem or need that can be met by acquiring a good or a service.
general need description The stage in the business buying process in which a buyer describes the
general characteristics and quantity of a needed item.
product specification The stage of the business buying process in which the buying organization
decides on and specifies the best technical product characteristics for a needed item.
Supplier search The stage of the business buying process in which the buyer tries to find the best
vendors
proposal solicitation The stage of the business buying process in which the buyer invites qualified
suppliers to submit proposals.
Supplier selection The stage of the business buying process in which the buyer reviews proposals and
selects a supplier or suppliers.
Order-routine specification The stage of the business buying process in which the buyer writes the
final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time
of delivery, return policies, and warranties.
performance review The stage of the business buying process in which the buyer assesses the
performance of the supplier and decides to continue, modify, or drop the arrangement.
Engaging Business Buyers with Digital and Social Marketing
e-procurement Purchasing through electronic connections between buyers and sellers—usually online.
B-to-B digital and social media marketing Using digital and social media marketing approaches to
engage business customers and manage customer relationships anywhere, anytime.
The business buying process
The business buying process has eight stages.
1. Problem recognition: someone in the company recognises a problem or need that can be met by acquiring a
good or a service.
2. General need description is the stage in the business buying process in which a buyer describes the general
characteristics and quantity of a needed item.
3. Product specification is the stage in the business buying process in which the buying organisation decides
on and specifies the best technical product characteristics for a needed item.
4. Supplier search is the stage in which the buyer tries to find the best vendors.
5. Proposal solicitation is the stage in which the buyer invites qualified suppliers to submit proposals.
6. Supplier selection is the stage in which the buyer reviews proposals and select a supplier or suppliers.
7. Order-routine specification is the stage in which the buyer writes the final order with the chosen supplier(s),
listing the technical specifications, quantity needed, expected time of delivery, return policies and
warranties.
8. Performance review is the stage in which the buyer assesses the performance of the supplier and decided to
continue, modify or drop the arrangement.
Chap 4
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Market: a set of all actual and potential buyers of a product/ service
Types of market
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Potential market: includes people aware of the product/ service; not yet bought it
Available (current) market:a set of consumers who have interest,vincome, and access to a
particular offer
Served markets: parts of current markets and get seperate and better offering than the rest of
current markets
Penetrated markets: customers who have already bought the product or service.
Classification by micro environment:
˗ Consumer markets
˗ Business markets
˗ Reseller markets
˗ Government markets (Samco company assembling buses, water trucks to water trees
on roads, garbage trucks, etc.)
˗ International markets
Market’s needs:
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Stated needs: what buyers say when sellers ask them
Real needs: What the consumer wants from a product or service for rational and genuine
needs
Unstated needs: the additional benefits t hat customers also want from the product or service
but they don't say it. The benefits can be supportive products or services or the brand credit
and quality assurance
Delight needs: Needs that are not essential but would delight if met
Secret needs: Needs that customers may be hesitant to express or may not even be aware of
themselves.
Market Segmentation
involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or
behaviors that might require separate marketing strategies or mixes
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Geography: Geographic segmentation calls for dividing the market into different geographical units,
such as nations, regions, states, counties, cities, or even neighborhoods.
Demography: divides the market into segments based on variables such as age, gender, family size,
family life cycle, income, occupation, education, religion, race, generation, and nationality.
Behaviors: divides buyers into segments based on their knowledge, attitudes, uses, or responses to a
product.
• Behavioral segmentation variables:
– Occasions: Buyers can be grouped according to occasions when they get the idea to buy, actually m
purchase, or use the purchased item.
– Sought benenfits: grouping buyers according to the different benefits that they seek from product
– User status:
– Usage rates: light, medium, and heavy product users
– Loyalty
Psychology: divides buyers into different segments based on social class, lifestyle, or personality characte
– Social class: working class, middle class, upper class
– Lifestyle: achievers, strivers, survivors
– Personality: compulsive, outgoing, authoritarian, ambitious
Requirements for effective segmentation
Measurable The size, purchasing power, and profiles of the segments can be measured
Accessible The market segments can be effectively reached and served.
Substantial The market segments are large or profitable enough to serve.
Differentiable The segments are conceptually distinguishable and respond differently to different
marketing mix elements and programs
Actionable Effective programs can be designed for attracting and serving the segments.
Targeting
Evaluate market segments based on
- the attractiveness of the market (market size; growth of market segment; profitability; less legal
regulations; less competition; easy to access to customers; buyers’ power; promote the firm’s
strengths)
- the firm’s strengths and weaknesses (R&D advantage; great financial power; low manufacturing
costs; professional marketing team; product quality; sales team)
Types of targeting strategies:
- Mass marketing: targets a wide range of customers - single marketing approach → no market
segmentation
- Differentiated marketing: targets multiple segments - different marketing approaches
- Concentrated marketing(niche marketing): target a small, specific group of customers - specialized
marketing approach
- Micromarketing Tailoring products and marketing programs to the needs and wants of specific
individuals and local customer segments; it includes local marketing and individual marketing
+ Local marketing: targets in a specific geographic area - localized marketing approach
+ Individual marketing: targets each customer individually - personalized marketing approach
Positioning
A product’s position is the way the product is defined by consumers on important attributes—the place
the product occupies in consumers’ minds relative to competing products.
• Brands happen in the minds of consumers
• To position a product, a firm must:
– build a special feature for the product
– bring the feature to customers' minds
• A firm must differentiate its products and brands for competition
• The differentiation must be meaningful and useful for customers
Positioning maps
In planning their differentiation and positioning strategies, marketers often prepare perceptual
positioning maps that show consumer perceptions of their brands versus competing products on
important buying dimensions.
Reasons for positioning
• Customers' ability to memorize information is limited → there must be a clear, succinct and impressive mes
• There must be difference and uniqueness so that customers would choose you
• Information overload confuses customers → being different to “orient” their behaviors.
Position steps
Step 1: A difference is worth establishing to the extent that it satisfies the following criteria:Important, Distinct
Superior, Communicable, Preemptive, Affordable, Profitable
Step 2: Select an overall positioning strategy
• Customers always make a choice that has the greatest value.
• Value proposition—the full mix of benefits on which a brand is differentiated and positioned
Step 3: Develop a positioning statement
• A positioning statement summarizes company or brand positioning.
• Communicating and Delivering the Chosen Position
– Choosing the positioning is often easier than implementing the position.
– Establishing a position or changing one usually takes a long time.
– Maintaining the position requires consistent performance and communication.
Chap 5
1. Product/ Service
• A product is anything that can be offered in a market for attention, acquisition, use, or
consumption that might satisfy a need or want.
• Service is a product that consists of activities, benefits, or satisfactions and that is
essentially intangible and does not result in the ownership of anything.
Characteristics of service:
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Intangibility:
→ Customers look for tangible signs to guess the quality
→ A firm needs to “tangibilize” its service.
Inseparability:
– Services are first sold, then produced and consumed at exactly the same time.
– The quality depends on the interaction between customers and staff.
→ The staff should learn how to work with many customers simultaneously and faster, and the
company should recruit more staff during high-peak seasons.
- Variability:
→ Staff recruitment & training
→ Standardize the service process
→ Monitor customer satisfaction
- Perishability:
• A big problem when demand fluctuates greatly
• Solutions:
– For buyers: different pricing, raising demand during low-peak time, provide additional
service during high-peak time
– For providers: recruit more part-time staff, special working conditions during high-peak
time, build more facilities
Service marketing triangle
Internal marketing Orienting and motivating customercontact employees and supporting
service employees to work as a team to provide customer satisfaction.
Interactive marketing Training service employees in the fine art of interacting with
customers to satisfy their needs.
3 basic duties of service providers:
• Manage service differentiation: offers, service providing activities (staff, environment, process)
• Manage service qualities
• Manage service productivity
Levels of products
• Core product: Core benefits this product brings to customers
• Actual product: features, design, packaging, bao bì, quality level and brand name
• Augmented product: additional benefits thet customers get when they buy the product
-
Product classification:
- Durable goods (long-term)
- Non-durable goods:(short-term)
- Service
or classify by Convenience products/ Shopping products/ Specialty products/ Unsought products
Brand
Brand name: A communication tool that is short and simple but most effective
• Requirements for an effective brand name:
– Suggests benefits and qualities
– Easy to pronounce, recognize, and remember
– Distinctive
– Extendable
– Translatable for the global economy
– Capable of registration and legal protection
Logo: Replace brand names when customers speak different languages
Personalities: Human personalities that are attached to products to make customers view it based on
those personalities
Slogan: A short sentence that delivers descriptive and persuasive information about the brand
• 3 ways to create a slogan:
– increase brand recognition and retain the brand name in customers' memory
– increase brand awareness through direct and strong relation to product benefits
– reinforce the brand position and emphasize the difference
Packages
Packages include 2 or 3 layers
• First layer:
– contain the product
– protect the product from the outside environment
– create no physical or chemical reaction inside
– have some basic information about the product, such as: ingredients, usage, storage conditions, br
name, expiry dates, etc.
•The second layer protects the first layer to preserve product value and it will be removed
when the product is used. Example: a paper box containing a perfume bottle, a toothpaste box, etc.
• The third layer is big square carton boxes or so to contain and preserve products during delivery
In order to be perceived valuable to customers, the package must be
- clear: able to distinguish from competitors
- provide sufficient information about the product
- eye-catching to attract customers
- the use-value of the package itself
*Building Strong Brands:
Brand Development Strategies
Idea Generation
2.Idea screening Screening new product ideas to spot good ones and drop poor ones as soon as possible
Concept testing Testing new product concepts with a group of target consumers to find out if the concepts
have strong consumer appeal.
Marketing strategy development Designing an initial marketing strategy for a new product based on the
product concept
Business analysis A review of the sales, costs, and profit projections for a new product to find out whether
these factors satisfy the company’s objectives.
product development Developing the product concept into a physical product to ensure that the product
idea can be turned into a workable market offering.
test marketing The stage of new product development in which the product and its proposed marketing
program are tested in realistic market settings
Commercialization Introducing a new product into the market.
Managing New Product Development
Customer-centered: focuses on finding new ways to solve customer problems and create more
customersatisfying experiences
team-based new product development: in which various company departments work closely together,
overlapping the steps in the product development process to save time and increase effectiveness.
Systematic New Product Development
Product life cycle
-
PLC concept describes:
- - a product class (gasoline-powered automobiles)
- - a product form (SUVs)
- - a brand (the Ford Escape)
- Stages:
→Introduction: create awareness and stimulate demand
→ Growth: build brand loyalty and capture a larger market share
→ Maturity: maintain market share and maximize profitability
→ Decline: maximize profit and minimize costs
Production Strategies:
Introduction: creating promotional materials and investing in advertising to increase product awareness.
A rapid skimming strategy uses high price and extensive promotion to face competition and establishes market
share quickly.
• Apply when:
– the market doesn't know the product
– Those who know the product strongly desire it and accept the price
– There is potential comeptition
A slow skimming strategy uses high price and low promotion.
• Apply when:
– The market size is limited
– Many people know the product but not many buyers
– Low promotion costs due to the limited size
– Buyers are willing to pay high prices
– No serious competition is expected
A rapid penetration strategy is used for entering large markets at a low price and extensive promotion
• Apple when:
– Big market, not know the product
– Customers are price sensitive.
– Fierce competition is expected
– Low production costs per unit
A slow penetration strategy is used for entering large markets at a low price and low promotion
• Apply when
– Customers are price sensitive.
– The market is not expected to react to promotion
– Massive market
– Customers know the product well
– Potential competition
Growth: expanding product lines or adding new features to meet customer needs.
• improve product quality
• adding new product features or support services to grow your market share
• enter new markets segments
• increase distribution channels to cope with growing demand
• shifting marketing messages from product awareness to product preference
• lower prices to attract price-sensitive customers
Maturity: improving production efficiency, reducing waste, and exploring new distribution channels.
Market modification Increase the number or users
• converting non-users into users
• entering new market segments
• winning over competitor’s customers
Increasing sales volume
• Persuading users to rise their use frequency
• Increasing consumed amount each time people use the product
• Finding a new use for the product
Product modification
• adjusting or improving your product’s features, quality, pricing and differentiating it from other produ
marking
Marketing modification
• lower prices to attract more customers
• increase or decrease promotion, especially advertising
Decline stage: investing in new product development or exploring new markets to replace declining sales.
• Get rid of products that no longer sell well
• Cut prices
• Minimize promotion costs
• reduce the number of distribution outlets that sell the product
• Launch new products to replace the old ones
Chap 6
Price
is the amount of money charged for a product or service, or the sum of all the values
that customers exchange for the benefits of having or using the product or service
• Price is the only marketing mix factor that brings to the firm
• The most flexible marketing mix factor in 4P
Factors to consider when pricing:
- The price vs the cost: The price must be greater than the cost. The cost of production, including
raw materials, labor, and overhead, is a key factor in setting a price. The price must be high enough to cover
these costs and make a profit.
- The price customers accept: Understanding customer demand is critical in setting the right price. If
customers are willing to pay a higher price for a product or service, then it may be possible to charge more.
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-
Competitors' prices: The prices of similar products or services in the market will impact the price that
can be charged. If competitors offer similar products at a lower price, it may be necessary to adjust the
price to remain competitive.
Product quality: The higher the quality is, the more expensive the product is.(The source of the
materials to make a product will tell us the price of the product)
Scarcity: Scarce goods can be sold at a high price
Short and long -term strategies: Prices change in accordance with Marketing strategies
Pricing objectives:
Survival: pricing to cover the costs of production and stay in business.
• Low prices to retain customers
• Survival is more important than profit
• Apply when the competition is fierce and customers' needs change rapidly
Maximizing profit: pricing to generate the highest possible profit.
• High price to recover costs and get greatest profit
• When the intangible value of the product or service is too high, it will supress the high price.
Market share leader: pricing to gain a large market share and become the industry leader.
• cheaper price, more customers
• When the sales volume is high, the cost per product unit will fall
Quality leader: pricing to reflect the high quality of the product or service.
• High prices to recover R&D, design and testing costs
Other: additional pricing objectives may include setting a low price to enter a new market or setting a high price to
reflect the exclusivity or luxury of the product or service.
• Prevent new competitors from entering the market
• Stablize the market, avoid price war
• Maintain intermediaries' loyalty
• Avoid the government's interference
Pricing methods
Cost-plus pricing: setting prices by adding a markup to the cost of production. (Apply for products that are slow to
change prices or must be sold within a day after production)
• Advantages:
– easy and fast calculation
– Costs arising during sales are included in the profit percentage
• Disadvantages:
– inflexible, unsuitable for products whose prices change according to the change in the supply and
demand of the market
Break-even analysis and target profit pricing: setting prices to cover costs and achieve a desired profit.
Perception-based pricing: setting prices based on customer perception and willingness to pay.
• If the customer is interested in the product the seller may charge a high price
• If the customer isn't interested in the product, the seller should charge the original price.
• High quality products are expensive
Competitor-based pricing: setting prices based on the prices charged by competitors to remain competitive.
• Competition-based pricing involves setting prices based on competitors’ strategies, costs, prices, and market
offerings.
• Fast Moving Consumer Goods (FMCG) often apply this pricing method, for example, bottled water
Value-Based Pricing versus Cost-Based Pricing
Pricing strategies
Innovative new product pricing: setting high prices for unique new products to maximize profits and recover
research and development costs.
• Market-skimming pricing : setting a high price for a new product to skim maximum revenues layer by
layer from those segments willing to pay the high price.
→ the company makes fewer but more profitable sales
• Purpose:
– to skim maximum profit from each segment
– to quickly recover costs before competitors enter the market
– to take advantage of the rich who love showing off
• Conditions:
– the product’s quality and image must support its higher price
– enough buyers must want the product at that price
– the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more
– competitors should not be able to enter the market easily and undercut the high price.
• Market-penetration pricing: companies set a low initial price to penetrate the market quickly and deeply
• Purpose: to attract a large number of buyers quickly and win a large market share
• Conditions:
– the market must be highly price sensitive
– production and distribution costs must decrease as sales volume increases
– the low price must help keep out the competition, and the penetration pricer must maintain its
lowprice position
Imitative new product pricing: setting lower prices for imitative new products to quickly gain market share and
compete with established products.
• Premium strategy: If your product is superior and your brand is stronger, you can charge a high price.
• Average strategy: average products with average prices.
Product mix pricing strategies:
• Product line pricing takes into account the cost differences between products in the line, customer evaluations
of their features, and competitors’ prices.
• Optional product pricing takes into account optional or accessory products along with the main product.
• Captive product pricing sets prices of products that must be used along with the main product.
• Two-part pricing (or two-part tariff): a form of pricing in which consumers are charged both an entry fee
(fixed price) and a usage fee (per-unit price)
• Product bundle pricing combines several products at a reduced price.(Because customers might not intend
to buy everything included in the bundle so the combined price must be low enough to make them buy the bundle.)
•By-product pricing Setting a price for by-products to help offset the costs of disposing of them and help
make the main product’s price more competitive.
Price modification strategies
Cash discount: A discount offered for customers who pay in cash, encouraging prompt payment.
Quantity discounts: offering discounts for larger quantities of a product, encouraging bulk purchases.
Seasonal discounts: Offering discounts during specific times of the year to increase sales during seasonal peaks.
Functional discounts (trade discount): A discount offered to intermediaries in the distribution channel, as
compensation for their role in the distribution process.
Allowances: Offering price reductions for various reasons, such as trade-in allowances for customers who
exchange an old product for a new one or promotional allowances for retailers who promote the product.
Segmented pricing
- Customer-segment pricing: different customers pay different prices for the same product or service
- Product-form pricing: different versions of the product are priced differently but not according to differences in
- Location-based pricing: a company charges different prices for different locations, even though the cost of
offering each location is the same
-
Time-based pricing: a firm varies its price by the season, the month, the day, and even the hour.
Psychological pricing
• In using psychological pricing, sellers consider the psychology of prices, not simply the economics
• Image pricing (premium pricing): prices are set higher because it’s believed that a premium price would also
increase consumer desire. Customers are often willing to pay higher prices for branded items because of the image
associated with them. Examples: supercars, luxury bags...
• Digit '9': sales prices usually end with digit '9' → look cheaper
• Reference prices—prices that buyers carry in their minds and refer to when looking at a given product.
Promotional pricing
Promotional pricing : characterized by temporarily pricing products below the list price, and sometimes even below
cost, to increase short-run sales. Examples include:
• special-event pricing
• limited-time offers
• cash rebates
• low-interest financing, extended warranties, or free maintenance
Chap 7:
1. Distribution strategies definition and roles
Def: a set of interdependent organizations that help make a product or service available for use or consumption by
the consumer or business user
- Distribution bridges the major time, place, and possession gaps that separate goods and services from users
Functions of distributors:
- Information: gathering and distributing information about consumers, producers, and other actors and
forces in the marketing environment needed for planning and aiding exchange.
- Promotion: developing and spreading persuasive communications about an offer.
- Contact: finding and engaging customers and prospective buyers
- Matching: shaping offers to the buyer’s needs, including activities such as manufacturing, grading,
assembling, and packaging
- Negotiation: Reaching an agreement on price and other terms of the offer so that ownership or possession
can be transferred.
- Physical distribution: Transporting and storing goods
- Financing: Acquiring and using funds to cover the costs of the channel work
- Risk-taking: Assuming the risks of carrying out the channel work
2. Distribution channel level
Def: a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final
buyer.
-
Channel level is a layer of intermediaries that performs some work in bringing the product and its
ownership closer to the final buyer.
Direct distribution: The manufacturer sells products directly to the end consumer without the involvement
of any intermediaries.
Indirect distribution: The manufacturer uses one or more intermediaries to get the product to the end
consumer. This can include wholesalers, distributors, and retailers.
Multi-level distribution: The manufacturer uses multiple intermediaries to get the product to the end
consumer. This can include wholesalers, distributors, agents, and retailers.
-
When a product goes through one level, its price increases.
• One-level channels are short channels, and two and above-level channels are long channels.
• Longer channel → higher price → less competitive
-
If the intermediary is good, a long channel can be used. If the intermediary can't preserve goods well, use
short channels to reduce transportation risks.
• Small-sized companies should use short channels to save money.
• Economic status: rich consumers often buy at long channels for additional services
3. Channel behavior and organization
-
Channel conflict: Channel conflict refers to disagreement among channel members over goals, roles, and
rewards (Horizontal conflict, Vertical conflict)
- Conventional distribution systems: consist of one or more independent producers, wholesalers, and
retailers, each separate business seeking to maximize its own profits, perhaps even at the expense of profits
for the system as a whole.
Vertical marketing systems (VMSs): provide channel leadership and consist of producers, wholesalers, and
retailers acting as a unified system. (There are three types of VMSs: corporate, contractual, and
administered.)
• Corporate vertical marketing systems combine successive stages of production and distribution under
single ownership.
• Contractual vertical marketing systems consist of independent firms at different levels of production and
distribution who join together through contracts.
• An administered vertical marketing system is a VMS that coordinates successive stages of production and
distribution through the size and power of one of the parties.
• Horizontal marketing system: This is a distribution system where two or more companies at the same level of
distribution chain work together to reach the end consumer.
• Multichannel distribution systems are systems in which a single firm sets up two or
more marketing channels to reach one or more customer segments.
• Disintermediation is the cutting out of marketing channel intermediaries by producers or the displacement of
traditional resellers by new intermediaries.
Franchise organization A contractual vertical marketing system in which a channel member, called a franchisor
several stages in the production-distribution process
4. Channel design decisions
-
Analyzing consumer needs: Understanding the target consumer's buying habits and preferences to
determine the best way to reach them.
• Find out what target consumers want from the channel
• Identify market segments
• Determine the best channels to use
• Minimize the cost of meeting customer service requirements
-
Setting channel objectives: Determining what the distribution channel should accomplish, such as
increasing sales or improving customer satisfaction.
• Determine targeted levels of customer service
• Balance consumer needs against costs and customer price preferences
-
Identifying channel alternatives: Considering different options for the distribution channel, such as the
number and types of intermediaries involved.
• Types of intermediaries: refers to channel members available to carry out channel work. Most companies
face many channel member choices.
• Number of marketing intermediaries:
-Intensive distribution: stocking the product in as many outlets as possible (soap, toothpaste, food,
ballpens,...)
- Exclusive distribution: giving a limited number of dealers the exclusive right to distribute the
company’s products in their territories( often found in the distribution of luxury brands)
- Selective distribution: the use of more than one but fewer than all the intermediaries who are
willing to carry the company’s products.(television, furniture, and home)
• Responsibilities of channel members
A producer and the intermediaries need to agree on
• Price policies
• Conditions of sale
• Territory rights
• Specific services
-
Evaluating the channel alternatives: Weighing the pros and cons of each option to determine the
most effective distribution channel for the product.
Marketing Logistics and Supply Chain Management
- Nature and Importance of Marketing Logistics
- Sustainable Supply Chains
- Goals of the Logistics System
- Major Logistics Functions (Warehousing, Inventory Management, Transportation, Logistics Information
Management)
- Retailing
• Retailing includes all the activities in selling products or services directly to final consumers for their
personal, non-business use.
• Retailers are businesses whose sales come primarily from retailing.
• Shopper marketing focuses the entire marketing process on turning shoppers into buyers as they
approach the point of sale, whether during in-store, online, or mobile shopping.
• Omni-channel retailing creates a seamless crosschannel buying experience that integrates in-store,
online, and mobile shopping, creating a single shopping experience.
Types of retailers
By amount of service:
• Self-service
• Limited service
• Full service
By product lines
• Specialty stores
• Department stores
• Convenience stores
• Superstores
• Category killers
By Relative Price
• Discount stores
• Off-price retailers
• Independent off-price retailers
• Factory outlets
• Warehouse clubs
By organizational approach
• Corporate chains
• Voluntary chains
• Retailer cooperatives
• Franchise organizations
Retailer Marketing Strategies
Retailer marketing decision
• Segmentation, targeting, differentiation, and positioning involve the definition and profile of the
market so the other retail marketing decisions can be made
• Major product variables:
– Product assortment
– Services mix
– Store atmosphere
Price Decision
• Price policy must fit the target market and positioning, product and service assortment, competition, and
economic factors.
– High markup on lower volume
– Low markup on higher volume
• Everyday low pricing (EDLP) involves charging constant, everyday low prices and offering few sales or discounts.
• High-low pricing involves charging higher prices on an everyday basis, coupled with frequent sales and other
price promotions.
Promotion Decision
• Advertising
• Personal selling
• Sales promotion
• Public relations
• Direct marketing
Place Decision
• Central business districts are located in cities and include department and specialty stores,
banks, and movie theaters.
• A shopping center is a group of retail businesses planned, developed, owned, and
managed as a unit
Retailing Trends and Developments
- Tighter Consumer Spending
- New Retail Forms, Shortening Retail Life Cycles, and Retail Convergence
- The Rise of Megaretailers
- Growth of Direct, Online, Mobile, and Social Media Retailing
-
The Need for Omni-Channel Retailing
Growing Importance of Retail Technology
Green Retailing
Global Expansion of Major Retailers
Channel Management Decisions
- Selecting Channel Members
- Managing and Motivating Channel Members
- Evaluating Channel Members
- Public Policy and Distribution Decisions
Wholesaling
Wholesaling includes all activities involved in selling goods and services to those buying for
resale or business use.
Functions
• Selling and promoting involves the wholesaler’s sales force helping the manufacturer reach many small custom
low cost.
• Buying and assortment building involves the selection of items and building of assortments needed by custom
the customers work.
• Bulk breaking involves the wholesaler buying in large quantities and breaking into smaller lots for customers.
• Warehousing involves the wholesaler holding inventory, reducing its customers’ inventory cost and risk.
• Transportation involves the wholesaler providing quick delivery due to its proximity to the buyer.
• Financing involves the wholesaler providing credit and financing suppliers by ordering early and paying on tim
• Risk bearing involves the wholesaler absorbing risk by taking title and bearing the cost of theft, damage,
spoilage, and obsolescence.
• Market information involves the wholesaler providing information to suppliers and customers about
competitors, new products, and price developments.
• Management services and advice involves wholesalers helping retailers train their sales clerks, improve store
and set up accounting and inventory control systems.
Types of wholesalers
Wholesaler marketing decisions
• Segmentation, targeting, differentiation, positioning decisions:
– Size of customer
– Type of customer
– Need for service
• Marketing mix decisions
– Product
– Price
– Promotion
– Place
Chap 8
Definition of promotion:
-
any type of marketing communication used to inform or persuade target audiences of the relative merits of
a product, service, brand or issue.
The promotion mix
- advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services
by an identified sponsor.
- Sales promotion Short-term incentives to encourage the purchase or sale of a product or a service.
- personal selling Personal presentation by the firm’s sales force for the purpose of engaging
customers, making sales, and building customer relationships.
- public relations (pr) Building good relations with the company’s various publics by obtaining
favorable publicity, building up a good corporate image, and handling or heading off unfavorable
rumors, stories, and events.
- Direct and digital marketing Engaging directly with carefully targeted individual consumers and
customer communities to both obtain an immediate response and build lasting customer
relationships
Integrated Marketing Communications
- The New Marketing Communications Model
- The Need for Integrated Marketing Communications
Steps in Developing Effective Marketing Communication
-
-
Identifying the Target Audience
Determining the Communication Objectives
(Buyer-readiness stages)
Designing a Message
Choosing Communication Channels and Media (personal communication channels,
Word-of-mouth influence, Buzz marketing)
Selecting the Message Source
Collecting Feedback
Setting the Total Promotion Budget and Mix
-
Setting the Total Promotion Budget
- affordable method Setting the promotion budget at the level management thinks the
company can afford
- percentage-of-sales method Setting the promotion budget at a certain percentage of
current or forecasted sales or as a percentage of the unit sales price. Competitive-parity
method Setting the promotion budget to match competitors’ outlays.
Objective-and-task method Developing the promotion budget by (1) defining specific
promotion objectives, (2) determining the tasks needed to achieve these objectives, and
(3) estimating the costs of performing these tasks. The sum of these costs is the
proposed promotion budget.
-
Competitive-parity method: setting the promotion budget to match competitor’s outlays.
-Shaping the Overall Promotion Mix
- The Nature of Each Promotion Tool
- Promotion Mix Strategies (Push/Pull Strategies)
- Integrating the Promotion Mix
- Socially Responsible Marketing Communication
- Advertising and Sales Promotion
- Personal Selling
Advertising:
Types of advertising:
Setting ad buget
Factors to Consider
• Stage in product life cycle
• Market share
• Competition
Developing ad strategy
• Creating advertising messages: Consumers often avoid watching ads. -> Merging advertising and entertainment:
- Madison & Vine
- Native advertising
Message and content strategy: the general message that will be communicated to consumers.
- Identifies consumer benefits
- Follows from company’s broader positioning and customer value creation strategies
The creative concept is the compelling “big idea” that will bring an advertising message strategy to life in a
distinctive and memorable way.
Characteristics of the appeals should be:
• Meaningful
• Believable
• Distinctive
Message execution is when the advertiser turns the big idea into an actual ad execution that will capture the
target market’s attention and interest.
The message strategy
Slice of life: normal people using a product in a normal setting.
-
Lifestyle: shows how a product fits within a certain lifestyle.
-
Fantasy.
-
Mood or image: builds a mood or certain image around the product.
-
Musical: singing advertisement.
-
Personality symbol: creates a character that represents the product.
-
Technical expertise.
-
Scientific evidence: proving the brand is better.
-
Testimonial evidence or endorsement: featuring a highly believable or likable source.
• Selecting advertising media
Advertising evaluation
• Return on advertising investment is the net return on advertising investment divided by the costs of the
advertising investment.
• Communication effects indicate whether the ad and media are communicating the ad message well and
can be tested before or after the ad runs.
• Sales and profit effects compare past sales and profits with past expenditures or through experiments.
Sale promotion
-
-
Sales promotion: short-term incentives to encourage purchases or sales of a product or service now
• 3 sales promotion targets:
– consumers
– intermediaries (resellers)
– sales force
Sales promotion tools
Consumers:
• display and demonstration at points-of-sales
• samples (a trial amount of a product)
• coupons, vouchers, etc.
• buy 3 get 1 free, gifts, sweepstake,etc
Intermediaries and sales force
• quantity discount: buy in a great quantity and get a discount
• delivery support: if the reseller buys more than a certain quantity, the manufacturer will deliver the
goods to the destination for them
• price cut in the next buy
• display support: provide or award money to intermediaries who have really beautiful display of the
manufacturer's products
• free goods: give products to shop owners for free trial use and they will voluntarily sell and
promote the manufacturer's products
• Sales contests are effective in motivating salespeople or dealers to increase performance over a
given period.
• Conventions and trade shows are effective to reach many customers not reached with the regular
sales force.
Marketing, the Internet, and the Digital Age
-
online marketing
+ Websites and Branded Web Communities (Brand community website- presents brand
content that engages consumers and creates customer community around a brand)
+ Online advertising: appears while consumers are browsing online, including display ads,
search-related ads, online classifieds, and other forms
+ Email marketing Sending highly targeted, highly personalized, relationship-building
marketing messages via email.
+ Spam Unsolicited, unwanted commercial email messages.
+ Online Videos: Viral marketing The digital version of word-of-mouth marketing: videos,
ads, and other marketing content that is so infectious that customers will seek it out or
pass it along to friends.
+ Blogs Online forums where people and companies post their thoughts and other content,
usually related to narrowly defined topics.
Social Media and Mobile Marketing
- Social Media Marketing
+ Using Social Media
+ Social Media Marketing Advantages and Challenges
+ Integrated Social Media Marketing
- Mobile marketing: messages, promotions, and other content delivered to on-the-go consumers
through their mobile devices.
Traditional Direct Marketing Forms
- Direct-mail marketing: occurs by sending an offer, announcement, reminder, or other item directly
to a person at a particular address.
- Catalog marketing: Direct marketing through print, video, or digital catalogs that are mailed to
select customers, made available in stores, or presented online.
- telemarketing Using the telephone to sell directly to customers.
- Direct-response television (DrtV) marketing Direct marketing via television, including
direct-response television advertising (or infomercials) and interactive television (iTV) advertising.
- Kiosk Marketing
- Public Policy Issues in Direct and Digital Marketing(Irritation, Unfairness, Deception, and Fraud/
Consumer Privacy/ A Need for Action)
Major Steps in Sales Force Management
-
-
-
Designing the Sales Force Strategy and Structure
+ The Sales Force Structure
+ Sales Force Size
+ Other Sales Force Strategy and Structure Issues
Recruiting and Selecting Salespeople
Training Salespeople
Compensating Salespeople
Supervising and Motivating Salespeople
+ Supervising Salespeople
+ Motivating Salespeople
Evaluating Salespeople and Sales Force Performance
Social Selling: Online, Mobile, and Social Media Tools
Public relations
Public relations (PR) involves building good relations with the company’s various publics by obtaining
favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors,
stories, and events.
Functions of PR
• Press relations or press agency involves the creation and placing of newsworthy information to at
attention to a person, product, or service.
• Product publicity involves publicizing specific products.
• Public affairs involves building and maintaining national or local community relations.
• Lobbying involves building and maintaining relations with legislators and government officials to inf
legislation and regulation.
• Investor relations involves maintaining relationships with shareholders and others in the financial
community.
• Development involves public relations with donors or members of nonprofit organizations to gain
financial or volunteer support.
The Role and Impact of PR
• Lower cost than advertising
• Stronger impact on public awareness than advertising
• Has power to engage consumers and make them part of the brand story
Personal selling:
• Personal selling is the interpersonal part of the promotion mix and can include:
– Face-to-face communication
– Telephone communication
– Video or Web conferencing
• Characteristics: face-to-face, building relationships, interactives
• Drawbacks: costly, hard to change immediately due to signed contracts with sales teams
• Salespeople are an effective link between the company and its customers to produce customer value
and company profit by
– Representing the company to customers
– Representing customers to the company
– Working closely with marketing
Process
Prospecting and qualifying
• Prospecting identifies qualified potential customers through referrals from: customers, suppliers,
dealers, Internet
• Qualifying involves identifying good customers and screening out poor ones by looking at:
financial ability, volume of business, needs, location, growth potential
Preapproach
• Preapproach is the process of learning as much as possible about a prospect, including needs,
who is involved in the buying, and the characteristics and styles of the buyers
Approach
• Approach is the process where the salesperson meets and greets the buyer and gets the
relationship off to a good start and involves the salesperson’s:
– Appearance
– Opening lines
– Follow-up remarks
Presentation
• Presentation is when the salesperson tells the product story to the buyer, presenting customer
benefits and showing how the product solves the customer’s problems.
Handling objections
• is the process where salespeople resolve problems that are logical, psychological, or unspoken
Closing
• Closing is the process where salespeople should recognize signals from the buyer—
including physical actions, comments, and questions—to ask for a order and finalize the sale.
Follow-up
• Follow-up is the last step in which the salesperson follows up after the sale to ensure
customer satisfaction and repeat business
Direct and digital marketing:
-
engaging directly with carefully targeted individual consumers and customer communities to both obtain an
immediate response and build lasting customer relationships
- Benefits:
- Convenience
- Ready access to many products
- Access to comparative information about companies, products, and competitors
- Interactive and immediate
- Tool to build customer relationships
- Low-cost, efficient, fast alternative to reach markets
- Flexible
- Access to buyers not reachable through other channels
- Forms:
- Online marketing: email marketing, search engine marketing, display advertising, and
content marketing
- Social media marketing
Advantages:
• Targeted and personal
• Interactive
• Immediate and timely
• Real-time marketing
• Cost effective
• Engagement and social sharing capabilities
- Mobile marketing: SMS and MMS messaging, mobile apps, and mobile web advertising
- Traditional forms: direct mail, telemarketing, and print ads.
Public Policy Issues in Direct and Digital Marketing
• Irritation includes annoying and offending customers.
• Unfairness includes taking unfair advantage of impulsive or less-sophisticated buyers.
• Deception includes “heat merchants” who design mailers and write copy designed to mislead consumers.
• Fraud includes identity theft and financial scams.
• Consumer privacy involves concerns that marketers may have too much information and use it to take
unfair advantage.
• ATL (Above The Line) - PULL MARKETING: consist of advertising activities that are largely non-targeted
and have a wide reach. ATL communication is done to build the brand and inform the customers about the
product.
• BTL (Below the line) - PUSH MARKETING or BRAND ACTIVATION consists of very specific, memorable
and direct advertising activities focused on targeted groups of consumers
Pull/push strategy choice
• Push strategy:
– focus on personal selling
– sales promotion for intermediaries and sales force
• Pull strategy:
– a lot of advertsing and sales promotion for consumers