1

PSMA Marketing Management T-stof S3 28-10-04

HB=Kotler, Marketing management.

1.PSMA MM HC aantekeningen L.
2.PSMA MM T-stof L.
3.PSMA MM WC aantekeningen L.
4.PSMA MM samenvatting doorkijken+ Summaries lezen.
5.PSMA MM Proeftentamen M.

1.Het begrijpen van marketing management.

1.Wat is marketing?
Marketing concepts and tools (8-17):
Marketing: societal process bij which individuals and groups obtain what they
need and want through creating, offering, and freely exchanging products and
services of value with otherss. (the art of selling products)

Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create exchanges
that satisfy individual and organizational objectives.

Core marketing concepts:

Target markets: deciding which segments present the greatest opportunity.

Market: collection of buyers and sellers who transact over a particular product or
product class.

Connection between buyers and sellers in 4 flows:
1. Seller send goods and services and communications to the market;
2. in return they receive money and information;
3. the inner loop shows and exchange of money for goods and services;
4. the outer loop shows an exchange of information.

Marketplace: physical

Marketspace: digital.

Metamarket: cluster of complementary products and services that are closely
related in the minds of consumers but are spread across a diverse set of
industries.

Value proposition: a set of benefits offered to the customers to satisfy their
needs.

Customer value triad: (QSP) Quality, Service and Price.

Value: ratio between what the customer gets and what he gives.

Value= Benefits= functional benefits+emotional benefits
Costs Monetary costs+Time costs+Energy costs+Psychic costs.

Marketer can increase the value of the customer offering in several ways:
raise benefts
reduce costs
raise benefits and reduce costs
raise benefits by more than the raise in costs
2
lower benefits by less tgan the reduction in costs.

5 conditions of exchange:
1. there are at least 2 parties
2. each party has something that might be of value to the other
party;
3. each party is capable of communication and delivery
4. each party is free to accept or reject the exchange offer;
5. each party believe its appropriate or desirable to deal with the
other party.

Barter transaction: trading goods or services for other goods or services.

Dimensions of transaction:
at least 2 things of value
agreed-upon conditions
time of agreement
place of agreement

Transfer: one of the 2 persons receives nothing in return.

Marketing channels:
Communication channels: deliver and receive messages from target
buyers.
Distribution channels: display, sell, deliver the physical product or
service (s) to the buyer or user.
Service channel: to carry out transactions with potential buyers.

4 levels of competition:
1. brand competition: company sees its competitors offering similar
products and services to the same customers at similar prices.
2. industry competition:company sees its competitors as all
companies making the same product of class of products.
3. form competition:company sees its competitors as all companies
manufacturing products that supply the same services.
4. generic competition:company sees its competitors as all
companies that compete for the same consumer dollars.

Marketing mix: set of marketing tools the firm uses to pursue its marketing
objectives in the target market.

Hoofdlijnen van `company orientations toward the marketplace(17-27)

The production concept:consumers will prefer products that are widely
available and inexpensive.
Managers concentrate on high production efficiency, low costs and mass-
distribution. They assume that consumers are primarily interested in product
availability and low prices.

The product concept:consumers will favor those products that offer the most
quality, performance, or innovative features.
Managers focus on marketing superior products and can evaluate quality and
performance.

The selling concept:consumers and businesses will ordinarily not buy enough of
the organizations products.
3
Untertaken is aggresive selling and promotion effort. Most forms do this in case of
overcapacity.

The marketing concept:the key of achieving organizational goals consist of the
company being more effective than competitors in creating, delivering and
communicating superior customer value to its chosen target markets.
4 pillars:
1. target market:
2. customer needs: 5 types of needs:
stated needs (cu wants something inexpensive)
real needs (cu wants a product with low operating costs)
unstated needs(cu expect good service)
delight needs (cu would like the dealer to include an extra)
secret needs (cu want to be seen by friends as a consumer of a
certain product)
types of marketing:
Responsive marketer: finds a stated need and fills it.
Anticipative marketer:look into what needs customers may
have in the near future.
Creative marketer:discovers and produces solutions
customers didnt ask for but to which they enthusiastically
respond.
3. integrated marketing: all departments of the company are working
together. 2 ways:
various marketing functions must work together.
Marketing must be embraced by other departments and they must
"think customer.
External marketing: directed at people outside the company
Internal marketing: task of hiring, training and motivating able
employees who want to serve customers as well.
4. profitability:purpose is to help organizations achieve their objectives. In
cases:
sales decline.
Slow growth.
Changing buying patterns.
Increasing competition.
Increasing marketing expenditures

The customer concept: building high customer loyalty and focusing on
customer lifetime value.

The societal marketing concept:the organizations task is to determine the
needs, wants and interests of target markets and to deliver the desired
satisfactions more effectively and efficiently than competitors in a way that
preserves or enchances the consumers and societys well-being.
Concept: cause related marketing: company with and image, product, or
service to market builds a relationship or partnership with a "cause or a number
of "causes for mutual benefit.

2.Marketing in de economie van vandaag.
Hoofdlijnen van "The major drivers of the new economy (34-38)

4
Digitalization and connectivity.
Disintermediation and reintermediation: entrepreneurs launch a
website in the fear to be disintermediated by new e-tailers (brick-only
companies). Reintermediation means that new online middle men
appeared (pure click companies)
Customization and customerization: Customization means that the
company is able to produce individually differentiated goods wheter
ordered in person, on the phone or online. Customerization is operational
customization and marketing customization together.
Industry convergence: boundaries are blurring.

How business practices are changing. (38-40)
- From organizing by product units to organizing by customer
segments.
- From focusing on profitable transactions to focusing on customer
lifetime value.
- From focusing on just the financial scorecard to focusing also on
the marketing scorecard.
- From focusing on shareholders to focusing on stakeholders.
- From marketing does the marketing to everyone does the
marketing.
- From building brands through advertising to building brands
through performance.
- From focusing on customer acquisition to focusing on customer
retention.
- From no customer satisfaction measurement to in-depth customer
satisfaction measurement.
- From over-promise, under deliver to under promise, over-deliver.
- The new hybrid.

How marketing practices are changing:customer relationship marketing (52+tabel
53)
Customer relationship marketing (CRM):enables companies to provide
excellent real-time customer service developing a relationship with each valued
customer through the effective use of individual account managers. The skill
requires building a customer database and doing datamining to detect trends,
segments and individual needs.

Database marketing: the process of building, maintaining, and using customer
databases and other databases for the purpose of contacting, transacting and
building relationships.
Table 2.3 Mass marketing versus one-to one marketing.

3.Het bereiken van tevredenheid, waarde en behoud van klanten.
Defining customer value and satisfaction, m.u.v. de voorbeelden (60-64)

Customer perceived value (CPV):the difference between the prospective
customers evaluation of all the benefits and all the costs of an offering and the
perceived alternatives.

Total customer value:the perceived monetary value of the bundle of economic,
functional, and psychological benefits customers expect from a given marketing
offering.

Total customer cost:the bundle of costs customers expect to incur evaluating,
obtaining, using, and disposing of the given market offering.

5
Total customer satisfaction:the link between customer satisfaction and
customer loyalty is not proportional.

Value proposition:the whole cluster of benefits the company promises to
deliver.

Value-delivery system:all the experiences the customer will have on the way to
obtaining and using the offering.

Delivering customer value and satisfaction (70-72)
Michael Porters value chain:tool for identifying ways to create more customer
value. 9 strategically relevant activities that create value and cost in a specific
business. Consist of 5 primary activities and 4 support activities.
Primary activities:
1. inbound logistics (bringing materials into the business)
2. operations (make final products)
3. outbound logistics (shipping out financial products)
4. marketing and sales
5. service

Support activities:
6. procurement
7. technology development
8. human resource management
9. firm infrastructure.

Value delivery network (supply chain):being partnered with specific suppliers
and distributors.

Attracting and retaining customers (72-77)

Partner relationship management (PRM):working with partners.



Steps to reduce the defection rate:
company must define and measure its retention rate.
Company must distinguish the causes of customer attrition and identify
those that can be managed better.
Company needs to estimate how much profit it loses when it loses
customers. (for an individual customer its equal to the customers lifetime
value)
Company needs to figure out how much it would cost to reduce the
defection rate. (as long as it cost less than the lost profit it should spend
it)
Companies must listen to customers.

Customer lifetime value (CLV):the present value of the stream of future
profits expected revenues the expected costs of attracting, selling and servicing
the customer.

Customer equity:total of the discounted lifetime values of all of the firms
customers.
3 drivers of customer equity:
1. value equity:customers objective assessment of the utility of an offering
based on perceptions of its benefits relative to its costs. (quality, price and
convenience)
6
2. brand equity:customers subjective and intangible assessment of the
brand, above and beyond its objective value. (customer brand awareness,
customer attitude toward the brand, customer perception of the brand
ethics)
3. relationship equity:customers tendency to stick with the brand, above
and beyond objective and subjective assessment of its worth (loyalty
programs, special recognition and treatment programs, community
building programs and knowledge building programa).

5 different levels of investment in customer-relationship building:
1. Basic marketing:the salesperson simply sells the product. (most
companies only when their markets contain many customers and their unit
profit margins are small)
2. Reactive marketing: the salesperson sells the product and encourages the
customer to call if he or she has questions, comments or complaints.
3. Accountable marketing:the salespersonb phones the customer to check
wheter the product is meeting expectations (also asks for any
improvement suggestions and specific disappointments).
4. Proactive marketing: the salesperson contacts the customer from time to
time with suggestions about improved product uses or new products.
5. partnership marketing:the company works continuously with its large
customers to help improve their performance.

Implementing total quality management (84-85)

Total quility management:organizationwide approach to continuously
improving the quality of all the organizations processes, products and services.

Quality:the totality of features and characteristics of a product or service that
bear on its ability to satisfy stated or implied needs.


2 responsabilities of marketing managers in a quality-centered company:
1. participate in formuling strategies and policies to help the company win
through total quality excellence.
2. deliver marketing quality alongside production quality.

Several roles of marketers in order to help their companies define and
deliver high quality goods and services to target customers:
correctly identifying the customers needs and requirements;
communicate customer expectations properly to product designers;
make sure that customers orders are filled correctly and on time;
check that customers have received proper instructions, training
and technical assistance in the use of the product;
stay in touch with customers after the sale to ensure that they are
satisfied and remain satisfied;
gather customers ideas for product and service improvement and
convey them to the appropriate departments.

2.Marktmogelijkheden analyseren.

4.Marktgeorienteerde strategische marketing.
Gehele hoofdstuk muv de voorbeelden.

Strategic planning:
3 key areas:
1. managing a companys business as an investment portfolio.
7
2. assessing each businesss strenght by consindering the markets growth
rate and the companys position and fit in that market.
3. establishing a strategy.

4 organizational levels:
1. corporate level
2. division level
3. business unit level
4. product level

Strategic marketing plan: lays out the target markets and the value
proposition that will be offered, based on analysis of the best market
opportunities.

Tactical marketing plan: specifies the marketing tactics, including product
features, promotion, merchandising, pricing, sales channels, and service.

Marketing plan: the central instrument for directing and coordinating the
marketing effort.

4 planning activities of corporate headquarters:
1. defining the corporate mission,
2. establishing the strategic business units (SBUs)
3. assigning resources to each SBU.
4. planning new businesses, downsizing, or terminating older businesses.

Mission statements: it provides employees with a shared sense of purpose,
direction, and opportunity. It guides geographically dispersed employees to work
independantly and yet collectivity toward realizing the organizations goals.
3 major characteristics:
1. they focus on a limited number of goals;
2. stress the major policies and values the company wants to honor;
3. they define the major competitive scopes within which the company will
operate.
Industry scope:the range of industries in which a company will
operate.
Products and applications scope: the range of products and
applications that a company will supply.
Competence scope:the range of technological and other core
competencies that a company will master and leverage.
Market-segment scope: the type of market or customers a
company will serve.
Vertical scope:the number of channel levels from raw material to
final product and distribution in which a company will participate.
Geographical scope:the range of regions, countries, or country
groups in which a company will operate.

Levitt:
Market definitions of a business are auperior to product definitions.
Customer-satisfying process, not a goods-producing process.
Encourage companies to redefine their businesses in terms of needs, not
products.
3 dimensions:
1. customer groups
2. customer needs
3. and technology

8
Strategic business units (SBUs):the purpose is to develop seperate strategies
and assign appropriate funding.
3 characteristics:
1. it is a single business or collection of related businesses that can be
planned separately from the rest of the company.
2. it has its own set of competitors
3. it has a manager who is responsible for strategic planning and profit
performance and who controls most of the factors affecting profit.

Boston consulting group approach:the market growth rate on the vertical axis
indicates the annual growth rate of the market in which the business operates.

Relative market share:measured on the horizontal axis, refers to the SBUs
market share relative to that of its largest competitor in the segment. It serves as
a measure of the companys strenght in that market segment.




Growth-share matrix:
4 cells:
1. Question marks: businesses that operate in high-growth markets but
have low relative market shares.
2. Stars: the market leaders in a high-growth market. A star does not
necessarily produce a positive cash flow for the company.
3. Cash cows: stars with a falling growth rate that still have the largest
relative market share and produce a lot of cash for the company.
4. Dogs:businesses that have weak market shares in low-growth markets.

!After this a company must determine wheter its portfolio is healthy. Unbalanced
would have too many dogs or question marks and too few stars and cash cows.

!Next task is determine what objective, strategy and budget to assign to each
SBU.
Four strategies:
1. Build:appropriate for question marks whose market shares must grow if
they are to become stars.
2. Hold:appropriate for strong cash cows if they are to continue yielding
large positive cash flows.
3. Harvest:increase short-term cash flow regardless of long-term effect.
Appropriate for weak cash cows whose future is dim and from which more
cash flow is needed. Can also be used with question marks and dogs.
4. Divest: to sell or liquidate the business because resources can be better
used elsewhere. Appropriate for dogs and question marks that are acting
as a drag on the companys profit.

!Companies must decide wheter harvesting or divesting is better for a weak
company. Harvesting reduces the businesss future value and therefore the prize
at which it could be sold later. Divest, in an early decision can better.

!SBU change their position during time. It goed normally from question mar to
star, to cash cow and then finally to dogs. Thats why companies must also
examine their moving positions.

! the point of SBU analysis is that each business has a different potential and
requires its own objective.

9
General electric model: SBUs appropriate objective cannot be determined only
by its position in the growth-share matrix.
Each business is rated in terms of two major dimensions:
1. market attractiveness
2. business strenght
If one is missing its an unhealthy company.
9 cells into 3 zones
3 cells in upper left:strong SBUs in which the company should invest or
grow.
3 cells in the middle:SBUs that are medium in overall attractiveness.
Company should pursue selectivity and manage for earnings.
3 cells in lower right: SBUs that are low in overall attractiveness.
Company should give serious thought for harvesting or divesting.

! It must be analysed from time to time.
Critique of portfolio models:
portfolio models must be used cautiously, they may lead the company to
place too much emphasis on market-share growth and entry into high-
growth business or to neglect its current business.
Results are sensitive to the ratings and weights and can be manipulated to
produce a desired location in the matrix.
These models use an averaging process thats why 2 or more business end
up in the same cell position but differ greatly in underlying ratings and
weights.Many end up in the middle of the matrix and this makes it hard to
know what the correct strategy would be.
Models fail to show the synergie between two or more businesses.

Filling the strategic planning gap, 3 ways:
1. identify opportunities to achieve further growth within current
business (intensive growth opportunities)
first action is a review whether any opportunity exist for
improving its existing business performance.
Ansoff's framework for detecting new intensive growth
opportunities "product market expansion grid":
- company considers wheter it would gain more market share with its
current products in their current markets (market-penetration
strategy)
- considers whether it can find or develop new markets for its current
products (market development strategy)
- considers whether it can develop new products of potential interest
to its current markets (product-development strategy)
- review opportunities to develop new products for new markets
(diversification strategy)
2. identify opportunities to build or aquire businesses that are related
to current businesses (integrated growth opportunities)
business sales and profits can be increased through
backward, forward, or horizontal integration within its
industry.
3. identify opportunities to add attractive businesses that are
unrelated to current businesses (diversification growth
opportunities)
it makes sense when good opportunities can be found
outside the present business.
3 types;
1. company could seek new products that have
technological or marketing synergies with existing
product lines,even though the new products may
10
appeal to a different group of customers (concentric
diversification strategy)
2. company might seek for new products that could
appeal to current customers even though the new
products are technological unrelated to its current
product line (horizontal diversification strategy)
3. company might seek new businesses that have no
relationship to its current technology, products, or
markets (conglomerate diversification strategy)
Business unit strategic planning:
Business mission
Swot analysis:an overall evaluating of a companys strenghts,
weaknesses, opportunities and threats.
External environment analysis (opportunity and threath): business
unit has to montitor key macroenvironment forces (demographic-
economic, technological, political-legal, social cultural) and significant
microenvironment actors (customers, competitors, distributors,
suppliers)
(Major purpose)Marketing opportunity:area of buyer need or potential interest
in which a company can perform profitably
Market Opportunity Analysis (MOA):determine the attractiveness and succes
probability of any opportunity.
5 questions:
1. Can the benefits involved in the opportunity be articulated convincingly to
define a target market(s)?
2. Can the target market(s) be located and reached with cost- effective
media and trade channels?
3. Does the company possess or have acces to the critical capabilities and
resources needed to deliver the customer benefits?
4. Can the company deliver the benefits better than any actual or potential
competitors?
5. Will the financial rate of return meet or exceed the companys required
treshold for investment?
Environmental threat: a challenge posed by an unfavorable trend or
development that would lead (in absence of defensive marketing action) to
deterioration in sales or profit. After this (major threaths and opportunities) the
company can charcterize the business overall attractiveness.

Internal environment analysis (strenghts/weaknesses analysis):
each business needs to evaluate this but it does not have to correct all its
weakness or all its strenght.
-Every company must manage some basic processes (new product
development, sales generation, order fulfillment) the challenge is to develop
superior competitive capability in managing the companys key processes.
(Stalk:capabilities-based competition)

Goal formulation:formulation of objectives that are specific with respect
to magnitude and time.
For an MBO to work there are 4 criteria:
1. They must be arranged hierarchically, from the most to the least
important.
2. Objectives should be stated quantitatively whenever possible.
3. Goals should be realistic
4. Objectives must be consistent.

Strategic formulation:Michael Porters 3 generic strategies that provide a
good starting point for strategic thinking:
11
1. Overall cost leadership: the business works hard to achieve the
lowest production and distribution cost so that it can price lower than
its competitors and win a large market share.
2. Differentiation:the bussiness concentrate on achieving superior
performance in an important customer benefit area valued by a large
part of the market.
3. Focus: the business focuses on one or more narrow market segments.

Strategic group:firms pursuing the same strategy directed to the same
target market.

Many strategic alliances take the form of marketing alliances. 4 major
categories:
1. product or service alliances:One company licenses another to
produce its product, or two companies jointly market their
complementary products or a new product.
2. promotional alliances:One company agrees to carry a promotion for
another companys product or service.
3. logistics alliances:One company offer logistical services for another
companys product.
4. pricing collaborations:One or more companies join in a special
pricing collaboration.
Program formulation and implementation:
!a great market strategy can be sabotaged by poor implementation.

McKinseys 7-s framework for business succes:
Hardware:
1. strategy
2. structure
3. systems
Software:
1. style:company employees share a common way of thinking and behaving.
2. skills: employees have the skills needed to carry out the companys
strategy.
3. staff: company has hired able people, trained them well, and assigned
them to the right jobs.
4. shared values: the employees share the same guiding values.
Feedback and control

Value delivery process:
1. traditional view:the firm makes something and then sells it.
2. value delivery sequence:
1. choosing the value: homework.
2. providing the value
3. communicating the value

Japanese concepts:
Zero customer feedback time.
Zero product improvement time.
Zero purchasing time.
Zero setup time.
Zero defects.


Marketing process:
Analyzing market opportunities:
12
- identify the potential long-run opportunities given its market
experience and core competencies;
- gather information about the market environment;
- understand customer markets
- pay attention to competitors
Developing marketing
Planning marketing programs:
- decide what level of marketing expenditures will achieve its
objectives;
- decide how to divide the total marketing budget among the various
tools in the marketing mix:product, price,place and promotion;
- decide on the allocation of the marketing budget to the various
products, channels, promotion media and sales areas.

Organizing, implementing and controlling the market effort:
Marketing vice-presidents tasks:
1. coordinate the work of all the marketing personnel;
2. work closely with the other functional vice presidents
3. selecting, training, directing, motivating and evaluating marketing
personnel.
Marketing control:
1. Annual plan control:ensuring that the company is achieving its current
sales, profits and other goals.
2. profitability control:measuring the actual profitability of products,
customer groups, trade channels, and order sizes.
3. strategic control:evaluating wheter the companys marketing strategy is
appropriate to market conditions.

Marketing plan:
Executive summary and table of contents: open with a brief
summary of the main goals and recommendations.
Current marketing situation: relevant background data on sales,
costs, profits, the market, competitors, channels, and the forces in
the macroenvironment. Used to carry out on a SWOT analysis.
Opportunity and issue analysis:review the main opportunities
found in the SWOT analysis, identify key issues likely to affect the
organizations attainment of its objectives.
Objectives:the plans major financial and marketing goals,
expressed in sales volume, market share, profit and other relevant
terms.
Marketing strategy:define the target segments, those groups and
needs the market offerings are intended to satisfy.
Action programs:specify the actual marketing programs derived
from the marketing strategy, to be used in achieving the business
objectives.
Financial projections:supporting budget.
Implementation controls:outline the controls for monitoring and
adjusting implementation of the plan.


5.Marktinformatie.
The components of a modern marketing information system (123-143 m.u.v. de
voorbeelden, research instruments, sampling plan, contact methods, tabel 5.5)

Marketing Information System (MIS):consits of people, equipment, and
procedures to gather, short, analyze, evaluate, and distribute needed, timely and
accurate information to marketing decision makers. It should represent a cross
13
between what managers think the need, what they really need and what is
economically feasible.

Internal records system: supplies result data:
- the order to payment cycle
- sales information system
- databases, data warehouses and data-mining.
Marketing intelligence system:a set of procedures and sources used by
managers to obtain everyday information about developments in the
marketing environment.
Several steps to improve the quality of marketing intelligence:
1. Train and motivate the sales force to spot and report new
devolpments;
2. Motivate distributors, retailers and other intermediaries to pass
along important intelligence.
3. Collect competitive intelligence by purchasing competitors
products, attending open houses and trade shows; reading
competitors published reports; attending stockholders
meetings;talking to employees, dealers, distributors, suppliers, and
freight agents; collecting competitors ads, and looking up new
stories about competitors on the internet.
4. set up a customer advisory panel made up of representative
customers or the companys largest customers or its most
outspoken or sophisticated customers.
5. purchase information from outside suppliers
6. circulate marketing intelligence.

Marketing research system: the systematic design, collection, analysis,
and reporting of data and findings relevant to a specific marketing
situation facing the company.
3 categories marketing research firms:
1. syndicated-service research firms:gather consumer and trade
information which they sell for a fee.
2. customer marketing research firms:carry out specific projects.
Design the study and report the findings.
3. speciality line marketing research firms:provide specialized
research services.
Research process:
1. Define the problem, the decision alternatives, and the
research objectives.
2. Develop the research plan.
- data sources: primary or secondary (collected for another purpose
and already exist somewhere). First secondary data is examined to
see if the problem can be solved without primary data.
- research approaches: primary data can be collected in 5 ways:
1. observational research.
2. focus group research
3. survey research
4. behavioral data:customer traces.
5. experimental research:purpose is to capture cause-and
effect relationships by eliminating competing explanations of
the observed findings.
- research instruments:
3 main instruments:
1. Questionnaires:most common instrument.
2. Psychological tools:laddering techniques, depth interviews.
3. Mechanical devices: Galvanometers, eyecameras.
14
4. (Qualitative measures:video, pagersinformal interviewing.)
Prototyping interviewing:realistic portrait of an individual by
describing a specific customer type.
Articulative interviewing: determine what social values
interviewees hold.
- sampling plan: who, how many and how?
- contact methods:mail questionnaire, personal interviewing
(arranged or intercept interviewing), online methods, automated
telephone surveys.
3. Collect the information.
4. Analyze the information.
5. Present the findings.
6. Make the decision
Reasons for failing to use marketing research:
A narrow conception of the research.
Uneven caliber of researches
Poor framing of the problem.
Late and occasionalle erroneous findings.
Personality and presentational differences.

Marketing decision support system (MDSS):coordinated collection of
data, systems, tools, and techniques with supporting software and
hardware by which an organization gathers and interprets relevant
information from business and environment and turns it into a basis for
marketing action. (john little)

!!Sheets heel belangrijk!

6.De macro-omgeving van de marketeer.
Alleen de summary!

Marketing environment presents a lot of opportuinities and threaths:
By:
Identifying trends or sequences:

1. Demographic environment:
- be aware of world wide population growth
- changing mixes of age
- changing ethnic composition
- changing educational levels
- rise of nontraditional families
- large geographical shifts in population
- move to micromarketing
- away from mass marketing.
2. Economic arena:
- focus on income distribution
- focus on the levels of savings
- debt
- credit availability.
3. Natural environment:
- be aware of raw material shortage
- increased energy costs
- pollution levels
- changing role of governments in environmental protection
4. Technological arena:
- take account of the accelerating pace of technological
change
15
- opportunities for innovation
- varying r&d budgets
- increased governmental regulation brought about by
technological change.
5. Political legal environment:
- work within the many laws regulating business practices
- work with various special-interest groups.
6. Social-cultural arena:
- understand peoples views of themselves, others,
organizations, society, nature and the universe.
- Must market products that correspond to societys core and
secondary values, and adress the needs of different
subcultures.

7.Consumentengedrag
Influencing buyer behavior (183-199)

Cultural factors:
Culture: the fundamental determinant of a perons wants and behavior.
Subcultures.
Diversity marketing: special marketing programs to serve subcultures.
Social classes:
- Those within each class tend to behave more alike than persons
from two different social classes.
- Persons are perceived as occupying inferior or superior positions
according to social class
- Social class is indicated by a cluster of variables.
- Individuals can move up or down the social-class ladder during
their lifetimes.
Social factors:
Reference groups:all the groups that have a direct (face-to-face) or
indirect influence on the persons attitudes or behavior.
- Membership groups:having a direct influence.
- Primary groups:family, friends, neighbors etc.
- Secondary groups:religious, professional, trade union etc.
- Aspirational groups:a person hopes to join this group.
- Dissociative groups:the values and or behaviors are rejected by
the individual.
Family:most important.
- Family of orientation:parents and siblings.
- Family of procreation:spouse and children.
Roles and statuses.

Personal factors:
Age and stage in the lifecycle. 9 stages of family life-cycle:
1. Bachelor stage:young, single, not living at home. Few financial
burdens. Fashion opinion leaders.Recreation oriented.
2. Newly married couples:Young, no children. Highest purchase
rate and highest average purchase of durables.
3. Full nest 1: Youngest child under 6. Home purchasing at peak.
Liquid assets low. Interested in new products, advertised products.
4. Full nest II:Youngest child 6 or over. Financial position better.
Less influenced by advertising.
5. Full nest III:older married couples with dependent children.
Financial position still better. Some children get jobs. Hard to
influence with advertising.
16
6. Empty nest I:Older married couples, no children living with them,
head of household in labor force. Home ownership at peak. Most
satisfied with financial position and money saved. Not interested in
new products.
7. Empty nest II:older married. No children living at home, head of
household retired. Drastic cut in income. Keep home.
8. Solitary survivor:in labor force. Income still good but likely to sell
home.
9. Solitary survivor:Retired. Special need for attention, affection and
security.
Occupation and economic circumstances.
Lifestyle:a persons pattern of living in the world as expressed in
activities, interests and opinion
Psychographics:VALS:
4 groups with high resources:
1. actualizers: succesfull, sophisticated, active, "take-charge people.
Purchases often reflect cultivated tastes for relatively upscale, niche-
oriented products.
2. fullfilleds: mature, satisfied, comfortable reflective. Favor durability,
functionality and value in products.
3. Achievers: Succesfull, career-and work orientated. Favor established,
prestige products that demonstrate succes to their peers.
4. Experiencers: young, vital, enthusiastic, impulsive, and rebellious.
Spend a comparatively high proportion of income on clothing, fast
food, music, movies, and video.
4 groups with lower resources:
1. Believers: Conservative, conventional, and traditional. Favor familiar
products and established brands.
2. Strivers: uncertain, insecure, approval-seeking, resource
constrained.Favor stylish products that emulate the purchases of those
with greater material wealth.
3. Makers: Practial, self-sufficient, traditional, family-oriented. Favor only
products with a practical or functional purpose.
4. Strugglers: Elderly, resigned, passive, concerned, resource constrained.
Cautious consumers who are loyal to favorite brands.

Personality and self-concept
Personality: a set of distinguishing human psychological traits that lead to
relatively consistent and enduring responses to environmental stimuli.

Brand personality:the specific mix of human traits that may be attributed to
a particular brand.

Self-concept:how the person view himself.

Its likely that customers choose brands whose personality fit to their own. The
self concept is not necessarily the ideal selfconcept, so its not clear how the
person will choose.

Psychological factors:
Motivation: a need becomes a motive when it is aroused to a sufficient
level of intensity. Is a need that is sufficiently pressing to drive the person
to act.
Freud's theory:psychological forces shaping peoples behavior are largely
unconscious.

17
Maslow's theory:why people are driven by particular needs at particular
times:
Human needs are arranged in hierarchy. People will try to satisfy their most
important needs first.

Herzberg's theory: Distinguish dissatisfiers (factors that cause
dissatisfaction) and satisfiers (factors that cause satisfaction): The absence of
dissatisfiers is not enough, satisfiers must be actively present to motivate a
purchase.
2 implications:
1. Sellers should do their best to avoid dissatisfiers
2. the manufacturer should identify the major satisfiers or motivators
of purchase in the market and then supply them.
Perception:the process by which an individual selects, organizes, and
interprets information inputs to create a meaningful picture of the world. It
can vary widely among individuals exposed to the same reality.
3 perceptual processes:
1. Selective attention:because of the size of the offer, most stimuli will
be screened out. Marketers have to work hard to attract consumers
notice.
2. Selective distortion:the tendency to twist information into personal
meanings and interpret information in a way that will fit our
preconceptions. Marketers cannot do much about it.
3. Selective retention:people forget much that thet learn but will tend
to retain information that support their attitudes and beliefs.
Learning: involves changes in an individuals behavior arising from
experience. Produced through:
- Drives: strong internal stimulus impelling action.
- Cues:minor stimuli that determine when, where, and how a person
responds.
- Responses
- reinforcement
Beliefs and attitudes:
Belief:a descriptive thought that a person holds about something.
Attitude:a persons enduring favorable or unfavorable evaluations, emotional
feelings, and action tendencies toward some object or idea.

The buying decision process (200-202)

Buying roles:
Initiator:the person who first suggests the idea of buying the product or
service;
Influencer:the person whose view or advice influences the decision.
Decider:the person who decides on any component of a buying
decision:wheter to buy, what to buy, how to buy or where to buy.
Buyer:the person who makes the actual purchase.
User: the person who consumes or uses the product or service.

Buying behavior:
Henry Assael's 4 types:
Complex buying behavior:
1. the buyer develops beliefs about the product
2. attitudes are developed about the product
3. a thoughtfull choice is made
Develop a strategy that assist the buyer in learning about the products
attributes and their relative importance, and which call attention to the
18
high standing of the companys brand on the more important
attributes.
Dissonance-reducing buyer behavior: consumer is highly involved in a
purchase but sees little difference in brands.
1. consumer first acted
2. aqcuire new beliefs
3. ended up with a set of attitudes.
Supply beliefs and evaluations that help the consumer feel good about his
or her brand choice.
Habitual buyer behavior:Low involvement and the absence of significant
brand differences.
4 techniques to try to convert a low-involvement product into one of
higher involvement:
1. link the product to some involving issue;
2. link the product to some involving personal situation;
3. design advertising to trigger strong emotions related to personal
values or ego defense;
4. might add an important feature.
Variety-seeking buying behavior:buying situations are characterized by
low-involvement but significant brand differences. Brandswitching.

Stages of the buying decision process (202-209)

Metamarket:mapping the customers consumption system (activity cycle or
scenario0

Metamediaries: firms that help customers navigate through these activities.

Problem recognition
Information search
Heightened attention:person simply becomes more receptive to information
about a product.

Active information search:person looks active for more information.

4 groups of consumer information sources:
1. Personal sources.
2. commercial sources:most used.
3. public sources.
4. experiental sources.

Evaluation of alternatives
Purchase decision
2 factors who can intervene betwen the purchase intention and the
purchase decision:
1. attitudes of others.
- the intensity of the other persons negative attitude toward the
consumers preffered alternative
- the consumers motivation to comply with the other persons
wishes.

2. unanticipated situational factors.

5 purchase subdecisions :
3. brand decision
4. vendor decision
5. quantity decision
19
6. timing decision
7. payment-method decision.

Postpurchase behavior:
- postpurchase satisfaction:
- postpurchase action;
- postpurchase use and disposal.

8.Koopgedrag van zakelijke afnemers.

Blz. 216-219
Organizational buying:the decision making process by which formal
organizations establish the need for purchased products and services and identify,
evaluate, and choose among alternative brands and suppliers. (Webster and
Wind)

Business market:consists of all the organizations that acquire goods and
services used in the production of other products or services that are sold,
rented, or supplied to others.
Characteristics:
Fewer buyers.
Larger buyers:a few large buyers do most of the purchasing in some
industries.
Close supplier-customer relationship.
Geographically concentrated buyers.
Derived demand.
Inelastic demand:not much affected by prize changes.
Fluctuating demand:more volatile.
Professional purchasing.
Several buying influences:more people typically influence business
buying decisions.
Muliple sales calls:it take more sales calls to win orders because more
people are involved in the selling process.
Direct purchasing:not through intermediaries.
Reciprocity:buyers often select suppliers who also buy from them.
Leasing:instead of buying.

Buying situations:
1. Straight rebuy: is a buying situation in which the purchasing department
reorders on a routine basis. (business buyer makes fewest decisions)
2. Modified rebuy: is a situation in which de buyer wants to modify product
specifications, prices, delivery requirements, or other terms.
3. New task: is a buying situation in which a purchaser buys a product or
service for the first time.(the marketers greatest opportunity and
challenge, business buyer makes most decisions)

Systems buying:many business buyers prefer to buy a total solution to their
problem from one seller.

Blz 221
Business buyers respond to 4 main influences:
1. environmental.
2. organizational.
3. interpersonal
4. individual.

Tabel.8.1
20

9.Concurrentie-analyse en de concurrentiebeleid.
Competitive forces model (242-243)

Michael Porters competitive forces model:
1. Threat of intense segment rivalry: a segment is unattractive if it
already contains numerous strong, or aggressive competitors.
2. Threath of new entrants: a segments attractiveness varies with the
height of its entry and exit barriers. (most attractive when entry barriers
are high and the exit barriers low)
3. Threath of substitute products: a segment is unattractive when there
are actual or potential substitutes for the product.
4. Threath of buyers' growing bargaining power: a segment is
unattractive if the buyers possess strong or growing bargaining power.
5. Threath of suppliers' growing bargaining power: a segment is
unattractive if the companys suppliers are able to raise prices or reduce
quantity supplied.

Hoofdlijnen van identifying competitors (243-248)

Industry:a group of firms that offer a product or class of products that are close
substitutes for one another.

Industry concept of competition:
Number of sellers and degree differentiation:
4 industry types:
1. Pure monopoly:only one firm provides a certain product or
service in a certain country or area.
2. Oligopoly:a small number of usually large firms produce products
that range from highly differentiated to standardized.
3. Monopolistic competition:many competitors are able to
differentiate their offers in whole or in part (restaurants, beauty
shops)
4. Pure competition:many competitors offer the same product and
service (stock market, commodity market).
!an industrys competitive structure can change over time.

Entry, mobility, and exit barriers
Cost structure
Degree of vertical integration
Degree of globalization

Market concept of competition.
Competitors: companies that satisfy the same customer need.

Fasen in `analyzing competitors (248-250)

Strategies: a company must continuously monitor competitors strategies.
Objectives:looking for the companys drives and monitor the competitors
expansion plans.
Strengths and weakness:its always one of Littles 6 competitives:
1. Dominant:this firm controls the behavior of other competitors and
has a wide choice of strategic options.
2. Strong:this firm can take independent action without endangering
its long-term position and can maintain its long-term position
regardless of competitors actions.
21
3. Favorable:this firm has an exploitable strength and a more-than-
average opportunity to improve its position.
4. Tenable:this firm is performing at a sufficiently satistactory level
to warrant continuiing in business, but it exists at the sufferance of
the dominant company and has a less-than-average opportunity to
improve its position.
5. Weak: this firm has unsatisfactory performance, but an
opportunity exists for improvement.
6. Nonviable:this firm has unsatisfactory performance and no
opportunity for improvement.
A company should monitor 3 variables when analyzing
competitors:
1. Share of market: competitors share of the target market.
2. Share of mind:its the company comes first in mind of
customers.
3. Share of heart:customers prefer to buy the product at this
company.
Reaction patterns
The way a company reacts on competitive assaults depends on the `competitive
equilibrium Hendersons observations:
If competitors are nearly identical and make their living in the same way,
then their competitive equilibrium is unstable.
If a single major factor is the critical factor, then the competitive
equilibrium is unstable.
If multiple factors may be critical factors, then it is possible for each
competitor to have some advantage and be differentially attractive to
customers. The more factors that may provide an advantage, the more
competitors who can coexist. Competitors all have their segment, defined
by the preference for the factor trade-offs they offer.
The fewer the number of critical competitive variables, the fewer the
number of competitors.
A ratio of 2 to 1 in market share between any two competitors seems to
be the equilibrium point at which it is neither practical nor advantageous
for either competitor to increase or decrease share.

!!Competitive strategies alleen collegesheets.

10.Marktsegmentatie en doelmarktkeuze
!!Onbelangrijk blz 295-303

!!Market targeting alleen collegesheets.

Levels of market segmentation:

Mass marketing:the seller engages in the mass production, mass distribution,
and mass promotion of one product for all buyers.

Micromarketing:
Segment marketing:the marketers task is to identify the segments and
decide which one(s) to target. It offers several benefits over mass
marketing.
- company can create a more fine-tuned product or service offering
and price it appropriately for the target segment.
- Company can more easily select the best distribution and
communications channels, and it will also have a clearer picture of
its competitors.
! even a segment is partly fiction (not everyone wants exactly the same)
22
Anderson and Narus urged marketers to present flexible marketofferings:
consist of 2 parts:
1. naked solution:containing the product and service elements that
all segment members value.
2. discretionary options:value some segment members.

Market segment:consists of a group of customers who share a similar set of
wants.
Niche marketing:a nice is a more narrowly defined group seeking a
distinctive mix of benefits. Usually identified by dividing a segment into
subsegments.
Attractive nice: the customers in the niche have a distinct set of needs; they
will pay a premium to the firm that best satisfies their needs, the niche is not
likely to attract other competitors, the nicher gains certain economies through
specialization, and the nice has size, profit, and growth potential.
Local marketing.
Individual customer marketing:More customerization with the help of a
choiceboard:interactive online system that allows individual customers to
design their own products and services by choosing from a menu of
trributes, components, prices and delivery options. The customers
selections send signals to the suppliers manufacturing system that set in
motion the wheels of procurement, assembly, and delivery.
Advantages:
Facilitates upselling, cross-selling, and repeat business by opening
customerseyes to further possibilities and by satisfying their
preferences.
Provides real-time market research and insight into customers current
preferences.
Reduces costs for manufacturers and suppliers by avoiding the
production of unwanted goods and discounting to get rid of them.

Preference segments:
Homogeneous preferences:all customers have roughly the same
preferences.
Diffused preferences:customers preferences scattered throughout the
space, customers vary greatly in their preferences.
Clustered preferences: the market might reveal distinct preference
clusters (natural market segments).

Market-segmentation procedure: it must be done periodically cause segments
change.
Market partitioning:investigate the hierarchy of attributes consumers examine
in choosing a brand.

! not all segments are usefull. To be a segment must be:
Measurable:the size, purchasing power and characteristics.
Substantial:the segments are large and profitable enough to serve.
Accessible:segments can be effectively reached and served.
Differentiable:segments are conceptually distinguishable and respond
differently to different marketing-mix elements and programs.
Actionable:effective programs can be formulated for attracting and
serving the segments.

2 broad groups of variables used to segment consumer markets:
1. looking at customers characteristics:
geographic segmentation:dividing the market into different
geographical units.
23
Demographic segmentation:the market is divided into
groups on basis of variables such as:
- age
- family size, family life cycle
- gender,
- income
- occupation
- education,
- religion,
- race,
- generation,
- nationality,
- social class.
Are the most popular, cause customer wants, preferences and usage
rates are often associated with demographic variables and they are
easier to measure.
Psychographic segmentation:buyers are divided into
different groups on the basis of:
- lifestyle
- personality
- values

2. looking at customers responses to benefits, use occasions or
brands.
Behavioral segmentation:buyers are divided into groups on the basis of
their knowledge of, attitude toward, use of, or response to a product.
- Occasions
- Benefits
- User status
- Usage rate
- Loyalty status
- Buyer-readiness stage
- Attitude
* multiattribute segmentation (geoclustering):increasingly combining
several variables in an effort to identify smaller, better-defined target
groups.


11.Positionering en de productlevenscyclus.
Blz 308-310 belangrijkste.


STP: Segmentation, Targeting and Positioning.
Positioning: the act of designing the companys offering and image to occupy a
distinctive place in the mind of the target market

Ries en Trout: positioning is what u do the the mind of the prospect. In a
overadvertised society the mind often knows brands in the form of product
ladders

3 strategic alternatives for a competitor:
1. strengthen its own current position in the customers mind.
2. grab an unoccupied position
3. de-positioning or re-positioning the competition in the customers
mind.

24
Value disciplines:within its industry a firm could aspire to be the product leader,
the operationally ecellent firm, or the customer intimate firm. 3 types of
customers.
1. customers who favor the firm that is advancing on the technological
frontier (product leadership)
2. customers who want higly reliable performance (operational
excellence)
3. customers who want high responsiveness in meeting their
individual needs (customer intimacy)
A firm cannot be best in more than one discipline.

4 rules for succes:
1. become best at one of the three disciplines
2. achieve an adequate performance level in the other
two disciplines
3. keep improving ones superior position in the chosen
discipline so as not to loose out to a competitor.
4. keep becoming more adequate in the other two
disciplines, because competitors keep raising
customers expectations.

Rosser Reeves: company should develop a unique selling proposition (USP) for
each brand and stick to it.

Ries en Trout:one consistent positioning message. Its easier for communication
to the target market; it results in employees being clearer about what counts;
and it makes it easier to align the whole organisation with the central positioning.

4 major positioning errors a company must avoid:
1. underpositioning:some companies discover that customers have only a
vague idea of the brand.
2. overpositioning:buyers may have too narrow an image of the brand.
3. confused positioning:buyers might have a confused image of the brand
resulting from the companys making too many claims or changing the
brands positioning too frequently.
4. doubtful positioning: buyers may find it hard to believe the brand claims
in view of the products features, price or manufacturer.

Positioning statement: in the marketingplan. Follow the form: To (target group
and need) our (brand) is (concept) that (point-of-difference).

Productlevenscyclus alleen de te onderscheiden fasen en de kenmerken ervan blz
328-339.

Product-life cycle (PLC):
1. products have a limited life
2. product sales pass through distinct stages, each posing different
challenges, opportunities, and problems to the seller.
3. profits rise and fall at different stages of plc
4. products require different marketing, financial, manufactering, purchasing,
and human resource strategies in each life-cycle stage.

Bell shaped plc curves (most common)
1. introduction:a period of slow sales growth as the product is introduced in
the market.
- the pioneer advantage.
- competitive cycle (Freys 5 stages):
25
sole supplier: the pioneer has initially 100 percent of production capacity
and sales.
competitive penetration: starts when a new competitor has built
production capacity and begins commercial sales.
share stability: capacity tends to be overbuilt during rapid growth.
commodity competition: buyers no longer pay a price premium, and
suppliers earn only n average rate of return.
withdrawl.
2. growth: a period of rapid market acceptance and substantial profit
improvement.
3. maturity: a period of slowdown in sales growth because the product has
achieved acceptance by most potential buyers. (most products are here
nowadays)
- market modification: company might try to expand the market
for its mature brand by working with the two factors that make up
sales volume: Volume= number of brand users x usage rate per
users. Try to expand the number of brand users by
converting nonusers
entering new market segments
winning competitors customers.
- Volume can be increased by convincing current users to increase
their brand usage:
use the product on more occasions
use more of the product on each occasion
use the product in new ways
- product modification:
Quality improvement
Feature improvement
Style improvement.
- marketing-mix modification.

4. decline: te period when sales show a downward drift and profits erode.

Non bell shaped plc:
growth-slump-maturity pattern: by producing at first a rapidly growth
and then a fall into a petrified level (kitchen supplies)
cycle-recycle pattern: first growth then decline and again a second cycle
of growth (medicine)
scalloped pattern: a succession of life cycles based on the discovery of
new-product characteristics, uses, or users (nylons)
plc of styles: basic and distinctive mode of expression appearing in a field
of human endeavor.
plc of fashion: currently accepted or popular style in a given field. (4
stages: distinctiveness, emulation, mass-fashion and decline)
plc of fads: fashions that come quickly into public view, are adopted with
great zeal, peak early, and decline fast.


12.Productontwikkelingsbeleid
Cursieve tekst op blz349 en 356-379 van belang.

Add new products:
acquisition
1. buy other companies
2. acquire patents from other companies
3. buy a license or franchise from another company
development
26
1. develop new products in own laboratories
2. contract independant researchers or new-product
development firms to develop specific new products.

6 categories of new products (Booz, Allen and Hamilton):
1. new-to-the-world products: can create a new market
2. new product lines: allow a company to enter an established market for
the first time.
3. additions to existing product lines.
4. improvement and revisions of existing products.
5. repositionings:existing products that are targeted to new markets or
market segments.
6. cost reductions: new products that provide similar performance at lower
cost.

New-product development process:
Idea generation: come from customers (beginning and big part),
scientists, competitors, employees, channel members and top
management.
- creativity techniques: for stimulating creativity:forced
relationships, morphological analysis (start with problem and then
think in dimensions), reverse assumption analysis, new contexts,
mind-mapping (start with a thought).
Screening: avoiding two types of error:
- DROP-error: occurs when the company dismisses an otherwise
good idea.
- GO-error: occurs when the company permits a poor idea.
Concept development and testing: making an elaborated
version of the idea expressed in meaningful consumer terms. It can
be turned into several concepts. Each concept represents a
category concept that defines the products competition. After this
its tested. This can be symbolically, physically or virtual. Different
questions are used for the measure of product dimensions. Conjoint
analysis is also used:rank the various offers.
Marketing strategy development:
1. describes the target markets size, structure, and
behavior, the planned product positioning, and the
sales, market share, and profit goals sought in the
first few years.
2. outlines the planned price, distribution strategy, and
marketing budget for the first year.
3. describes the long-run sales and profit goals and
marketing-mix strategy over time.
Business analysis:
- estimating total sales: total sum of estimated first-time sales,
replacement sales and repeat sales.
- estimating costs and profits: break-even analysis and risk
analysis.
Product development:company determines if the product idea can
be translated into a technically and commercially feasible product.
Market testing:
- consumer-goods market testing: company seeks to estimate
four variables: trail, first repeat, adaption and purchase frequency.
- Business-goods testing.
Commercialization.

Niet technieken bij fasen in het productontwikkelingsproces.
27

Consumer-adaption process stages:
1. awareness.
2. interest.
3. evaluation.
4. trial.
5. adoption.

Rogers 5 adopter groups:
1. Innovators.
2. Early adopters:opinion leaders.
3. early majority
4. late majority
5. laggards:tradition bound.

Influenced by:consumers and organizationd willingness to try new products,
personal influences, charateristics of the new prouct or innovation.

13.Internationale marketing.
Hele hoofdstuk.

Reasons for going abroad:
Global firms offering better products or lower prices can attack the
companys domestic market.
The comany discovers that some foreign markets present higher
profit opportunities than the domestic market.
The company needs a larger customer base to achieve economies
of scale.
The company wants to reduce its dependence on any one market.
The companys customers are going abroad and require
international servicing.
Risks of going abroad;
The company might not understand foreign customer preferences and fail
to offer a competitively attractive product.
The company might not understand the foreign countrys business culture
or know how to deal effectively with foreign nationals
The company might underestimate foreign regulations and incur
unexpected costs
The company might realize that it lacks managers with international
experience.
The foreign country might change its commercial laws, devalue its
currency, or undergo a political revolution and expropriate foreign
property.

Which markets to enter:
- How many markets to enter:
Ayal and Zif's reasons for enter fewer coumtries when:
- market entry and market control costs are high
- product and communication adaptation costs are high
- population and income size and growth are high in the initial
countries chosen
- dominant foreign firms can establish high barriers to entry.
- Regional free trade zones: (EU /NAFTA, MERCOSUL, APEC)
- Evaluating potential markets
How to enter a market:
- Indirect and direct export:
Indirect: work through independent intermediaries.
28
Domestic-based export merchants: buy manufacturers product
and sell them abroad.
Domestic-based export:seek and negotiate foreign purchases and
are paid a commission.
2 advantages:
1. involvess less investment, the firm does not have to develop an
export department, an overseas sales force, or a set of foreign
contacts.
2. invloves less risk, because internation-marketing intermediaries
bring knowhow and services to the relationship, the seller will
normally make fewer mistakes.
Direct exporting:
Domestic-based export department or division: might evolve
into a self-contained export department operating as a profit
center.
Overseas sales branch or subsidiary: the sales branch handles
sales and distribution and might handle warehousing and
promotion as well. It often serves as a display and customer
service center.
Traveling export sales representives: home-bases sales
representives are sent abroad to find business.
Foreign-based distributors or agents: the distributors and
agents might be given exclusive rights to represent the company in
that country, or only limited rights.
- Licensing: the licensor licenses a foreign company to use a
manufacturing process, trademark, patent, trade secret, or other
item of value for a fee or royalty. Its a little risk because the
licensee gains production expertise or a well-known product or
brand name. (management contracts, contract manufacturing and
franchising)
- Joint ventures: share ownership and control.
Drawbacks: Partners can disagree and it prevent a multinational
company from carrying out specific manufacturing and marketing
policies on a worldwide basis.
- Direct investment: the foreign company can buy part or full
interest in a local company or build its own facilities.
Advantages:
1. the firm secures cost economies in the form of cheaper labour
or raw materials, foreign government investment incentives and
freight savings.
2. the firm strengthens its image in the host country because it
creates jobs.
3. the firm develops a deeper relationship with government,
customers, local suppliers and distributors enabling it to adapt
its products better to the local environment.
4. the firm retains full controll over its investment and therefore
can develop manufacturing and marketing policies that serve its
long term international objectives.
5. the firm assures itself acces to the market in case the host
country starts insisting that locally purchased goods have
domestic content.
Disadvantage: the firm exposes a large investment to risk
- Internationalization process:
Johanson and Wiedersheim-Paul 4 stages:
1. no regular export activities
2. export via independent representatives (agents)
3. establishment of one or more sales subsidiaries
29
4. establishment of production facilities abroad
The market program:
- Product: Warren Keegan's 5 adaption strategies:
1. Straight extension: introducing the product in the foreign
market without any change.
2. Product adaptation: altering the product to meet local
conditions or preferences.
3. Product invention: creating something new.
4. Backward invention: reintroducing earlier product forms that
are well adapted to a foreign countrys needs.
5. Forward invention: creating a new product to meet a need in
another country.
- Promotion: Communication adaptation: run the same advertising
and promotion campaigns as used in the home market or change
them for each local market. Dual adaptation: adapts both the
product and communication.
- Price: Different problems:
Price escalation: 3 choices: Set a uniform-price everywhere, set a
market -based price in each country, set a cost-based price in each
country.
Transfer price: the price it charges another unit in the company.
Dumping.
Change the arm length price: to the price charged by other
competitors for the same or a similar product.
Gray market: occurs when the same product sells at different prices
geographically.
- Place (distribution channels)
Market organization:
- Export department.
- International division.
- Global organization: 3 strategies:
1. a global strategy treats the world as a single market.
2. a multinational strategy threats the world as a portfolio of
national opportunities.
3. a "glocal strategy standardizes certain core elements and
localizes other elements.
Kader op blz 394.

14.Productbeleid.
Belangrijk hoofdstuk. Minder tot niet belangrijk:
407/408 product levels alleen van sheets.
409-410 product hierarchy

Product classifications:
Durability and tangibility:
1. Nondurable goods: tangible goods normally consumed in one or a
few times (beer)
2. Durable goods: tangible goods that normally survive many uses
(fridge)
3. Services are intangible, inseperable, variable and perishable products.
Consumer-goods classification: classified on the basis of shopping
habits.
- Convenience goods: those the customer usually purchses
frequently, immediately and with a minimum of effort. (tobacco,
soap, newspapers)
30
- Shopping goods: goods that the customer in the process of
selection and purchase characteristically compares on such bases
as suitability, quality, price and style (furniture, clothes, used cars)
- Specialty goods: have unique characteristics or brand
identification for which a sufficient number of buyers is willing to
make a special purchasing effort (cars, stereo components, mens
suits)
- Unsought goods: those the customer does not know about or
does not normally think of buying (smoke detectors, life insurance)
Industrial-goods classification: classified in terms of how they enter
the production process and their relative costliness.
- materials and parts: goods that enter the manufacters product
completely.
1. raw materials: farm products and natural products.
2. manufactured materials and parts: component materials
(iron, cement) and component parts (small motors, tires)
- capital items: long-lasting goods that that facilitate developing or
managing the finished product.
1. installations: buildings (major purchases)
2. equipment: (generators, drill presses) (do not
become part of a finished product)
- supplies and business service: short-lasting goods and services
that facilitate developing or managing the finished product. MRO
goods.
1. maintenance and repair items (paint, nails)
2. operating supplies (pencils, writing paper)

Product mix: the set of all products and items that a particular seller offers for
sale.
Width of a product mix: refers to how many different product lines the
company carries.
Length: the total number of items in the mix.
Depth: how many variants are offered of each product in the line.
Consistency: how closely related the various product lines are in end use,
production requirements, distribution channels, or some other way.

413-415 product line analysis

Product-line lenght: a product line is too short if profits can be increased by
adding items; the line is too long if profits can be increased by dropping items.
1. line stretching:every companys product line covers a certain part of the
total possible range.
- Downmarket stretch: a company positioned in the middle market
may wat to introduce a lower-priced line. Reasons:
1. the company may notice strong growth opportunities as
mass retailer.
2. the company may wish to tie-up lower-end competitors
who might otherwise try to move up.
3. the company may find that the middle market is
stagnating or declining.
- Upmarket stretch: companies may wish to enter the high end of
the market for more growth, higher margins, or simply to position
themselves as full-line manufacturers.
- Two-way stretch: companies serving the middle market might
decide to stretch their line in both directions.
2. line filling: a product line can also be lengthened by adding more items
within the present range.
31

418 line modernization, featuring and pruning
419-424 geen tentamenstof

Branding challenges:
branding decision:to brand or not to brand?
Branding gives the seller several advantages:
- the brand name makes it easier for the seller to process orders and
track down problems.
- The sellers brandname and trademark provide legal protection of
unique product features.
- Branding gives the seller the opportunity to attrack a loyal and
profitable set of customers. Brand loyalty gives sellers some
protection from competition.
- Branding helps the seller segment markets.
- Strong brands help build the corporate image, making it easier to
launch new brands and gain acceptance by distributors and
consumers.
brand sponsor decision:
- manufacturer brand (national brand).
- distributor brand (reseller, store, private, house brand)
- licensed brand name.

Brand-name decision: different names are available.
Individual names: companys reputation is not tied to the product.
Blanket family names (Heinz): less costs cause the name is already
known.
Seperate family names for all products: for different products of one
company.
Corporate name combined with individual product names (Kelloggs
corn flakes)

430-435 idem

Packaging: all the activities of designing and producing the container (package)
for a product.
Factors for the growing use of packaging as a marketing tool:
Self service: more products are sold on this basis.
Consumer affluence: consumers are more often willing to pay extra for
better packages.
Company and brand image: gives recognition.
Innovation opportunity.

437-438 labeling

15.Marketing van diensten.
Belangrijk blz 444-452 (tot managing differentiation) en managing service quality
(455+fig 15.5)

Service: any act or performance that one party can offer to another that is
essentially intangible and does not result in the ownership of anything.

5 categories of service mix offerings:
1. pure tangible good: the offering consists primarily of a
tangible good (soap). No services accompany the product.
2. tangible good with accompanying services.
32
3. hybrid: the offering consists of equal parts of goods and
services.
4. major services with accompanying minor goods and
minor services. (flight)
5. pure service.

Service generalisated:
Services vary as to wheter they are equipment-based or people based.
Some services require the clients presence and some do not.
Services differ as to wheter they meet a personal need or business need.
Service providers differ in their objectives (profit or nonprofit) and
ownership (private or public).

Characteristics of service:
1. Intangibility.
2. inseparability
3. variability
4. perishability: it cannot be stored.
Earl Sassers strategies for producing a better match between demand
and supply in a service business.
On the demand side:
Differential pricing will shift some demand from peak to off-peak periods.
Nonpeak demand can be cultivated.
Complementary services can be developed during peak time to provide
alternatives to waiting customers.
Reservation systems are a way to manage the demand level.
On the supply side:
Part-time employees can be hired to serve peak demand
Peak-time efficiency routines can be introduced
Increased consumer participation can be encouraged.
Shared services can be developed.
Facilities for future expansion can be developed.

Booms and Bittners 3Ps:
1. People
2. Physical evidence
3. Process

Christian Gronroos: service marketing requires not only external marketing
(=the normal work to prepare, price, distribute and promote the service to
customers), but also internal (=the work to train and motivate employees to
serve customers well) and interactive marketing (=the employees skill in
serving the client).

Managing service quality: Customers compare the perceived service with the
expected service. If the first one is below the other the customer is dissapointed.

Parasuraman's, Zeithaml and Berry's service-quality model: five gaps
that cause unsuccessful delivery:
1. Gap between consumer expectation and management perception.
2. Gap between management perception and service-quality specification.
3. Gap between service-quality specifications and service delivery.
4. Gap between service delivery and external communications.
5. Gap between perceived service and expected service.

5 determinants of service quality:
1. Reliability.
33
2. Responsiveness.
3. Assurance.
4. Empathy.
5. Tangibiles:the appearance of physical facilities, equipment, personnel,
and communication materials.

16.Prijsbeleid.
Van belang: de driedeling van blz. 470.
Minder van belang: blz. 472, 478/479 mbt costs en 489 mbt geographical pricing
en vb.

Setting the price:
1. Selecting the price objective:
- Survival: used by overcapacity, intense competition, or changing
consumer wants.
- Maximize current profits.
- Maximimize their market share: believe that a higher sales
volume will lead to lower unit costs and higher long-run profit.
- Market-penetration.
Conditions that favor setting a low price:
the market is highly price-sensitive, and a low price stimulates market
growth.
production and distribution costs fall with accumulated production
experience.
a low price discourages actual and potential competition.
Market skimming:setting high prices to "skim the market.
Conditions when market skimming makes sense:
a sufficient number of buyers have a high current demand.
the unit costs of producing a small volume are not so high that they cancel
the advantage of charging what the traffic will bear.
the high initial price does not attract more competitors to the market.
the high price communicates the image of a superior product.
2. Determining demand:
- Price sensitivity: customers are most price-sensitive to products
that cost a lot or are bought frequently. They are less price
sensitive to low cost itema or items they buy infrequently and when
price is only a small part of the total costs over the products
lifetime
Tom Nagle's factor associated with lower price sensitivity:
the product is more distinctive.
Buyers are less aware of substitutes
Buyers cannot easily compare the quality of substitutes
The expenditure is a smaller part of the buyers total income
The expenditure is small compared to the total cost of the end product
Part of the cost is borne by another party
The product is used in conjunction with assets previously bought
The product is assumed to have more quality, prestige or exclusiveness
Buyers cannot store the product.
- Estimating demand curves
Different methods:
statistically analyzing past prices, quantities sold, and other factors to
estimate their relationships
conduct price experiments
ask buyers to state how many units they would buy at different proposed
prices.
- Price elasticy of demand: marketers need to know how
responsive demand would be to a changing in price.
34
- Inelastic: demand hardly changes with a small change in price.
- Elastic: demand changes considerably.
Demand is likely to be less elastic under the conditions:
- there are few or no substitutes or competitors
- buyers do not readily notice the higher price
- buyers are slow to change their buying habits
- buyers think the higher price is justified.
3. Estimating costs:
4. Analyzing competitors' costs, prices and offers:
5. Selecting a pricing method:
- Markup pricing: add a standard markup yo the products cost. It
only works if it actually brings in the expected level of sales.
Popular because:
- Sellers can determine costs more easily then they can estimate
demand.
- Where all firms in the industry use this, prices tend to be similar.
- Many people feel that cost-plus pricing is fairer to both buyers and
sellers.
- Target-return pricing: the firm determines the price that would
yield its target rate of return on investment. Target return price=
unit cost+(desired returnx invested capital):unit sales.
- Perceived value pricing: companies must deliver the value
promised by their value proposition, and customers must perceive
this value.
- Value pricing: winning loyal customers by charging a fairly low
price for a high quality offering. (sorts are Everyday low pricing:
retailer charges a constant low price with little or no price
promotions and special sales, and high-low pricing: retailer
charges higher prices on an everyday basis but then runs frequent
promotions in which prices are temporarily lowered below the EDLP
level)
- Going-rate pricing: the firm bases its price largely on competitors
prices.
- Auction-type pricing:
- English auctions (ascending bids): one seller and many buyers.
Bidding until the top price is rated.
- Dutch auctions (descending bids): one seller and many buyers.
High price is given and lowered until accepted. Or one buyer and
many sellers: sellers offer their prices compared to the last bid.
- Sealed-bid auctions: would-be suppliers can submit only one bid
and cannot know the other bids.
- Group-pricing.
6. Selecting the final price:
- psychological pricing: manipulating of reference prices.
- gain-and-risk-sharing pricing
- the influence of other marketing-mix elements:
Farris and Ribstein's foundings:
- Consumers are more willing to pay high prices for known products
than for unknown products.
- Brands with high relative quality and high relative advertising
obtained the highest prices.
- The positive relationship between high prices and high advertising
held most strongly in the later stages of the product life cycle for
market leaders.
- company pricing policies
- impact the price on other parties

35
Adapting the price:
Geographical pricing.
Price discounts and allowances:
Promotional pricing: techniques:
- Loss-leader pricing.
- Special event pricing.
- Cash rebates: used to clear inventories.
- Low-interest financing.
- Longer payment terms
- Warranties and service contracts
- Psychological discounting.
Discrimionatory pricing: a company sells a product or service at two or
more prices that do not reflect a proportional difference in costs.
First degree: seller charges a seperate price to each customer depending on
the intensity of his demand.
Second degree: seller charges less to buyers who buy a larger volume.
Third degree: seller charges different amounts to different classes of buyers:
- customer segment pricing: different customer groups are charged
different prices for the same product or service.
- Product-form pricing: different versions of the product are priced
differently but not proportionately to their respective costs.
- Image pricing: some companies price the same product at two
different levels based on image differences.
- Channel pricing.
- Location pricing.
- Time pricing.
Product-mix pricing:
- Optional-feauture pricing.
- Captive-product pricing.
- Two-part pricing: a fixed fee plus a variable used fee.
- By-product pricing.
- Product-bundling pricing:
Pure bundling: firm offers its products only as a bundle.
Mixed bundling: seller offers goods both individually and bundles.

Initiating and responding to price changes:
Initiating price cuts:
Reasons:
- Plant capacity.
- Declining market share.
- Drive to dominate the market through lower costs
Traps of a strategy:
- low quality trap: customers will asume that the quality is low.
- Fragile-market-share trap: a low price buys market share but
not market loyalty.
- Shallow-pockets trap: the higher-priced competitors may cut
their prices and may have longer staying power because of deeper
cash reserves.
Initiating price increases:
Reasons:
- Inflation.
- Overdemand.
Techniques:
- Delayed quotation pricing: the company does not set a final
price until the product is finished or delivered.
36
- Escalator clauses: the company requires the customer to pay
todays price and all or part of any inflation increas that takes place
before delivery.
- Unbundling: the company maintains its price but removes or
prices separately one or more elements that were part of the
former offer.
- Reduction of discounts: the company instruct its sales force not
to offer its normal cash and quantity discounts.
Techniques of responding without raising prices:
- Shrinking the amout of product instead of raising the price.
- Substituting less expensive materials or ingredients
- Reducing or removing product features.
- Reducing or removing product services.
- Using less expensive packaging material or lager packagae sizes.
- Reducing the number of sizes and models offered.
- Creating new economy brands.
Reactions to price changes.
Responding to competitors' price changes.
Respond to lower-priced private store brands:
- Maintain price.
- Maintain price and add value.
- Reduce price.
- Increase price and improve quality.
- Launch a low-price fighter line.

17.Distributiebeleid.
Minder van belang:blz 516/522 channel-management decisions, blz 526/530
conflict, cooperation and competition, blz 530 legal and ethical issues.

Value network: a system of partnerships and alliances that a firm creates to
source, augment, and deliver its offerings.

Marketing channel: intermediaries. Sets of interdependent organizations
involved in the process of making a product or service available for use or
consumption.

Channel integration expected by customers:
The ability to order a product online and pick it up at a convenient retail
location.
The ability to return an online-ordered product to a near by store of the
retailer.
The right to receive discounts based on total online and off-line purchases

Advantages by using intermediaries:
many producers lack the financial resources or carry out direct marketing.
in some cases direct marketing is not feasible.
producers who do establish their own channels can often earn a greater
return by increasing their investment in their main business.

Key functions of members of a marketing channel:
They gather information about potential and current customers,
competitors, and other actors and forces in the marketing environment.
They develop and disseminate persuasive communications to stimulate
purchasing.
They reach agreements on price and other terms so that transfer of
ownership or possession can be effected.
They place orders with manufacturers
37
They acquire the funds to finance inventories at different levels in the
marketing channel.
They assume risks connected with carrying out channel work.
They provide for the successive storage and movement of physical
products.
They provide for buyers payment of their bills through banks and other
financial institutions.
They oversee actual transfer of ownership from one organization or person
to another.

Channel flows:
Forward flow:
Backward flow:

3 important channels:
1. sales channel.
2. delivery channel.
3. service channel.

Channel levels:
Zero-level channel (direct-marketing channel): manufacturer selling
directly to the final customer.
One-level channel: one selling intermediary (retailer)
Two-level channel.
Three-level channel.

Reverse-flow channels: forward movement of products from source to user.
Important in next situations:
reuse products or containers
refurbish products for resale
recycle products
dispose of products and packaging.

4 types of companies for highway channels:
1. Content companies (disney)
2. Consumer devices companies (nokia0
3. components companies (Lucent)
4. conduit companies
Push strategy: manufacturer using its sales force and trade promotion money to
induce intermediaries to carry, promote, and sell the product to end users.
Appropriate when there is low brand loyalty.

Pull strategy: manufacturer using advertising and promotion to induce
consumers to ask intermediaries to order is. Appropriate when there is high brand
loyalty.

Designing a channel system:
1. analyze customer needs
2. establishing channel objectives
3. identifying major channel alternatives
4. evaluating major channel alternatives

Channels produce five service outputs:
1. Lot size: the number of units the channel permits a typical customer to
purchase on one occasion.
2. Waiting time: the avergae time customers of that channel wait for
receipt of the goods.
38
3. Spatial convenience: the degree to which the marketing channel makes
it easy for customers to purchase the product.
4. Product variety: the assortment breadth provided by the marketing
channel.
5. Service backup: the add-on services provided by the channel.

Louis Bucklin: channel institutions should arrange their functional tasks to
minimize total channel costs with respect to desired levels of service outputs.
channel objectives vary with product characteristics.
channel design must take into account the strenghts and weaknesses of
different types of intermediaries.
channel design must adapt to the larger environment.

Channel alternative:
1. Types of available business intermediaries.
2. Numbers of intermediaries needed.
Exclusive distribution: severely limiting the number of intermediaries. Used
when the producer wants to maintain control over the service level and
outputs offered by the reseller, often it involves exclusive dealing
arrangements.
Selective distribution: involves the use of more than a few but less than all
of the intermediaries who are willing to carry a particular product. Used by
established companies and by new companies seeking distributors. It gain
adequate market coverage with more control and less cost than intensive
distribution.
Intensive distribution: the manufacturer placing the goods or services in as
many outlets as possible.

3. Terms and responsabilities of each channel members:
Price policy: calls for the producer to establish a price list and schedule of
discounts and allowances that intermediaries see as equitable and sufficient.
Conditions of sale: refers to payment terms and producers guarantees.
Distributors territorial rights: define the distributors territories and the
terms under which the producer will enfranchise other distributors.

Channel advantage:
1. determine wheter a company a company sales force
or a sales agency will produce more sales.
2. estimate the costs of selling different volumes
through each channel.
3. comparing sales and costs.

Channel dynamics:
Conventional marketing channel: comprises an independent producer,
wholesaler and retailer. Each is a seperate business seeking to maximize its own
profits, even if this goal reduces profit for the system as a whole. No channel
member has complete or substantial control over other members.

Vertical marketing system (VMS): comprises the producer, wholesaler and
retailer acting as a unified system. One channelmember, the channel captain,
owns the other or franchises them or has so much power that they all cooperate.
corporate vms: combines successive stages of production and
distribution under single ownership.
administered vms: coordinates successive stages of production and
distribution through the size and power of one of the members.
contractual vms: consists of independent firms at different levels of
production and distribution integrating their programs on a contractual
39
basis to obtain more economies or sales impact than they could achieve
alone.
1. Wholesaler-sponsored voluntairy chains:
wholesalers organize voluntairy chains of
independent retailers to help them complete with
large chain organizations.
2. Retailer cooperatives: retailers take the initiative
and organize a new business entity to carry on
wholesaling and possibly some production.
3. franchise organizations: a channel member called
a franchisor might link several successive stages in
the production-distribution process.
manufacturer-sponsored retailer franchise.

Horizontal marketing system: two or more unrelated companies put together
resources or programs to exploit an emerging marketing opportunity.

Multichannel marketing: a single firm usesw two or more marketing channels
to reach one or more customer segments.
Benefits:
1. increased market coverage.
2. lower channel cost
3. more customized selling

Bert McCammon 5 roles of individual firms:
1. insiders: members of the dominant channel
2. strivers: firms seeking to become insiders
3. complementers: not part of the dominant channel
4. transients: are outside the dominant channel and do not seek
membership
5. outside innovators: the real challengers and disrupters of the dominant
channels.

18.Detailhandel, groothandel en marketing logistiek.
Belangrijk:de sheets. Geen vragen over marketing logistics.

19.Marketingcommunicatie en -beleid.
Van belang: blz 564/566 het communicatieproces, blz 566 fig.19.2 8 stappen in
effectieve communicatie, en de hoofdlijnen van de fasen.

Communications proces:
1. Sender
2. receiver
3. message
4. media
5. encoding
6. decoding
7. response
8. feedback
9. noise

3 reasons the target audience may not receive the intended message:
1. selective attention.
2. selective distortion: receivers will hear what fit into their belief systems.
3. selective retention: people will retain in long term memory only a small
fraction of the message that reach them.
Steps in effective communication:
40
1. Identify target audience
Image: the set of beliefs, ideas and impressions a person holds regarind an
object.

Steps of semantic differential:
Developing a set of relevant dimensions.
Reducing the set of relevant dimensions.
Administering the instrument to a sanple of respondents.
Averaging the results.
Checking on the image variance.
2. Determine objectives
Hierarchy-of-effects model:
Awareness.
Knowledge.
Liking.
Preference.
Conviction.
Purchase.

3. design message
4. select channels
- personal communication channels:involve two or more persons
communicating directly with each other face-to-face, person-to-
audience, over the telephone, or through e-mail.
steps to stimulate personal influence channels to work on your
behalf:
Identify influential individuals and companies and devote extra effort to
them.
Create opinion leaders by supplying certain people with the product on
attractive terms.
Work through community influentials
Use influential or believable people in testimoniale advertising.
Develop advertising that has high `conversation value
Develop word-of-mouth refferal channels to build business.
Establish an electronical forum.
Use viral marketing.
- nonpersonal communication channels.
Media.
Atmospheres: "packed environments create or reinforce the buyers
leanings toward product purchase.
Events: occurences design to communicate particular messages to
target audiences.
Cliques: small groups whose members interact frequently.
Liaison: person who connect two or more cliques without belonging to
either.
Bridge: person who belongs to one clique and is linked to a person in
another clique.
5. establish budget
- affordable method
- percentage-of-sales method
- competitive-parity method
- objective and task method:develop promotion budgets by defining
specific objectives, determining the tasks that must be performed
to achieve these objectives and estimating the costs of performing
these tasks.
G.Maxwell Ule used to establish budget:
establish the market share goal.
41
Determine the percentage of the market that should be reached by
advertising.
Determine the percentage of aware prospects that should be persuaded to
try the brand.
Determine the number of advertising impressions per 1 percent trail rate.
Determine the number of gross rating points that would have to be
purchased.
Determine the necessary advertising budget on the basis of the verage
cost of buying a gross rating point.
6. decide on media mix
5 promotional tools:
advertising
sales promotion
public relations and publicity
sales force
direct marketing
7. measure results
8. manage integrated marketing communications.
Integrated marketing communications: planning that recognizes the
added value of a comprehensive plan.

Onbelangrijk:blz.569/573 design the message en de vb.

20.Het managen van reclame, sales promotion, marketing P.R. en direct
marketing.
Onbelangrijk:blz 592/598 choosing the advertising message, blz 604/607
deciding on media timing en deciding on geographical allocation blz 614/615 mbt
selecting business- and sales-force-promotion tools en presenting blz 617/620
mbt public relations blz 624/626 mbt constructing a direct mail campaign.

Developing an advertisement program:
1. Set advertising objective
Advertising: any paid form of nonpersonal presentation
and promotion of ideas, goods, or services by an
identified sponsor.
Advertising goal (or objective): specific
communication task and achievement level to be
accomplished with a specific audience in a specific period
of time.
Aims:
-informative advertising
-persuasive advertising
-reminder advertising
-reinforcement advertising
2. establish a budget
5 specific factors to consider:
-stage of product life cycle.
-market share and consumer base.
-competition and clutter.
-advertising frequency.
-product substitutability.
3. choose the advertising message
4. decide on the media
Media selection: finding the most cost-effective media
to deliver the desired number and type of exposures to
the target audience.

42
Reach (R): the number of differrent persons or
households exposed to a particukar media scgedule at
least once during a specified time period.

Frequency (F): the number of times within that
specified time period that an average person or
household is exposed to the message.

Impact (I): the qualitative value of an exposure
through a given medium.

Herbert Krugmans 3 exposures:
-unique
-stimulus
-reminder

Advertorials: print ads that offer editorial content and
are difficult to distinguish from newspaper or magazine
contents.

Infomercials: tv commercials that appear to be 30
minute tv shows but are advertisements for products.

Measures of audience size:
-circulation: the number of physical units carrying the
advertising.
-audience: the number of people exposed to the vehicle
-effective audience: the number of people with target
audience characteristics exposed to the vehicle
-effective ad-exposed audience: the number of
people with target audience characteristics who actually
saw the ad.
5. evaluate the communication and sales effect of
advertising.
Communication-effect research: seeks to determine
wheter an ad is communicating effectively.
Methods:
-consumer feedback method: ask customers for their
reactions to a proposed ad.
-portfolio: ask customers to view or listen to a portfolio
of advertisements, taking as much time as they need.
laboratory tests.

Sales promotion: consists of a diverse collection of incentive tools, mostly short
term, designed to stimulate quicker or greater purchase of particular products or
services by consumers or the trade.

Direct marketing: the use of consumer-direct channels to reach and deliver
goods and services to customers without using marketing mid.dlemen

Direct order marketing: direct marketers seek a measurable respons, typically
a customer order.

Stages of direct marketing:
"Carpet bombing: direct mailers gather or buy as many names as
possible and send out a mass-mailing.
43
Database marketing: direct marketers mine the database to identify the
prospects who would have the most interest in an offer.
Interactive marketing: direct marketers include their telephone number
and web address and offer to print coupons from the website.
Real time personalized marketing: direct marketers know enough
about each customer to customize and personilize the offer and message.
Lifetime value marketing: direct marketers develop a plan for lifetime
marketing to each valuable customer, based on knowledge of life events
and transitions.

Telemarketing: the use of the telephone and call centers to attracht pospects,
sell to existing customers, and provide service by taking orders and answering
questions.

4 types:
1. Telesales.
2. Telecoverage.
3. Teleprospecting.
4. Customer service and technical support.

Permission marketing: use the interactivity of the internet to let customers
have a say in what is sent to them.

Godin's 5 levels:
1. No Permission level: they want nothing to do with the companies.
2. Low permission level: they do not really know the companies, but they
might want to look at their offerings and prices.
3. Medium permission level: they know the companies. They have neutral
feelings about these companies, and they are not sure they want to spend
any time.
4. High permission level: they have not yet done any business with these
companies, but they are confident.
5. Transaction level: they are customers.

Important guideliness followed by pioneering e-mail marketers:
Give the customer a reason to respond.
Personalize the content of your e-mails.
Offer something the customer could not get via direct mail
Make it easy for customers to "unsubscribe.