Appendix B:
Marketing and
Advertising
Strategy
Strategies depend on media
product
Product Types
Convenience Products
• Convenience products
• Shopping products
• Specialty products
• Unsought products
• Relatively inexpensive
• Little shopping effort
• Example: radio station
listening
1
Shopping Products
Convenience product:
What marketing strategy?
• More diverse
• More expensive
• More selection effort
• Examples: film, books, cell
phone handset
Specialty Products
Shopping product: What
marketing
k ti strategy?
t t ?
• Extensive search
• Reluctant to accept substitutes
• Brand names and quality are
important
• Strong fit between consumers’
needs and products’ benefits
2
Specialty Products - Marketing
Specialty products: What
marketing strategy?
• Targeting specific audience
• Create strong brand customers
trust
• Selling product as unique and
superior to other products
• Not marketing as being cheaper
Source: University of Tennessee 2004
Specialty Products - Marketing
Specialty Products - Marketing
• Customer-first culture
important
• Prices
i
reflect
fl customer value
l
• Salespeople have to be well
trained and service oriented
• Not one single product, but many
product variations
• Customization and tailoring to
customers’ needs
• Customers can choose what they
want
Source: Marketing Anatomy of Specialty Products Companies, Fox & Company
2006
Source: Marketing Anatomy of Specialty Products Companies, Fox & Company
2006
3
Target Market for Specialty
Products
• Quality matters
• Price insensitive
• More loyal customers
• Defensible niche markets
• Well informed about product or
service
Unsought Products
• The product is unknown
• Not actively sought by consumer
• Example: new CE product, new
software application
– TiVo, Sling
Source: University of Tennessee 2004; Marketing Anatomy of Specialty
Products Companies, Fox & Company 2006
Marketing Strategy for
Unsought Products
Unsought products: What
marketing strategy?
• Unsought products are not
important for customers and
need seems to be not urgent
• Thus, customers have to learn
why they need them
Source: Marketing in different sectors, Britannica 2006
4
Marketing Strategy for
Unsought Products
• Learning by word-of-mouth or
advertising
• Needs considerable promotional efforts
by seller
• Timely reminders on the internet can be
effective selling unsought products
Source: Marketing in different sectors, Britannica 2006;
Marketing Mix, eNotes 2006; A Recommender for Targeted Advertisement
of Unsought Products in E-Commerce, Lin et al. 2005
• The product becomes insecure
and risky in the eyes of the
consumer.
–Requires
q
a lot of time in makingg
the right decision. Consumers
rather buy products that are
easily found, they are reluctant
to change.
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