Disusun oleh : Muhammad Firman (Akuntansi FE UI 2012)

MANAJEMEN PEMASARAN
o Possession Utility: Benefit marketing provides by allowing
the consumer to own, use and enjoy the product.
CHAPTER 1 o Exchange in Marketing Occurs when something is
WELCOME TO THE WORLD OF MARKETING obtained for something else in return, like cash for goods or
services.
The Evolution of a Marketing Concept
Marketing Creates Value o The Production Era : Dominated by production
Value : benefits of a customer receives form buying a good orientation; a management philosophy that emphasizes the
or service. most efficient ways to produce and distribute products.
Marketing played an insignificant role, and firm paid little
Marketing : Activity, set of institutions, and processes for attention to the desires of consumers (viewed them as
creating, communicating, delivering and exchanging homogenous needs). Few alternatives available to
offerings that have value for customers, clients, partners consumer.
and society at large. Simply it means deliver value to
everyone who is affected and meets the needs of diverse o The Selling Era : Product availability exceeds demand,
stakeholder. business may focus on a one-time sales of goods rather
than repeat business. Dominated by selling orientation;
Consumers : Defined as the ultimate user of a good or managerial view of marketing as a sales function or a way to
service move products out of warehouse to reduce inventory. Sales
promotions were heavily used, pays little attention to
Marketing Concept : Identifying and satisfying consumer retaining customers.
needs to ensure long-term profitability. Seek information
about current or changing needs from current and potential o The Relationship Era : focused on Customer Orientation; a
customers. management philosophy that emphasizes satisfying
customers’ needs and wants. Implementing Total Quality
Needs : Difference between a consumers’ actual state and Management (TQM); defined as a philosophy that involves
some sort of ideal or desired state. all employees from the assembly line onward in continuous
product quality improvement efforts.
Benefits : Outcome sought by consumer that satisfies need
or want and motivates buying behavior o The Triple Bottom Line Era :
Maximizing :
Want : Desire to satisfy needs in specific ways, usually relate Financial, building long-term bonds with customers which
to specific brands or types of products. emphasize financial profits to stakeholders
Social, contributing to the communities in which the firm
Demand : Customers’ desires for products coupled with the operates
resources needed to obtain them (buying power) Environmental, creating sustainable business practices that
minimize damage to the environment or that even improve
Market : Consist of all the consumers who share a common it
need that can be satisfied by a specific product and who
have the resources, willingness and authority to make the Marketing uses Customer Relationship Management (CRM)
purchase. systematically tracking consumers’ needs in ways that also
benefit society and delivers profit to the firm.
Market place : a location where buying and selling occurred
face to face. o Attention Economy : A company’s success is measured by
its share of mind rather than share of market, where
Marketing Creates Utility companies make money when they attract eyeballs rather
The sum of benefits we receive from using a than just dollars.
product/service
o Form Utility : Benefit provided by marketing when raw o Social Marketing Concept : Management philosophy that
materials are transformed into finished goods - Related to marketers must satisfy customers’ need in ways that also
Product benefit society and deliver value to the firm.
o Place Utility : benefit provided when marketing makes
goods available where customers want them - Related to o Sustainability : Creating products that meet present needs
Place and ensuring that future generations can have their needs
o Time Utility : benefit provided by marketing when met. Green marketing deals with the development of
products are stored until they are needed. - Related to Place marketing strategies that support environmental

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stewardship by creating an environmentally-founded Operations : converting the materials into the final product
differential benefit in the minds of consumers. Outbound logistic : shipping out the final product
Marketing : Promoting and selling the final product
How much value marketing activities create. Service : Meeting the customer’s needs by providing any
This enhanced focus on accountability that typically centers additional support
around the calculation off ROI (Return on Investment;
Direct financial impact of a firm’s expenditure of a resource Process of Create and Deliver Value
such as time or money). The accountability aspect means
that marketers must do a better job of proving that
marketing activities align to the firm’s overall business
objective
What Can We Market?
o Products and Services mirror changes in larger society,
while marketing messages often communicate myths
contain elements that express the shared emotions and
ideas of culture
Product/Services/Idea that can be marketed :
 Consumer Goods/Services : The goods individual
consumers purchase for personal or family use.
Services are intangible products that we pay for and
use but never own.
 Business-to-Business Goods/Services : Marketing of
goods and services from one organization to
another. Can be Industrial Goods; goods individual
or organizations buy for further processing or for
their own use when they do business.
 Not-for-Profit Marketing : Organizations with
charitable, educational, community, and other
public service goals that buy goods and services to
support their functions and to attract and serve
their members.
 Idea, Place, and People Marketing To measure value, we can use Marketing Scorecards report
how a company or brand is doing in achieving its various
The Value of Marketing and Marketing of Value goals, in quantifiable terms. Nowadays, people generate
Value is a combination of factors, such as price, quality, value instead of buying it (Consumer-Generated Value) -
convenience, delivery/credit, before and after the sale consumers are turning into advertising directors and new
service. Marketing communicates the Value Proposition; a product development by post on sites or share idea.
marketplace offering that fairly and accurately sums up the
value that the customer will realize if they purchase product o Amafessionals - Consumers who contribute ideas to
o From Customer Perspective; Value is the ratio of costs online forums for the fun and challenge rather than to
(price) to benefits (utilities) receive a paycheck.
o Consumer-generated Content - Everyday people
From Seller’s Perspective : functioning in marketing roles, such as participating in
o Takes many forms such as creating ads, providing input to new product developments
Making a profitable exchange or serving as wholesalers.
Earning prestige among rivals
Taking pride in doing what a company does well Values from Society’s Perspective
Nonprofits; motivating, educating, or delighting the public Marketing transactions add or subtract value from society.
Stressing socially responsible and ethical decisions is good
o Customer should be regarded as partners via brandfest business. Marketing is often criticized - Encourages pursuit
(Gratitude to Customer Event) of hedonistic pleasures, marketing and advertising are
o Customer have Value - it is more expensive to attract new unnecessary as they foster materialism, promises miracles
customers than to retain current ones and manipulates consumers.
o Lifetime value of a customer - Calculating the projected
profit from a particular customer allows a firm to decide Marketing’s Dark Side - Illegal actions
worth keeping customer.
o Creating Competitive Advantage - Identification of a Marketing as a Process
distinctive competency and turn this into differential benefit Marketing Planning - a major portion of the process, big
- value that competitors do not offer. picture and how the firm’s products fit into that picture.
o Add Value through Value Chain - A series of activities o Marketing Environment Analysis - Firm’s SWOT and
involved in designing, producing, marketing, delivering, and external environment
supporting any product. Including :
Inbound Logistic : bringing in materials to make the product

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o Developing Marketing Plan - Describes marketing A decision process that concentrates on developing
environment, objectives, strategies and who has detailed plans for strategies and tactics for the short term,
responsibility supporting an organization’s long-term strategic plan.
o Deciding on a market segment - Selection of Target Broad 3-5 year plan to support the strategic plan
Market Detailed annual plan
 Market Segment : A distinct group of customers
within a larger market who are similar to one Operational Planning
another in some way and whose needs differ. A Decision process that focuses on developing detailed
 Target Market : market segments on which an plans for day-to-day activities that carry out an
organization focuses its marketing plan and toward organization’s functional plans
which it directs its marketing efforts.
 Market Position : The way in which the target Strategic Planning : Frame the Picture
market perceives the product in comparison to Strategic planning is done at both corporate and SBU levels,
competitors’ brands. the planning steps :

o Choosing the Marketing Mix - Consists of the tools used

by the organization to create a desired response among its
target market.
 Product - product aspect, packaging, etc.
 Promotion - all activities to inform consumers about
firm’s product.
 Price - amount the consumer must exchange in
order to receive the product or service offering.
 Place - key to making the product available to
consumers at the desired time and locations.

CHAPTER 2
STRATEGIC MARKET PLANNING

Business Planning: Compose the Big Picture

o Careful planning enables a firm to help customers
understand what the firm is and what it has to offer that
competitors don’t—especially
o Business Planning - Ongoing process of making decisions
that guides the firm both in the short term and for the long
term,
 Identifies/Builds on firm’s strengths Step 1 : Define the Mission
 Help Managers make informed decisions Mission Statement; A formal document that describes the
firms overall purpose and what it hopes to achieve in terms
 Develops objectives before action is taken. of its customers, products and resources
o Business Plan - A plan that includes the decision that Key Question in Determining Mission :
guide the entire organization. What business are we in?
o Marketing Plan - a document that describes the marketing What customers should we serve?
environment, outlines the marketing objectives and How do we develop firm’s capabilities and focus its efforts?
strategy, and identifies who will be responsible for carrying
out each part of the marketing strategy. Step 2 : Evaluate the Internal and External Environment
o Business ethics - Basic values that guide a firm’s behavior Situational Analysis - An assessment of firm’s internal
o Code of Ethics - Written standards of behavior to which (Strengths and Weaknesses) and External Environments
everyone in the organization must subscribe (Opportunities and Threats)
Internal Environment - All Controllable elements inside a
Three levels of Planning firm that influence how well the firm operates. Ex : Human
o Strategic Planning - Managerial decision process that Capital, Technologies
matches firm’s resources and capabilities to its market External Environment - Uncontrollable Elements outside
opportunities for long-term growth and survival - done by the firm that may affect it either positively or negatively. Ex
Top Level Corporate Management : Economic, Competitive, Legal trends
1. Mission, Objectives, Business Portfolio, Growth SWOT Analysis - enables firm to develop strategies that
Strategy Is defined maximize strengths and capitalize upon opportunities
2. SBU - Individual units within the firm that operate
like separate businesses, with each having its own Step 3 : Set Organizational or SBU Objectives –
mission, business objectives, resources, managers What the firm hopes to accomplish with long-range
and competitors business plan
o Objectives need to be specific, measurable, attainable and
Functional Planning sustainable.

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Step 4 : Establish the Business Portfolio

Business Portfolio - The group of different products or
brands owned by a firm and having different income-
generating and growth capabilities

Product Strategies - Decision such as product design,

packaging, branding and support service, key benefits and
attributes.
Pricing Strategies - Determine how much a firm charges for
a product.
Promotion Strategies - How Marketers communicate
product’s value proposition to target market. Using ads,
sales promotion, direct marketing, personal selling.
Distribution Strategies - How, When, and where the product
Portfolio Analysis - Assesses the potential of a firm’s SBUs is available to targeted customers
whether they should receive more or less of the firm’s
resources using BCG growth-market share matrix - aid 1. Step 4 : Implement and Control the Marketing Plan -
financial resource allocation. What degree they actually meet their stated
Market Growth Rate - Market Attractiveness & Relative marketing objectives
Market Share - Company Strength in Market o Control : Measuring actual performance, comparing
Strategies used performance to the objectives, making adjustments.
 Building - For Question Marks, requires substantial
resource investment, if limited better allocated to Stars Managers select Marketing metrics to be measured as part
 Hold- For Cash Cow need less investment, to maintain of formal control process. Measured in Return on Marketing
market share Investment (Revenue or profit margin generated by
 Harvesting- Milking the “Cash Cow” Money or continue investment in a specific marketing program divided by the
life of “dog” cost - Such as Customer Acquisition Cost, Customer
 Divesting- The business cut off the life of “dog” retention rate, Customer turnover rates)
Step 5 : Develop Growth Strategies How does the implementation and control step actually
Product-Market Growth Matrix - Characterizes different manifest itself within a marketing plan?
growth strategies according to type of market and type of
product One very convenient way is through the inclusion of a series
of action plans that support the various marketing
Marketing Planning : Select the Camera Setting objectives and strategies within the plan at operational
 Step 1 : Perform a Situation Analysis - builds on level. Help Managers when they need to assign
SWOT; identifies how environmental trends affect responsibilities, time lines, budgets and measurement and
the marketing plan. control processes for marketing planning.
 Step 2 : Set Marketing Objectives - Specific to firm’s
brands; States what marketing function must Operational Plans
accomplish if firm is to achieve its overall business Plans that focus on the day-to-day execution of marketing
objectives Plan. Include detailed directions for the specific activities to
 Step 3 : Develop Marketing Strategies - Select be carried out, who will be responsible for them and time
Target Market & Develop Marketing Mix Strategies lines for accomplishing task.

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themselves while facilitating trade with countries outside

CHAPTER 3 the country.
THRIVE IN THE MARKETING ENVIRONTMENT
Analyze the Marketing Environment
Economic Environment
Take a Bow : Marketing on The Global Stage Marketers need to understand state of the economy from
World Trade - The Flow of goods and services among two different perspectives
different countries - the value of all exports and imports of
the world’s nations Overall Economic health and level of development of a
country
Countertrade - A type of trade in which goods are paid for Current stage of its business cycle
with other items instead of with cash o Key Economic Indicators to measure Economic Health:
GDP - Total Dollar value of goods/services a country
Steps Entering Global Market : produces within its border in a year
2. Step 1 : Go or No Go - Is it our best interest to focus GNP - Value of all goods and services a produced by a
on home market or elsewhere? country’s citizens or organizations
3. Step 2. Which Global Markets are most attractive Economic Infrastructure - Quality of country’s distribution,
and offer greatest opportunity? financial and communication systems.
4. Step 3. What Market entry strategy and what level
of commitment is best? Levels of Economic Development
5. Step 4. How do we develop marketing mix based on Standard of Living (Indicator of the average quality
strategies in foreign market, Standardize or and quantity of goods and services a country consumes)
Localized for each country?
Least Developed Countries - Economic base is often
agricultural. Standard of Living is low and opportunities is
low.
Developing Countries - Economy shifts emphasis from
agriculture to industry.
Developed Countries - Offer wide range of opportunities
for international marketers.
The Business Cycle
describes overall pattern of changes or fluctuation of an
economy.
prosperity (high levels of demand, employment, and
income)
recession (falling demand, employment, and income)
recovery (gradual improvement in production, lowering
unemployment, and increasing income
A severe recession is a depression, a period during which
prices fall but there is little demand because few people
have money to spend and many are out of work
Inflation occurs when prices and the cost of living rise while
money loses its purchasing power because the cost of goods
escalates.
Must consider market conditions and competitive
advantage Competitive Environment
Many times a firm decides to go global because domestic Competitive Intelligence
demand is declining while demand in foreign market grows Gathering and analyzing publicly available information
about rivals to develop superior marketing strategies
Understand International, Regional, and Country
Regulations Competition in Microenvironment
Initiatives in international regulation and cooperation help Consumer’s Discretionary Income - Choices of spending
trade : GATT (For the purpose of reducing import tax levels Money left over after people have paid for necessities
and trade restrictions) & WTO (To supervise and liberalize Product Competition - Alternate products that satisfy the
international trade). Protectionism restricts trade from same consumer’s needs/wants
Government to restrict foreign competition to give Brand Competition - Most direct form of competition
domestic companies an advantage occurs among brands offering similar goods/services
6. Import Quotas - Limitations set on the amount of
product allowed to enter or leave a country Competition in Macro environment
7. Embargoes - Trade prohibition with a country Monopoly - One Seller controls a market
8. Tariffs - Taxes on imported goods Oligopoly - There are a relatively small number of sellers,
each holding substantial market share, in a market with
Economic Communities are composed of groups of many buyers.
countries that band together to promote trade among

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Monopolistic Competition - Many sellers who compete for Direct Investment

buyers in a market however each firm offers slightly Deeper level of Commitment occurs when a firm expands
different products. internationally through ownership
Perfect Competition - Many small sellers offer same good
or service Product-Level Decisions
How to market their product in each country
Technological Environment  Standardization - Same strategy used in the home
Provides firms with important competitive advantages, market is applied in the same way abroad/
Profoundly affects marketing activities, and can transform  Localization - Tailor products and promotional
industries. messages to local environments.
o Patent - Legal document giving inventors exclusive rights Modify the Marketing Mix
to produce/sell a particular invention in that country Product Decisions
A Firm has three choices when it decides on a product
Political and Legal Environment strategy
Local, state, national, and global laws and regulations affect  Sell the Same product in the new market
businesses  Modify it for that market
 Develop a brand new product to sell there
Political constraints on trade :
Economic Sanctions - Prohibit trade with another country A straight extension Strategy - Used when a firm offers the
and cut off access to markets same product in both domestic and foreign markets
Nationalization - when domestic government takes over
the businesses and facilities of a foreign entity doing A Product Adaptation Strategy - Occurs when a firm offers a
business within its border and reimburse the foreign similar but modified product in foreign markets
company
Expropriation - Domestic Government seizes a foreign Product Inventions - Requires a firm to develop a new
company’s assets without any reimbursement. product for foreign markets
Sociocultural Environment Backward Invention - A firm develops a less advanced
refers to the characteristics of the society, the people who product to serve the needs of people living in countries
live in that society, and the culture that reflects the values without electricity or develop infrastructure
and beliefs of the society.
9. Demographics - Examining statistics that measure Promotion Decisions
observable aspects of the population, including its Decide whether it’s necessary to modify how they speak to
size, age, gender, ethnicity, income, education, consumers in a foreign market.
occupation and family structure
10. Cultural Values - Deeply held beliefs about right and Price Decisions
wrong ways to live. Products are often more expensive to produce for foreign
11. Social Norms - Specific rules dictating what is right markets.
or wrong, acceptable or unacceptable. Free Trade Zones - Designated areas where foreign
12. Language companies can warehouse goods without paying taxes or
13. Ethnocentrism - Tendency to prefer products or customs duties until they move the goods into market place
people of one’s own culture. Gray Market Goods - Items manufactured outside a country
and then imported without the consent of the trademark
Is the World Flat or Not? How Global should a global holder.
Marketing Strategy Be? Dumping - Company prices its products lower than it offers
Exporting at home.
If a firm chooses to export, it must decide whether it will
attempt to sell its products on its own or rely on Distribution Decisions
intermediaries to represent it in the target country. Getting the product to remote locations is often difficult.
Contractual Agreement
14. License Agreement - The Licensor gives another firm
(Licensee) the right to produce and market its CHAPTER 4
product in a specific country or region in return for MARKETING RESEARCH : GATHER, ANALYZE,
royalties on goods sold.
AND USE INFORMATION
15. Franchising - Form of licensing that gives the
franchisee the right to adopt an entire way of doing Marketing Ethics: taking an ethical & above-board approach
business in the host country. to conducting marketing research that does no harm to the
participant in the process of conducting research.
Strategic Alliance
Joint Venture; Two or more firms create a new entity to Marketing Information System: a process that first
allow the partners to pool their resources for common goals determines what information marketing managers need &
then gathers, sort, analyzes, and distributes relevant &
timely marketing information to system users.

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3 important components of MIS:  Modelingsoftware allows decision makers to examine

 4 types of data (internal company data, marketing possible / preconceived ideas about relationships in the
intelligence, marketing research, acquired data.
databases).
 Computer hardware & software to analyze the data
& create reports
 Output for marketing decision makers

Data Mining
Sophisticated analysis techniques to take advantage of the
massive amount of transaction information now available
Data mining has 4 important applications for marketers:
4 different data sources for MIS:
1. Internal Company Data 1. Customer acquisition: include demographic & other
uses information from within the organization to produce information about customers in their database
reports on the results of sales & marketing activities 2. Customer Retention & loyalty: the firm identifies big
. spending customers and then targets them for
 Intranet : an internal corporate communication network special offers & inducements other customers
that uses internet technology to link company departments, won’t receive.
employees & databases 3. Customer Abandonment: identify customers as “the
good, the bad, & the ugly”
2. Marketing Intelligence 4. Market Basket Analysis: develops focused
have information about marketing environment promotional strategies based on the records of
which customers have bought certain products.
 Marketing Intelligence System: a method by which
marketers get information about everyday happenings in
the marketing environment
3. Marketing Research
the process of collecting, analyzing, & interpreting data
about consumers, competitors, & the business environment
in order to improve marketing effectiveness.
 Syndicated Research: research by firms, that collect data
on a regular basis & sell the reports to multiple firms
 Custom Research: research conducted for a single firm to
provide specific information its managers need
4. Acquired Databases
acquire external databases that can be useful in marketing
decision making
The Marketing Decision Support System (MDSS) Steps in Marketing Research Process
The data, analysis software, & interactive software that 1. Define the research problems
allow managers to conduct analyses & find the information  Specify the research objects
they need.  Identify the consumer population of interest
 Place the problem in an environmental context
 Statistical software allows manager to examine complex
relationships among factors in the marketplace 2. Determine the research design
a plan that specifies what information marketers will collect
& what type of study they’ll do

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 Determine whether secondary data are available Data Quality

 Determine whether primary data are required  Validity: the extent to which research actually measures
 Exploratory Research what it was intended to measure.
 Descriptive Research
 Causal Research  Reliability: the extent to which research measurement
techniques are free of errors.
Secondary Data: Data that have been collected for some
purpose other than the problem at hand Representativeness: the extent to which consumers in a
Primary Data: data from research conducted to help make a study are similar to a larger group in which the organization
specific decision has an interest
Exploratory Research: a technique that marketers use to
generate insights for future, more rigorous studies 4. Design the sample
 Focus Group: a product-oriented discussion among Sampling: the process of selecting respondents for a study
a small group of consumers led by a trained
moderator 2 main types of samples:
 Case Study: a comprehensive examination of a  Probability sampling: a sample in which member of
particular firm or organization the population has some known chance of being
 Ethnography: an approach to research based on included
observations of people in their own homes or  Nonprobability sampling: a sample in which
communities personal judgment is used to select respondents

Descriptive/Quantitative Research: a tool that probes more Convenience sample: a nonprobability sample composed of
systematically into the problems & bases its conclusions on individuals who just happen to be available when & where
large number of observations the data are being collected
1. Cross-sectional design: a type of descriptive
technique that involves the systematic collection of 5. Collect the data
quantitative information  Translate questionnaires & responses if necessary
2. Longitudinal design: a technique that tracks the  Combine data from multiple sources (if available)
responses of the same sample of respondents over
time. 6. Analyze & interpret the data
 Tabulate & cross-tabulate the data
Causal Research: a technique that attempts to understand  Interpret/draw conclusions from the results
cause-and-effect relationships
 Experiments: a technique that tests predicted 7. Prepare the research report
relationships among variables in a controlled environment The research report includes these:
 An executive summary
3. Choose the method to collect primary data  A description of the research methods
 Survey methods  A discussion of the results of the study
 Questionnaires  Limitation of the study
 Telemarketing: the use of telephone to sell directly Conclusions & recommendations
to consumers & business customers.
 Mall-intercept: a study in which researchers recruit CHAPTER 5
shoppers in malls or other public areas.
 Observational Methods CONSUMER BEHAVIOUR
 Unobtrusive measures: measuring traces of physical
evidence that remain after some action has been
taken.
 Online research The consumer decision-making process
 Predictive Technology: analysis techniques that use
shopping patterns of large numbers of people to 1. Problem recognition
determine which products are likely to be 2. Information search
purchased if others are. 3. Evaluation of alternatives
4. Product choice
Privacy rights proponents advocate the following guiding 5. Postpurchase evaluation
principles:
1. Information about a consumer belongs to the Consumer behavior: The process involved when
consumer. individuals/groups select, purchase, use, and dispose of
2. Consumers should be made aware of information goods, services, ideas, or experiences to satisfy
collection. needs/desires
3. Consumers should know how information about
them will be used. Involvement: the relative importance of perceived
4. Consumers should be able to refuse to allow consequences of the purchase to a consumer
information collection.
5. Information about a consumer should never be Perceived risk: the belief that choice of a product has
sold/given to another party without the permission potentially negative consequences, whether financial,
of the consumer. physical, and/or social

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5 steps in consumer-decision making process:  Exposure: the extent to which a stimulus is capable of
1. Problem recognition being registered by a person’s sensory receptors
the process that occurs whenever a consumer sees a  Subliminal advertising: supposedly hidden messages
significant difference between her current state of affairs in marketers’ communications
and the desired state.Marketers stimulate problem  Attention: the extent to which a person devotes mental
recognition with the introduction of exciting new products processing to a particular stimulus
or through promotion that emphasizes the differences  Interpretation: the process of assigning meaning to a
between the current and desired states. stimulus based on prior associations a person has with it &
assumptions he/she makes about it
2. Information Search
the process whereby a consumer searches for appropriate 2. Motivation
information to make a reasonable decision. an internal state that drives us to satisfy needs by activating
goal oriented behavior.
Internet as search tool : The Hierarchy of Needs (developed by Maslow) categorizes
 Search marketing: marketing strategies that involve the motives according to five levels of importance--the more
use of internet search engines. basic needs being on the bottom of the hierarchy and the
 Search Engine Optimization (SEO): a ysstematic process of higher needs at the top.
ensuring that your firm comes up at/near the top of lists of
typical search phrases related to your business. 3. Learning
 Search Engine Marketing (SEM): Search marketing a change in behavior caused by information or experience.
strategy in which marketers pay for ads or better Learning can occur deliberately or when we are not trying.
positioning
 Sponsored esarch ads: paid ads that appear at the  Behavioral Learning– the behavioral learning theories
top/beside the internet search engine results. assume that learning take place as a result of connections
 Comparison shopping agents/shopbots: web applications we form between events
that help online shoppers find what they’re looking for at 1. Classical conditioning: learning that occurs when a
the lowest price & provide customer reviews & ratings of stimulus eliciting a response is paired with another
products and sellers stimulus that initially doesn’t elicit a response on its
 Behavioral Targeting: the marketing practice by which own but will cause a similar response over time
marketers deliver advertisements for products a consumer because of its association with the 1st stimulus
is looking for by watching what the consumer does online. 2. Operant conditioning: learning that occurs as the
result of rewards or punishments
3. Evaluation of Alternatives  Cognitive learning – cognitive learning theory views
The informed consumer identifies a small number of people as problem-solvers who do more than passively
products in which he is interested. Then he narrows his react to associations between stimuli. Cognitive learning
choices by comparing the pros and cons of each option. occurs when consumers make a connection between ideas
or by observing things in their environment
 Evaluative Criteria: the dimensions consumers use to  Observational learning: learning that occurs when
compare competing product alternatives people watch the action of others & note what
happens to them as a result
4. Product Choice
Consumers make a product choice when they decide on one 4. Attitudes: a lasting evaluation of a person, object, or
alternative or product and act on this choice : issue.
 Heuristics: a mental rule of thumb that leads to a speedy
decision by simplifying the process. 3 components of a person’s attitudes:
 Brand Loyalty: a pattern of repeat product purchases,  Cognition: the belief or knowledge a person has about a
accompanied by an underlying positive attitude toward the product and its important characteristics.
brand, based on the belief that the brand makes products  Affect: the overall emotional response a person has to a
superior than its competitors product. Affect is usually dominant for expressive products.
 Behavior: the doing components of attitudes, involves a
5. Postpurchase evaluation consumer’s intention to do something, such as the intention
The evaluation of the product results in a level of consumer to purchase or use a certain product.
satisfaction/dissatisfaction.
5. Personality
 Cognitive Dissonance: the anxiety/regret a consumer may the set of unique psychological characteristics that
feel after choosing from among several similar attractive consistently influences the way a person responds to
choices. situations in the environment
Influences on Consumer Decision making: Self-concept: an individual’s self image that’s composed of a
1. Internal Factors mixture of belief, observations & feelings about personal
2. Situational factors attributes; the attitude toward the self.
3. Social Influences
Consumers buy products that are extensions of themselves
Internal influences on consumer’s decision making and marketers create brand images that will be congruent
1. Perception : the process by which people select, organize, with the selves of different types of people
and interpret information from the outside world.

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6. Age power that’s sufficient to let them afford high-

people in the same age group may share a common set of quality products.
experiences and have similarities in product preferences.  Group membership - People act differently in
The purchase of goods and services may also depend on groups than they do on their own.
consumers’ position in the family life cycle—the stages  Reference group: set of people a consumer wants
through which family members pass as they grow older. to please or imitate. Consumers “refer to” these
groups in making purchases—what they wear,
7. Lifestyle where they go, what brands they buy, and so on.
a pattern of living that determines how people choose to
spend their time, money, and energy and that reflects their  Opinion leaders: people who influence others’ attitudes or
values, tastes, and preferences. behaviors because of their expertise about the product.
Consumers often choose goods, services, and activities that They usually have high levels of interest in the product
are associated with a certain lifestyle. category and serve as valuable information sources.
Situational & social influences on consumers’ decisions  Gender roles: society’s expectations regarding the
Situational influences – includes sensory marketing appropriate attitudes, behaviors, and appearance for men
(marketing techniques that link distinct sensory experiences and women.
such as a unique fragrances with a product or service)  Metrosexual: a straight, urban male who’s keenly
interested in fashion, home design, gourmet
The physical environment - For example, physical cooking & personal care
surroundings may influence buying when attractive decor
elevates a person’s mood and leads to impulse buying.
CHAPTER 6
Time - If time pressures are high, consumers may search BUSINESS-TO-BUSINESS MARKETS
less and buy products that are quick to obtain.
 Time poverty: consumers’ belief that they’re more
pressed for time than before
Social influences on consumer’s decision Business markets: buying & selling when the customer is
 Culture - society’s personality. It includes the values, another firm
beliefs, customs, and tastes produced by a society. Culture Business-to-business (B2B) or Organizational Markets: the
includes important rituals that have consumption group of customers that include manufacturers,
implications: weddings, holidays, graduation. wholesalers, retailers, & other organizations. Organizations
purchase goods and services for one of three reasons:
 Subculture- a group existing within a larger culture whose
members share a distinctive set of beliefs or characteristics. 1) for use in operating the business (chairs, desks, copy
Each of us belongs to several subcultures. These subcultures machines, paper, etc.);
can be religious groups, ethnic groups, or regional groups. 2) to include as a part in something else (raw materials,
 Microcultures: groups of consumers who identify components); or
with a specific activity or art form 3) for resale (wholesalers/retailers purchase goods).
 Emerging Lifestyle trends: consumerism &
Environmentalism Factors that made a difference in Business Markets:
 Consumerism: a social movement that attempts to  Multiple Buyers: In business markets, products must meet
protect consumers from harmful business practices the requirements of everyone involved in the company’s
 Environmentalism: a broad philosophy & social purchase decision.
movement that seeks conservation & improvement
of the natural environment  Number of Customers: Organizational customers are few
 Kyoto protocol: a global agreement among and far between compared to end consumers.
countries that aims at reducing greenhouse gases
that create climate change  Size of Purchases: Business-to-business products can
 Environmental stewardship: a position taken by an dwarf consumer purchases both in the quantity of items
organization to project or enchance the natural ordered and in the price of individual purchases.
environment as it conducts its business activities.
 Green marketing: a marketing strategy that  Geographic Concentration: Business uc stomers may be
supports environmental stewardship, thus creating located close together in small geographic areas rather than
a differential benefit in the minds of customer being spread out across the country.

 Social class- overall rank of people in a society. People B2B Demand

who are within the same class have similar occupations,  Derived demand: Business’s demand for goods and
income levels, and education. They also share tastes in services comes either directly or indirectly from consumers’
clothing, decorating styles, and leisure activities. demand
 Status symbols: visible markers that provide a way
for people to flaunt their membership in higher  Inelasticdemand: demand in which changes in price have
social classes little or no effect on the amount demanded
 Mass-class: the hundreds of millions of global
consumers who now enjoy a level of purchasing

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 Fluctuating demand- Business demand also is subject to  Company blogs

greater fluctuations than is consumer demand. This is  Searches of business-related information on social
because even modest changes in consumer demand can media sites
create large changes in business demand.
“social media channels were most effective to reach &
 Joint demand: demand for 2 or more goods that are used engage prospects at mid-to-large-size companies”
together to create a product
Key reasons why LinkedIn has become most associated
Types of business-to-business consumers social networking web with B2B
 Producers: the individuals/organizations that purchase  LinkedIn reduces the separation gap
product for use in the production of other goods & services  LinkedIn is primarily for corporate professionals
 Resellers: the individuals/organizations that buy finished  LinkedIn can lead to quality introductions
goods for purpose of reselling, renting, or leasing to others  LinkedIn can help you reconnect with alumni &
to make a profit & to maintain their business operation colleagues.
 Wholesalers/distributors
 retailers Business Buying situations & the business buying decision
process
 Government & Not-for-profit organizations
 Government markets: the federal, state, country &
local governments that buy goods & services to
carry out public objectives and to support their
operations; Government markets make up the
largest single business and organizational market in
the United States.
 Not-for-profit organizations: the organizations with
charitable, educational, community, & other public
service goals that buy goods & services to support
their functions and to attract & serve their
members; Not-for-profit institutions such as
hospitals, churches, universities, museums,
Salvation Army and the Red Cross.
Business-to-business e-commerce & social media
Business-to-business (B2B) e-commerce: internet exchanges Buyclass
between 2 or more businesses or organizations. one of 3 classifications of business buying situations that
characterizes the degree of time & effort required to make
Intranet: an internal corporate network that uses internet a decision
technology to link a company’s departments, employees, &  Straight Rebuy: the routine purchase of items that a
databases. B2B customer regularly needs that require minimal
decision making process.
Extranet: a private, corporate computer network that links  Modified rebuy: occurs when a firm decides to shop
company departments, employees, & databases to around for suppliers with better prices, quality, or
suppliers, customers, & others outside the organization; delivery times. This situation also can occur when
Allow authorized suppliers, customers, and other outsiders the organization confronts new needs for products
to access the firm’s intranet. it already buys.
 New-task buy: a new B2B purchase that’s complex
Private exchanges: systems that link an invited group of or risky & that requires extensive decision making; a
suppliers & partners over the web. first-time purchase
The dark side of B2B E-commerce Professional Buyer
Hackers threaten security--steal credit card numbers or Trained professional buyers with these titles typically carry
trade secrets out buying in B2B markets.
 Well-meaning employees can be security threats when 1. Purchasing Agents
careless with their passwords 2. Procurement officers
 Most firms safeguard e-commerce transactions using 3. Directors of material management
firewalls that are hardware and software that ensure only
authorized individuals gain entry to a computer system Buying centers
include all people in an organization who participate in a
B2B & Social Media purchasing decision.
5 most popular resources people turn to at work to get  The initiator begins the buying process by first
information they need for their day-to-day jobs: recognizing that the firm needs to make a purchase.
 Webinars & podcasts  An influencer affects the buying decision by
 Online ratings and reviews of business products or dispensing advice, expertise.
services  The decider is the member of the buying center
 Company pages on social networking sites (such as: who makes the final decision and has the greatest
Facebook, LinkedIn) power within the buying center.
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 The buyer is the person who executes the purchase 5. Evaluate postpurchase
and handle the details of the transaction. The buyer survey the users to determine their satisfaction
 The user is the member of the buying center who with the product .Documenting & reviewing supplier
actually needs and uses the product. performance.Metrics organizational buyers use to measure
how well a product/service performs:
Steps in the business buying decision process  Satisfaction
1. Recognize the problem  Quality
The first step occurs when someone sees that a purchase  Customer engagement
can solve a problem. Recognition often stems from a need  Purchase intentions
to replace outdated equipment, Changes in technology, or  Promptness & effectiveness
from Marketing communications
2 events may occur in the problem-recognition process: CHAPTER 7
 Make purchase requisition or request TARGET MARKETING STRATEGIES ANF CRM
 Depending on the complexity of purchases, the firm
may form a buying center
2. Search for information TARGET MARKETING STRATEGY: SELECT AND ENTER A
Buying center members search for information about MARKET
products and suppliers and develop product specifications Market fragmentation: The creation of many consumer
groups due to a diversity ofdistinct needs and wants in
Develop product specifications modern society.
Product specifications: a written description of the quality,
size, weight, and other details required of a product Target marketing strategy: Dividing the total market into
purchase different segments on thebasis of customer characteristics,
 Identify potential suppliers selecting one or more segments, and developingproducts to
 Obtain proposals & quotations meet the needs of those specific segments.
3. Evaluate the alternatives STEP 1: SEGMENTATION
The buying center assesses proposals with price as a Segmentation: The process of dividing a larger market into
primary consideration smaller pieces based onone or more meaningfully shared
 Evaluate proposals characteristics.
 Obtain & evaluate samples
Segmentation variables: dimensions that divide the total
“the more complex & costly the purchase, the more time market into fairlyhomogeneous groups, each with different
buyers spend searching for the best suppliers – and the needs and preferences.
more marketers must do to win the order.”
Segment Consumer Markets
Customer reference program: a formalized process by Segment by demographics
which customers formally share success stories & actively Demographics: Statistics that measure observable aspects
recommend products to other potential clients, usually of a population,including size, age, gender, ethnic group,
facilitated through an on-line community. income, education, occupation, andfamily structure.
4. Select the product & supplier a. Age
The next step in the buying process is the purchase Consumers of different age groups have different needs and
decision. Although price is usually a factor, firms that have wants. Membersof a generation tend to share the same
adopted a Total Quality Management approach, the quality, outlook and priorities. We call such afocus generational
reliability, and durability of materials and component parts marketing, which is marketing to members of ageneration,
are paramount. who tend to share the same outlook and priorities.
One of the most important decisions for a buyer is how  Baby boomers: the segment of people born
many suppliers can best serve the firm’s needs. between 1946 and 1964.
 Generation X: the group of consumers born
 Single sourcing: Buying a particular product from between 1965 and 1987.
only one supplier  Generation Y: the group of consumers born
 Multiple sourcing: Buying from several different between 1979 and 1994.
suppliers
 Reciprocity: Trading partnership in which two firms b. Gender
agree to buy from one another Segmenting by genders starts at a very early age, but some
 Outsourcing: Finding vendors to provide manufacturersdevelop parallel products to appeal to each
goods/services that might otherwise be supplied in- sex.
house
 Crowdsourcing: Via a formal network, firms use c. Family life cycle
expertise from around the globe to solve a problem Consumers in different life-cycle segments are unlikely to
 Reverse marketing: Buyers try to find capable need the sameproducts or different quantities of product.
suppliers and “sell” their purchase to the suppliers
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d. Income and social class o Without real differences in consumer

The distribution of wealth is of great interest to marketers needs, firms might as well use a
because itdetermines which groups have the greatest massmarketingstrategy.
buying power. o Can marketers measure the segment?
o Can marketing communications reach the
Social class segment : super class, middle class, and lower segment?
class. But manyconsumers do not buy according to where o Can the marketer adequately serve the
they actually fall in thatframework, but according to the needs of the segment?
image they wish to portray.
2. Develop segment profiles
e. Ethnicity o Segment profiles: a description of the
A consumer’s national origin is often a strong indicator of “typical” customer in a segment.
his or herpreferences for specific magazines or TV shows, o Once a marketer identifies a set of usable
foods, apparel, and leisureactivities. segments, it is helpful to generate aprofile
of each to really understand segment
Marketers need to be aware of these differences and members’ needs and to look forbusiness
sensitivities—especiallywhen they invoke outmoded opportunities.
stereotypes to appeal to consumers of diverseraces and
ethnic groups. 3. Choose a targeting strategy
a. Undifferentiated targeting strategy:
Cultural diversity: a management practice that actively appealing to a broad spectrum of people.
seeks to includepeople of different sexes, races, ethnic b. Differentiated targeting strategy:
groups, and religions in anorganization’s employees, developing one or more products for each
customers, suppliers, and distribution channelpartners. ofseveral distinct customer groups and
making sure these offerings are
f. Place of residence (geography) keptseparate in the marketplace.
When marketers want to segment regional markets even c. Concentrated targeting strategy: focusing a
more precisely, theysometimes combine geography with firm’s efforts on offering one or
demographics using the technique ofgeodemography, A moreproducts to a single segment.
segmentation technique that combines geography d. Custom marketing strategy: an approach
withdemographics. that tailors specific products and
themessages about them to individual
Geocoding: customizing Web advertising so that people customers.
who log on indifferent places will see ad banners for local e. Mass customization: an approach that
businesses. modifies a basic good or service to meet
theneeds of an individual.
Segment by psychographics
Psychographics: the use of psychological, sociological, and STEP 3: POSITIONING
anthropologicalfactors to construct market segment. Positioning: develop a marketing strategy to influence how
a particular marketsegment perceives a good or service in
Segment by behavior comparison to the competition.
Slices consumer segments on the basis of how they act
toward, feel about, or usea product. One way to segment Step in Positioning
based on behavior is to divide the market intousers and 1. Analyze competitors’ position
nonusers of a product. 2. Define your competitive advantage
3. Finalize the marketing mix
80/20 rule: a marketing rule of thumb that 20 percent of 4. Evaluate responses and modify as needed
purchases account for80 percent of a product’s sales.
Brand Personality: a distinctive image that captures a good’s
Long tail: A new approach to segmentation based on the or service’s character andbenefit.Part of creating a brand
idea that companies canmake money by selling small personality is developing an identity for the product that
amounts of items that only a few people want,provided thetarget market will prefer over competing brands. How?
they sell enough different items. By using perceptual map, atechnique to visually describe
where brands are “located” in consumers’ minds relativeto
Segment Business-to-Business Markets competing brands.
Organizational demographic can help a B2B marketer to
understand the needsand characteristics of its potential CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
customers. CRM: a systematic tracking of consumers’ preferences and
behaviors over time in orderto tailor the value propositions
STEP 2: TARGETING as closely as possible to each individual’s unique wantsand
Targeting in Three Steps needs, CRM allows firms to talk to individual customers and
to adjust elements oftheir marketing programs in light of
1. Evaluate market segments how each customer reacts.
A viable target segment should satisfy the following
requirements:

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Steps of one-to-one marketing (CRM): time and effort gathering information and comparing
1. Identify customers and get to know them in as much alternatives before makinga purchase.
detail as possible. - Specialty products: goods or service that has unique
2. Differentiate among these customers in terms of both characteristics and isimportant to the buyer and for which
their needs and their valueto the company. he will devote significant effort to acquire.
3. Interact with customers and find ways to improve cost - Unsought products: goods or service for which consumer
efficiency and theeffectiveness of the interaction. has little awareness orinterest until the products or a need
4. Treat each customers differently based on what has been for the product is brought to his attention
learned throughcustomer interactions. .
Business Product
Characteristic of CRM - Equipment: expensive goods that an organization uses in
Share of customer its daily operations thatlast for a long time.
The percentage of an individual customer’s purchase of a - Maintenance, repair, and operating (MRO) products:
product that is a singlebrand. CRM tries to increase their goods that a businesscustomer consumes in a relatively
customer share, not market share. short time.
- Raw materials: product of the fishing, lumber, agricultural,
Lifetime value of a customer and mining industriesthat organizational customers
The potential profit of a single customer’s purchase of a purchase to use in their finished products.
firm’s products generatesover the customer’s lifetime. A - Processed materials: product created when firms
firm’s profitability and long-term success are going tobe far transform raw materials fromtheir original state.
greater if it develops long-term relationships with its
customers so that thosecustomers buy from it again and INNOVATION
again. Types of Innovation
1. Continuous innovation: a modification of an existing
Customer equity product that sets one brandapart from its competitors.
The financial value of a customer relationship throughout
the lifetime of therelationship. Company compare the 2. Dynamically continuous innovation: a change in an
investment they make to acquire customers andthen to existing product that requiresa moderate amount of
retain these to the financial return they’ll get on those learning or behavior change.
investments.
3. Discontinuous innovation: a totally new product that
Focus on high-value customer creates major changes inthe way we live.
The organization prioritizes its customers and customizes its
communications to theaccordingly. How to Measure Innovation?
Innovation involve not only marketing, but also the firm’s
overall culture, leadership,and processes in place that foster
CHAPTER 8 innovation. So, to measure it, we have to measurefirm’s
CREATE THE PRODUCT strategy, firm’s culture, and also outcomes of the
innovation.
NEW PRODUCT DEVELOPMENT
LAYERS OF THE PRODUCT CONCEPT Phase 1: Idea Generation
CORE PRODUCTS: All the benefit the products will provide Marketers brainstorm for products that provide customer
forconsumer/business consumer. benefits and are compatiblewith company mission.
ACTUAL PRODUCTS: The physical good or the delivered
service tha supplies thedesired benefit. Phase 2: Product Concept Development and Screening
AUGMENTED PRODUCTS: The actual product plus other Marketers test product ideas for technical and commercial
supporting featuressuch as warranty, credit, delivery, success.
instalation, repair service, etc.
Phase 3: Marketing Strategy Development
HOW MARKETERS CLASSIFY PRODUCTS Marketers must identify the target market, estimate its size,
Classification depends on how long the product lasts and determine how theycan effectively position the product
- Durable goods: consumer products that provide benefits to address the target market’s needs. Also includeplanning
over a long period oftime. for pricing, distribution, and promotion expenditure.
- Nondurable goods: consumer products that provide
benefits for a short timebecause they are consumed or are Phase 4: Business Analysis
no longer useful. Marketers assess a product’s commercial viability.

Classification of Product Phase 5: Technical Development

Company engineers refine and perfect a new product.
Consumer Product
- Convenience product: a consumer good or service that is Phase 6: Test Marketing
usually low-priced,widely available, and purchased Testing the complete marketing plan in a small geographic
frequently with a minimum of comparison andeffort. area that is similar to thelarger market the firm hopes to
- Shopping product: goods or service for which consumers enter.
spend considerable Phase 7: Commercialization

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A new product is launched into the market.

CHAPTER 9
ADDOPTION AND DIFFUSION OF NEW PRODUCTS MANAGE THE PRODUCT
Product adoption: the process by which consumer or
business customer begins to buyand use a new good,
service, or idea.
PRODUCT PLANNING: Use Product Objectives to Decide on
Diffusion: the process by which the use of the product a Product Strategy
spreads throughout apopulation.
Product planning or Brand management is guided by the
Tipping point: the point when a product’s sale spike from a continual process of product management, which is the
slow climb to anunprecedented new level, often systematic and usually team-based approach to
accompanied by a steep price decline. coordinating all aspects of a product’s marketing initiative
including all elements of the marketing mix.
Stages in Consumers’ Adoption of a New Product
o Awareness: massive advertising. When marketers develop product strategies, they make
o Interest: may use teaser advertising. decisions about:
o Evaluation: provide information to
customers about how the product can Product benefits
benefitthem. Features
o Trial: demonstration, samples, trial-size Styling
package. Branding
o Adoption: make the product available, Labeling
provide product use information. Packaging
o Confirmation: reinforce the customer’s
choice through advertising, salespromotion, Marketers do those things to provide focus and mission in
and other communication. addition to being consistent with the firm’s overall mission.
Ex: the firm may focus on return on investment (ROI).
Adopter Categories Marketing objectives then may concentrate on
a. Innovators (2.5%): the first segment of a buildingmarket share and/or the unit or dollar sales volume
population to adopt a new product. necessaryto attain that return on investment.
b. Early adopters (13.5%): those who adopt an
innovation early in the diffusionprocess, but Effective product-related objectives must be :
after innovators. Measurable
c. Early majority (34%): those whose adoption Clear
of a new product signals a Unambiguous
generalacceptance of the innovation. Feasible
d. Late majority (34%): the adopters who are Must indicate a specific time frame
willing to try new products whenthere is
little or no risk associated with the Planners must keep in touch with their customers so that
purchase, when the purchasebecomes an their objectives accurately respond to their needs.
economic necessity, or when there is social
pressure to purchase. Objectives and Strategies for Individual Products
e. Laggards (16%): the last consumers to For new products, the objectives relate to successful
adopt an innovation. introduction. After success with a product in a local or
regional market, it may decide to introduce it nationally.
Product Factors That Affect the Rate of Adoption
o Relative advantage: the degree to which a Objectives and Strategies for Multiple Products
consumer perceives that a newproduct Product Line Strategies
provides superior benefits.  Product line is a firm’s total product offering designed to
o Compatibility: the extent to which a new satisfy a single need or desire of target customers. Product
product is consistent with existingcultural lines can vary from being limited to a few variations, to full
values, customs, and practices. with many variations to suit different market segments.
o Complexity: the degree to which consumers
find a new product or its use difficultto  Stretching strategy:
understand.  Upwards (more expensive)
o Trialability: the ease of sampling a new  Downwards a line when it adds items at the lower
product and its benefit. end
o Observability: how visible a new product
and its benefits are to others whomight  Two way stretches adds products at both the upper
adopt it. and lower ends.
Ex: Marriott Hotels, added Fairfield Inns and Courtyard at
the lower end and J.W. Marriott and Ritz-Carlton at the
upper end to round out its product line

Steps to manage product

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Criteria developed by the International Organization for

Standardization to regulate product quality in Europe.
 ISO 14000
Standards of the International Organization for
Standardization concerned with “environmental
management” aimed at minimizing harmful effects on the
environment
How can company improve quality?
 Six Sigma Method: A process whereby firms work to limit
product defects to 3.4 per million or fewer.
This method involves a five-step process called “DMAIC”
(define, measure, analyze, improve, and control).
Ex: hospitals use Six Sigma processes to reduce medical
errors, and airlines use the system to improve flight
scheduling.
FilIing out strategy adds sizes or styles not previously
available in a product category Quality is perceived by consumers and can also be
Ex: Nabisco did this when it introduced “bite-size” versions measured in terms of:
of its popular Oreo  Durability.
 Versatility
Contracting Strategy through the addition or deletion of  Reliable
product variations.  Satisfies Needs
Ex: Heinz scrapped its “Bite Me” brand of frozen pizza  Precision
snacks because of poor sales.  Product safety
 Ease of use, maintenance, and repair
The purpose is to offer products for different segments of  Degree of aesthetic pleasure
the market, without cannibalizing(the loss of sales of an
existing product when a new item in a product line or MARKETING THROUGHOUT THE PRODUCT LIFE CYCLE
product family is introduced their own profits) in the Product Life cycle (PLC) A concept that explains how
process.Note that there may be occasions when the products go through four distinct stages from birth to
company may want to cannibalize its own product, death: introduction, growth, maturity, and decline.
particularly if the new one is more profitable or has greater
future potential
.
Product mix strategies
Product mix: the total set of all products a firm offers for
sale.
Ex: P&G’s acquisition of Gillette a few years back gave P&G
Oral B toothbrushes, Braun oral care products, and Duracell
batteries.
Product mix width: the number of different product lines
the firm producesQuality as a Product Objective: The
science of total quality management
Product Quality: the level of performance, reliability,
features, safety, cost, or other product characteristics that
consumers expect to satisfy their needs and wants
Total Quality Management (TQM)
 Focuses on satisfying customers through empowering
employees to be an active part of continuous quality
improvement.
 Maximizes customer satisfaction by involving all
employees, regardless of their function, in efforts to
continually improve quality.
Ex: TQM firms encourage all employees, even the lowest-
paid factory workers, to suggest ways to improve The PLC helps marketers understand how a product
products—and then reward them when they come up with changes over its lifetime and suggests how to modify their
good ideas. strategies accordingly.
Quality Guidelines The stages of the PLC are:
 ISO 9000 1. Introduction stage

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 Slow growth follows the introduction of a new product in Brand equity : The value of a brand to an organization. This
the marketplace. term describes a brand’s value over and above the value of
 Rate of growth will depend on the factors affecting the generic version of the product.
adoption of innovation Ex: how much extra will you pay for a golf shirt with a
 Lasts in quite long time. It depends on some of factors Lacoste logo on it than with no logo? The difference reflects
including marketplace acceptance and the producer’s the gator’s brand equity in your mind.
willingness to support its product during start-up.
Ex: the introduction of hybrid cars. Brand equity provides a competitive advantage because it
gives the brand the power to capture and hold on to a
2. Growth stage: larger share of the market and to sell at prices with higher
 The product is accepted and sales rapidly increase. profit margins. Brand equity is measured in terms of brand
 Competitors notice and rush their versions to market. loyalty, perceived quality, and brand name awareness.
Ex: Mini tablets, such as the iPad mini, or Google Nexus 7 Firms can use this equity when introducing new products, as
are in the growth stage at the moment it facilitates adoption.
3. Maturity stage: The types of relationships a person might have with a
 Longest stage in the product life cycle, in which sales peak product
and profit margins narrow. Self-concept attachment: The product helps establish the
 Competition is most intense during this stage to fight for user’s identity. (For example, do you feel better in Ralph
their share Lauren or Sean John clothing?)
 Do reminder advertising (“Did you brush your teeth Nostalgic attachment: The product serves as a link with a
today?”) to maintain market share past self. (Does eating the inside of an Oreo cookie remind
Ex: the iPod and the iPhone. Apple managed to extend the you of childhood?)
maturity phase of the iPod by introducing the iPod touch, Interdependence: The product is a part of the user’s daily
which introduced a touch screen and new features routine. (Could you get through the day without Unilever
products?)
4. Decline stage: Love: The product elicits emotional bonds of warmth,
 Sales decrease as customer needs change. passion, or other strong emotion. (Hershey’s Kiss, anyone?)
 Affected by the changes of consumer tastes and new
technologies which may make the product become Brand meaning
ultimately obsolete The beliefs and associations that a consumer has about the
Ex: the Personal Computer (PC) brand
If the firm decides to drop the product, it can eliminate it in A list of 10 characteristics of the world’s top brands:
two ways: 1. The brand excels at delivering the benefits customers
(1) phase it out by cutting production in stages and letting truly desire.
existing stocks run out 2. The brand stays relevant.
(2) simply dump the product immediately. 3. The pricing strategy is based on consumers’ perceptions
of value.
CREATE PRODUCT IDENTITY 4. The brand is properly positioned.
Branding Decisions 5. The brand is consistent.
Brand: a name, term, symbol, or any other unique element 6. The brand portfolio and hierarchy make sense.
of a product, which identifies one firm’s product(s) and sets 7. The brand makes use of and coordinates a full repertoire
them apart from the competition. of marketing activities to build
equity.
A good brand name may position a product because it 8. The brand’s managers understand what the brand means
conveys a certain image or describes how it works. to consumers.
Ex: Apple’s use of “i-everything” is a brilliant branding 9. The brand is given proper support, and that support is
strategy, as it conveys individuality and personalization sustained over the long run.
10. The company monitors sources of brand equity.
Good brand designers say there are four “easy” tests: easy
to say, easy to spell, easy to read, and easy to A firm may leverage a brand’s equity via
rememberAnd the name should also “fit” four ways: Brand extensions: new products it sells with the same
1. Fit the target market brand name.
2. Fit the product’s benefits
3. Fit the customer’s culture, and To avoid damaging brand equity, brand extensions need to
4. Fit legal requirements. be consistent with existing products.
Ex: the original Snickers bar which is a shelf stable candy
Trademark: the legal for a brand name, brand mark, or (frozen) creates Snickers Ice Cream Bars
trade character; a trademark legally registered by a
government obtains protection for exclusive use in that Sub-branding, or creating a secondary brand within a main
country .The rule of graphics for a brand symbol, name, or brand that can help differentiate a product line to a desired
are that it must be recognizable, memorable, and have target group.
visual impact (catch your attention easily) Ex: Coca-Cola has numerous other brands incorporated into
the company. These aren't separated to sell the same
product for a higher price, but to label different drinks

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within the Coke line. Some examples are Coca-Cola Classic, The benefits:
Diet Coke, Coke Zero. 1. It attracts customers to the host brand because the
ingredient brand is familiar and has a strong brand
Branding Strategies reputation for quality.
1. Individual Brands versus Family Brands 2. The ingredient brand’s firm can sell more of its product,
Individual brand: use a separate, unique brand for each not to mention the additional revenues it gets from the
product item. It Gives a company the opportunity to licensing arrangement
market its product to unique demographic groups and Ex: “Intel inside” campaign that convinced millions of
introduce products vastly different from one another consumers to ask by name for a highly technical computer
part (a processor)
There are several reasons why a brand needs a separate
identity: 6. Brand Metrics
The product may be competing in a new market segment the characteristics of a brand that we measure to determine
where failure could harm the main family brand name the strength of the brand.Each of the following approaches
The family brand name may be positioned inappropriately to measuring brand equity has some good points and some
for the target market segment. Ex: the family brand name bad points:
might be positioned as an upmarket brand for affluent 1. Customer mind-set metrics focus on consumer
consumers. awareness, attitudes, and loyalty toward a brand
The brand may have been acquired; in other words it has 2. Product-market outcomes metrics focus on the ability of
already established itself as a leading brand in the market a brand to charge a higher price than the one an unbranded
segment. The fact that it has been acquired by a company equivalent charges.
with a strong family brand name does not mean that the 3. Financial market metrics consider the purchase price of a
acquired brand has to be changed. brand if it is sold or acquired. They may also include
Ex: take the case of Heinz. Heinz is a leading global food subjective judgments about the future stock price of the
manufacturer with a very strong family brand. However, it brand.
also operates many well-known individual brand names. 4. Revenue premium metric compares the revenue a brand
generates with the revenue generated by a similar private-
Family brand (umbrella brand strategy): a brand that a label product (that doesn’t have any brand identification).
group of individual products or individual brands share. The In this case, brand equity is just the difference in revenue
products often competed each other. (net price times volume) between a branded good and a
Ex: Apple products corresponding private label.
2. National and Store Brands CREATING PRODUCT IDENTITY
National or manufacturer brands: Brands that the product 1. The Package and Label
manufacturer owns. Package: the covering or container for a product, which
provides product protection, facilitates product use and
Private-label brands: Brands that a certain retailer or storage, and supplies important marketing communications.
distributor own and sells.
Ex: Walmart sells store brand Sam’s Cola and Sam’s cookies - The Important functional of package is to protect the
along with national brands such as Coke and Oreos. product
3. Generic branding - Another functions are:
A strategy in which products are not branded and are sold Communicating the brand personality through colors,
at the lowest price possible. words, shapes, designs, and pictures used
Provides product facts including flavor, fragrance,
The strategy to meet customers’ demand for the lowest directions for use, suggestions for alternative uses (for
prices on standard products example,recipes), safety warnings, and ingredients include
warranty information and a toll-free telephone number for
4. Licensing customer service.
An agreement in which one firm sells another firm the right A final communication element is the Universal Product
to use a brand name for a specific purpose and for a specific Code (UPC),which is the set of black bars or lines printed on
period of time.Can provide instant recognition and the side or bottom of most items sold in grocery stores and
consumer interest in a new product. - Can quickly position a other mass-merchandising outlets
product for a certain target market as it trades on the high
recognition of the licensed brand among consumers in that Labeling regulations: This law aims to make labels more
segment helpful to consumers by providing useful information
Ex: “Harry Potter” name In candy, clothing, and all manner o Force marketers to be more accurate when
of back-to-school items they describe the contents of their
products.
5. Co-branding o The label must contain How much fat,
An agreement between two brands to work together to saturated fat, cholesterol, calories,
market a new product. carbohydrates, protein, and vitamins are in
each serving of the product.

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ORGANIZE FOR EFFECTIVE PRODUCT MANAGEMENT direct e-mail to customers who sign up for last-minute deals
Brand manager: An individual who is responsible for or onlineoutlets
developing and implementing the marketing plan for a
single brand.  Another strategy to overcome perishability is Capacity
- Responsible for coordinating all marketing activities for management: the process by which organizations adjust
their brand. their services (either adjust the price or the product) in an
- Brand managers and their teams need to act both attempt to match supply with demand.
independently to achieve their product objectives, but also Ex: Las Vegas might add free meals, room discounts, show
co-operatively with other company brands to avoid short- passes, or other incentives to lure travelers during slow
term actions that could hurt long-term profitability. Weeks
APPLYING Brand Manager 3. Variability
Product category managers: Individuals who are responsible the same service performed by the same individual for the
for developing and implementing the marketing plan for all same customer can vary.
the brands and products within a product category. Ex: It’s rare when you get exactly the same cut from a
hairstylist each time you visit him.
Market manager: a manager who is responsible for
developing and implementing the marketing plans for Because of the nature of the tasks service providers
products sold to specific customer group. perform, customers often appreciate theone that
Ex: a company that specializes in business aviation, sells customizes its service for each individual.
some products directly to consumer markets, others to
manufacturers, and still others to the government 4. Inseparability
A service can take place only at the time the actual service
Organize for New-Product Development provider performs an act on either the customer or the
Venture teams: groups of people within an organization customer’s possession.
who work together focusing exclusively on the development
of a new product.  Service encounter The actual interaction between
o Also known as skunk works, these special the customer and the service provider.
teams are formed and operated  Disintermediation : A service that requires the
independently for greater creativity, customer to obtain an outcome without the
security, and speed of development. intervention of a human provider . To minimize the
potentially negative effects of bad service
encounters and to save on labor costs,
CHAPTER 10 Ex: self-service gas pumps and bank ATMs
SERVICES AND OTHER INTANGIBLE The Service Encounter
The service encounter has several dimensions that are
important to marketers:
Services are acts, efforts, or performances exchanged from
producer to user without ownership rights. Intangible 1. There is the social contact dimension: one person
products that are exchanged directly from the producer to interacting with another person.
the customer. 2. The physical dimension is also important: customers
often pay close attention to the environment where they
Characteristics of Services receive the service.
1. Intangibility 1. The quality of the service encounter exerts a big
The characteristic of a service that means customers can’t impact on how we feel about the service we receive
see, touch, or smell good service. 2. Customers entrust themselves and/or their
possessions to the care of the employee, so it is
 Customers look for reassuring signs before they purchase important that employees look at the encounter
intangible products so that marketers have to overcome the from the customer’s perspective.
problem of intangibility by providing physical cues to
reassure the buyer Classification of services
 These cues might be the “look” of the facility (furnishings, Most products are a combination of goods and services,
logo, stationery, business cards, appearance of its with varying degrees of attention needed to the service
employees, or well-designed advertising and Web sites) elements.

2. Perishability 1. Goods-dominated products

makes it impossible to store for later sale or consumption. products will add value to what they have to offer with
Ex: When rooms go unoccupied at a ski resort, there is no supporting services, that helps to differentiate them from
way to make up for the lost opportunity to rent them for their competition
the weekend. Ex: hospitals that buy lifesaving patient care and monitoring
equipment costing hundreds of thousands of dollars
To avoid decreasing in demand, marketers reduce prices for demand not only in-service training for their nursing and
the unsold services.Ex: Airlines do this when they offer technicianpersonnel, but also quick response to
more lower-priced seats in the final days before a flight by breakdowns and regular maintenance of the equipment.

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2. Equipment- or facility-based services process of ensuring that your firm comes up at or near the
Equipment- or facility-based services such as automatic car top of lists of typical search phrases related to your
washes, amusement parks, museums, movie theaters must business.
concerned with these important factors:
Providing Quality Service
1. Operational factors: Clear signs and other guidelines The tricky thing in delivering quality service is customers’
which show customers how to use the service satisfaction is relative because the service recipient
2. Locational factors: Make sure their service sites are compares the current experience to some prior set of
convenient and in neighborhoods that are attractive expectations.
to prospective customers especially for frequently
purchased services. Ex: dry cleaning or retail The evaluative dimensions of service quality that consumers
banking, that we obtain at a fixed spot use to decide if the service received met or exceeded their
3. Environmental factors: create an attractive and expectations are:
pleasant environment to lure customers.Ex: banks
increasingly create signature looks for their 1. Search qualities: product attributes that the consumer
branches through the careful use of lighting, color, can examine (by sight, touch, or hearing) prior to purchase.
and art Ex: paying attention to details such as the style of flight
attendants’ uniforms or the decor of a hotel room
3. People-based services .
increasing in importance as consumers feel more and more 2. Experience qualities: qualities in a product that can be
pressed for time, and are willing to pay to have things done perceived after buying by senses such as taste. marketers
for them. Personal attention is key to maintaining quality in need to reassure customers before the fact that they are in
these types of services.Ex: Wardrobe consultants and for a positive experience
personal trainers Ex: A travel agency can do a presentation with alluring
images of a tropical resort and supply enthusiastic
Core and Augmented Services recommendations from other clients who had a positive
1. Core service experience at the same location.
is a benefit that a customer gets from the service. It helps to
remember what it is that consumers are really paying for, to 3. Credence qualities: product attributes we find difficult to
avoid making mistakes in delivering that service. evaluate even after we’ve experienced them.
Ex: when your car breaks down, repairing the problem is a Ex: most of us don’t have the expertise to know if our
core service you seek from an auto dealer or a garage doctor’s diagnosis is correct. That’s why tangible clues of
professionalism, a clean hospital, or even the doctor’s attire
2. Augmented services count toward purchase satisfaction.
additional service offerings that differentiate the firm from
the competition Measuring Service Quality
Ex: auto dealership provides pickup and delivery of your car, 1. SERVQUAL Scale
a free car wash, or a customer lounge with donuts and one popular instrument to measure consumers’ perceptions
coffee so it will gains your loyalty as a customer. of service quality.SERVQUAL identifies five dimensions, or
components, of service quality:
PHYSICAL ELEMENTS OF THE SERVICE ENCOUNTER
Because services are intangible, marketers have to be  Tangibles: the physical facilities and equipment and the
mindful of the physical evidence that goes along with them. professional appearance of personnel
An important part of this physical evidence are:  Reliability: the ability to provide dependably and
accurately what was promised
1. Servicescapes  Responsiveness: the willingness to help customers and
the environment in which the service is delivered and provide prompt service
where the firm and the customer interact.Including:  Assurance: the knowledge and courtesy of employees,
and the ability to convey trust and confidence
 Facility exteriors—elements such as a building’s  Empathy: the degree of caring and individual attention
architecture, the signage, parking, and even the customers receive
landscaping.
 Interior leements, such as the design of the office or store, 2. Gap Analysis measurement approach
equipment, colors, air quality, temperature, and smells. that shows the difference between a customer’s
expectation of service quality and what actually occurs by
Carefully designed servicescapes can have a positive identifying specific places in the service system where there
influence on customers’ purchase decisions, their is a wide gap between Some major gaps include the
evaluations of service quality, and their ultimate satisfaction following:
with the service.
Gap between consumers’ expectations and management’s
2. Websites: perceptions: when the firm’s managers don’t understand
Send a strong cue to customers, and sites that are what its customers’ expectations.
unattractive or frustratingly dysfunctional provide a horrible Ex: banks often used toclose branches at midday to balance
first impression of the company and its service. Not only transactions because that’s more efficient for them, even
provide an attractive website but marketers also have to though it’s not convenient for customers who want to do
consider Search Engine Optimization (SEO): a systematic their banking during their lunch hour.

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Gap between management’s perception and quality

standards the firm sets: when a firm fails to establish a MARKETING PEOPLE, PLACES, AND IDEAS
quality-control program Marketing People
Ex: American Express found that customers complained People are also products, in fact there is a sizable number of
most about its responsiveness. The company established people hire personal image consultants to devise a
specific goals to correct the problems, and it now monitors marketing strategy for them to improve their “market
how fast employees answer phones in an effort to be more position” or “sell” themselves to potential employers,
responsive. friends, or lovers.
Gap between established quality standards and service An agent branding people by:
delivery: When employees do not deliver the service at the 1. The pure selling approach: An agent presents a client’s
level the company specifies. qualifications to potential “buyers” until she finds one who
Ex: Merrill Lynch addressed a problem when the brokerage is willing to act as an intermediary.(ex: presents a client to
firm assembled its operations personnel into quality groups talent scout)
of 8 to 15 employees each to clarify its expectations for how
its personnel should interact with clients. 2. The product improvement approach: An agent works
with the client to modify certain characteristics that will
Gap between service quality standards and consumers’ increase her market value. (ex: plastic surgery)
expectations: when a firm makes exaggerated promises or
does not accurately describe its service to customers. 3. The market fulfillment approach: An agent scans the
Gap between expected service and actual service: when market to identify unmet needs. After identifying a need,
consumers misperceive the quality of the service. the agent then finds a person or a group that meets a set of
minimum qualifications and develops a new “product.” (Ex:
3. The Critical Incident Technique Develop a new product (band, singer) to the specifications
measuring service quality in which marketers use customer of consumer wants)
complaints to identify critical incidents—specific face-to-
face contacts between consumer and service Marketing Places
providers.Telling the customer a reasonable explanation Marketing activities that seek to attract new businesses,
why the problem can’t be solved at this time can be a good residents, or visitors to a town, state, country, or some
solution other site. This kind of activities become popular as the fact
shows huge amount of money tourism generates
Delivering Service Quality Ex: after the 2001 attack on the World Trade Center, New
Internal marketing: marketing activities aimed at York City unveiled a new tourism advertising campaign with
employees to inform them about the firm’s offerings and the slogan “The New York Miracle: Be a Part of It.” The
their high quality. campaign included six 30-second TV commercials and some
of New York’s biggest celebrities. Since then, NYC &
The service profit chain is an idea that service company Company, the city’s official tourism marketer, reports that
profits (and success) are dependent upon both employee both the domestic and overseas visitor counts are returning
and customer satisfaction, due to the inseparability of the to pre-9/11 levels
customer from the service provider.
Marketing Ideas
The chain works like: Idea marketing refers to strategies that seek to gain market
share for a concept, philosophy, belief, or issue by using
elements of the marketing mix to create or change a target
market’s attitude or behavior.
Can be even more difficult than marketing goods and
services because consumers often do not perceive that the
value they receive the extra effort necessary to realize these
goals.
The Future of Services
In fact, in recent years the accelerating impact of service as
an integral part of any firm’s value proposition has created a
new dominant logic for marketing which means we need to
recognize that a service is the central (core) deliverable in
every exchange; any physical products involved are
relatively minor in terms of their contribution to the value
proposition.
Factors that shape the future of services:
Any weak link in this chain will cause less than optimal Changing demographics: service industries that meet the
performance. needs of older consumers will see dramatic growth.
Ex: Companies that offer recreational opportunities, health
care, and living assistance for seniors will be in demand.

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Globalization: the need for logistics and distribution Step 2: Estimate Demand
services to move goods around the world
Ex: In the hotel industry, demand for luxury properties is Demand Curves
growing around the world. Hyatt International is expanding demand curve is used to illustrate the effect of price on the
aggressively in China with 14 luxury properties either open quantity demanded of a product.
or scheduled to open
Technological advances: Changing technology provides
opportunities for growth and innovation in global service
industries (telecommunications, health care, banking, and
Internet services) and to provide opportunities to improve
the lives of consumers.
Ex: do services marketing in social media, Web sites,
smartphones, blogs, and the Internet
Proliferation of information: we have become an
information society as the availability of, flow of, and access
to information are critical to the success of organizations.
These changes will provide greater opportunities for
services that facilitate the storage and transfer of
knowledge.
Ex: database services, artificial intelligence systems,
communications systems

CHAPTER 11
PRICE THE PRODUCT

Price is the assignment of value, or the amount the

consumer must exchange to receive the offering or product.
Elements of Price Planning:
Step 1: Set Pricing Objectives
Profit Objectives
 The focus is on a target level of profit growth or a desired
net profit margin.
 Marketers develop pricing strategies that maximize the
profits of the entire portfolio rather than focusing on the
costs or profitability of each individual product. Shifts in Demand
Changes in the environment or in company efforts can a
Sales or Marketing Share Objectives shift in the demand curve. A great advertising campaign, for
 If a company’s product has a competitive advantage, example, can shift the demand curve upward.
keeping the price at the same level as other firms may
satisfy sales objectives Estimate Demand
1. Identifying the number of buyers or potential buyers for
Competitive Effect Objectives their product and then multiplying that estimate times the
 A firm may deliberately try to reduce the impact of a average amount each member of the target market is likely
rival’s pricing changes to purchase
2. Predict what the company’s market share is likely to be
Customer satisfaction
 Many quality-focused firms believe that long-term profits Price Elasticity of Demand
result from making customer satisfaction the primary Marketers want to know this because it will influence the
objective decision to raise of lower prices.
Products that are considered discretionary in nature tend
Image Enhancement Objectives to have elastic demand curves.
 The image enhancement function of pricing is particularly The demand for staple products or those that we have no
important with prestige products (or luxury products) that choice in consuming, such as prescription drugs tend to be
have a high price and appeal to status-conscious price inelastic.
consumers. Assuming the goal is to maximize revenues (and profits),
 In order to set the right price, marketers must understand then for a price elastic product, it would pay to lower price
a variety of quantitative and qualitative factors that can to increase demand, while for a price inelastic product, it
mean success or failure for the pricing strategy. would pay to raise the price, because demand will decrease
relatively little in response to that change
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Cross-elasticity of demand: When changes in the price of List price or manufacturer’s suggested retail price (MSRP):
one product affect the demand for another item The price the end customer is expected to pay as
Ex: when products are complements an increase in the price determined by the manufacturer; also referred to as the
of one decreases the demand for the second. suggested retail price. The appropriate price for the end
customer to pay as determined by the manufacturer.
Step 3: Determine Costs
The channel of distribution must be able to mark up the
Variable and Fixed Costs product in order to pay for his fixed costs and profits.
Variable costs: the costs of production (raw and processed
materials, parts, and labour) that are tied to, and vary Step 4: Examine the Pricing Environment
depending on, the number of units produced. Companies must consider the influence of their external
Fixed costs: costs of production that do not change with environment when choosing the pricing strategy that will
the number of units produced. Example: costs related to the offer the best chance to maximize profits.
building and property.
Average fixed cost: The fixed cost per unit produced. Factors within the external environment:
The state of the economy (The business cycle, inflation,
Break-even analysis is a technique marketers use to economic growth, and consumer confidence)
examine the relationship between costs and price. The competition
 determine what sales volume the company must Consumer trends such as increased attention to value for
reach at a given price before it will completely cover money spent
its total costs and past which it will begin to turn a Global influences such as currency exchange rates, and
profit trade restrictions
 Break-even point is the point at which the company
doesn’t lose any money and doesn’t make any Price subsidies: government payments made to protect
profit domestic businesses or to reimburse them when they must
 Contribution per unit: The difference between the price at or below cost to make a sale. The subsidy can be a
price the firm charges for a product and the variable cash payment or tax relief.
costs-> is needed to determine BEP
 BEP provides answers about how many units the Step 5: Choose a Pricing Strategy
firm must sell to break even and to make a profit— Pricing Strategies Based on Cost
but without knowing whether demand will equal  Simple to calculate and are relatively risk free
that quantity at that price.  Drawbacks: Do not consider factors such as the nature of
the target market, demand, competition, the product life
Marginal analysis cycle, and the product’s image and accurate cost estimating
Marginal analysis: A method that uses cost and demand to may prove difficult.
identify the price that will maximize profits.
 Marketers develop successful pricing programs by
Marketers examine the relationship of marginal cost (the choosing from a variety of pricing strategies and tactics.
increase in total costs from producing one additional unit of
a product) to marginal revenue (the increase in total income Cost-plus pricing
or revenue that results from selling one additional unit of a A method of setting prices in which the sellertotals all the
product) costs for the product and thenadds an amount to arrive at
the selling price.
Marginal analysis allows marketers to consider both costs
and demand in calculating a price that maximizes profits. Demand-based pricing : A price-setting method based on
estimates of demand at different prices.
This method can be difficult to use because of the
uncertainty of cost information at different levels of Target costing: A process in which firms identify the quality
demand. and functionality needed to satisfy customers and what
price they are willing to pay before the product is designed;
Markups and Margins: Pricing through the Channel the product is manufactured only if the firm can control
Markup An amount added to the cost of a product to costs to meet the required price.
create the price at which a channel member will sell the
product. Yield management pricing: A practice of charging different
prices to different customers in order to manage capacity
Gross margin: The markup amount added to the cost of a while maximizing revenues.
product to cover the fixed costs of the retailer or wholesaler
and leave an amount for a profit. Pricing Strategies Based on the Competition price
leadership A pricing strategy in which one firm first sets its
Retailer margin: The margin added to the cost of a product price and other firms in the industry follow with the same or
by a retailer. very similar prices.

Wholesaler margin: The amount added to the cost of a Pricing Strategies Based on Customers’ Needs value pricing
product by a wholesaler. or everyday low pricing (EDLP) A pricing strategy in which a
firm sets prices that provide ultimate value to customers.

M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
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New Product Pricing Pricing and Electronic Commerce

Skimming price: A very high, premium price that a firm The Internet provides an opportunity to use some unique
charges for its new, highly desirable product pricing strategies.
Penetration pricing: A pricing strategy in which a firm Dynamic pricing: A pricing strategy in which the price can
introduces a new product at a very low price to encourage easily be adjusted to meet changes in the marketplace
more customers to purchase it. .
On-line auctions: E-commerce that allows shoppers to
Trial pricing Pricing a new product low for a limited period purchase products through online bidding.
of time in order to lower the risk for a customer.
Freenomics: A business model that encourages giving
Step 6: Develop Pricing Tactics products away for free because of the increase in profits
Pricing for Individual Products that can be achieved by getting more people to participate
Two-part pricing requires two separate types of payments in a market.
to purchase the product.
Ex: many cellular phone service providers offer customers a Psychological, Legal, and Ethical Aspects of Pricing
set number of minutes for a monthly fee plus a per-minute
rate for extra usage. Psychological Issues in Setting Prices
 In the real world consumers aren’t nearly as rational as
Payment pricing makes the consumer think the price is “do- the theory said
able” by breaking up the total price into smaller amounts
payable over time. Buyers’ Pricing Expectations
Ex: The monthly lease amount  Often consumers base their perceptions of price on what
they perceive to be the customary or fair price
Pricing for Multiple Products  When the price of a product is above or even sometimes
Price bundling: Selling two or more goods or services as a when it’s below what consumers expect, they are less
single package for one price. willing to purchase the product.
Captive pricing: A pricing tactic for two items that must be
used together; one item is priced very low, and the firm Internal Reference Prices
makes its profit on another, high-margin item essential to A set price or a price range in consumers’ minds that they
the operation of the first item. refer to in evaluating a product’s price.
assimilation effect: if the prices (and other characteristics)
Distribution-Based Pricing of the two products are fairly close, the consumer will
F.O.B. origin pricing: A pricing tactic in which the cost of probably feel the product quality is similar.
transporting the product from the factory to the customer’s
location is the responsibility of the customer. Price–Quality Inferences
Consumers make price–quality inferences about a product
F.O.B. delivered pricing: A pricing tactic in which the cost of when they use price as a cue or an indicator of quality.
loading and transporting the product to the customer is
included in the selling price and is paid by the manufacturer. Psychological Pricing Strategies
Odd–Even Pricing
basing-point pricing: A pricing tactic in which customers  Research on the difference in perceptions of odd versus
pay shipping charges from set basing-point locations, even prices indeed supports the argument that prices
whether the goods are actually shipped from these points ending in 99 rather than 00 lead to increased sales
or not.  Price lining The practice of setting a limited numberof
different specific prices, called price points, for items in a
Uniform delivered pricing: A pricing tactic in which a firm product line.
adds a standard shipping charge to the price for all
customers regardless of location. Prestige Pricing
 Sometime luxury goods marketers use a prestige pricing
Freight absorption pricing: A pricing tactic in which the strategy that turns the typical assumption about price-
seller absorbs the total cost of transportation. demand relationships
Discounting for Channel Members Legal and Ethical Considerations in B2C Pricing
Trade discounts: Discounts off list price of products to Deceptive Pricing Practices: Bait-and-Switch
members of the channel of distribution who perform  An illegal marketing practice in which an advertised price
various marketing functions. special is used as bait to get customers into the store with
the intention of switching them to a higher-priced item.
Quantity discounts: A pricing tactic of charging reduced Loss-Leader Pricing and Unfair Sales Acts
prices for purchases of larger quantities of a product.
Cash discounts: A discount offered to a customer to entice  Loss-leader pricing
them to pay their bill quickly. The pricing policy of setting prices very low or even below
cost to attract customers into a store.
Seasonal discounts: Price reductions offered only during
certain times of the year.

M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
Contac t me : muhammad.f [email protected] /@f irmanmhmd (Line) 1866
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 Unfair sales acts 3 models of marketing communication:

State laws that prohibit suppliers from selling products Buzz-building activities: use viral & evangelical marketing
below cost to protect small businesses from larger techniques as well as new social media platforms such as
competitors. brand communities, product review sites, and social
networking sites.
Legal Issues in B2B Pricing
 Illegal Business-to-Business Price Discrimination
Price discrimination regulations prevent firms from selling
the same product to different retailers and wholesalers at
different prices if such practices lessen competition.
 Price-fixing
The collaboration of two or more firms in setting prices,
usually to keep prices high.
 Predator pricing
Illegal pricing strategy in which a company sets a very low
price for the purpose of driving competitors out of business.

CHAPTER 12
ONE-TO-MANY TO MANY-TO-MANY TRADITIONAL
AND NEW MEDIA

I. One-to-many: The Traditional Communication Model

Promotion: the coordination of marketing communication
efforts to influence attitudes or behavior“savvy marketers
should consider that every element of the marketing mix is
actually a form of communication”. Marketing
communication in general performs one or more of four
roles: The Communication Model
 It info
rms consumer about new goods & services Communication Model: the process whereby meaning is
 It reminds consumers to continue using certain brands transferred from a source to a receiver.
 It persuades consumers to choose one brand over others Encoding: the process of translating an idea into a form of
 It builds relationships with customer communication that will convey meaning
Integrated Marketing Communication (IMC): the process Source: an organization or individual that sends a message
that marketers use “to plan, develop, execute, and evaluate Message: the actual content that goes from the source to a
coordinated, measurable, persuasive brand communication receiver
programs over time” to targeted audiences.
Multichannel promotion strategy: combine traditional Medium: a communication vehicle that reaches members of
advertising, sales promotion, and public relations activities a target audience.
with online buzz-building activities. 2 major challenges when choose medium:
 They must make sure the target market will be exposed to
“With IMC, marketers seek to understand what information the medium
consumers want as well as how, when, and where they  The attributes of the advertised product should match
want it – and then to deliver information about the product those of the medium
using the best combination of communication methods
available to them.” Receiver: any individual or organization that intercepts and
Traditional communication model: interprets the message.
 One -to-many: a single marketer develops & sends Decoding: the process whereby a receiver assigns meaning
messages to many, perhaps even millions of consumers at to a message
once.
 One -to-one marketing: marketers speak to consumers & “effective communication only occurs only when the source
business customers individually (example: personal selling, & receiver share a mutual frame of reference”
trade sales promotion activities) Noise: anything that interferes with effective
Word-of-mouth (WOM) Communication: when consumers communication
provide information about products to other consumers. Feedback: receivers’ reactions to the message

M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
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The Traditional Promotion Mix Brand Ambassadors/Evangelists: loyal customer of a brand

Promotion Mix recruited to communicate and be salespeople with other
the major elements of marketer-controlled communication, consumers for a brand they care a great deal about.
including advertising, sales promotion, public relations,
personal selling, and direct marketing New Social Media
Social Media: Internet-based platforms that allow users to
Elements of traditional promotion mix include: create their own content & share it with others who access
 Advertising these sites.
 Sales promotion
 Public relations Social Networks: sites used to connect people with other
 Personal selling similar people. (for example: Facebook & Twitter)
 Direct marketing
Virtual Worlds: online, highly engaging digital environments
Mass Communication where avatars live and interact with other avatars in real
Meaning of Mass Communication: relates to television, time.
radio, magazines, and newspapers.
Virtual goods: digital products bought & sold in virtual
 Advertising: nonpersonal communication from an worlds that don’t exist in real world.
identified sponsor using the mass media
 Sales promotion: programs (for example: contests, Product review sites: social media sites that enable people
coupons, other incentives) intend to stimulate immediate to post stories about their experiences with products &
action or encourage purchase of product during a specified services. For example: TripAdvisor, Yelp, and The Zagat
period Survey
 Public relations: a variety of communications that seek to
create & maintain a positive image of an organization and Mobile Apps & Geospatial Platforms
its products among various publics. Geospatial Platforms: Digital Applications that integrate
sophisticated GPS Technology to enable users to alert
Personal Communication friends of their exact whereabouts via their mobile phones
 Salespeople
 Direct mail III. Promotional Planning in a Web 2.0 World
 Telemarketing, and other direct marketing activities
Steps to develop promotional plan:
II. Many-to-many: The New Media Communication Model
Groundswell: a social trend in which people use technology
to get the things they need from each other, rather than
from traditional institutions like corporations.“many
marketers are moving money away from traditional
communicaton vehicles such as TV Advertising and investing
heavily in new media.”“Retailers also find that their online
business is growing but the internet customer is harder to
please and less loyal since they have easy access to
competing process and to the reviews of products and
sellers from other online shoppers.”
Buzz building
Buzz: word-of-mouth communication that customers view
as authentic
Current method: the magnifying effect that technology
exerts on the spread of buzz. “people like to share their
experience, good or bad, with others. Truly happy
customers will share their excitement about a brand.
Unfortunately, the unhappy ones will be even more eager
to tell their friends about their unpleasant experiences.”
Ethical problems in Buzz Marketing 1. Identify The target audiences
 Activities designed to deceive consumers IMC Marketers recognize that we must communicate with a
 Directing buzz marketing at children or teens variety of stakeholders who influence the target market.
 Buzz marketing activities that damage property
 Stealth marketingactivities that deliberately deceive or lie 2. Establish the communication objectives
on behalf of clients Hierarchy of effects: a series of steps prospective customers
move through from initial awareness of a product to brand
Viral Marketing: marketing activities that aim to increase loyalty
brand awareness or sales by consumers passing a message
along to other consumers. 3. Determine & Allocate the marketing communication
budget

M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
Contac t me : muhammad.f [email protected] /@f irmanmhmd (Line) 1868
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 Disusun oleh : Muhammad Firman (Akuntansi FE UI 2012)

CHAPTER 14
ADVERTISING ,PUBLIC RELATIONS,AND CONSUMER
SALES PROMOTION

ADVERTISING: THE IMAGE OF MARKETING

Types of Advertising

3 distinct decisions to set a budget:

 Determine the total communication budget
 Top-down budgeting: allocation of the promotion
budget based on management’s determination of
the total amount to be devoted to marketing
communication
 Percentage-of-sales budgeting method: based on a
certain percentage of either last year’s sales or on
estimates of the present year’s sales
 Competitive-parity budgeting: a promotion
budgeting method that an organization matches
whatever competitors are spending. Who Creates Advertising?
 Bottom-up budgeting techniques: based on Some firms create their own advertising in-house, in many
identifying promotion goals & allocating enough cases severalspecialized companies work together to
money to accomplish them develop an advertising campaign whichcalled advertising
 Objective-task method: an organization first defines agencies;
the specific communication goals it hopes to o Limited-service agency: provide one or more specialized
achieve and then tries to calculate what kind of services.
promotion efforts it will take to meet these goals. o Full-service agency: supplies most or all services a
 Decide whether to use a push strategy or a pull strategy campaign requires,
including research, creation of ad, media selection, and
 Push strategy: the company tries to move its production.
products through the channel by convincing
channel members to offer them. Advertising agency hires a range of specialists to craft a
 Pull strategy: the company tries to move its message and make thecommunication concept a reality,
products through the channel by building desire for such as:
its products among consumers, thus convincing
retailers to respond to this demand by stocking o Account management
these items Account executive, a member of the account
managementdepartment who supervises the day-to-day
 Allocate spending to specific promotion activities activities of theaccount and is the primary liaison between
the agency and theclient.
4. Design the promotion mix
 Planners must ask how they can use advertising, sales Account planner, a member of the account management
promotion, personal selling & PR most effectively to department who combines research and account strategy
communicate with different target audiences. to act asthe voice of the consumer in creating effective
 The message ideally should accomplish 4 objectives– get advertising.
Attention, hold Interest, create Desire, and produce Action
(AIDA Model) o Creative service, the agency people who dream up and
produce the ads.
5. Evaluate the effectiveness of the communication o Research and marketing services, collects and analyzes
program information thatwill help account executives develop a
M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
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sensible strategy and assistcreatives in getting consumer  Well established brands often use reminder ad to
reactions to different version of ads. keep their name inpeople’s mind to be sure
o Media planners, determine which communication vehicles consumers purchase the product as necessary.
are the most effective and efficient to deliver the ad
 Mystery ads: used to generate curiosity and interest
User-Generated Advertising Content in a to-be-introducedproduct by drawing attention
User-generated content (UGC) or consumer-generated to upcoming ad campaign withoutmentioning the
media (CGM): online consumercomments, opinions, advice product.
and discussions, reviews, photos, images, videos, podcasts,
webcasts, and product, related stories available to other Execution format: the basic structure of the message such
consumers. as :
 Comparison: a comparative ad explicitly names one
Do-it-yourself (DIY) ads: product ads that are created by or more competitors.
consumers. 1. Demonstration: the ad shows a product “in action”
to prove that itperforms as claimed.
Crowdsourcing: a practice in which firms outsource 2. Testimonial: a celebrity, an expert, or a man in the
marketing activities (such asselecting an ad) to a community street states theproduct’s effectiveness.
of users. 3. Slice of life: present a (dramatized) scene from
everyday life.
Ethical Issues in Advertising 4. Lifestyle: shows a person attractive to the target
- Advertising is manipulative. market in an appealingsetting.
- Advertising is deceptive and untruthful.
Tonality: the mood or attitude the message conveys
o Greenwashing: a practice in which companies promote  Straightforward: simply present the information to
their products asenvironmentally friendly when in truth the the audience in a clearmanner.
brand provides littleecological benefit.  Humor: can be an effective way to break through ad
clutter.
o Corrective advertising: advertising that clarifies or  Dramatic: a dramatization presents a problem and a
qualifies previousdeceptive advertising claims. solution in a mannerthat is often exciting and
o Puffery: claims made in advertising of product superiority suspenseful.
that cannot beproven true or untrue.  Romantic
 Sexy: some ads appear to sell sex rather than
- Advertising is offensive and in bad taste. products.
- Advertising creates and perpetuates stereotypes.  Apprehension/fear: highlight the negative
- Advertising causes people to buy things they don’t need. consequences of not using aproduct.
DEVELOP THE ADVERTISING CAMPAIGN Creative tactics and techniques
STEP 1: Understand the Target Audience o Animation and art
The best way to communicate with an audience is to o Celebrities
understand as much as possibleabout them and what turns o Music
them on and off. 1. Slogans: simple, memorable linguistic devices linked
to a brand
STEP 2: Establish Message and Budget Objectives 2. Jingles: original words and music written specifically
- Set message objectives for
What advertising can do: inform, persuade, and remind. 3. advertising executions.

- Set budget objectives STEP 4: Pretest What the Ads Will Say
Pretesting: a research method that seeks to minimize
Budget objectives are depends on how much and what type mistakes by gettingconsumer reactions to ad messages
of ad the companycan afford. before they appear in the media.
STEP 3: Create the Ads STEP 5: Choose the Media Type(s) and Media Schedule
- Start with creative strategy, the process that turns a Media planning: the process of developing media
concept into anadvertisement. objectives, strategies, andtactics for use in an ad campaign.
- The strategy is summarized in a written document known
as a creative brief, aguideline for the marketing
communication program that guides the creativeprocess. Television
TV is extremely creative andflexible.
Advertising appeals: the central idea of the ad and the basis Network TV is the most costeffectiveway to reacha mass
of the advertisingmessages. audience.
Cable and satellite TV allowthe advertiser to reach
 The informational appeals often based on a unique aselected group at relatively lowcost.
selling proposition(USP), an ad appeal that focuses A prestigious way to advertise.
on one clear reason why a particularproduct is Can demonstrate the productin use.
superior. Can provide entertainmentand generate excitement.
Messages have high impactbecause of the use

M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
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of sight and sound. magazine typically exceeds$100,000.

The message is quicklyforgotten unless it isrepeated often. Long deadlines reduceflexibility.
The audience is increasinglyfragmented. The advertiser mustgenerally use severalmagazines to
Although the relative cost ofreaching the audienceis low, reach themajority of a target market.
prices are still high onan absolute basis—often too high for Clutter.
smallercompanies. A 30-secondspot on a prime-time TV
sitcomcosts well over$250,000. Directories
Fewer people view networktelevision. Yellow pages
People switch from station tostation and zapcommercials. Customers actively seekexposure to advertisements.
Rising costs have led to moreand shorter ads,causing more Advertisers determine thequality of the ad placement
clutter. because larger ads getpreferential placement.
Limited creative options.
Radio May be a lack of color.
Good for selectively targetingan audience. Ads are generally purchasedfor a full year and cannot be
Is heard outside the home. changed
Can reach customers on apersonal and intimate level. Out-of home Media
Can use local personalities. Most of the population can bereached at low cost.
Relatively low cost, both forproducing a spot and Good for supplementing othermedia.
forrunning it repeatedly. Hard to communicatecomplex messages because
Listeners often don’t pay fullattention to whatthey hear. of short exposure time.
Difficulty in buying radiotime, especially fornational Difficult to measurereach people inpublic places
advertisers. High frequency when signs arelocated in heavy traffic
Not appropriate for productsthat must be seen areas.
ordemonstrated to beappreciated. Effective for reaching virtuallyall segments of the
Because of short lead time,radio ads can be population.
modifiedquickly to reflect changes in themarketplace. Geographic flexibility.advertisement’s audience.
Use of sound effects and musicallows listeners to usetheir Controversial and disliked inmany communities.
imagination to create avivid scene. Cannot pinpoint specificmarket segments
The small audiences ofindividual stations meansads must Internet Web Sites
be placed with manydifferent stationsand must be Can target specific audiencesand individualize messages.
repeatedfrequently. Web user registration andcookies allow marketers to
trackuser preferences and Web siteactivity.
Is interactive—consumers canparticipate in the
Newspaper adcampaign; can create do-ityourselfads.
Wide exposure providesextensive market coverage. An entertainment mediumallowing consumers to
Flexible format permits theuse of color, different sizes, playgames, download music, etc.
and targeted editions. Consumers are activeparticipants in thecommunication
Provides the ability to usedetailed copy. process, controlling whatinformation and the amount and
Allows local retailers to tie inwith national advertisers. rate of information they receive.
Readers are in the right mentalframe to Web sites can facilitate bothmarketing communication
processadvertisements about newproducts, sales, etc. and transactions.
Timeliness, i.e., short lead timebetween placing ad Consumers visit Web siteswith the mindset to obtain
andrunning it. information.
Most people don’t spendmuch time reading thenewspaper. Banners can achieve top ofmind awareness (TOMA), even
Readership is especially lowamong teens andyoung adults. without click-throughs.
Short life span—peoplerarely look at a newspapermore Banners, pop-ups, unsolicitede-mail, etc., can beunwanted
than once. and annoying.
Offers a very cluttered adenvironment. Declining click-through ratesfor banners—currently less
The reproduction quality ofimages is relativelypoor. than 0.03percent.
Not effective to reach specificaudiences. If Web pages take too long toload, consumers willabandon
the site.
Phishing is e-mail sent bycriminals to getconsumers to go to
Magazines phony Websites that will seekto gain personal
Audiences can be narrowlytargeted by specialized informationsuch as credit cardnumbers.
magazines. Because advertisers’ costs arenormally based onthe
High credibility and interestlevel provide a good number of click-throughs,competitors mayengage in click
environment for ads. fraud byclicking on a sponsoredlink.
Advertising has a long life andis often passed along to Difficult to measureeffectiveness.
other readers.
Visual quality is excellent.
Can provide detailed productinformation with a sense of Place-based media Advertising
authority. media thattransmitmessages inpublic placessuch as
With the exception of directmail, it is the mostexpensive airportswhere certaintypes of peoplecongregate.
form of advertising. Effective for certain marketssuch a
The cost of a fullpage,four-color ad in a generalaudience pharmaceuticalcompanies to reach their targetaudience.

M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
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In retail locations it can reachcustomers immediatelybefore seeing an ad during specified period without
purchase; this provides alast opportunity toinfluence the givingthe person the name of the brand.
purchase decision.  Aided recall: uses clues to prompt answers from
In locations such as airports, itreceives a high level people aboutadvertisements they might have seen.
ofattention because of lack ofviewer options.  Attitudinal measures: probes a consumer’s beliefs
Limited audience. or feelings about aproduct before and after being
Difficult to measureeffectiveness exposed to messages about it.
Branded entertainment PUBLIC RELATIONS
A form of ad inwhichmarketers integrateproducts into PR is the communication function that seeks to build good
Entertainmentvenues. relationships with anorganization’s publics, include
Brand presented in a positivecontext. consumers, stockholders, legislators, and otherstakeholders
Brand message presented in acovert fashion. in the organization.
Little control of how thebrand is positioned—is in
the hands of the director. PR functions:
Less intrusive and thus lesslikely to be avoided. - Publicity: unpaid communication about an organization
Connection with a popularmovie plot or TV program and that appears in the massmedia.
with entertaining characters canhelp a brand’s image. - Crisis management: the process of managing a company’s
Can build emotionalconnection with the audience. reputation when somenegative event threatens the
Can create a memorableassociation that serves toenhance organization’s image.
brand recall.
Difficult to measureeffectiveness. Plan a Public Relations Campaign
Costs of placement can bevery high. - PR Campaign: a coordinated effort to communicate with
one or more of thefirm’s publics.
Advergaming - Successful PR campaigns include clearly defined objectives
Brandplacements invideo games. and the use of the right PR activities.
Companies can customize theirown games or
incorporatebrands into existing populargames.
Some game producers nowactively pursue tie-ins with
brands.
Millions of gamers play anaverage of 40 hours per game
before they tire of it.
Millions of consumers havemobile phones “in their hands.”
Audience limited to gamers.
Mobile phones
A large variety of differentformats using different mobile
phone apps.
Consumers may be unwillingto receive messages through
their phones.

Media schedule
the plan that specifies the exact media to use and when to
use it.
4. Reach: the percentage of the target market that will
be exposed to themedia vehicle.
5. Frequency: average number of times a person in the SALES PROMOTION
target group will beexposed to the message.
6. Gross rating points (GRPs): a measure used for
comparing theeffectiveness of different media
vehicles, average reach x frequency.
7. Cost per thousand (CPM): a measure used to
compare the relative costeffectiveness of different
media vehicles that have different exposurerates;
the cost to deliver a message to 1,000 people or
homes.
STEP 6: Evaluate the Advertising
Post-testing: research conducted on consumer’s responses
to actual advertisingmessage they have seen or heard.
Three ways to measure the impact of an advertisement:
 Unaided recall: telephone survey or personal
interview that asks whethera person remembers

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Sales Promotion Designed to Increase Industry Visibility

o Trade Shows - Events at which many companies set up
elaborate exhibits to show their products, give away
CHAPTER 14 samples, distribute product literature and troll for new
ONE TO ONE : TRADE COMMUNICATION, DIRECT business contacts. The Benefit is the opportunity to develop
customer leads that the company then forwards to its sales
MARKETING AND PERSONAL SELLING force for follow up
o Promotional Products - Goodies such as coffee mugs, T-
Trade Sales Promotion: Targeting The B2B Customer shirts, and magnets given away to build awareness for a
 Trade Promotions- Focus on members of the supply chain sponsor. Some freebies are distributed directly to
which include distribution channel members, such as retail consumers and business customers; others as intended for
salespeople or wholesale distributor, that a firm must work channel partners such as retailers and vendors
with in order to sell its products.
o Point-of-Purchase (POP) Displays - In-store displays and
signs such as signs, mobile banners, ads and temporary
merchandising displays.
o Incentive Programs - A prize is offered to employees who
meet a prespecified sales goal or who are top performers
during a given period. Push Money - A particular type of
incentive program in which salespeople are given a bonus
for selling a specific manufacturer’s product.
Direct Marketing
Any direct communication to a consumer or business
recipient that is designed to generate a response in the
form of an order, a request for further information, or a visit
to a store or other place of business for purchase of a
product.
Mail Order - Comes in Two Forms
Catalog - a collection of products offered for sale in book
form, usually consisting of product descriptions
accompanied by the photos of the items. It can reach
people in remote place or small area or overseas.
Direct Mail - A brochure or pamphlet that offers a specific
good or service at one point in time, It can be personalized
 There are various forms of Trade Promotions : for certain objectives.
(1) As Discount and Deals
(2) To Increase Industry Visibility o Telemarketing - direct marketing an organization conducts
over the telephone. More profitable for business markets
Discount Promotions than for consumer markets.
Reduce the cost of the product to the distributor or retailer o Direct-Response Advertising - allows consumer to respond
or help to fund its advertising expense to a message by immediately contacting the provider to ask
o Allowances, Discounts and Deals questions or order the product.
Merchandising Allowance - Reimburse the retailer for in-
store support of the product, such as when a store features Direct-response TV (DRTV) - short commercials of less than
an off shelf display for a brand two minutes, 30 minutes or longer infomercial and the
shows home shopping network.
Case Allowance - Provide a discount to the retailer or
wholesaler during a set period based on the sales volume of Infomercials - Half-hour or hour-long commercials that
a product they order from manufacturer resemble a talk show but with heavy product
demonstration and spirited audience participation, but
They have Drawbacks. Forward Buying (Purchasing in large actually they are sales pitches.
quantities of the product during a discount period,
warehouse them, and don’t buy again until manufacturer o M-commerce - promotional and other e-commerce
offer discount again) and Diverting (After the promotion activities transmitted over mobile devices, such as
expired, retailer sell back to other retailer at lower price smartphones and personal digital assistants (PDAs)
than manufacture’s)
Personal Selling
o Co-op Advertising - Pay the retailer a portion, usually 50  Personal Selling - a company representative interacts
percent of the cost of any advertising that features the directly with a customer or prospective customer to
manufacturer’s product. communicate about good or services. Intimate way to talk
to customer.

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 Factors that influence a firm’s emphasis on Personal  Order-getter - A salesperson who works to develop
Selling long-term relationships with particular customers or
1. Personal Selling is more important when a firm to generate new sales.
engages in a push strategy, in which the goal is to  Team Selling - The sales function when handled by a
push the product through the channel of team that may consist of a salesperson, a technical
distribution so that it is available to consumers. specialist, and others.
2. Personal selling is likely to be crucial in business-to-
business Two Approaches to Personal Selling
3. Also important in firms’ product that infrequently  Transactional Selling - A form of personal selling
bought and expensive or very complex. that focuses on making an immediate sale with little
concern for developing a long-term relationship
with the customer
 Relationship Selling - Process by which a
salesperson secures, develops, and maintains long-
term relationships with profitable customers.
The Creative Selling Process
 Creative Selling Process - The process of seeking out
potential customers, analyzing needs, determining how
product attributes might provide benefits for the customer,
and then communicating that information
 There are Seven steps
1. Prospect and Qualify - Prospecting is process by
which a salesperson identifies and develops a list of
prospect or sales leads (potential customer). After
that salespeople need to qualify these prospect to
determine how likely they are become customers.
2. Preapproach - A part of selling process that includes
developing information about prospective
customers and planning the sales interview.
3. Approach - The first step of the actual sales
presentation in which the salesperson tries to learn
more about the customer’s needs, create a good
impression, and build relationship.
4. Sales Presentation - The part of the selling process
in which the salesperson directly communicates the
value proposition to the customer and invites two-
way communication.
5. Handle Objections - It’s rare when a prospect
accepts everything, they may raise an objections -
reasons why the prospect is reluctant to make a
commitment.
Drawback for Personal Selling - When dollar amount of 6. Close the Sale - Decision stage in which the
individual purchases is low, it doesn’t make sense to use salesperson actually asks the customer to buy the
personal selling. product. There are three approaches
1. Last Objections - Address any concerns they have
The Landscape of Modern Personal Selling about products with example question “Are you
Types of Sales Jobs ready to order if we can prove our delivery time
 Order Taker - a salesperson who processes frames met your expectations?”
transactions the customer initiates. Little creative 2. Assumptive or Minor points close - act as if the
selling is involved and lowest-paid. purchase is inevitable with example question “What
 Technical Specialist - a sales support person with quantity would you like to order?”
high level of technical expertise who assist in 3. Standing-room-only or buy-now - Customer might
product demonstrations, recommendation for miss an opportunity when deferred purchase with
complex equipment and setup machinery. example question “If you buy now, you will get 20
 Missionary Salesperson - a salesperson who discounts”
promotes the firm and tries to stimulate demand 7. Follow up - Activities after the sale that provide
for a product but does not actually complete a sale. important services to customers include arranging
Ex : a salesperson of medicine, persuades physicians delivery, payment and purchase terms.
to prescribe their medicine.
 New-business Salesperson - the person responsible Sales Management
for finding new customers and calling on them to Sales Management - Process of planning, implementing and
present the company’s product. Requires High controlling the personal selling function of an organization.
degree of creativity and professionalism. The Processes are :

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Place offers an opportunity for long-term competitive

advantage especially since many consumers now expect
“instant gratification” by getting just what they want when
the urge strikes.
 Supply chain
All the activities necessary to turn raw materials into a good
or service and put it in the hands of the consumer or
business customer.
 Distribution channels are a subset of the supply chain and
are important because a large part ofthe marketer’s ability
to deliver the value proposition rests on the ability to
understand anddevelop effective distribution strategies
Set Sales Force Objectives - State what management
expects the sales force to accomplish and when. Sales  Logistics management, which is the process of actually
manager with salespeople individual develops objectives. moving goods through the supply chain.

There are two types  Supply Chain Management is the coordination of flows
Performance Objectives - measurable outcomes among the firms in a supply chain to maximize total
Behavioral Objectives - actions that must be completed profitability-> not only the physical movement of goods but
also the sharing of information about the goods
o Create a Sales Force Strategy - establish important and
specifics such as the structure and size of firm’s sales force.  Insourcing: A practice in which a company contracts with
Each salesperson is responsible for a set group of customers a specialist firm to handle all or part of its supply chain
Sales territory, allows salespeople to have an in-depth operations
understanding of customers and their needs through
frequent contact both business and personal.  Channel of distribution: The series of firms or individuals
that facilitates the movement of a product from the
o Recruit, Train and Rewards the Sales Force - Ideal producer to the final customer.
candidates exhibits good listening skills, effective follow up
skills, ability to adapt their sales style, tenacity, high level of The major difference between a supply chain and a channel
personal organizations. of distribution is the number of members and their
functions -> A supply chain is broader (It consists of those
Training that can be provided firms that supply the raw materials, component parts, and
 Sales Training - Teaches salespeople about the supplies necessary for a firm to produce a good or service
organization and its goods and services and helps plus the firms that facilitate the movement of that product
them to develop skills, knowledge and attitudes to the ultimate users of the product.)
they require to succeed.
 Professional Development - Prepare salespeople 2. Distribution Channels
personally and professionally for new challenges  Direct channel is a channel of distribution consists of, at a
such as promotions and management minimum, a producer and a customer.
responsibilities.
Compensation to performance  Indirect channel useschannel intermediaries: firms or
individuals such as wholesalers, agents, brokers, and
 Straight Commission Plan - Solely based on a retailers who in some way help move the product to the
percentage of sales the person closes. consumer or business user
 Commission with draw plan - earnings come from
commission plus a regular payment
 Straight Salary Plan - The salesperson is paid a set
amount regardless of sales performance
 Quota Bonus Plan - Pays salespeople a salary plus a
bonus for her sales that exceed an assigned quota.
 Sales Contest - Provide prizes for selling specific
goods or services in order to boost short-term sales.
Evaluate the Sales Force -Evaluate the total effort, take
corrective action if needed
Functions of Distribution Channels
CHAPTER 15 Producers use marketing intermediaries to help distribute
DELIVER THE VALUE PROPOSITION their goods for three reasons: contactual efficiency,
specialization and division of labour, and economies of scale
Efficiencies in Distribution Channels occurs in two ways:
1. Place 1. Breaking bulk

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Dividing larger quantities of goods into smaller lots in order retailer and oroducer also can maintains control of pricing,
to meet the needs of buyers. service, and delivery .
2. Creating assortments  Producers choose to use indirect because in many cases is
Providing a variety of products in one location to meet the that customers are familiar with certain retailers or other
needs of buyers. Ex: one-stop shopping intermediaries
Facilitating functions: Functions of channel intermediaries B2B Channels
that make the purchase process easier for customers and  B2B distribution channels facilitate the flow of goods from
manufacturers. Ex: when intermediaries provide customer a producer to an organizational or business customer.
services such as offering credit to buyers
 Industrial distributor: buys products from amanufacturer
The Internet in the Distribution Channel and sells them to business customers
 Disintermediation (of the channel of distribution): The
elimination of some layers of the channel of distribution in  Direct channels are more common to B2Bmarkets
order to cut costs and improve the efficiency of the channel. because B2B marketing often means a firm sells high-profit
 Knowledge management: A comprehensive approach to items a market made up of only a few customers.
collecting, organizing, storing, and retrieving a firm’s
information assets -> will create win-win situation for all the Dual and Hybrid Distribution Systems
partners. using more than one type of channel
 Hybrid marketing system: A marketing system that uses a
3. Wholesaling Intermediaries number of different channels and communication methods
 firms that handle the flow of products from the to serve a target market.
manufacturer to the retailer or business user
 Independent intermediaries: Channel intermediaries that Distribution Channels and the Marketing Mix
are not controlled by any manufacturer but instead do  Place decisions affect pricing
business with many different manufacturers and many  Distribution decisions can sometimes give a product a
different customers. distinct position in its market. Ex: Enterprise Rent-a-Car
avoids being overly dependent on the cutthroat airport
Merchant wholesalers are independent intermediaries that rental car market as it opens retail outlets in primary
buy goods from manufacturers and sell to retailers and locations in residential areas and local business centers.
other business-tobusiness customers
Ethics in the Distribution Channel
Merchant wholesalers take title (To accept legal ownership  Slotting allowance A fee paid in exchange for agreeing to
of a product and assume the accompanying rights and place a manufacturer’s products on a retailer’s valuable
responsibilities of ownership) to the goods shelf space.
There are several different kinds of merchant wholesalers: 5. Plan a Channel Strategy
a) Full-service merchant wholesalers provide a wide range
of services for their customers, including delivery, credit, Step 1: Develop Distribution Objectives
product-use assistance, repairs, advertising, and other  In general, the overall objective of any distribution plan is
promotional support—even market research. to make a firm’s product available when, where, and in the
b) Limited-service merchant wholesalers provide fewer quantities customers want at the minimum cost.
services for their customers.  More specific distribution objectives depend on the
characteristics of the product and the market
The specific types of limited-service wholesalers: Step 2: Evaluate Internal and External Environmental
Influences
Type Description Advantages  Considering their internal and external environmentsto
Merchandise agents or brokers: Channel intermediaries that develop the best channel structure.
provide services in exchange for commissions but never  Examining issues such as its own ability to handle
take title to the product. distribution functions, what channel intermediaries are
available, the ability of customers to access these
Manufacturer-Owned Intermediaries: operate separate intermediaries, and how the competition distributes its
business units that perform all the functions of independent products.
intermediaries while at the same time they can still
maintain complete control over the channel. Step 3: Choose a Distribution Strategy
 Number of channel levels
4. Types of Distribution Channels  Conventional, vertical, or horizontal marketing system
 Channel levels: The number of distinct categories of Conventional Marketing System
intermediaries that populate a channel of distribution. A multiple-level distribution channel in which channel
members work independently of one another.
Consumer Channels The relationships are limited to simply buying and selling
 Producers choose to use direct channel because a direct from one another.
channel may allow the producer to serve its customers
better and at a lower price than is possible if it included a Vertical Marketing System (VMS)

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A channel of distribution in which there is formal Select Channel Partners

cooperation among members at the manufacturing, Considerations in selecting channel members:
wholesaling, and retailing levels. Size of the partner because it is related to the growth of the
firms if they choose a bigger firm as a partner
Is used as the way to meet customer needs better by Competitors’ channel partners because firms need to make
reducing costs incurred in channel activities. sure they display their products near similar competitors’
Ex: Franchised organizations products.
A firm’s dedication to social responsibility
Three types of vertical marketing systems:
a. Administered VMS: channel members remain Manage the Channel
independent but voluntarily work together because of the Channel leader A firm at one level of distribution that takes
power of a single channel member. a leadership role, establishing operating norms and
processes based on its power relative to other channel
b. Corporate VMS: a single firm owns manufacturing, members.
wholesaling, and retailing operations
This power comes from different sources:
c. Contractual VMS: cooperation is enforced by contracts A firm has economic power when it has the ability to
(legal agreements) that spell out each member’s rights and control resources.
responsibilities and how they will cooperate. A firm such as a franchiser has legitimate power if it has
legal authority to call the shots.
A retailer cooperative is a group of retailers that establish a A producer firm has reward or coercive power if it engages
wholesaling operation to help them compete more in exclusive distribution and has the ability to give profitable
effectively with the large chains. Ex: Associated Grocers products and to take them away from the channel
intermediaries.
Horizontal Marketing System
An arrangement within a channel of distribution in which Logistics: Implement the Supply Chain
two or more firms at the same channel level work together  Logistics: The process of designing, managing, and
for a common purpose. improving the movement of products through the supply
Ex: American Airlines is a member of the oneworld® chain. Logistics includes purchasing, manufacturing, storage,
alliance, and transport.
Intensive, exclusive, or selective distribution The application of logistics is:
Intensive distribution Physical distribution: The activities that move finished
Selling a product through all suitable wholesalers or goods from manufacturers to final customers, including
retailers that are willing to stock and sell the product. order processing, warehousing, materials handling,
to maximize market coverage transportation, and inventory control.
for products that consumers quickly consume and must  The appropriate goal is not just to deliver what themarket
replace frequently. Ex: milk needs at the lowest cost but rather to provide the product
at the lowest cost possible as long as the firm meets
Exclusive distribution delivery requirements.
Selling a product only through a single outlet in a particular
region.
Products that are high-priced and have considerable service
requirements, and when a limited number of buyers exist in
any single geographic area.
Enables wholesalers and retailers to better recoup the The functions of logistics
costs associated with long-selling processes for each Order processing
customer and, in some cases, extensive after-sale service. The series of activities that occurs between thetime an
order comes into the organization andthe time a product
Selective distribution goes out the door.
Distribution using fewer outlets than intensive distribution
but more than exclusive distribution. Transportation
For shopping products which consumers are willing to The mode by which products move among
spend time visiting different retail outlets to compare channel members.
alternatives. Ex: household appliances
For producers, this strategy means freedom to choose only Considerations in choosing transportation modes:
those wholesalers and retailers that have a good credit Dependability: The ability of the carrier to deliver goods
rating, provide good market coverage, serve customers safely and on time
well, and cooperate effectively. Cost: The total transportation costs to move a product from
one location to another, including
Step 4: Develop Distribution Tactics any charges for loading, unloading, and in-transit storage
 Necessary to implement the distribution strategy Speed of delivery: The total time to move a product from
 Usually about the type of distribution system to use, such one location to another, including
as a direct or indirect channel or a conventional or an loading and unloading
integrated channel Accessibility: The number of different locations the carrier
serves

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Capability: The ability of the carrier to handle a variety of

different products such as The Evolution of Retailing
large or small, fragile, or bulky The Wheel of Retailing: a theory that explains how retail
Traceability: The ability of the carrier to locate goods in firms change, becoming more upscale as they go through
shipment their life cycle.New types of retailers begin at the entry
phase where they find easiest to enter the market with low-
Inventory control end strategies as they offer goods at lower process than
Activities to ensure that goods are always available to meet their competitors. After they gain a foothold, they gradually
customers’ demands. trade up. They improve their facilities & increase the quality
and assortment of merchandise. Finally, retailers move on
Material Handling to a high-end strategy with even higher prices, better
The moving of products into, within, and out of facilities, and amenities such as parking & gift
warehouses. wrapping.Upscaling results in greater investment and
operating costs, so the store must raise its prices to remain
 Radio frequency identification (RFID) : Product tags profitable, which then makes it vulnerable to still newer
with tiny chips containing information about the entrants that can afford to charge lower prices and the
item’s content, origin, and destination wheel turns.Retailers must be careful not to move too
 Just in time (JIT) : Inventory management and quickly and too far from their roots. The wheel of retailing
purchasing processes that manufacturers and help us to explain the development of some but not all
resellers use to reduce inventory to very low levels forms of retailing
and ensure that deliveries from suppliers arrive
onlywhen needed. -> sets up delivery of goods just
as they are needed on the production floor.
Warehousing
Storing goods in anticipation of sale or transfer to another
member of the channel of distribution.
Supply Chain Metrics
Some of the most common ones are the following:
On-time delivery
Forecast accuracy
Value-added productivity per employee
Returns processing cost as a percentage of product revenue
Customer order actual cycle time
Perfect order measurement
Perfect order measurement: A supply chain metric that
tracks multiple steps in getting a product from a
manufacturer to a customer by calculating the error-free
rate of each stage of a purchase order.
Retail Life Cycle: a theory that focuses on the various stages
that retailers pass through from introduction to decline
CHAPTER 16
RETAILING : BRICKS AND CLICKS

I. Retailing: Special Delivery

Retailing: the final stop in the distribution channel in which
organizations sell goods and services to consumers for their
personal use
“Retailers must decide which consumer groups they can
best serve, what product assortment and services they will
provide for their customers, what pricing policies they’ll
adopt, how they’ll promote their retail operations, and
where they’ll locate their retail outlets”
“retailers belong to a channel of distribution, and as such
they provide time, place, and ownership utility to
customers. Some retailers save people time or money when
they provide an assortment of merchandise under one
roof.”

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 Marketers who anticipate theseshifts can avert decline if

they change to meet the times.
The Evolution continues: what’s “in store” for the future?
 The changing economy
o Some stores changed their merchandise assortment to
meet consumers’ preferences
 Demographics
o Convenience for working consumers; examples: extending
operating hours, add drive-up windows, etc
o Recognize ethnic diversity; examples: provide employees
who speak Spanish fluently in area which there are large
number of customers who only speak spanish
 Technology
o Point-of-sale (POS) Systems: retail computer systems that
collect sales data and are hooked directly into the store’s
inventory-control system.
o Perpetual inventory unit control system: retail computer
systems that keeps a running total on sales, returns,
transfers to other stores and so on.
o Automatic reordering system: retail reordering system
that’s automatically activated when inventories reach a
certain level.
 Globalization
Ethical problems in retailing
Shrinkage: losses experienced by retailers due to
shoplifting, employee theft, and damage to merchandise

1. In Introduction Stage  Shoplifting

The new retailer often is an aggressive entrepreneur who
takes a unique approach to doing business. (examples: low  Employee theft
prices, distinctive assortment, or different distribution – via On case by case basis, dishonest employees steal 6.6 times
internet). Low profits because of high development cost the amount shoplifters do.

2. Growth Stage  Retail borrowing: consumer practice of purchasing a

 The retailer (hopefully) catches on with shoppers, and product with the intent to return the nondefective
sales and profits rise. merchandise for a refund after it has fulfilled the purpose
 Opening more outlets and develop systems to distribute for which it was purchased.
goods to these new stores – may cut profits as the firm
invests in new buildings & fixtures  Ethical treatment of customers
The retailers have an obligation not to sell products to
3. Maturity Stage customers if the products can be harmful.
 Many other individual retailers have copied the unique
idea of the original entrepreneur to form an entire industry. II. From Mom-and-Pop to Super Walmart: How Marketeers
 Industry probably has overexpanded & intense classify retail stores
competition makes it difficult to maintain customers loyalty
 Profit decline as competitors cut their price to keep their Classify retailers by what they sell
customers  Merchandise Mix
 Firms seek to increase their share of he t market or to The total set of all products offered for sale by a retailer,
attract new customers including all product lines sold to all consumer groups.

 Ways to survive:  Combination stores

 Mergers: when 2 or more separately owned retail Retailers that offer consumers food and general
firms combine. merchandise in the same store
 Downsizing: when a firm in a mature industry closes
or sells off unprofitable stores or entire divisions.  Supercenters
Large combination stores that combine economy
supermarkets with other lower-priced merchandise

4. Decline stage Classify retailers by level of service

 Retailbusiness become obsolete as newer days of doing  Self-service retailers
business emerge.  Full-service retailers

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 Limited-service retailers: customers select merchandise Retailers tat buy excess merchandise from well-known
without much assistance, preferring to pay a bit less rather manufacturers and pass the savings on to customers
than be waited on a bit more
 Warehouse clubs
Classify retailers by merchandise selection Discount retailers that charge a modest membership fee to
 Merchandise breadth: the number of product lines consumers who buy a broad assortment of food and
available nonfood items in bulk and in a warehouse environment
1. A narrow assortment: shoppers will find only a
limited selection of product lines  Factory outlet store
2. A broad assortment: there’s a wide range of items A discount retailer, owned by a manufacturer, that sells off
defective merchandise & excess inventory
 Merchandise depth: variety of choices available within
each specific product line  Department stores
 A shallow assortment: the selection within a Retailers that sell a broad range of items & offer a good
product category is limited selection within each product line.
 A deep assortment: there’s a wide range of the
selection within a product category  Hypermarkets
Retailers with the characteristics of both warehouse stores
& supermarkets; several times larger than other stores &
offer virtually everything from grocery items to electronics
III. Nonstore Retailing
Nonstore retailing: any method used to complete an
exchange with a product end user that doesn’t require a
customer visit to a store
 Direct selling
An interactive sales process in which a salesperson presents
a product to one individual or a small group, takes orders &
delivers the merchandise.
 Door-to-door
 Parties & networks
A sales technique that relies heavily on people getting
caught up in the “group spirit,” buying things they wouldn’t
Major types of retailers normally buy if they were alone
 Convenience stores
Neighborhood retailers that carry a limited number of Multilevel networks & activities
frequently purchased items & cater to consumers willing to A system in which a master distributor recruit other people
pay a premium for the ease of buying close to home to become distributors, sells the company’s product to the
recruits, and receives a commission on all the merchandise
 Supermarkets sold by the people recruited
Food stores that carry a wide selection of edibles and
related products.  Automatic vending
Require minimal space & personnel to maintain & operate
 Box stores
Food stores that have a limited selection of items, few  B2C -ECommerce
brands per item, and few refrigerated items. A number of factors prevent online sales from growing even
more. Most consumers prefer stores where they can touch
 Specialty stores & feel items and avoid issues with returns and shipping
Retailers that carry only a few product lines but offer good costs. Also, many customers don’t like to buy online
selection within the lines that they sell. because they want the product immediately
 Category killer: a very large specialty store that
carries a vast selection of products in its category B2C’s effect on the future of retailing -> destination retail –
consumers will visit retailers not so much to buy a product
 Leased departments but for the entertainment they receive from the total
Departments within a larger retail store that an outside firm experience
rents
IV. Develop a store positioning strategy: retailing as
 Variety stores theater
Stores that carry a variety of inexpensive items Store Image: the way the marketplace perceives a retailer
relative to the competition
 Discount stores Store Design: set the stage
Retailers that offer a broad assortment of items at low
prices with minimal service
 Off
-price retailers
M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
Contac t me : muhammad.f [email protected] /@f irmanmhmd (Line) 1880
PE1
 Disusun oleh : Muhammad Firman (Akuntansi FE UI 2012)

 Atmospherics: the use of color, lighting, scents, o Long term population patterns
furnishings & other design elements to create a desired o The location of competitors
store image o The demographic makeup of an area enter into retailers’
decisions
 Traffic flow design: how shoppers will move through the
store & which areas they’ll pass or avoid Trade area: a geographic zone that accounts for the
majority of a store’s sales & customers
A site evaluation considers:
o Traffic flow
o Number of parking spaces available
o Ease of delivery access
o Visibility from the street
o Local zoning laws that determine the types of buildings,
parking, & signage allowed
o Cost factors (length of the lease & the amount of local
taxes)
o Age profile
o Community life cycle
o Mobility
o The degree of competition (saturated & unsaturated trade
area)

UTS SEMESTER GASAL 2012/2013

MANAJEMEN PEMASARAN

 Visual merchandising: the design of all the things 150 menit (Closed Book)
customers see both inside & outside the store – include
storefront (the physical exterior of a store) & marquee (the
sign that shows a store’s name)
Soal 1
 Sound of music– audio architecture a. Dalam membuat strategi pemasaran, pemasar harus
The music a store plays has become so central to its memahami pasar sasaran (target market) yang dituju serta
personality that many retailers even sell the soundtracks bauran pemasaran (marketing mix) yang diterapkan.
specially designed for them Jelaskan apa yang dimaksud dengan pasar sasaran!
 Jelaskan apa yang dimaksud dengan bauran pemasaran!
 Color & lighting Setelah membaca
Example of traffic flow design  kasus singkat tentang Seven Eleven (terlampir di halaman
Store personnel – although the presence of knowledgeable terakhir), jelaskanlah strategi bauran pemasaran yang
sales personnel is important to shoppers, they generally dilakukan Seven Eleven Indonesia!
rate the quality of service they receive from retail personnel b. Jelaskan dan gambarkan matriks empat peluang dasar
is low; a great example of store personnel are Japanese (four basic opportunities) yang dapat dimanfaatkan oleh
store personnel perusahaan di dalam suatu pasar. Berikan contoh kasus di
Indonesia untuk setiap jenis peluang.
Pricing policy – frequent sales, reduced the number of sales,
EDLP (Every day low pricing) Soal 2
a. Sebutkan dan beri contoh tiga dimensi segmentasi
Build the theater: store location customer market. Sebutkan dan jelaskan pula empat kriteria
i. Types of store locations segmen pasar yang baik. Jelaskan pula siapakah segmen
 Central business district (CBD) yang dibidik oleh Seven Eleven Indonesia? Mengapa
The traditional downtown business area found in a town or demikian? Apa latar belakangnya?
city b. Jelaskan dan berikan contoh dari strategi Single target
market approach, Multiple target market approach, dan
 Shopping center Combined target market approach. Jelaskan pula konsep
A group of commercial establishment owned & managed as positioning, dan bagaimana positioning Seven Eleven
a single property Indonesia?
 Popup store Soal 3
A Temporary retail space a company erects to build buzz for a. Uraikan tentang lingkungan eksternal pemasaran dari
its products sebuah perusahaan!
b. Berdasarkan teori lingkungan pemasaran, jelaskan
ii. Site selection: choose where to build tentang perilaku belanja online konsumen serta fenomena
Factors:

M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
Contac t me : muhammad.f [email protected] /@f irmanmhmd (Line) 1881
PE1
 Disusun oleh : Muhammad Firman (Akuntansi FE UI 2012)

Twitter dan Facebook sebagai alat komunikasi dan promosi become recreational,” said Debnath Guharoy, Asia director
perusahaan/organisasi. for Roy Morgan Research, a market research company
based in Australia.Sixty-five percent of the franchise’s
Soal 4 customers are younger than 30, and to reach them, it relies
a. Terdapat tiga tingkatan pemecahan masalah (three levels on another defining feature in Indonesia: a love of social
of problem solving) dalam proses pengambilan keputusan networking. In one of the world’s most plugged-in
konsumen individual (the consumer decision process). countries, 7-Eleven has 57,000 Twitter followers and more
Jelaskan dan beri contoh tiga tingkatan pemecahan masalah than 44,000 Facebook fans.
tersebut.
b. Sebutkan dan jelaskan perbedaan final consumer dengan Many of them spend hours surfing the Internet at 7-Eleven,
business consumer! Siapa saja pihak-pihak yang mungkin which never closes, allowing young people to gather late
mempengaruhi keputusan pembelian produk pada business into the night. When the store plays host to local bands,
consumer? customers update their social networking statuses and help
draw bigger crowds. “Before you had a dirty, sweaty little
Soal 5 street shop, and that’s all there was,” said Mr. Guharoy of
a. Dalam mendapatkan informasi pemasaran untuk Roy Morgan Research, referring to the warungs. “Now you
pengambilan keputusan, manajer pemasaran memerlukan can go to a clean, air-conditioned shop and it’s a better
MIS dan Marketing Research. Jelaskan kedua elemen experience.” To appeal to local tastes in the world’s most
tersebut dan bagaimana keduanya bermanfaat dalam populous Muslim country, 7-Eleven had to rethink its sales
pengambilan keputusan manajer pemasaran. strategy.The store offers ready-made fried rice, doughnuts
and its signature Big Gulp soft drinks and flavored-ice
b. Jelaskan minimal dua informasi apa yang dibutuhkan Slurpees.
manajer pemasaran dalam mengambil keputusan
pemasaran serta apa kegunaan informasi tersebut? Most outlets also sell beer and wine coolers — though each
new shop conducts neighborhood surveys to get
Soal 6 community approval first. Meals can cost less than 23,000
a. Jelaskan dan berikan contoh jenis-jenis kelas produk rupiah, which appeals to families that might once have gone
konsumen (consumer product classes) disertai to McDonald’s, a close competitor. Novi, a 37-year-old
pertimbangan bauran pemasaran (marketing mix travel agent who, like many Indonesians, goes by only one
consideration) untuk masing-masing kelas produk! name, said she liked the comfort of being indoors and the
international food options. Her favorite is chicken katsu, a
b. Gambarkan dan jelaskan dengan lengkap Product Life Japanese-style fried cutlet.
Cycle disertai strategi bauran pemasaran yang paling sesuai
diterapkan untuk masing-masing tahapannya! “There is a different kind of atmosphere, a different kind of
food,” she said, in comparing 7-Eleven with the food stalls
she used to frequent. “There is air-conditioning here and
LAMPIRAN there areno buskers to bother you.” The store’s Big Bite hot
dogs and cafe items — coffee and cappuccino — bring in
7 Eleven Finds a Niche By Adapting to Indonesian Ways the most sales. Small snacks like chips and pillow bread, tiny
(New York Times, by SARA SCHONHARDT, Published: May sandwiches filled with cheese or chocolate, are also
28, 2012) popular.With 69stores in Indonesia, all of them in Jakarta, 7-
Eleven lags behind its closest competitors, including
JAKARTA — As night falls, groups of twenty-somethings McDonald’s, Dunkin’ Donuts and KFC, which together have
gather at a trendy hangout, chatting at tables laden with more than 600 outlets.
beer, iced coffee and nachos. Some couples cuddle over
chocolate pudding, while others groove to music on their The swift growth of the middle class shows the enormous
iPhones.The nightspot has live bands, Wi-Fi and a growing potential for expansion. From 2003 to 2010, about 50
clientele.It also has a familiar green-and-orange sign million people entered the middle-income bracket, with
hanging overhead: 7-Eleven. disposable income of $2 to $20 per day, accordingto the
World Bank. Indonesia’s gross domestic product per capita
“It’s a new concept of hanging out,” said Oka Dharmawan, is now more than $3,600, exceeding that of India, the
21, an engineering student who meets friends at 7-Eleven second-largest consumer market in Asia, after China.
almost every night to log onto the wireless hot spot and
drink Slurpees.Ten years ago, young people in Indonesia Local convenience stores are also expanding into special
gathered at street-side food stalls called warung to hang out niches. Bao Bao Express, a chain set up in 2010 by a local
and gossip. But with rapid economic growth has come social Chinese-Indonesian businessman, caters to office workers
change.“People still like to talk about their lives, they like to by offering a laundry service and allowing people to pay
gossip,” said Henri Honoris, president director of Modern their electricity and water bills at the register. It operates in
Putra, 7-Eleven’s Indonesian franchisee. “Now we give them office buildings and apartment towers, a strategic move
an alternative. It’s a warung with better quality.” that keeps it from running up against a zoning by law that
prevents convenience stores from being too close to
The franchise’s strategy has been to blend a small traditional markets. For 7-Eleven, positioning itself as more
supermarket with inexpensive ready-made food and of a hangout and less of a convenience store has made both
seating, which attracts customers in a city desperately its owners and its customers happy.
lacking outdoor recreation space and snarled bytraffic jams
that often restrict mobility. “The neighborhood 7-Eleven has

M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
Contac t me : muhammad.f [email protected] /@f irmanmhmd (Line) 1882
PE1
 Disusun oleh : Muhammad Firman (Akuntansi FE UI 2012)

peluang yang ditawarkan lingkungan eksternal tersebut.

UTS SEMESTER GASAL 2013/2014 Jelaskan dengan lengkap faktor‐faktor apa saja yang harus
dipertimbangkan perusahaan dalam menganalisis
MANAJEMEN PEMASARAN lingkungan eksternalnya.
Soal 3 (20%)
150 menit (Closed Book) Metallica adalah sebuah band Amerika Serikat
beranggotakan empat orang yang beraliran heavy metal.
Band ini pertama kali didirikan di Los Angeles pada tahun
Soal 1 (15%) 1981. Anggotanya sekarang adalah James Hetfield, Lars
Dewasa ini Indonesia tengah dilanda over demand dalam Ulrich, Kirk Hammett dan Robert Trujillo. Band ini mencapai
banyak kategori sehingga konsumsi tumbuh berkali lipat. puncak popularitasnya di awal tahun 1990‐an dengan album
Akibatnya kuantitas sumber daya yang tersedia semakin Metallica (The Black Album) yang mencapai penjualan
menipis, dan kualitasnya juga kian menurun seiring dengan quadruple platinum (empat juta keping) dan menjadi album
tingginya eksploitasi. Penduduk semakin padat, daya beli nomor satu di delapan negara Amerika dan Eropa. Bacalah
meningkat, barang impor membanjiri pasar, dan kota‐kota kasus di bawah ini terkait konser Metallica di Jakarta dan
besar bermunculan menjadi sentra ekonomi yang jawablah pertanyaan-pertanyaannya!
melahirkan kelas menengah baru Indonesia.
Dewi Safitri
Asia Development Bank (2010) mendefinisikan kelas Produser BBC Indonesia
menengah dengan rentang pengeluaran perkapita perhari 26 Agustus 2013 ‐ 12:22 WIB
sebesar US$2‐20. Rentang inilah yang kini banyak dipakai
untuk mengukur jumlah kelas menengah di Indonesia. GBK yang berkapasitas 80 ribu terisi sebagian besarnya pada
Rentang pengeluaran perkapita tersebut dibagi lagi ke Minggu malam. Konser grup music cadas asal California, AS,
dalam tiga kelompok yaitu masyarakat kelas menengah Metallica mendapat banyak pujian dan berlangsung aman
bawah (lower middle class) dengan pengeluaran per kapita saat dipentaskan Minggu (25/08) malam di lapangan sepak
per hari sebesar US$2‐4; kelas menengah tengah bola Gedung Olah Raga Bung Karno, Jakarta.
(middlemiddle class) sebesar US$4‐10; dan kelas menengah
atas (upper‐middle class) US$10‐20 (Purchasing Power Panggung musik hingar‐bingar ini berlangsung dua jam
Parity tahun 2005). Dengan rentang pengeluaran US$2‐20 tanpa jeda, menampilkan nomor‐nomor terbaik Metallica
maka didapatkan jumlah kelas menengah Indonesia dalam sedikitnya 18 lagu.Puluhan ribu penonton yang
sebanyak 134 juta (2010) atau sekitar 56% dari seluruh sangat menikmati pertunjukan ini nampaknya sangat
penduduk. mengesankan empat pemain yang jejingkrakan di
panggung. Kuartet musik keras yang sudah sembilan kali
Dalam surveinya, McKinsey Global Institute menyebut kelas diganjar penghargaan Grammy di AS ini sudah pernah
menengah dengan istilah “consuming class”. Definisinya manggung di Jakarta 20 tahun lalu. Saat itu dua hari konser
adalah individu yang memiliki pendapatan sebesar US$ di Stadion Lebak Bulus ditutup dengan rusuh massa yang
3600 (PPP, 2005) ke atas. Dengan definisi ini, maka jumlah ditandai dengan pembakaran dan perusakan ratusan
kelas menengah kita mencapai 45 juta pada tahun 2010 dan bangunan dan kendaraan.
akan meroket menjadi 134 juta pada tahun 2030. Kelas
menengah sesungguhnya tidak melulu ditentukan secara Jejak kerusuhan tahun 1993 itu sama sekali tak nampak
kuantitatif dengan indikator pendapatan dan pengeluaran dalam konser yang terutama dipadati kelompok fans usia di
semata. Berbagai indikator kualitatif lain bisa digunakan atas 30 tahun, mereka yang sejak bocah menggemari jenis
seperti tingkat pendidikan, akses pada layanan kesehatan, musik riuh ini Selain Hetfield dan Hammet, Metallica juga
pekerjaan, bahkan indicator psikografis seperti tingkat diawaki Lars Ulrich (drum) dan Robert Trujillo (bass).
melek investasi, wawasan pengetahuan, atau kesadaran Gubernur Jokowi yang dikenal sangat menggemari music
partisipasi politik. keras, semalam juga tampil berkaos hitam menonton
konser dengan takzim berdiri di tengah barisan penonton
Pertanyaan: kelasfestival.
a) Berikanlah analisis saudara terhadap consumer needs &
consumer wants yang berpotensi muncul dengan fenomena Dengan sangat simpatik, berkali‐kali Hetfield melontarkan
di Indonesia seperti di atas. kalimat sapaan dan candaan yang disambut tepuk sorak
b) Jika Anda memiliki modal untuk mengembangkan sebuah barisan penonton fanatiknya. Hatfield tak nampak beranjak
produk, produk apakah yang ingin Anda buat? Jelaskan pula tua, atau kelelahan, meski menyanyi non‐stop. Dari belasan
strategi pemasaran yang relevan untuk memasarkan produk repertoar yang dimainkan, hampir seluruhnya dimainkan
tersebut. dengan musik dan vocal yang sangat bertenaga, termasuk
saat Master of Puppets, Creping Death, Seek and Destroy
Soal 2 dilantunkan dan disambut penonton dengan headbanging
a) Sebutkan dan jelaskan dengan singkat 5 langkah dalam dan acungan jari yang membentuk tanduk ke udara.
melakukan perencanaan strategis (Strategic Planning), Tercatat hanya Nothing Else Matters nomor relatif lembut
kemudian jelaskan dengan lengkap mengenai Product‐ yang dibawakan oleh Metallica.
Market Growth Matrix yang dapat digunakan perusahaan
dalam langkah terakhir dari proses perencanaan strategis Dengan usia awak band rata‐rata mendekati setengah abad,
tersebut. termasuk Hetfield yang genap 50 tahun, penampilan penuh
b) Perusahaan perlu melakukan analisis lingkungan tenaga ini dipuji fans. Pujian juga datang dari sekelompok
eksternal agar siap menghadapi segala tantangan dan anak belasan tahun yang mengaku datang karena

M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
Contac t me : muhammad.f [email protected] /@f irmanmhmd (Line) 1883
PE1
 Disusun oleh : Muhammad Firman (Akuntansi FE UI 2012)

"penasaran pada cerita para senior" di sekolah. Mario Rabu, 11 September 2013 | 20.46 WIB
Pratama, 17, bersama empat kawan dari Ciputat nonton
untuk menuntaskan rasa ingin tahu pada Metallica. KOMPAS.com ‐ Sebelum kemunculannya, iPhone 5C ramai
"Ternyata memang bagus sekali, sekali dalam 20 tahun diberitakan sebagai iPhone versi "murah" yang menyasar
man," pujinya sambil mengacungkan tiga jari salam metal. segmen menengah. Harganya diperkirakan berada pada
Matang Meski Jakarta sudah menjadi sarang konser musisi kisaran 400 hingga 500 dollar AS. Namun, seperti dikutip
ternama dunia dalam beberapa tahun terakhir, konser dari The Verge, kenyataan yang terjadi sedikit berbeda dari
Metallica kelihatan dianggap istimewa di mata penggemar. ekspektasi karena iPhone 5C masih termasuk relatif "mahal"
dengan kisaran harga mencapai 549 dollar AS atau Rp 6,2
Sepanjang akhir pekan media nasional menyiarkan berbagai juta untuk versi 16GB tanpa kontrak.
sisi tentang penyelenggaraan pentas musik ini, termasuk
bagaimana calon penonton rela datang dari berbagai iPhone 5C merupakan jawaban Apple atas ancaman
daerah dan menginap di tenda seadanya agar bisa mengirit smartphone Android di segmen menengah. Spesifikasi
uang untuk menonton Metallica manggung. Nicolaj teknis yang mencakup prosesor A6, layar 4 inci, kamera
Andersen datang dari Bali juga khusus untuk menonton depan, baterai yang relatif besar, dan casing plastik
setelah terakhir menonton penampilan grup keras ini di menegaskan hal tersebut. Posisi harga iPhone 5C terjepit
Kopenhagen, 20 tahun lalu saat baru berusia 14 tahun." Ini iPhone 5S di segmen atas dan iPhone 4S 8GB di segmen
konser yang cukup emosional buat saya, karena mereka bawah. Pada dasarnya, perangkat ini merupakan iPhone 5
adalah idola masa kecil saya posternya ada di dinding yang terbungkus balutan cangkang plastik warna‐warni
kamar," kata warga Denmark ini. Yang menarik untuk menarik konsumen dengan desain baru.
perhatiannya, menurut Andersen selain fisik yang tampak
sangat prima adalah perubahan grup yang dinilainya Tingkatkan margin
merupakan buah 'kematangan' usia para awak, terutama Lalu, untuk apa Apple merilis produk ini? iPhone 5C
sang motor band, James Hetfield. sekaligus menggantikan iPhone 5 yang produksinya
dihentikan, mungkin agar keduanya tak bersaing langsung.
Pertanyaan: Ketimbang menurunkan harga model terdahulu, Apple
a) Berdasarkan kasus tersebut di atas, jelaskan faktor‐faktor memperkenalkan model baru yang dihargai lebih murah.
internal dan eksternal apa saja yang dapat mempengaruhi
para fans Metallica dalam membeli tiket dan menonton Langkah tersebut agaknya diakukan untuk menawarkan
konser Metallica? produk yang sesuai di tengah-tengah menurunnya harga
b) Menurut Anda, variabel segmentasi apa saja yang dapat jual rata‐rata iPhone (ASP) di pasar‐pasar yang sensitif harga
digunakan oleh promotor konser Metallica? Jelaskan! seperti China. Pada 2009 lalu, ASP iPhone berada di kisaran
Segmen manakah yang kira‐kira menjadi target utama dari 613 dollar AS. Tapi pada kuartal kedua tahun ini angka
konser ini? tersebut turun menjadi 581 dollar AS.
Soal 4 (15%) Apple masih menawarkan iPhone 4S di lini bawah dengan
Apa sajakah perbedaan antara pelanggan kapasitas storage yang dipangkas menjadi 8GB. Akan tetapi,
business‐to‐business (B2B) dan business‐to‐ consumer jika Apple berhasil menarik konsumen untuk membeli
(B2C)? Bagaimana perbedaan‐perbedaan tersebut dapat iPhone 5C ketimbang iPhone 4S, margin yang diambil oleh
mempengaruhi strategi pemasaran? Jelaskan tipe‐tipe perusahaan itu mungkin bias dipertahankan atau malah
pembelian dalam pasar B2B dan jelaskan perbedaan strategi ditingkatkan. Dibanding model lama yang sudah mulai
pemasaran untuk tiap tipe pembelian tersebut! terasa kuno, iPhone berwarna‐warni yang berisi hardware
iPhone generasi terdahulu boleh jadi akan terlihat lebih
Soal 5 (30%) menarik di mata konsumen. Lagi pula, selama ini Apple
a) Jelaskan mengenai klasifikasi produk konsumen dan memang terkenal bisa mendorong konsumen agar
produk bisnis. Berikan contoh masing‐masing. membelanjakan lebih banyak uang untuk perangkat yang
b) Jelaskan konsep Product Life Cycle (PLC), gambarkan sedikit lebih bagus.
kurvanya dan jelaskan strategi pemasaran yang relevan
untuk tiap tahapan dalam PLC. Sumber
c) Jelaskan pengertian jasa, dan jelaskan karakteristik jasa http://tekno.kompas.com/read/2013/09/11/2046245/strat
beserta contohnya, serta jelaskan apa saja implikasi strategi egi.iphone.murah.yang.tidak.murah
pemasaran untuk masing‐masing karakteristik jasa tersebut.
Pertanyaan :
a. Jelaskan strategi harga apa yang dilakukan oleh iPhone
UAS SEMESTER GASAL 2013/2014 5c?
b. Menurut Anda, mengapa Apple melakukan strategi harga
MANAJEMEN PEMASARAN tersebut? Apa kelebihan dan kekurangan bagi Apple dengan
menerapkan strategi harga tersebut?
c. Menurut Anda, apakah strategi ini merusak positioning
150 menit (Closed Book) Apple ?
Soal 2
Soal 1 a. Bandingkan model traditional one‐to‐many marketing
communication dengan model many‐to‐many
Strategi "iPhone Murah" yang Tidak Murah communication yang terbaru! Apa yang membuat
Penulis: Oik Yusuf | terjadinya pergeseran model komunikasi ini? Sebutkan

M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
Contac t me : muhammad.f [email protected] /@f irmanmhmd (Line) 1884
PE1
 Disusun oleh : Muhammad Firman (Akuntansi FE UI 2012)

kelebihan dan kekurangan model komunikasi baru tersebut

bagi para marketer!
b. Jelaskan pengertian dari Public Relations (PR) dan
publicity. Berikan juga 3 PR tactics beserta penjelasannya.
Soal 3
Anda saat ini menjabat sebagai seorang manajer sebuah
merek mobil ternama yang saat ini sedang mengalami
penurunan penjualan karena seringnya merek mobil yang
Anda jual tersebut mengalami kecelakaan di jalanan,
Sebutkan 5 bentuk kunci promosi direct marketing (key
forms of direct marketing) menurut Solomon. Aplikasikan 5
bentuk promosi tersebut untuk mengatasi permasalahan
yang dihadapi perusahaan Anda sehingga dapat
meningkatkan penjualan mobil tersebut.
Soal 4
a. Adakah keterkaitan antara Supply‐Chain Management
dengan saluran distribusi (Distribution Channel)?
Jelaskanlah!
b. Sebutkan dan jelaskanlah fungsi dari saluran distribusi!
Soal 5
Jelaskan apa yang dimaksud dengan "store image" dan
jelaskan elemen‐elemen store image. Berikan contoh
deskripsi store image dari toko ritel yang Anda kunjungi
untuk tugas kelompok Anda.
Soal 6
Dalam McCarthy dkk, salah satu kritik untuk pemasaran
adalah bahwa pemasaran cenderung membuat konsumen
materialistik (marketing makes people materialistic).
Jelaskan argument yang pro dan kontra terhadap
pernyataan ini. Bagaimana sikap Anda?

M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
Contac t me : muhammad.f [email protected] /@f irmanmhmd (Line) 1885
PE1