Chapter 13
Dimensions of Marketing Strategy
Asst. Prof. Dr. Serdar AYAN
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The Marketing Mix
Key to developing marketing strategy
•Maintain right mix
•satisfy target market
•Long-term customer relations
Competitive Advantage
Dimension of value surpassing all others
others:
•Wal-Mart – price
•Procter & Gamble – top consumer brands
•Domino’s Pizza – distribution via home delivery
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Product Strategy
Developing New Products – Multi-step process
•Idea development
•Screening of new ideas
•Business analysis
•Product development
•Test marketing
•Commercialization
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Product Development
Test marketing –
a trial mini-launch of a new product in limited
areas that represent the potential market.
Commercialization –
The full introduction of a complete marketing
strategy and the launch of the product for
commercial success.
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Classifying Products
Consumer Products
•Convenience products
•Shopping products
•Specialty products
Business Products
•Raw materials
•Major equipment
•Accessory equipment
•Component parts
•Processed materials
•Industrial services
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Marketing Mix
Product line
line––
Group of closely related products that are treated as a
unit because of a similar marketing strategy,
production, or end-use
Product Mix –
All the products offered by the company
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Product Life-Cycle
The Life Cycle of a Product
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Product Life Cycle
45 years of strong sales – Mattel’s Barbie doll’s life
cycle is waning. Today, edgier dolls like Bratz dolls
give Barbie a run for her money.
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Identifying Products
Branding
The Most Valuable Brands in the World
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Brands
Manufacturer brands – initiated and owned by the
manufacturer to identify products from production
to point of purchase.
Private distributor brands – cost less than
manufacturer brands; owned and controlled by
wholesaler or retailer
Generic brands – no brand name often come in simple
packages and carry their generic name.
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Packaging
External container holds & describes the product:
•Protection
•Economy
•Convenience
•Promotion
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Product Quality
Product quality -Degree to which a good, service, or idea
meets the demands and requirements of
customers
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Pricing Strategies
New Product Pricing
Price skimming
Penetration pricing
Psychological Pricing
Odd/Even
Prestige pricing
Price Discounting
Quantity discounts
Seasonal discount
Promotional discounts
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Distribution Strategies
Marketing Channels
•Retailers (Wal-Mart, Sears)
•Wholesalers (food brokers to restaurants)
•E-tailers (Amazon.com)
Physical distribution -- includes all the activities necessary
to move products from producers to customers.
–Inventory control
–Transportation
–Warehousing
–Materials handling
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Retailers
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Promotion Strategy
Promotion mix
•Advertising
•Personal selling
•Publicity
•Sales promotion
Integrated marketing communications
The process of coordinating the promotion
mix elements and synchronizing promotion as
a unified effort
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Personal Selling
Direct, two-way communication with sellers & potential
buyers
•Prospecting
•Approaching
•Presenting
•Handling objections
•Closing – asking for the order
•Following up
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Promotion Strategies: To Push or Pull
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