中山大学吴柏林教授 “广告学原理”绝密资料_kotler04exs

２０４《商场现代化》２００６年２月（上旬刊）总第４５７期名人广告在促销中有重要作用，因此很多有实力的企业将其作为品牌战略的重要组成部分。

然而名人广告也存在一些问题，其中最突出的是名人与产品、名人与目标市场不统一，造成产品定位不准确，削弱广告的说服力，甚至会损害品牌形象。

解决这一问题的基本策略是对名人进行细分。

一、名人领域细分就像没有一种产品能满足消费者全方位的需要一样，没有一位名人具有全方位的影响力。

名人的名气源于一定的领域，名人只能在自己所从事活动的相关领域内对消费需求产生一定的影响。

如果选择外交家基辛格和篮球明星乔丹分别为国际时事杂志和运动鞋做形象代言人，应该有相当好的传播效果；如果互换产品后再让他们做形象代言人，效果甚至还不如普通人。

罗纳尔多是足球明星，做体育用品的形象代言人应该能很好地吸引消费者；然而作为“金嗓子喉片”广告的角色就显得苍白无力，罗纳尔多精湛的球技和“喉片”实在没有什么关联。

不能准确选择一定领域的名人从事广告活动，结果必然是名人与产品的错位。

二、名人性别细分在一般情况下，适合某一性别消费者使用的产品，或由某一性别消费者作出购买决策的产品，应由同一性别的名人来传播产品信息。

巩俐主演的野力干红葡萄酒的广告典雅、华贵，有很强的感染力，因为红葡萄酒也是适合女性饮用的酒。

设想让巩俐主演主要由男性消费的白酒的广告，则使人感到可笑。

同样，大阳牌摩托车的目标消费者是青年男性，由巩俐主演的“大阳摩托，心随我动”的广告难以打动目标消费者。

这是名人与目标受众的在性别上的错位。

三、名人年龄细分在一般情况下，适合某一年龄段消费者使用的产品，或由某一年龄段消费者作出购买决策的产品，应由该年龄段的名人来传播产品信息。

肯德基快餐的主要消费群之一是儿童，而购买决策者很可能是慈爱的祖辈，于是就让活泼可爱的儿童和和蔼慈祥的老人来影响目标消费者。

虽然其中的儿童和老人不是名人，但从这则成功的电视广告中也可看出产品信息传递者和名人广告与名人细分王佩玮 郭 旭　华东理工大学软件与信息管理学院［摘 要］　名人细分是实施名人广告策略的前提。

C HAPTER 12--D ESIGNING G LOBAL M ARKET O FFERINGS OVERVIEW:Companies no longer can focus only on their domestic market, no matter how large the market.Many industries are global industries, and their leading firms achieve lower costs and higherbrand awareness. Protectionist measures can only slow down the invasion of superior goods; the best company defense is a sound global offense. At the same time, global marketing is risky dueto shifting borders, unstable governments, foreign exchange problems, technological pirating,high product- and communication-adaptation costs, and other factors. The steps in goinginternational include:1)understand the international marketing environment, particularly the international tradesystem. In considering a particular foreign market, the firm must assess the economic,political, legal, and cultural characteristics.2)consider what proportion of foreign to total sales to seek, whether to do business in a fewor many countries, and what types of countries to enter.3)decide which particular markets to enter, and this calls for evaluating the probable rate ofreturn on investment against the level of risk.4)decide how to enter each attractive market. Many companies start as indirect or directexporters and then move to licensing, joint ventures, and finally direct investment; thiscompany evolution has been called the internationalization process.5)decide on the extent to which the product, promotion, price, and distribution should beadapted to individual foreign markets.6)develop an effective organization for pursuing international marketing. Most firms startwith an export department and graduate to an international division. A few become globalcompanies, which means that top management plans and organizes on a global basis. LEARNING OBJECTIVES:After reading the chapter the student should understand:∙The importance of international markets∙The riskiness of international markets∙How to make international marketing decisions∙Differing entry strategies∙Differing marketing organizationsCHAPTER OUTLINE:I.IntroductionII.Deciding Whether to Go Abroad - there are several factors that might draw a companyinto the international arenaIII.Deciding which Markets to Enter - a company must define its international objectives andpoliciesIV.Deciding How to Enter the MarketA.Indirect Export - work through independent intermediaries to export productsB.Direct Export - a company handles its own exports, through a domesticdepartment, overseas sales branch, traveling reps, or foreign-baseddistributors/agents.C.Licensing - sell a foreign company the rights to your manufacturing processD.Joint Ventures - join with local investors to share ownership and controlE.Direct Investment - direct ownership of foreign-based operationsF.The lntemationalization Process: no regular export activities, export viaindependent reps, establishment of one or more sales subsidiaries, establishementof production facilities abroad.V.Deciding on the Marketing ProgramA.Product - straight extension, product adaptation, product inventionB.Promotion - communication (promotion) adaptation, dual (product andpromotion) adaptationC.Price - uniform price, market-based price, cost-based priceD.Place (Distribution Channels) - links include seller’s international marketin gheadquarters, channels between nations, and channels within nationsVI.Deciding on the Marketing OrganizationA.Export Department -firm ships goods to other countries.B.International Division - firm becomes involved in several international marketsand venturesC.Global Organization - firm no longer thinks of itself as a national marketer. Allmanagement and staff are involved in worldwide pursuits.VII.SummaryMarketing and Advertising1. A BC Carpet, which is headquartered in New York City, placed this ad to let U.S. consumers know that its carpets and floor coverings are also sold in the main branch of the Harrods department store in London, England. Why would A BC want to announce this arrangement to consumers in New York City? Is this an example of exporting, a joint venture, or direct investment? How would A BC benefit from entering the UK market in this way?Answer: ABC may have two reasons for announcing that its carpets are sold in London as well as in New York City. First, it can enhance its own image by connection with the prestigious Harrods department store. Second, it may have found through research that some U.S. consumers also travel to London, so it wants to let these consumers know that ABC carpets can be purchased there, as well. This is an example of exporting, because ABC is sending its carpets to be sold at Harrods; it is not setting up a special business jointly with Harrods, nor is it directly investing in facilities in Harrods or in London. ABC would benefit from this arrangement by avoiding the expense, risk, and commitment that joint ventures and direct investment entail while testing sales opportunities through exporting.Focus on TechnologyDetails, details—the exporter's day is filled with details, including a blizzard of government paperwork. Now technology is helping exporters cut through the federal paper chase. The U.S. Customs Service, U.S. Department of Commerce, and other federal agencies have jointly developed the Automated Export System (AES), an electronic version of the multiple forms exporters used to have to complete by hand for several government agencies. With AES, exporters input data only once, using the Electronic Data Interchange (EDI) format, then transmit the form to the U.S. Customs Service. This system streamlines the exporting process, saving time and improving the accuracy of the data collected.Visit the U.S. Customs Service Web site (/). Follow the Importing/Exporting link to the Exporting section, then click on Automated Export System to read a little about AES. Does thissystem affect the distribution channels between nations or the channels within foreign nations? Why do you think the U.S. government developed AES? Who benefits from exped iting the paperwork associated with exporting? Explain your answers.Answer: The Automated Export System affects the distribution channels between nations, because it deals with the way products are exported from the United States to distributors in other countries. Once products leave the United States, the AES has no influence on the channels within foreign nations. The U.S. government probably developed this system to speed up the detailed, complex process of exporting products while gathering more accurate data about the products being exported. Both exporters and the government benefit from needing fewer people to handle the paperwork and to check the accuracy of the data.Marketing for the MillenniumMarketers participating in global e-commerce need to speak the languages of their target customers. Two good examples are the Web sites of Reebok (/) and Nestlé(/html/network.html). The Reebok home page is a gateway for specialized Web sites designed for consumers in Europe, France, Germany, Italy, Spain, the United Kingdom, Hong Kong, and Korea. The Nestlé site links to company sites for Taiwan, Australia, Brazil, Chile, New Zealand, Switzerland, Spain, Germany, France, Japan, Sweden, Greece, and the United Kingdom.Point your Web browser to either the Reebok or the Nestlé Web site, then follow two of the links to company sites in other languages. What visual differences and similarities do you notice between the sites in other languages? Which of the sites (if any) allow online purchases? How do the sites encourage consumers to contact the company? Why are local contact points (phone, mail, address) important for local customers?Answer: Students' answers will vary according to their choice of Web sites. In general, sites based in other countries or using other languages will have some visual differences. Few if any of these sites allow online purchases because Nestlé and Reebok both emphasize distribution through retail channels. Many of the sites invite feedback via e-mail, although some also provide addresses and phone numbers of regional offices. Local contact points allow local customers to get help with problems or have qu estions answered in their own language.YOU'RE THE MARKETER: SONIC MARKETING PLANGlobal marketing offers a way for companies of all sizes to grow by expanding their customer base beyond the domestic market. However, the complexities of global marketing demand careful planning and proper execution.As Jane Melody's assistant, you are researching the global market for Sonic's shelf stereo systems. Review the company's current situation and the research you have already gathered for your marketing plan. Then answer these questions about Sonic's global marketing strategy (noting the need for additional research where necessary):∙If Sonic wants to start marketing its products in other countries, should it use exporting, licensing, joint ventures, or direct investment? Why?∙What international markets seem most promising for Sonic? For data about international trade and marketing in specific countries, visit the Web site of the U.S. Department of CommerceInternational Trade Administration (); also check the links on the Web site ofthe University of Michigan Center for International Business Education and Research(/busres.htm).∙Is global standardization or adaptation most appropriate for Sonic? To answer, you will have to research electronics standards in your chosen market(s) as well as consumer behavior andcompetitive products. How can you collect such data?What marketing-mix strategy and tactics are most appropriate for Sonic to use in other countries?After you have examined potential global markets and marketing mix-strategies and tactics, summarize your ideas in a written marketing plan or them into the appropriate sections of th e Marketing Plan Pro software, including Markets, SWOT and Issue Analysis, and Marketing Strategy.Answer: To get started in global commerce, Sonic should begin by exporting its products to other countries. This minimizes the investment, risk, and commit ment and allows the company to fairly easily change its mind and stop selling in other countries. Sonic may want to first investigate Canada and Mexico as potential markets for its products, if local economies are sound and competition is not too fierce. Shipping products to those markets is less expensive than shipping to overseas markets. Also, Canada and Mexico are major trading partners with the United States, so much assistance is available to exporters targeting those countries. Through research, students may identify additional countries that seem promising.Some global adaptation is a must for Sonic, because of the variation in electrical standards around the world. Also, consumers in different markets may have different needs and preferences; and the competition can vary widely from country to country, which will affect Sonic's marketing strategy. Sonic may be ableto obtain this kind of information from distributors in other countries as well as from U.S. agencies that assist companies with exporting. Students will have many different ideas for marketing mix strategy and tactics; these should be consistent with Sonic's overall goals and mission and with all the other strategy elements.。

C HAPTER 6--A NALYZING C ONSUMER M ARKETS AND B UYING B EHAVIOR OVERVIEW:In addition to a company’s marketing mix and factors present in the external environment, a buyer is also influenced by personal characteristics and the process by which he/she makes decisions. A buyer’s cultural characteristics, including values, perceptions, preferences, and behavior learned through family or other key institutions, is the most fundamental determinant of a person’s wants and behavior. Consumer markets and consumer buying behavior have to be understood before sound marketing plans can be developed.The consumer market buys goods and services for personal consumption. It is the ultimate market in the organization of economic activities. In analyzing a consumer market, one needs to know the occupants, the objects, and the buyers' objectives, organization, operations, occasions and outlets.The buyer's behavior is influenced by four major factors: cultural (culture, subculture, and social class), social (reference groups, family, and roles and statuses), personal (age and life cycle state, occupation, economic circumstances, lifestyle, and personality and self-concept), and psychological (motivation, perception, learning, and beliefs and attitudes). All of these provide clues as to how to reach and serve buyers more effectively.Before planning its marketing, a company needs to identify its target consumers and their decision processes. Although many buying decisions involve only one decision maker, some decisions may involve several participants, who play such roles as initiator, influencer, decider, buyer, and user. The marketer's job is to identify the other buying participants, their buying criteria, and their influence on the buyer. The marketing program should be designed to appeal to and reach the other key participants as well as the buyer.The amount of buying deliberateness and the number of buying participants increase with the complexity of the buying situation. Marketers must plan differently for four types of consumer buying behavior: complex buying behavior, dissonance-reducing buying behavior, habitual buying behavior, and variety-seeking buying behavior. These four types are based on whether the consumer has high or low involvement in the purchase and whether there are many or few significant differences among the brands.In complex buying behavior, the buyer goes through a decision process consisting of need recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior. The marketer's job is to understand the buyer's behavior at each state and what influences are operating. This understanding allows the marketer to develop an effective and efficient program for the target market.LEARNING OBJECTIVES:After reading this chapter students should:∙Understand the major factors influencing consumer behavior∙Know and Recognize the types of buying decision behavior∙Understand the stages in the buying decision processCHAPTER OUTLINE:I.IntroductionII. A Model of Consumer BehaviorIII.Major Factors Influencing Buyer BehaviorA.Cultural Factors1.Culture - values, perceptions, and preferences that are the mostfundamental determinant of a person’s wants and behavior.2.Subcultures - nationalities, religions, racial groups, geographical regions3.Social Class - hierarchically ordered divisions in a society; membersshare similar values, interests and behavior. (see Table 6-1)B.Social Factors1.Reference groups - all groups that have an influence on attitudes orbehavior.2.Family - the most influential primary reference group.3.Roles and statuses - activities a person is expected to perform and thestatus associated with each.C.Personal Factors1.Age and life cycle stage - people buy different goods over their lifetime.2.Occupation and Economic circumstances -a)blue collar v. white collarb)spending income, savings and assets, debts, borrowing power,and attitude toward spending versus saving --- all impactsproduct choice.3.Lifestyle - pattern of living as expressed by activities, interests, opinions4.Personality and self-concept. - each person has distinguishingpsychological characteristics that influence buying behavior.5.Psychological Factorsa)Motivation - correlated to the strength of a need (Freud, Maslow,Herzberg)b)Perception - selective attention, selective distortion, selectiveretentionc)Learning - changes in behavior arising from experience.d)Beliefs and attitudes - a belief is a descriptive thought a personholds about something; an attitude is a person’s e nduringfavorable or unfavorable evaluations, emotional feelings, andaction tendencies toward some object or idea.IV.The Buying Decision ProcessA.Buying Roles - five different roles: initiator, influencer, decider, buyer and userB.Buying Behaviorplex buying behavior - high involvement, significant differenceamong brands2.Dissonance-reducing buying behavior - high involvement, little or noperceived difference among brands. Purchase is fairly quick.3.Habitual buying behavior - low involvement, little or no brand difference4.Variety-seeking buying behavior - low involvement but perceivedsignificant brand differences. May occur to relieve boredom.C.The Stages in the Buying Decision Process1.Problem recognition - difference between actual state and desired statermation search - both internal and external sources3.Evaluation of alternatives - different process for every consumer,involves weighing product attributes and their ability to deliver benefits4.Purchase decision - form a preference and intention to buy. Actualpurchase can be influenced further by attitudes of others andunanticipated situational factors.5.Postpurchase behavior - satisfaction or dissatisfaction will lead tosubsequent behavior that can have both positive and negative effects. V.SummaryMarketing and Advertising1. Business travelers have specific needs to be addressed through buying behavior, as this Sheraton Four Points Hotels ad indicates. What personal and psychological factors in the buying process have been incorporated into this ad? In terms of the buying decision for hotel accommodations during a business trip, which role or roles are being addressed by this ad? Which stage of the consumer buying process is this ad most likely geared toward? Why?Answer: Among the personal factors incorporated into the Sheraton Four Points Hotels ad are: buyer's occupation, lifestyle, personality, and self-concept. Among the psychological factors incorporated into the ad are: motivation, perception, learning, and beliefs and attitudes. The consumer's role in the working world as someone who must travel on business is being addressed by this ad. In addition, the ad seems to be addressing consumers who have higher status roles in the work world, compared to those who have lower status roles. This ad is mostly likely geared toward the information search stage in the consumer buying process, because it offers information to help the buyer learn about this Sheraton Hotels brand, its features, and its benefits.Focus on TechnologyCookies—tiny bits of data about on-line activities that are stored on a user's computer—are controversial. On-line marketers like cookies because they reveal what consumers are buying, which sites they are visiting, and other personal details. Based on cookie data, CDnow and are two of a growing number of marketers that can create personalized Web pages geared to individual consumers' preferences and purchasing patterns.Many companies post their Internet privacy policies so consumers can see how cookie data are collected and used. Still, privacy advocates worry about allowing marketers access to personal information. Consumers who use Internet browsers by Netscape and Microsoft can block cookies, but the default setting for these programs allows cookies. As a result, consumers may not even know that cookies are being stored on their computers. If you headed the marketing department at on-line bookseller , what would you say in your privacy policy? How would you expect this policy to influence consumer attitudes and behavior?Answer: Students will offer a variety of responses. They might include the following types of messages in a privacy policy for : reassurance that the company will not release personal information without the consumer's knowledge and approval; and a guarantee that personal information will be strictly safeguarded against unauthorized access. These messages would encourage consumers to have a positive attitude toward giving personal information rather than worrying about misuse of the information; they would also encourage consumers to feel good about buying from the company. Marketing for the MillenniumPsychographic research has gone digital. Marketers getting ready for the new millennium can use psychographic research tools such as SRI Consulting's iVALS and Forrester Research's Technographics to segment consumers based on technology types. The iVALS approach, for example, groups consumers into10 segments: Wizards, Pioneers, Upstreamers, Socialites, Workers, Surfers, Mainstreamers, Sociables, Seekers, and Immigrants.To see how iVALS operates, visit SRI Consulting's Web site and take the latest survey, which includes questions about new media (/vals/surveynew.html). Also examine the section on iVALS types (/vals/ivals.segs.html). Why would marketers want to use this type of psychographic segmentation? Which marketers (or products) would benefit most from the application of iVALS segmentation? Why?Answer: Marketers would want to use iVALS to better understand how segments of consumers and businesspeople feel about and use technology. In turn, this understanding can help marketers develop strategies for targeting the right segment for the right kind of technological product use. It can also help marketers understand the reasons why these people behave as they do, which allows marketers to craft appropriate messages and choose suitable media for reaching targeted segments at the right time with the right product. Segmentation using iVALS would most benefit marketers of electronics products, telecommunications for home and office, and other products that incorporate technology in some way. Students may offer additional ideas.YOU'RE THE MARKETER: SONIC MARKETING PLANEvery marketer has to study consumer markets and behavior prior to developing its marketing plan. This enables marketers to understand who constitutes the market, what and why the market buys, who participates in the buying, and how, when, and where the market buys.You are responsible for researching and analyzing the market for Sonic's shelf stereos. Look again at the company's current situation, then answer these questions about the market and buyer behavior (noting the need for additional research where necessary):∙What cultural, social, personal, and psychological factors have the most influence on buyers of shelf stereos? What research tools would help you better understand the effect on buyerattitudes and behavior?∙Which specific factors should Sonic's marketing plan focus on?∙What buying roles and buying behaviors relate to shelf stereo products?∙What kind of marketing activities should Sonic plan to coincide with each stage of the consumer buying process?After you have analyzed your markets and consumer behavior, consider the implications for Sonic's marketing efforts. As your instructor directs, summarize your findings and conclusions in a written marketing plan or type them into the Marketing Situation, SWOT/Issue Analysis, and TargetMarkets/Positioning sections of the Marketing Plan Pro software.Answer: Students are likely to come up with a variety of responses to these questions, depending on the rest of their marketing plan ideas and the strategies they want Sonic to pursue. As a sample, students may say that the target market's values of material comfort, practicality, and similar cultural values all influence buyers of shelf stereos. Social factors that may influence these buyers are the viewpoint of opinion leaders, the interaction and roles of family members in buying shelf stereos. Personal factors having the most influence might include age and life-cycle stage, economic circumstances, and lifestyle. Psychological factors having the most influence on such purchases might include perception and beliefs and attitudes. among the buying roles, Sonic might choose to use its advertising to target the initiator and the decider (students may suggest and support the choice of other roles). Sonic also needs more research to determine whether its products are considered high or low involvement and what type of buying behavior is associated with purchases of shelf stereos.Finally, Sonic should plan activities for every stage of the consumer buying process. Sonic's goal in the first stage is to help consumers recognize a need for a new shelf stereo, using advertising and other activities (students will offer many ideas). In the second stage, Sonic needs to be sure it provides as muchinformation in as much depth as consumers require, not just from commercial sources but from public sources and experiential sources. Personal sources will work in Sonic's favor if friends and others are satisfied with Sonic's products. In the third stage, Sonic must be sure its brand-building activities contribute to the consumer's evaluation of the product as having the right benefits and attributes to satisfy their needs. In the fourth stage, Sonic should plan marketing activities that ensure a positive buying situation as well as lower perceived risk. In the fifth and final stage, Sonic's marketing activities should reassure consumers that they have made the right decision and continue to provide satisfaction when customers need service or have other contact with the company.。

“鸡尾酒会现象”不被注意的信息的命运如果你已经选择性地注意了一个知觉呈现的子集——依赖于你自己的目标或刺激的属性——那么那些没有被你注意的信息会有什么结局呢?想像一下当你正在听一个讲座的时候，你的两边都有人在谈话。

你如何跟上讲座的进程?你会注意到交谈中的什么内容?是不是任何出现在谈话内容中的信息都会把你的注意从讲座上转移开?这些问题最早由布罗德本特(Donald Broadbent) (1958)研究，他把心理看成是一个通讯的通道——像一条电话线或计算机的连线——积极地加工和传播信息。

根据布罗德本特的理论，作为一个通讯的通道，心理只有有限的资源去执行全部的加工。

这个限制要求注意严格调整从感觉到意识的信息流。

注意形成了一个通过认知系统的信息流的瓶颈，把一些信息过滤掉，让另一些信息继续进入。

注意的过滤器理论表明选择发生在加工的早期，在获得输入的意义之前。

为了检验过滤器理论，研究者用双耳分听(dichotic lis- tening)技术，在实验室重建了有多重输入来源的现实场景。

在这种范式中，被试戴着耳机听同时呈现的两种录音信息——不同的信息呈现给不同的耳朵。

被试被要求仅仅把两种信息中的一种重复给实验者，而把另一耳中的信息都忽略掉。

这种程序被称为掩蔽注意信息(见图5．10) 。

研究者发现，当注意已经过滤了所有被忽视的材料使得回忆不可能发生时，有些被试仍能回忆一些信息，这使过滤器理论极端模型受到了挑战(Cherry，1953)。

例如，试想一下你自己的名字。

人们总是报告说在一个喧闹的房间里，即使在聊天的时候也能听到有人喊他们的名字。

这经常被称为鸡尾酒会现象。

图5．10 双耳分听任务被试听到在每只耳朵同时呈现的不同的阿拉伯数字：2(左)，7(右)，6(左)，9(右)，1(左)，和5(右)。

他报告听到正确的数列——261和795。

然而，当要求被试仅仅注意右耳的输入，他报告只听到795。

PART ONE -- UNDERSTANDING MARKETINGMANAGEMENTCHAPTER1--M ARKETING IN THE T WENTY-F IRST C ENTURY OVERVIEWMarketing is the company function charged with defining customer targets and the best way tosatisfy their needs and wants competitively and profitably. Since consumers and business buyersface an abundance of suppliers seeking to satisfy their every need, companies cannot survive today by simply doing a good job. They must do an excellent job if they are to remain in theincreasingly competitive global marketplace. Recent studies have demonstrated that the key toprofitable company performance is knowing and satisfying target customers with competitivelysuperior offers. This process takes place today in an increasingly global, technical andcompetitive environmentMarketing has its origins in the fact that humans have needs and wants. Needs and wants create astate of discomfort in people, which is relieved through acquiring products to satisfy these needs and wants. Since many products can satisfy a given need, product choice is guided by the concepts of value, cost, and satisfaction. These products are obtainable in several ways: self-production, coercion, begging and exchange. Most modern societies work on the principle of exchange, which means that people specialize in producing particular products and trade them for the other things they need. They engage in transactions and relationship-building. A market is a group of people who share a similar need. Marketing encompasses those activities that represent working with markets and attempting to actualize potential exchanges.Marketing management is the conscious effort to achieve desired exchange outcomes with targetmarkets. The marketer's basic skill lies in influencing the level, timing, and composition ofdemand for a product, service, organization, place, person, idea or some form of information. There are five alternative philosophies that can guide organizations in their efforts to carry out their marketing goal(s). The production concept holds that consumers will favor products that are affordable and available, and therefore management's major task is to improve production and distribution efficiency and bring down prices. The product concept holds that consumers favor quality products that are reasonably priced, and therefore little promotional effort is required. The selling concept holds that consumers will not buy enough of the company's products unless they are stimulated through a substantial selling and promotion effort.Heading towards more enlightened views of the role of marketing, the marketing concept holdsthat the main task of the company is to determine the needs, wants, and preferences of a targetgroup of customers and to deliver the desired satisfactions. Its four princ iples are target market, customer needs, integrated marketing, and profitability. The marketing concept places primary focus on the needs and wants of customers who comprise the target market for a particular product. Rather than coax customers into purchasing a product they may not find satisfying, the emphasis is on determining the types of markets to be satisfied, and creating the product thatachieves this satisfaction objective. Choosing target markets and identifying customer needs is no small task; a marketer must dig beyond a customer’s stated needs. Once this is accomplished, a marketer can offer for sale the products that will lead to the highest satisfaction. This encourages customer retention and profit, which is best achieved when all areas/departments of a company become “customer-focused”.Moving beyond the marketing concept, the societal marketing concept holds that the main task of the company is to generate customer satisfaction and long-run consumer and societal well-being as the key to satisfying organizational goals and responsibilities.Interest in marketing is intensifying as more organizations in the business sector, the nonprofit sector, and the global sector recognize how marketing contributes to improved performance in the marketplace. The result is that marketers are re-evaluating various marketing concepts and tools focus on relationships, databases, communications and channels of distribution, as well as marketing outside and inside the organization.LEARNING OBJECTIVES:After reading this chapter students should:∙Know why marketing is important to contemporary organizations∙Understand the core concepts of marketing∙Know the basic tasks performed by marketing organizations and managers∙Understand the differences between the various orientations to the marketplace∙Know the components of the marketing concept and why they are critical to successful marketing practice∙Know why marketing has been found to be critical to different types of organizations and in different environments.CHAPTER OUTLINE:I.Introduction --- Importance of Marketing in Contemporary Organizations - with rapidchanges come both challenges and opportunities, marketing allows organizations to take advantage of these opportunitiesII.Marketing TasksA.Scope of Marketing -- Involves a broadened View of Marketing - to types ofentities (goods, services, and ideas)1.Products are anything offered for sale or exchange that satisfies a need orwant.2.Products can be goods, services, ideas -- and also people, places,activities, organizations and information.B. A Broadened View of Marketing Tasks - Decisions Marketers Make -1.Consumer Markets and Business Markets - Each requires new tools andcapabilities to better understand and respond to the customer.2.Global Markets, Nonprofit and Governmental Markets - Becoming moresophisticated in recognizing and dealing with marketing challenges anddecisions.III.Marketing Concepts and ToolsA.Defining Marketing1.Marketing Defined - a social and managerial process by whichindividuals and groups obtain what they need and want through creating,offering, and exchanging products of value with others.B.Core Marketing Concepts1.Target Markets and Segmentation - Every product or service containsfeatures which a marketer must translate into benefits for a target market.It is these benefits the consumer perceives to be available in a productand directly impacts the perceived ability to meet the consumer need(s)or want(s).2.Marketers and Prospects - a marketer is someone actively seeking one ormore prospects for an exchange of values. A prospect has beenidentified as willing and able to engage in the exchange.3.Needs, Wants, and Demands - to need is to be in a state of feltdeprivation of some basic satisfaction. Wants are desires for specificsatisfiers of needs. Demands are wants for specific products that arebacked by an ability and willingness to buy them.4.Product or offering - Anything offered for sale that satisfies a need orwant. Products consist of three primary components: goods, servicesand ideas. The physical product provides the desired service or action.5.Value and Satisfaction - Value is the consumer’s estimate of theproduct’s overall capacity to satisfy his or her needs determinedaccording to the lowest possible cost of acquisition, ownership and use.6.Exchange and Transactions - exchange means obtaining a desiredproduct by offering something desirable in return. Five conditions mustbe satisfied (p.11) A transaction is the trade of values (involves severaldimensions).7.Relationships and Networks - Relationship marketing seeks long-term,“win-win” transactions between marketers and key parties (suppliers,customers, distributors) The ultimate outcome of relationship marketingis a unique company asset called a marketing network of mutuallyprofitable business relationships.8.Marketing Channels - Reaching the target market is critical. To do thisthe marketer can use two-way communication channels (media-newspapers through the Internet), versus more traditional means. Themarketer also must decide on the distribution channel, trade channels andselling channels (to effect transactions).9.Supply chain - the long channel process that reaches from the rawmaterials and components to the final product / buyers. Perceived as avalue delivery system.petition - Includes actual and potential rival offerings and substitutes.A broad view of competition assists the marketer to recognize the levelsof competition, based on substitutability: brand, industry, form andgeneric.11.Marketing Environment - Includes the task (immediate actors in theproduction, distribution and promotional environments) and the broadenvironments (demographic, economic, natural, technological, political-legal and social-cultural).12.Marketing Mix - the set of marketing tools the firm uses to pursuemarketing objectives with the target market. Involves recognition anduse of the four Ps and the four Cs in the short run and the long run.pany Orientations Toward the MarketplaceA. The Production Concept - Assumes consumers will favor those products that arewidely available and low in cost.B. The Product Concept - Assumes consumers will favor those products that offerthe best combination of quality, performance, or innovative features.C.The Selling Concept - Assumes organizations must undertake aggressive sellingand promotion efforts to enact exchanges with otherwise passive consumers.D.The Marketing Concept _- Assumes:1.The key to achieving organizational goals consists of being moreeffective than competitors in integrating marketing activities towarddetermining and satisfying the needs and wants of target markets.2.Target Market - no company can operate in every market and satisfyevery need.3.Customer Needs - it’s not enough to just find the market; marketers mustalso understand their customer's needs and wants. This is not a simpletask.4.Integrated Marketing - all of a company’s departments must worktogether to serve the customer’s interests. This begins among the variousmarketing functions and carries out into other departments.5.Profitability - the ultimate purpose of marketing is to help organizationsachieve profitability goals.6.Hurdles to Adopting a Marketing Concepta)Organized Resistance - some departments see marketing as athreat to their power in the organizationb)Slow Learning - despite efforts by management, learning comesslowc)Fast Forgetting - there is a strong tendency to forget marketingprinciples7.ProfitabilityE.The Societal Marketing Concept1.Societal Marketing Concept - the organization’s task is to determine theneeds, wants, and interests of target markets and to deliver the desiredsatisfactions more effectively and efficiently than competitors in a waythat preserves or enhances the consumer’s and the society’s well-being. V.How Business and Marketing are Changingpany Responses and Adjustments - the focus here is on reengineering thefirm, outsourcing goods and services, e-commerce, benchmarking, alliances(networking), partner-suppliers, market-centered (versus product centered), localand global marketing (versus only local), and decentralization to encourageinnovative thinking and marketing.B.Marketer Responses and Adjustments - Focus on relationship marketing (versustransactional marketing), creation of customer lifetime value orientation, focuson customer share marketing versus only market share, target marketing (versusmass marketing), individualization of marketing messages and offerings,customer databases for data-mining, integrated marketing communications forconsistent images, consideration of channel members as partners, recognition ofevery employee as a marketer, and model and fact-based decision making versusintuition alone.VI.SummaryMARKETING A ND ADVERTISING1. The A ir Canada ad in Figure 1 stresses the time-saving aspect of its flights between the United States and Canada as well as the frequent flier mileage benefits. How do these two elements affect the ratio of benefits to cost in the value equation? Other than advertising lower ticket prices, how else can Air Canada use its advertising to affect the value perceived by customers? Suggest at least two specific value-enhancing approaches Air Canada might take.Answer: By reducing the amount of time needed to fly between the United States and Canada, Air Canada lowers the total costs in the denominator of the value equation, which raises the value ratio. In addition, the frequent flyer benefits add to the numerator of the value equation, again raising the value ratio. Two other ways Air Canada can use its advertising to affect the value perceived by customers are: (1) invite travelers to use specially-equipped Air Canada waiting lounges with office amenities such as e-mail access and fax machines, which boosts the benefits; and (2) invite customers to sign up for a special service that automatically notifies up to three relatives and/or business associates when a customer's plane arrives at its destination, which cuts the psychic costs and adds to the emotional benefits. Students may offer other value-enhancing ideas.2. The marketing network of Dow Chemical Company consists of a wide range of stakeholders, including customers, employees, suppliers, distributors, and volunteers and beneficiaries of nonprofit organizations such as Habitat for Humanity. Why would Dow advertise its support of Habitat for Humanity? What effect does the company expect this ad to have on its relationships with various stakeholders? How can Dow build on strong stakeholder relationships to compete more effectively in the construction industry?Answer: Dow advertises its support of Habitat for Humanity because it believes in the societal marketing concept. Some students may argue that Dow is also enhancing the emotional benefits that customers perceive in its products and enhancing its relationship marketing by creating a stronger social tie with customers and other stakeholders. In addition, Dow is putting a more human face on its corporation and products. Dow expects this ad to encourage customers (both consumers and businesses), suppliers, and other global stakeholders to choose and support Dow products because the company is conscientiously balancing profitability and customer satisfaction with concern for society's well-being.Dow can build on strong stakeholder relationships to compete more effectively in the construction industry in various ways. One suggestion: create specialized programs to attract and retain construction customers that are particularly interested in supporting social causes s uch as Habitat for Humanity. Another suggestion: expand this type of program to include the wholesale and retail companies that carry Dow products, which strengthens channel relationships and motivates channel members to do an even better job of selling Dow construction products. Students are likely to offer other creative ideas.FOCUS ON TECHNOLOGYCharles Schwab, based in San Francisco, is a giant discount brokerage firm offering a wide range of investment and financial services options. When someone visits a Schwab office or calls the company, employees can immediately bring up that customer's online records and talk knowledgeably about investments and services suited to that customer's individual situation. Schwab also invites customers to open accounts, locate financial research, place trades, and track market trends on its Web site. Browse the Schwab Web site (), looking at the offerings and the online demonstration of Schwab capabilities. How does this Web site confirm Schwab's focus on the customer? Why is employee access to complete and current customer records especially important in the brokerage business? What other parts of Schwab must be properly coordinated to ensure integrated marketing for customer satisfaction?Answer: The Schwab Web site can be customized to fit each customer's interests; it also offers a wide range of information, resources, and tools to help customers address their financial needs. In this way, Schwab confirms its focus on the customer. Brokerage employees need access to complete and current customer records because securities trading requires speedy response. Outdated or incomplete information can cost customers money and aggravation—making customers angry and ultimately driving them away.Other parts of Schwab that must be coordinated to ensure integrated marketing for customer satisfaction are: external marketing, with the marketing mix accurately reflecting Schwab's features and benefits; internal marketing, with all employees trained and motivated to provide excellent customer service; all layers of management, ready to assist the front-line people who handle customer transactions and customer service; and all company departments ready to work together to respond to and satisfy Schwab's customers.MARKETING FOR THE MILLENNIUME-commerce is growing exponentially because of its convenience, savings, selection, personalization, and information. Still, figuring out exactly how to reach the right cybercustomers can be challenging for even the largest marketers. Kraft, Kellogg, and other companies are learning to use targeted banner advertisingto reach the customer segments most likely to be interested in their products. These companies boosted online sales significantly by placing banner ads on Peapod, a Internet-based grocery shopping service. Untargeted ad banners, by comparison, are inexpensive but draw less customer response. Visit Peapod's Web site () and type in your zip code, as directed. Then sign in to take the shopping demonstration showing which products are offered and how the service operates. What types of products could potentially benefit from advertising on this site? What kind of information would these marketers want from Peapod in order to determine the value of targeted banner advertising on this site? How might Kellogg use banner advertising on Peapod to support a new cereal product? To support an existing cereal product?Answer: Branded grocery products in particular can potentially benefit from advertising on Peapod's Web site—as long as online customers can purchase these products from Peapod. This Web advertising would reinforce the messages of other marketing communications such as broadcast commercials and print ads, building consumer demand and preference for the branded products. In addition, grocery products that represent impulse purchases (such as snacks) would benefit from advertising on Peapod, because consumers can make an immediate purchase to satisfy the wants generated by these ads.Marketers would want to know how many consumers view Peapod's ads; how many consumers have responded (if this information is available) to previous ads; how many other products in the marketer's category are advertising at the same time on Peapod banners (to gauge competition); ho w long the banner will run; and how fees will be calculated (according to number of clicks, number of times page is accessed, or other method?). Students may suggest other questions, as well.Kellogg can use banner advertising on Peapod to support a new cereal product by starting with a banner that highlights the new cereal's main feature and benefit while clearly identifying the target audience ("Try Cereal X, a good tasting, low-sugar cereal for children," for example). It can also use the banner to remind consumers when to watch for the new product on Peapod's listings; when to watch for commercials andprint ads promoting the new product; when to check for special new-product pricing. Kellogg can use banner advertising on Peapod to support an existing cereal product by reinforcing the name and main feature/benefit ("Special K has all essential vitamins for healthy bodies," for example), reminding consumers to watch for the product's advertising in other media ("See ad in this week's newspaper"), urging consumers to stock up during price specials, and so on. Students will have other creative ideas for ways that Kellogg can use banner advertising on Peapod.。

Chapter 8 – Dealing with the CompetitionI. Chapter Overview/Objectives/OutlineA. OverviewIn the marketplace, many companies develop effective products, channels, pricing, and advertising. However, many of these companies lose in the marketplace. There may be many reasons, but a critical variable may be an inability to understand the competitive environment and to gather and utilize data on that environment.To prepare an effective marketing strategy, a company must consider its competitors as well as its actual and potential customers. This is especially necessary in slow growth markets because firms generally gain sales by wining them away from competitors.A company‘s closest competitors seek to satisfy the same customers and needs and make similar product and service offers. A company should also pay attention to its latent competitors that may offer new and/or different ways to satisfy the same needs. The company should identify its competitors by using both an industry and market-based analysis.A company should gather information on competitor strategies, objectives, strengths, weak-nesses, and reaction patterns. The company should study and understand competitor strategies in order to identify its closest competitors and take appropriate action. The company should know the competitor‘s objectives in order to anticipate further moves and reactions. Knowledge of the competitor‘s strengths and weaknesses permits the company to refine its own strategy to take advantage of competitor weaknesses while avoiding engagements where the competitor is strong. Understanding typical competitor reaction patterns helps the company choose and time its moves.The firm should collect, interpret, and disseminate competitive intelligence continuously. Company marketing executives should be able to obtain full and reliable information about any competitor that could have bearing on a decision. As important as a competitive orientation is in today‘s markets, companies should not overdo their focus on competitors. Changing consumer needs and latent competitors are more likely to hurt a firm than the existing competitors. Companies that maintain a good balance of consumer and competitor considerations are practicing effective market orientation.B. Teaching Objectives∙Know the difference between the industry and market concepts of competition.∙Understand how to identify competitor strategies.∙Understand how to determine competitor objectives.∙Understand how to estimate competitor reaction patterns.∙Know how to design competitive intelligence systems.∙Know how to select competitors to attack or avoid.Understand what it means to balance a customer and competitor orientation.C. Chapter OutlineI.Introductionpetitive Markets and CompetitorsA.Market Attractiveness - Porter‘s Five Forces determine the attractiveness of themarket1.Three of the Porter forces emanate from threats related to competitors:intense segment rivalry, new entrants and substitute products.2.The other two forces respond to threats connected to the firm‘s moreimmediate market environment: Buyer bargaining power and supplierbargaining power.III.Identifying Competitors -Four levels: brand, industry, form, and genericA.Industry Concept of Competition - Changing with the Internet1.Number of Sellers and Degree of Differentiation (monopoly, oligopoly,monopolistic competition, and pure competition)2.Entry, Mobility, and Exit Barriersa)Ease of entry into market and various (existing and new)segmentsb)Exit and Shrinkage Barriers - Ease of exit and reduction in size.3.Cost Structure - Reducing largest costs and most cost efficient plant(s)4.Degree of Vertical Integrationa)Backward and forwardb)Integration from source through retail (degree of)c)Outsourcing to specialists to lower costs5.Degree of GlobalizationB.Market Concept of Competition1.Many companies make the same product2.Many companies pay attention to other companies that satisfy the samecustomer need.petitor AnalysisA.Strategies: Strategic groups – differs, depending on various key variables in anindustry.B.Objectives: What drives the competitors – constant monitoring.C.Strengths and Weaknesses – competitive positions in the market:1.Dominant, strong, favorable, tenable, weak, nonviable.2.The basis for evaluation of strengths and weaknesses:a)Share of marketb)Share of mindc)Share of heartd)Result: Those that make steady gains in mind and heart shareinevitably make gains in market share and profitability.D.Reaction Patterns1.Depends on competitive equilibrium2.Single factor critical and multiple competitive factorspetitive Intelligence SystemA.Designing the Competitive Intelligence System1.Four Main Steps:a)Setting up the systemb)Collecting the datac)Evaluating and analyzing the datad)Disseminating information and respondingB.Selecting competitors to attack and to avoid - major steps in customer valueanalysis are:1.Customer Value Analysis - Evaluating major attributes that customersvalue.a)Assess quantitative importance of the different attributes.b)Assess company and competitor performance on the differentcustomer values against their rated importance.c)Examine how customers in a specific segment rate thecompany‘s performance against a specific major competitor onan attribute-by-attribute basis.d)Monitor customer values over time.2.Classes of Competitors - following customer value analysis:a)Strong versus weakb)Close versus distantc)Good versus badd)Customer value analysis helps a marketer perceivecompany/product value to a customer relative to competitorproduct value(s).VI.Designing Competitive StrategiesA.Market-Leader Strategies1.Expanding the total market, with new users, new uses, and more usage.2.Defending market share, with position, flank, preemptive,counteroffensive, mobile, and contraction defensive strategies.3.Expanding market share (note Procter & Gamble and Caterpillar casestudies) - Line-extension, brand-extension, multibrand, etc., strategies.B.Market-Challenger Strategies1.Defining the strategic objective snd the opponents2.Choosing a general attack strategy (frontal, flank, encirclement, bypass,guerrilla)a)Marketing Skills: Guerrilla Marketing - Creative Thinking(maximum customer attention with minimal investment)3.Choosing a specific attack strategy (Price-discount, lower-price goods,prestige goods, product proliferation, product innovation, improvedservices, distribution innovation, manufacturing cost reduction, andintensive advertising promotion)C.Market-Follower Strategies1.Levitt: product imitation might be as profitable as product innovation2.Broad strategies: counterfeiter, cloner, imitator, adapterD.Market-Nicher Strategies1.The key is specialization2.They must constantly create new niches, expand and protect.3.High margin versus high volumeE.Balancing Customer and Competitor Orientations1. A firm should not become consumed by a competitor-centered strategy.2. A customer-centered company relies on customer developments andresearch and can better identify new opportunities and long runmarketing strategies.VII.SummaryII. LecturesA. “Competitive Intelligence”This discussion focuses on the uses of various sources of information for marketing. It is useful to update the examples so that students will be able to identify readily with this concept based on their general knowledge of the techniques, companies, and products involved in the lecture/discussion. There are many different approaches to competitor research. Marketers should consider the process and implications.Teaching Objectives∙To stimulate students to think about the need for and value of competitive analysis.∙To present points to consider in proceeding with development of a competitive analysis program.∙Recognize some of the better sources of information for various marketing questions.DiscussionI NTRODUCTIONIn the marketplace, many companies do a first class job of developing a great product, great channels, great pricing, and great advertising. You might say—Wow! That is great. However, many of these companies not only lose in the marketplace, but they lose big.The reasons may be management, financial, etc., but when we get right down to it the answer may be much more interesting. The critical variable may be the competitive intelligence that the firm failed to get at the right time, with the right detail. In this discussion, we will look at some of the issues and questions behind choosing the right sources as well as approaches that might be useful in preparing the competitive intelligence program that will do the job.First, the Kotler text gives some excellent examples of how to scan the competitive environment. As part of this framework, it also is useful to determine where to get the information, that the analyst is able to determine where and how to use the questions asked, and that the data developed is based on the marketing and strategic plans, not just collected in a random manner. This requires knowledge of a number of variables and then bringing it all together to be utilized in the firm‘s marketing positioning effort. Remember, to achieve an effective competitive analysis it is essential to place the process in perspective.C OMPETITIVE A NALYSISThe logical starting point for the strategy analysis is to understand effectively the competitive structure and attractiveness of the industry. It is important to recognize that some industries are and will be more profitable than others. It is important also to know the real strengths of the industry, and the firms within the industry, not only in overall terms but also in specific detail. Many times appearances can be deceiving. Consider, for example, companies that project a great public relations image but in reality are quite the opposite. (Enron could serve well as an example).A logical overview of this process comes from Porter‘s five basic forces of competition:∙Threat of new entrants∙Rivalry among existing competitors∙Bargaining power of suppliers∙Bargaining power of buyers∙Threat of substitutesWhat determines the strength of each of these five forces in the industry? The process is shaped by a number of underlying structural determinants. It is important to remember that any of the forces that undermine the structure of an industry likely will cause profitability to decline. A good example is the dot-coms that raced to steal markets from the existing well-organized physical retailers but had little to offer except investor hype. Their inability to show quality and superior results led to investor disenchantment and the loss of confidence that they could produce a profit against the existing competition. This, in turn, led to massive dot-com failures, consolidation in the industry, and finally the successful entrance of many major retailers with name, cash, and ability to stay the course.To begin this process, the firm should develop a complete evaluation of the competitive framework and the specific competition. This would include a detailed compilation of the competitors, both real and potential, along with their products, marketing capability,service, production strength, financial strength, and management. Next, you must detail where each firm, including your own, fits into the industry in terms of products, marketing capability, service, production strength, financial strength, and management. At this point, you should be able to develop a thorough analysis of the following, for the past, present, and future:∙Degree of industry concentration∙Changes in type and mix of products∙Market ―segments‖ in the firm and industry (and changes)∙Companies that have left and/or entered the industry (and why)∙Industry market share changes (and why – technology, substitution, etc.)∙Company market shares and share changes∙New technology substitution∙Each firm‘s vulnerability to new technologyIn addition to these specific competitive characteristics, the firm should focus on the various financial, economic, technological, and socio-political factors in the industry environment. This information is available through a variety of sources, including: ∙Company Web sites and literature∙Industry trade show observation and contactsOnline databases, including Lexis-Nexis, EBSCO, First Source, PROMPT, Trade & Industry, and Investext, along with various other online sources, such as the TV networks, Hoover, investment houses (Schwab, Merrill Lynch, etc.), The Wall Street Journal (WSJ), BusinessWeek (BW), etc.It is import ant to understand each firm‘s position within the industry. Companies in large or small industries have varying levels of profitability, and it is important to understand what it takes to be a superior performer in industry. Information that may assist in this process might include some or all of the following:∙How the industry might change, in the short to long term.∙How the competing firms within an industry differ in the way in which the competitive forces influence each of the competitors.∙Identify the companies that have the power to shape the industry. These companies could either make the industry or cause the demise.∙New product development potential within the industry and which firms have the ability to make it happen.This analysis should first provide a detailed and technical description of the products and services offered, including product mix, depth, and breadth of product line.This should lead to a clear understanding and listing of market position by product, citing product strengths and weaknesses individually and in the overall product line.Among the sources for this information are company Web sites, company product literature, WSJ, BW, and online databases including DIALOG, LEXIS-NEXIS, and Hoover.Another important area is R&D expenditures (industry and by company), analysis of each company‘s research and development expenditures and capabilities, along with a run down on technical personnel and expertise. Sources for this information include EBSCO, LEXIS-NEXIS, DIALOG, Hoover, PROMPT, Trade & Industry, and Investext.Next, it is important to understand clearly who holds which patents (current and pending), the product standards and specifications, including a quality and technical analysis. Some of the better sources for this could include: Claims, World Patent Index, Derwent, and IFI/Plenum Claims. Company Web sites and trade show industry contacts also can provide valuable clues in this part of the effort.The last piece of information needed in this section of the competitive intelligence analysis includes a new product introductions analysis (past, present, and expected). Some good sources for this information include press releases (company/industry Web sites), Predicast New Product Announcements, and sales force contacts. In addition, EBSCO, LEXIS-NEXIS, DIALOG, and various investor sources can provide valuable insight.M ARKETSOften, firms have a good overall understanding of the markets they are in or wish to compete in, but they tend to operate with the same attitude and perspectives that have existed in the company and industry for many years. To truly understand the market, the potential new competitor should have a solid grasp of the factors that make and drive the market for the product or service. For example, the firm should have a detailed compendium of the following, by firm within the industry:∙Market segmentation∙Customer base (markets targeted, regional sales analysis, penetration, importance to each firm)∙Profiles of markets and customers (including product mix and sales data by product line)∙Market growth and potential for future growth∙Market share by product line∙Market and geographic areas targeted for expansion∙Marketing tactics and strategies (4 Ps, especially price and promotion)∙Distribution network/channels of distribution∙Advertising/marketing/sales efforts including budgets and advertising / marketing firms usedAmong the sources that could be used on this activity are: PTS MARS, magazine ads, Prompt, Investext, Trade & Industry, SEC reports, Newspapers, Newswires, BW, Fortune, WSJ, company Web sites, etc.I NTERNATIONAL/G LOBALDepending on the expected competition and market activity, it is essential that the competitive intelligence effort include a foreign trade analysis. Without access to some expensive databases that provide specific product sales and market share information, it would be best to look at and evaluate recent order information, government contracts, and individual sales forces overseas (performance, experience, compensation, etc.). For U.S. firms, StatUSA provides an excellent data source, along with PIERS Exports & Imports, Commerce Business Daily, Newspapers (especially WSJ, NYT, BW), LEXIS-NEXIS, and DIALOG.S TRATEGY/D ECISION M AKINGIdentification of marketing and corporate strategies probably is one of the more important requirements of any competitive analysis. For this, most firms need experienced professional input, along with extensive use of the Internet, DIALOG, and other similar tools noted above. Below, we have established for each firm in the industry several important the intelligence needs, followed by selected sourcing:∙Apparent strategic (long-range) plans, including details of acquisition and divestiture strategy, etc. (SEC filings)∙New products on the horizon—with indications of a new direction for the company. (PROMPT, press releases, newspapers)∙Apparent strategic objectives: corporate/divisional/subsidiary company priorities; business unit/segment goals; basic business philosophy/targets.(Suppliers, employees, wholesalers)∙Analysis of company‘s decision-making process. Overall company image and reputation. Company‘s ability to change. How will the companylook/perform in the future? Anti-takeover measures instituted; the firm‘skey success factors? The key objective: Why has the firm been successful,overall? (Shareholder lawsuits pending, LEXIS-NEXIS)∙Corporate attitudes toward risk. (legal databases, employees, suppliers)∙Statements of plans to enter new markets, improve market position, and/or increase market share. (Trade journals, top executive speeches, PROMPT,marketing analysts).Following this exercise, the analysis should provide a clear understanding of the operation of the industry, and the competing firm should be able to utilize this information to provide an overall planning framework, strategy plan, and marketing plan to take advantage of current and future market opportunities.B. “Does Preemptive Marketing Work?”The focus here is on Porter‘s framework for preemptive strategy in a marketing settin g, and the role and value of this concept in the overall marketing process and strategy for the company. Many students will be able to identify readily with this concept based on their general knowledge of the companies and products involved in the lecture/discussion.The discussion begins by considering why a leader firm would consider preemptive strategy as a means of maintaining or increasing the firm‘s market position. This leads into a discussion of the implications for the introduction of a preemptive strategy for other firms in the industry in the medium and long-term.Teaching Objectives∙Stimulate students to think about the critical issues, pro and con, for a firm when it moves toward adoption of a preemptive strategy approach.∙To consider how to proceed with a preemptive strategy.∙To discuss the role of preemptive strategies in helping the firm achieve a position in the industry.DiscussionI NTRODUCTIONPreemptive marketing involves many different possibilities for the leader to assume a defensive or offensive position in the market and with competitors. The primary elements for a firm to consider in a preemptive action are that delay and/or position are critical and that nothing is forever. The firm must recognize that eventually it will be essential to conduct some type of preemptive action if it is to maintain control or partial control of the niche or share position.There are many reasons for a leader to adopt a preemptive strategy approach, but often it is a consequence of product maturity. The leader firm recognizes that another firm(s) has developed a superior capability in product or service. While it is possible for a challenger or other strategic planning firm to develop a preemptive position, the reasons tend to be more to disrupt the course of the industry in order to gain advantage against an entrenched leader. While this can be a very beneficial move, it has a tendency to convey a message to other firms in the industry that the firm could be posing a serious threat to all others in the industry. Firms that have done this, such as People Express, often find they are able to ride the crest of the wave of success only so far and so long, unable to sustain against the retaliatory moves of the industry in general. The primary preemptive objective of the leader or challenger is to maintain or occupy more of the critical or prime positions in the industry. This could include positioning their company or product in the mind of the consumers or distributors, preemptive control of the physical locations for retail facilities, preemptive control of critical raw materials, and/or preemptive control of other resources critical to success in the industry.IDENTIFYING PREEMPTIVE OPPORTUNITIESThere are many ways to succeed to achieve a preemptive advantage, but identification of a weak link in the commitment from one or more firms in the industry is a good starting point. Among the various positions that Porter demonstrates is the attempt to secure access to rawmaterials or components. This ploy has worked primarily in those industries where raw or primary industries are critical to operations or success.In like manner, programs to preempt production equipment have worked effectively. This situation works best where the production equipment involves proprietary processes or patents. Efforts to dominate supply logistics, such as brokers, transportation, or similar settings, have made an impact. (Note to the Instructor: There are many current examples of these and other preemptive approaches. Current examples, or examples the students may know, will enhance the discussion).Moving to the various functional area activities, in products and/or services, a number of other preemptive methods are utilized. For example, introducing new product lines and expanding production aggressively, such as IBM and many other firms have done, a competitor attempting to follow the lead of the leader can find it a very expensive and likely losing proposition.In the area of production systems, there have been in recent years some very good examples of firms able to develop proprietary production methods, expand capacity aggressively, and secure scarce and critical production skills. In addition, in the production systems area, firms that achieve some level of vertical integration with key suppliers can create a considerable barrier for competitors without the same economies of scale.In the 1980s, IBM, among others, applied the principle that if a firm provides the dominant product design in the industry it will be able to constantly keep the competitors as followers. Constantly expanding the scope of the product is another variation on this theme. A classic example of this approach is Merrill Lynch with the Cash Management Account of the late 1970s, and many others more recently.―Positioning‖ the product more effectively also can be an effective preemptive strategy. This can be an effective and relatively inexpensive strategy, given that there are many different types of positioning in the marketplace, including positioning in the mind of the consumer, distributors, suppliers, and others. (Note to the Instructor: There are and will be many current examples where firms have successfully achieved both challenger and leader positions with various positioning and re-positioning efforts).Other examples of preemption relate to situations where a firm is able to secure accelerated government agency approval because of strong technical capabilities and/or market recognition. This situation obviously occurs most often in medical and pharmaceutical products or other related areas where there are health and safety concerns.Keeping the competitors off balance by constantly adding to the market segments in the marketplace is another useful preemptive action. Coke achieved this effectively with New Coke. Even though the company had to return to the earlier formula and publicly back down from the decision, they were able to further fragment the market and take more share from the smaller competitors with fewer resources.Lastly, it is useful to consider the role of the preemptive in working with distributors. It is appropriate for the leader firm engaging in preemptive marketing to capture key accounts, occupy prime locations, develop preferential access/key distributors, control supply systems and distribution logistics, and insure access to superior service systems. In addition, one of the most important areas for great potential is to engage in educational and promotional activitiesthat are designed to develop the skills of the distributors. This could include a number of activities designed to enhance the capabilities for the distributors to better serve their customers. Note to the Instructor: In all of these examples there are many firms both winning and losing with this strategy. Clearly among the best examples are firms winning, but there are many situations where those losing can provide an interesting story.III. Background Article(s):Issue: Marketing in the High Tech EnvironmentA. Source:―Oracle vs. IBM,‖ BusinessWeek, May 28, 2001, p. 65.Ask Oracle Corp. CEO Lawrence J. Ellison what keeps him up at night, and the answer might surprise you. It‘s not his longtime nemesis, Microsoft Corp. It‘s not up-and-comer Siebel Systems Inc. It‘s IBM, the awakening tech giant that is vying for the No. 1 spot in the corporate-software world. ―He has stopped with that ‗Microsoft is the devil‘ stuff,‖ says Steve Mills, IBM‘s software head. ―He has moved on to us.‖With Good ReasonWhoever wins in this face-off will grab the lion‘s share of the $50 billion corporate-software market for years. For every Oracle product, IBM has a counterpunch: Databases, applications, and e-business foundation software. At the same time, the companies‘ philosophies are strikingly different. Oracle‘s strategy is to off er customers a complete and tightly integrated package of software—everything a company needs to manage its financials, manufacturing, sales force, logistics, e-commerce, and suppliers. In contrast, IBM top management backed a ―best-of-breed‖ approach in w hich it stitched together a quilt of business software from various companies, including itself.The outcome of this battle had huge implications for the software industry. If IBM‘s partnering strategy carries the day, it means there will be plenty of breathing room for major application makers such as SAP, Siebel, and PeopleSoft, and for countless upstarts that are bringing Internet programs to market. If Oracle gains the upper hand, it will be pushing its own applications, leaving less room for other players.To get ahead, IBM is targeted what it sees as Oracle‘s chief vulnerability: The Silicon Valley company competes in the applications market with the same software makers it relies on to help sell its databases. IBM has an advantage because it doesn‘t s ell applications of its own. So, by setting itself up as a neutral party, IBM is able to gain those companies as allies. That boosts its database sales, since application companies often recommend to customers which database they think should be used with their software. IBM‘s consultants then sew the software together.Analysts are split on whether the Oracle or IBM strategy will succeed long-term. They expect both companies to remain among the strongest players in the market. But competitive juices are flowing. Ellison has only disdain for the idea of corporations buying major software components from different suppliers and then hooking them together. ―You would never buy a car that way,‖ he says.。

Chapter 3: Market SegmentationMultiple Choice Questions:1.The more _____ there is in the marketplace, the more _____ is required.a. similarity; segmentationb. diversity; mass marketingc.diversity; segmentationd.none of the above(c; Difficulty 1, p. 49)2.All of the following are necessary conditions for successful segmentation of anymarket, except:a. a large enough population.b. the ability to spend money on the product (general affluence).c. sufficient diversity among the segments.d. segmentation occurrence in developed countries.(d; Difficulty 3, p. 49)3.The process of dividing a market into distinct subsets of consumers with commonneeds or characteristics is known as:a. target marketing.b. market segmentation.c. mass marketing.d. the marketing concept.(b; Difficulty 1, p. 50)4.Henry Ford offering the Model T automobile to the public “in any color theywanted as long as it was black” is at the basis of:a. market segmentation.b. mass marketing.c. target marketing.d. the marketing concept.(b; Difficulty 2, p. 50)5.All of the following are advantages of the mass marketing approach except:a. one advertising campaign is needed.b. one product is offered.c. satisfies the needs of the majority.d. one marketing strategy is required.(c; Difficulty 2, p. 50)6.Any marketing strategy is a three step process that includes:a. market segmentation, marketing mix and positioning.b. market segmentation, targeting and positioning.c. market targeting, positioning and repositioning.d. price, place and promotion.(b; Difficulty 2, p. 50)7.According to our text, Star Gazers and Fun Express are two segments in:a. the automobile industry.b. campus dining segments.c. athletic shoes segments.d. travel segments.(b; Difficulty 3, p. 51, table 3-1)8.When The Gap, Inc opened its baby and kids stores, as well as Banana Republicand Old Navy, it was adopting a ____ strategy.a. targetingb. segmentationc. mass marketingd. blanket marketing(b; Difficulty 2, p. 51)9.Marriott operates 13 lodging brands, such as Fairfield Inn, Residence Inn, andMarriott Resorts. This is an example of Marriott adopting a _____ strategy.a. targetingb. segmentationc. mass marketingd. blanket marketing(b; Difficulty 2, p. 51)10.A firm’s customers can be groupe d into at least four major segments: LoLows,HiLows, LowHighs, and HiHighs. The Low and High measurements referto_____ and _____ respectively.a. current share; financial capabilityb. risk; financial capabilityc. current share; consumptiond. consumption; risk(c; Difficulty 3, p. 52)11.A firm’s customers can be grouped into at least four major segments, LoLows,HiLows, LowHighs, and HiHighs. The firm, should “starve” the LowLows,“tickle” the HiLows, “chase” the LowHighs, and _____ the HiHighs.a. strikeb. strokec. patd. cheer(b; Difficulty 3, p. 52)12.In addition to filling product gaps, segmentation research is regularly used bymarketers to:a. generate ideas for new promotional campaigns.b. generate ideas for product improvements.c. identify the most appropriate media to place advertising.d. all the above(c; Difficulty 2, p. 52)13.There are nine major categories of consumer characteristics as the bases forsegmentation. The include all of the following except:a. geographic factors.b. physiological factors.c. benefits sought.d. sociocultural variables.(b; Difficulty 1, p. 53)14.Another term for psychographic characteristics is:a. age.b. lifestyle.c. benefits sought.d. use-situation factors.(b; Difficulty 1, p. 53)15.When two types of market segmentation are used, it is called:a. combination segmentation.b. hybrid segmentation.c. dual segmentation.d. cross segmentation.(b; Difficulty 1, p. 53)16.People who live in the same area share some similar needs and wants. This is thetheory behind which segmentation basis?a. demographicb. geographicc.psychographicd.sociocultural(b; Difficulty 1, p. 53)17.“Birds of a feather flock together” is the theory behind which type ofsegmentation?a. demographicb. geographicc.psychographicd.none of the above(d; Difficulty 3, p. 53)18.The fact that Salsa outsells ketchup in the southwest, and that Jif peanut butter ispreferred in the Midwest over Skippy, is an example of why _____ segmentation is used.a. demographicb. geographicc.psychographicd.sociocultural(b; Difficulty 2, p. 53)19._____ segmentation includes: needs motivation, personality, perception, andattitudes.a. Demographicb. Psychographicc.Psychologicald.Benefit(c; Difficulty 2, p. 54, table 3-2)20.Professional, blue-collar, white-collar and military are all forms of _____segmentation.a. demographicb. geographicc.psychographicd.psychological(a; Difficulty 3, p. 54, table 3-2)21.Convenience, social acceptance, long lasting, economy and value for the moneyare all forms of _____ segmentation.a. demographicb. benefitc. use-relatedd. psychographic(b; Difficulty 3, p. 54, table 3-2)22.Economy-minded, couch potatoes, outdoor enthusiasts and status-seekers are allforms of _____ segmentation.a. psychologicalb. psychographicc. socioculturald. demographic(b; Difficulty 2, p. 54, table 3-2)23.African Americans, Caucasians, Asians and Hispanics are all forms of _____segmentation.a. demographicb. geographicc. psychographicd. sociocultural(d; Difficulty 3, p. 54, table 3-2)24.When a company decides to put its catalog on the Internet, it is bringing down_____ segmentation boundaries.a. demographicb. geographicc.socioculturald.psychographic(b; Difficulty 2, p. 53)25.Campbell’s Soup uses geographic segmentation dow n to the local retailer level, inwhich it works with individual stores on displays and promotions. This is a form of _____ practice.a.macromarketingb.micromarketingc.private marketingd.individual marketing(b; Difficulty 2, p. 55)26.The greatest success story in the world of retailing is how _____ used geographicsegmentation to place stores in locations that other operations were ignoring.a.Starbucksb.Wal-Martc.McDonald’sd.Walgreen’s(b; Difficulty 2, p. 55)27.Age, sex, marital status, income and occupation are all forms of _____segmentation.a.demographicb.socioculturalc.psychologicald.physiological(a; Difficulty 1, p. 55)28._____ information is often the most accessible and cost-effective way to identifya target market.a.Demographicb.Socioculturalc.Psychologicald.Physiological(a; Difficulty 2, p. 55)29.Trends in the markets, such as shifts in age, gender, and income distribution, areoften detected through _____ information.a.demographicb.socioculturalc.psychologicald.physiological(a; Difficulty 3, p. 55)30.Radio is a highly selective medium and can be employed to reach different agegroups efficiently. Approximately _____ percent of U.S. teens listen to FM radio averaging more than 10 hours a week.a.50b.65c.82d.95(d; Difficulty 3, p. 56)31.Respectively, _____ effects are occurrences due to chronological age, and _____effects are occurrences due to growing up during a specific period of time.a.age; cohortb.time; agec.cohort; aged.seniority; priority(a; Difficulty 2, p. 56)32.The fact that people gain an interest in leisure travel and golf in their late fiftiesand early sixties is an example of:a.age effects.b.cohort effects.c.seniority effects.d.retirement necessities.(a; Difficulty 2, p. 57)33.In 2010, many rock and roll fans will be over the age of 55. What is the reason?a.older people will have a sudden change in tasteb.due to cohort effectc.due to age effectd.it will be back in style and everyone will be a fan(b; Difficulty 2, p. 57)34.Slackers, whiners, and a generation of aging Bart Simpsons are characteristicsoften used to describe which of the six American adult cohorts?a.Depression cohortsb.Post-war cohortsc.Boomers II cohortsd.Generation X cohorts(d; Difficulty 3, p. 58 , table 3-4)35.Much of the change in gender roles has occurred mainly because of:a.single parent families.b.dual-income households.c.the integration of cultures.d.the digital revolution.(b; Difficulty 3, p. 57)36.Because many women are working women, all the following are becoming morepopular types of venues to shop except:a.catalogs.b.the Internet.c.800 numbers.d.strip malls.(d; Difficulty 1, p. 57)37.Singles with incomes greater than $50,000 comprise a market segment that tendsto be above average in the usage of products such as _____.a.peanut butterb.loose teac.breakfast cereald.ketchup(b; Difficulty 2, p. 59)38.Product usage of males and females differs; females tend to use the Internet for allof the following except:a.fighting for causes.b.job productivity.c.role playing.d.helping family and friends.(d; Difficulty 3, p. 59, table 3-5)39.Product usage of males and females differs; males tend to use the Internet for allof the following except:a.helping family and friends.b.job productivity.c.connecting with the world.d.personal productivity.(a; Difficulty 3, p. 59, table 3-5)40._____ has been a long time segmentation basis because it is a strong indicator ofthe ability to pay for a product or a specific model of the product.cationb.Incomec.Occupationd.Lifestyle(b; difficulty 1, p. 59)41.Of the following four variables, which of the following is least related?a.incomeb.genderc.occupationcation(b; Difficulty 1, p. 59)42.Research shows that consumers with lower incomes, lower education and blue-collar jobs tend to spend _____ time online at home than those with higherincomes, educations and white-collar occupations.a.moreb.lessc.same amount ofd.no research has been able to come up with evidence in this regard(a; Difficulty 3, p. 60)43.One reason that blue-collar workers spend more time online at home than white-collar workers do is because:a.blue-collar workers work shorter hours and have more time at home.b.blue-collar workers who want to trade stock cannot afford a broker.c.blue-collar workers do not have access to the Internet at work.d.none of the above(c; Difficulty 2, p. 60)44.If consumers are segmented based on their motivations, personality, perceptions,learning and attitudes, then a _____ segmentation approach has been implemented.a.demographicb.socioculturalc.psychologicald.psychographic(c; Difficulty 2, p. 60)45._____ research is a form of consumer research that has proven to be a valuablemarketing tool that helps identify promising consumer segments that are likely to be responsive to specific marketing messages.a.Psychologicalb.Psychographicc.Socioculturald.Benefit(b; Difficulty 3, p. 60)46.When using psychographic segmentation, AIOs are _____, _____ and _____.a.actions; interests; optionsb.activities; interests; opinionsc.activities; ideas; opinionsd.actions; ideas; options(b; Difficulty 2, p. 60)47.Techno-road-warriors are businesspeople who spend a high percentage of theirworkweek on the road, equipped with laptops, pagers and cell phones. What kind of research was used to result in this market segment?a.socioculturalb.physiologicalc.psychographicd.demographic(c; Difficulty 3, p. 60)48.Centrum Performance vitamins target _____ seg ments by stating, “You’reworking out instead of eating out because there aren’t enough hours in the day.”a.socioculturalb.physiologicalc.psychographicd.demographic(c; Difficulty 3, p. 61 and figure 3-1)49.The traditional family life cycle stages start out with bachelorhood and endin_____.a.empty-nesterb.post-parenthoodc.dissolutiond.demise(c; Difficulty 2, p. 61)50.Social class is usually measured by all of the following except:a.income.cation.c.lifestyle.d.occupation.(c; Difficulty 1, p. 62)51.An ad for Merrill Lynch stating “Patricia and Dan are always searching for thebest of everything. Their money behaves in a similar fashion” would be targeting people according to their_____. (choose the best answer)a.incomeb.occupationc.social classd.lifestyle(c; Difficulty 2, p. 63)52.In the U.S., African Americans, Hispanic Americans and Asian Americans are allimportant_____ segments.a.culturalb.marketc.consumerd.subcultural(d; Difficulty 2, p. 63)e-related segmentation categorizes consumers in terms of level of usage, levelof awareness, and _____.a.benefits soughtb.degree of brand loyaltyc.brand knowledged.social class(b; Difficulty 2, p. 64)54.Research has shown that 25 to 30 percent of beer drinkers account for more than70 percent of al beer consumed. This is an example of_____ segmentation.a.benefite-relatedc.psychographicd.lifestyle(b; Difficulty 2, p. 64)55.Consumer innovators tend to:a.not be brand loyal.b.be brand loyal.c.be older.d.be less educated.(a; Difficulty 3, p. 64)56.Relationship programs, such as the Hilton Honors program and Hertz Number 1Club, mostly reward:a.customers who are brand loyal.b.brand switchers.c.consumer innovators.d.all of the above(a; Difficulty 1, p. 64)57.The greeting card industry capitalizes on occasions to sell products; this is aperfect example of_____ segmentation.a.lifestyleb.benefitage situationd.demographic(c; Difficulty 3, p. 66)58.Hefty One Zip Bags emphasize “piece of mind.” Eclipse gum stresses “freshbreath.” They are two companies trying to attract customers on the bas is of _____ segmentation.e-relatedb.benefitc.lifestyled.sociocultural(b; Difficulty 2, p. 68)59.The classic case of successful _____ segmentation is the market for toothpaste. Ifconsumers are socially active, they want a toothpaste that can deliver white teeth and fresh breath; if they smoke, they want one that fights stains; if they want to prevent disease, they want one that will fight germs.e-relatedb.benefitc.lifestyled.sociocultural(b; Difficulty 2, p. 68)60.______ profiling has been widely used in the development of advertisingcampaigns to answer the questions, “Whom should we target?” “What should we say?” and “Where should we say it?”a.psychographic-demographicb.geo-demographicc.socio-demographicd.VALS(a; Difficulty 3, p. 68)61.“Birds of a feather flock together” is the theory behind which type ofsegmentation?a. demographicb. geographicc.psychographicd.geo-demographic(b; Difficulty 2, p. 71)62.Claritas, the leading company in creating consumer clusters based on lifestyle,uses zip codes that cluster people throughout the country. Its most famous tool is known as:a.VALSb.PRIZMc.SRId.ZIP(b; Difficulty 3, p. 71)63.The _____ system used by SRI Consulting classifies the American populationinto eight segments.a.VALSb.PRIZMc.Mindbase segmentationd.Geo-demographic(a; Difficulty 2, p. 73)64.SRI Consulting’s VALS system categorizes people into eight segments based onthree horizontal self-orientations: Principle, Status, and _____.a.Resourcesb.Actionc.Achievementd.Social Class(b; Difficulty 3, p. 73, figure 3-7)65._____ tend to buy American-made products and are slow to alter theirconsumption-related habits.a.Actualizersb.Strugglersc.Believersd.Makers(c; Difficulty 3, p. 73, figure 3-7)66.To be an effective target, a market segment should be: identifiable, sufficient,stable or growing, and _____.a.modernb.internationalc.accessibled.desirable(c; Difficulty 3, p. 75)67.Teens are an attractive market except for one factor that makes them risky—thefact that teen segments are_____.a.hard to identifyb.fairly smallc.instabled.not accessible(c; Difficulty 2, p. 77)68.Targeting several segments using individual marketing mixes for each is called_____.a.concentrated marketingb.differentiated marketingc.coutersegmentationd.local marketing(b; Difficulty 2, p. 77)69.Targeting just one segment with a unique marketing mix is called _____.a.concentrated marketingb.differentiated marketingc.countersegmentationd.local marketing(a; Difficulty 2, p. 78)70.When your business college decides to cancel courses due to lack of interest, andcombines two majors due to inadequate registration in both, that is usually known as_____.a.concentrated marketingb.differentiated marketingc.countersegmentationd.local marketing(c; Difficulty 2, p. 78)True/False Questions:71.The essence of segmented marketing was summed up by Henry Ford whenoffering the Model T car to the public “in any color as long as it was black”. (False; Difficulty 2, p. 50)72.One advantage of segmented marketing is that it costs less in terms of advertisingcampaign costs and a standardized product.(False; Difficulty 1, p. 50)73.The fact that Toyota offers its small sporty Celica, and its much larger Avalon, isevidence that Toyota uses market segmentation.(True; Difficulty 1, p. 50)74.Once a product is initially positioned and promoted, it will reflect poorly on acompany to change its position somewhere down the line.(False; Difficulty 2, p. 52)75.The theory behind geographic segmentation is that people who live in the samearea have the same values and beliefs(False; Difficulty 3, p. 53)76.By placing their catalogs on the Internet, marketers hope to overcomepsychological boundaries.(False; Difficulty 2, p. 53)77.Campbell’s Soup is known for following a highly segmented marketing strategyby dividing the U.S. into more than 20 regions.(True; Difficulty 3, p. 55)78.The best example of successful segmentation based on demographics is the giantWal-Mart operation, in which the strategy is to locate their stores in small towns. (False; Difficulty 3, p. 55)79.Demographics help to locate a target market, whereas psychological andsociocultural characteristics help to describe how its members think and feel. (True; Difficulty 3, p. 55)80.Demographic studies show that the mature adult market (the 50 plus market) has asmaller disposable income than the younger population.(False; Difficulty 2, p. 55)81.When segmenting the market, it is important to realize the difference between ageeffects, occurrences due to growing up during a specific period of time, andcohort effects, occurrences due to chronological age.(False; Difficulty 2, p. 57)82.The changes in gender roles in today’s society are largely due to the continuedimpact of dual-income households.(True; Difficulty 3, p. 57)83.Research has shown that men and women differ in terms of the way they look attheir Internet usage. While men are information hungry, women expectcommunications media to entertain and educate.(True; Difficulty 3, p. 59, table 3-5)84.Campbell’s Soup to Go! and Maxwell House’s coffee Singles and two-cup coffeemakers are an attempt to target people according to their demographics. (True; Difficulty 3, p. 59)cation, income and gender tend to be closely correlated in almost a cause-andeffect relationship.(False; Difficulty 2, p. 59)86.Research reveals that people with higher income, education, and white-collaroccupations tend to spend more time online at home than people with lowerincomes, educations, and blue-collar jobs.(False; Difficulty 2, p. 59)87.Psychographic research is commonly referred to as lifestyle analysis.(True; Difficulty 1, p. 60)88.The psychographic profile of a consumer segment can be thought of as acomposite of consumers’ measured activities, ideas and opinions (AIOs). (False; Difficulty 3, p. 60)89.The traditional family life cycle will go through the following stages:bachelorhood, honeymooners, parenthood, post-parenthood and dissolution. (True; Difficulty 3, p. 61)90.A family’s financial needs tend to be constant even as they progress through thevarious life stages.(False; difficulty 2, p. 61)91.Social class is best measured by a weighted index of education, occupation,income and gender.(False; Difficulty 1, p. 62)92.Some marketers segment their markets on the basis of cultural heritage, becausemembers of the same culture tend to share the same values, beliefs and customs. (True; Difficulty 1, p. 63)93.It is safe to assume that if a product is successful locally it will be acceptedinternationally.(False; Difficulty 3, p. 63)94.In the U.S., some examples of important subcultures include African Americans,Hispanic Americans and the elderly population.(True; Difficulty 3, p. 63)95.One of the easiest market segments to reach globally with similar marketingcampaigns, regardless of cultural background, is the teenage market.(True; Difficulty 3, p. 63)96.Often marketers target consumers who are known to be brand switchers, in beliefthat such people represent greater market potential than consumers who are loyal to competing brands.(True; Difficulty 3, p. 64)97.Relationship programs are an excellent way to reward consumer innovators. (False; Difficulty 2, p. 64)98.Psychographic and geographic profiles are highly complimentary segmentationapproaches that work best when used together.(False; Difficulty 3, p. 68)99.“Birds of a feather flock together” is the basis of geographic segmentation. (False; Difficulty 3, p. 71)100.SRI Consulting developed a segmentation scheme of the American population, known as VALS, that segments people into 32 different categories.(False; Difficulty 2, p. 73)Essay Questions:101.Talk about how marketing segmentation evolved from mass marketing to micromarketing, citing examples for each level of segmentation.Historically, marketers followed mass marketing strategies, which meant creating one product, one marketing strategy, and one marketing campaign to all its customers. Henry Ford’s Model T is an example, in that he stated that he will offer a car to anyone “in any color they wanted as long as it was black.”The second level is market segmentation, by identifying the different market segments, and targeting each segment individually with its own strategy, campaign, and unique product design. Most automobile companies today follow this strategy, such as GM by offering their wide range of vehicle sizes and prices to “match every purse and personality”.The lowest form of segmentation could be at the local level or the individual level. Campbell’s Soup works closely with its 209 regional managers to create special display and promotional campaigns to suit local needs. On the individual level, or what is known as one2one marketing, companies such as use the Internet and current technology to reach their customers at an individual basis by sending personalized messages. They can also use current technology by customizing products; an example would be Dell computers, who can create a unique computer based on consumer’s individual requests.(Difficulty 3; p. 50)102.What is product positioning and repositioning?Positioning the product means that the marketer must place it in a way for customers to perceive it to satisfy their needs better than any of the competitors on any one competitive advantage. The marketer must communicate the message appropriately to the customers to make them believe it will be the best option for their needs.Many companies decide to reposition their products to include a wider customer base without losing their core customers, or by adding a new feature or option that might be appealing and communicating the message to their existing and new customers. (Difficulty 3; p. 50 and 52)103.Talk about The Gap, Inc and their use of market segmentation.The Gap targets different age, income, and lifestyle segments in a diverse set of retail outlets. The Gap and Super Gap stores are designed to attract a wide range of consumers who seek a casual and relaxed style of dress. Gap targets upscale consumers through its Banana Republic stores, and some downscale consumers with its Old Navy Clothing stores. It also targets young parents with Baby Gap and Gap Kids stores. With this, The Gap is able to appeal to a variety of segments. (Difficulty 2; p. 51)104.How was Wal-Mart successful in using geographic segmentation?Wal-Mart did what other retailers were not interested in. They followed a strategy of opening stores in rural areas and small towns where there were no competitors and there was a need for such large discount retailers.(Difficulty 1; p. 55)105.Explain the difference between age effects and cohort effects.Age effects are occurrences due to chronological age, such as heightened interest in leisure travel and golf, that often occurs when people reach middle age.Cohort effects are occurrences due to growing up during a specific period of time, such as if growing up while listening to rock and roll means you will be a rock and roll fan regardless of your age. One stresses the impact of aging while the other stresses the influence of the period when one was born.(Difficulty 2; p. 57)106.Explain how gender roles have blurred. What are marketers doing to overcome this change in roles?Women are no longer the traditional users of cosmetics—many men are increasingly spending more money on skin care and hair products, and women are becoming an important segment in the repair tools market. The main reason behind this change in roles is due to the fact that more women are working, which has created more dual-income household that led to changing and sharing all responsibilities.Marketers are trying to overcome the change in gender roles by changing the ways they target women, such as offering magazines like Working Woman or Working Mother, and by increasing their pressure on women to use catalogs, 800 numbers and the Internet for shopping rather than going to the mall.(Difficulty 3; p. 57)107.Why is Family Life Cycle an important basis for segmentation?Because many families pass through similar phases in their formation, growth and financial dissolution, at each phase the family unit needs differ.Young singles going through the bachelorhood stage will need basic furniture for their apartments, and a small, inexpensive vehicle to start them off. Once singles get married and move into the honeymooners stage, their focus becomes buying a new home and furnishing it, then when they become parents, the majority of their disposable income will be spent on their children’s needs.(Difficulty 2; p. 61)108.How is brand loyalty used as a basis for segmentation?Marketers try to identify the characteristics of their brand loyal customers so that they can direct their promotional efforts to people with similar characteristics in larger populations. They try to increase their loyalty by offering them types of relationship programs which reward them for being continuous users of the product or service. (Difficulty 2; p. 64)109.Geo-demographic segmentation is one of the more popular bases for segmentation. What tools have been developed for it?This type of segmentation is based on the notion that people who live close to one another are likely to have similar financial means, tastes, preferences, lifestyles and consumption habits, similar to the saying “birds of a feather flock together”.A company called Claritas developed a tool, PRIZM, in which clusters are created based on the lifestyle of people scattered throughout the country. It identifies these clusters through zip codes, and reveals a description of the segment based on research done through the company.(Difficulty 3; p. 71)110.What is countersegmentation?Countersegmentation occurs when companies find that some segments have contracted over time to the point that they do not warrant an individually designed marketing program. In this case a company will seek to discover a more generic need that would apply to two or more segments and recombine those segments into a larger segment that would be targeted with one promotional campaign.(Difficulty 2; p. 78)。

CHAPTER2--BUILDING CUSTOMER SATISFACTION THROUGHQUALITY,SERVICE AND VALUEOVERVIEWToday's customers face a growing range of choice in the products and services they can buy. They are making their choice on the basis of their perceptions of quality, service, and value. Companies need to understand the determinants of customer value and satisfaction. Customer delivered value is the difference between total customer value and total customer cost. Customers will normally choose the offer that maximizes the delivered value.Customer satisfaction is the outcome felt by buyers who have experienced a company performance that has fulfilled expectations. Customers are satisfied when their expectations are met and delighted when their expectations are exceeded. Satisfied customers remain loyal longer, buy more, are less price sensitive, and talk favorably about the company.A major challenge for high performance companies is that of building and maintaining viable businesses in a rapidly changing marketplace. They must recognize the core elements of the business and how to maintain a viable fit between their stakeholders, processes, resources and organization capabilities and culture. Typically, high performing businesses develop and emphasize cross-functional skills rather than functional skills (overall project management and results versus functional strengths (best engineers, etc.). They also build their resources into core capabilities that become core competencies, distinctive abilities and competitive advantages. This, along with a corporate culture of shared experiences, stories, beliefs and norms unique to the organization, are the keys to their success.To create customer satisfaction, companies must manage their value chain as well as the whole value delivery system in a customer-centered way. The company's goal is not only to get customers but even more importantly, to retain customers. Customer relationship marketing provides the key to retaining customers and involves providing financial and social benefits as well as structural ties to the customers. Companies must decide how much relationship marketing to invest in different market segments and individual customers, from such levels as basic, reactive, accountable, proactive, to full partnership. Much depends on estimating customer lifetime value against the cost stream required to attract and retain these customers.Total quality marketing is seen today as a major approach to providing customer satisfaction and company profitability. Companies must understand how their customers perceive quality and how much quality they expect. Companies must then strive to offer relatively higher quality than their competitors. This involves total management and employee commitment as well as measurement and reward systems. Marketers play an especially critical role in their company's drive toward higher quality.LEARNING OBJECTIVES:After reading this chapter students should:∙Know what constitutes customer value and satisfaction∙Know how leading companies organize to produce and deliver high customer value and satisfaction∙Know how companies can retain customers as well as attract customers∙Know how companies can determine customer profitability∙Know how companies can practice total quality marketing strategyCHAPTER OUTLINE:I.IntroductionII.Defining Customer Value and SatisfactionA.Customer Value1.Customer delivered value - the difference between total customer valueand total customer cost, or “profit” to the customer. Total customervalue is the expected bundle of benefits.2.Total customer cost - bundle of costs consumers expect to incur inevaluating, obtaining and using the product or service.3.Customer value assessment - weighing the value against all of the costsB.Customer Satisfaction1.Perceived performance and expectations - contribute to overallsatisfaction2.Methods of tracking and measuring customer satisfaction - see Text. III.The Nature of High-Performance BusinessesA.Stakeholders - customers, employees, suppliers, distributorsB.Processes - work flows through an organization, to achieve cross functional skillsC.Resources - labor, power, materials, machines, information, energy, etc., toachieve core competence, distinctive ability(ies) and competitive advantage.anization and Organizational Culture - structures, policies. Corporate Cultureis the shared experiences, stories, beliefs, and norms that characterize anorganization.IV.Delivering Customer Value and SatisfactionA.Value Chain - used as a tool for identifying ways to create more value. Ninevalue creating activities.B.Value-Delivery Network - to be successful a firm has to look for competitiveadvantages beyond its own operations. Theme that building a better network canbe a highly successful differentiation tactic that leads to greater customersatisfaction.V.Attracting and Retaining Customersputing the Cost of Lost Customers - compute customer defection rate (4-stepprocess)B.The Need for Customer Retention - cost of attracting a new customer is 5 timesthat of retaining a satisfied current customer.C.Relationship Marketing: The Key - there is a process to attracting and retainingcustomers. There are five levels of customer relationship building, and threecustomer-value building approaches:1.Adding Financial Benefits - frequency marketing programs and clubmarketing programs2.Adding Social Benefits- individualize and personalize customerrelationships3.Adding Structural Ties -help customers manage themselves.VI.Customer Profitability: The Ultimate Test - a profitable customer is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company’s cost stream of attracting, selling, and servicing the customer. A company should not attempt to pursue and satisfy all customers.VII.Implementing Total Quality ManagementA.Total Quality Marketing (TQM) - Most customers will no longer accept ortolerate average quality performance. There is an intimate connection amongproduct and service quality, customer satisfaction and company profitability.B.The role of Marketing now is extended beyond external marketing activities tointernal marketing roles to act as the Customer's watchdog within theorganization.VIII.SummaryMARKETING A ND ADVERTISING1. Toyota, like many automotive manufacturers, emphasizes excellent product quality and high customer satisfaction. But what exactly is quality—and how can Toyota prove that it offers excellent quality? The Toyota ad in Figure 1 shows one approach. What element of quality is the ad stressing, and how does this element satisfy customer needs? Is the ad focusing on performance or conformance quality? What are the implications for customers? For Toyota's marketing strategy?Answer: This Toyota ad is emphasizing performance quality, specifically the ability of the Sienna model to withstand a crash better than any other vehicle ever tested. This element of quality satisfies customers' needs for safety. The implications for customers are that those who worry about accidents can choose the Sienna and feel safer than they would in any other vehicle. The implications for Toyota's marketing strategy are that the company can promote the car to audiences that worry about accidents, including parents with children and anyone else who wants to feel safer when they drive, on the basis of evidence from credible third-party crash tests. This is a powerful competitive edge.2. Roadway Express wants to be the trucking firm of choice for companies that choose to outsource their shipping function, as the ad in Figure 2 indicates. What is Roadway's core competence? Why would Rawlings, the customer featured in the ad, prefer to outsource to Roadway rather than handle its own shipments? What capability does Roadway appear to be emphasizing in this ad?Answer: Roadway's core competence is its exceptional on-time delivery. Rawlings would prefer to outsource shipments because Rawlings's core competence is baseball equipment. Therefore, Rawlings wants to own and nurture its core resources and competence while outsourcing less critical activities such as delivery. Roadway is emphasizing customer linking in this ad; this is clear from its use of the Rawlings testimonial, indicating how happy Rawlings is as a Roadway customer. It is also clear from the insertion of the Rawlings URL at the bottom of the ad—equal in size to the Roadway URL—that Rawlings and Roadway consider themselves partners.FOCUS ON TECHNOLOGYHow can a company use its Web site for cost-effective customer-relationship building? Fuji Film Company maintains an extensive Internet presence for consumers and business customers. Generally, the profit margins in consumer products are too small to allow for expensive outreach beyond basic marketing. Yet Kodak, Fuji's archrival, invites consumers to become members of its Web site. Members receive Kodak information via e-mail and are able to upload their own photo images for inclusion in electronic postcards.Visit the Web sites of Kodak () and Fuji Film (), and examine how each reaches out to consumers. What can Fuji learn from Kodak's membership approach? How can Fuji use its Web site to stay in touch with consumers on a regular basis?Answer: Fuji might want to adapt Kodak's membership approach. This would allow Fuji to learn more about its consumer markets and provide consumers with value-added services that will build and strengthen relationships over the long term. Fuji might also want to use a membership approach to build relationships with the other market segments it serves, including profess ionals and businesses. Fuji can offer contests, weekly or monthly special events, and other inducements to keep consumers coming back to its Web site; this way, Fuji can stay in touch with consumers on a regular basis. Fuji can also periodically e-mail announcements to consumers who become members, another way to stay in touch. Students can use their creativity to develop ways for Fuji to use its Web site to strengthen relationships with individual consumers. MARKETING FOR THE MILLENNIUMLogistix is testing Web Agent software from Aspect Telecommunications that allows an employee and a customer to view the same Web screen simultaneously while they are having a telephone conversation. Web Agent is only one of the products Aspect offers for teleweb applications. Visit Aspect's Web site () and locate its integrated call center solutions. Try an on-line demo of one of the featured products or read the detailed description of Web Agent. How does this Aspect product deliver value to Logistix? What value does it add for the business customer who contacts Logistix through its call center? How can Logistix use this product to build relationships with its business customers? What relationship-building obstacles do you think Logistix might encounter early in the next millennium—and how should the company respond?Answer: The Aspect Web Agent software delivers value to Logistix because the program allows the firm to more conveniently communicate with and service customers who access Internet pages, a process that is more complex without Aspect's specialized software. In turn, this more convenient service and communication adds to customer satisfaction and strengthens customer relationships, ultimately boosting customer retention and slowing customer defect ions for Logistix. It also adds value for business customers who contact Logistix through the call center, because they get immediate assistance with questions or problems without having to log off the Internet, dial up Logistix, and try to put into words exactly what they need.Logistix can use this software to build relationships with business customers by encouraging them to access the company's Web site and simultaneously call the company to discuss any questions or problems they may have with products or information. Over time, business customers are likely to find this system so convenient that they will buy more from Logistix because of the value-added service. One relationship-building obstacle Logistix might encounter early in the next millennium is an evolution in Internet technology that allows every competitor to handle customer calls the way Web Agent does today—but without specialized software. This will erode Logistix's competitive edge in customer service. The company can respond to this obstacle by continuing to explore new communication methods for immediate customer service through multiple channels (Internet, telephone, and others). Students will offer various answers to question of obstacles in the new millennium.。

杨荣刚等现代广告全书辽宁人民出版社沈阳：1994.9第十一章广告与文化心理每个消费者都在一定的文化环境中成长，并在一定的文化环境中生活着，其思想意识必然打上了深深的文化烙印。

因此，广告制作者必须十分重视对文化心理的研究，要了解社会文化对消费行为的影响，制定出合适的广告策略，以达到促销的目的。

否则，即使产品质量再好，广告宣传投资再多，也难免要遭冷落。

其原因之一是，商品和广告没有体现或者甚至违背了当地的风俗、习惯、信仰、价值观、语言文字、教育水平以及社会组织情况等因素—社会文化因素。

一、文化与消费行为1．文化及其特点文化一词是用来表达人类生存所积累的一切成就的概括。

有时也指社会意识，包括政治、思想、道德、艺术、语言文字、风俗习惯、宗教信仰、价值观等诸多方面。

各个国家由于民族、历史、地理位置以及物质生活等方面的不同，产生了各自独特的文化。

在不同国家里成长的人，在风俗习惯、崇尚爱好、宗教信仰上都有明显的差异。

人们的饮食爱好，千差万别，中国人吃米饭、馒头，西方人却以面包为主食。

法国人把蜗牛尊为名菜，有些非洲人将蚂蚁奉为美撰。

颜色的爱憎也有很大的差异：我国人民一向认为红色吉利，丹麦人、捷克人和斯洛伐克人也都认为红色代表喜事，是一种积极的色彩；而美国人却认为红色有着许多令人讨厌的意思，如红色表示停止，帐目上叫赤字，是亏本的象征。

又例如，1982年以前，美国大多数人认为黑色是吊丧、晦气的象征，但1982年秋季开始，由于许多商人采用黑色作为商标和产品的主色，黑色一下就流行起来，黑色现在在美国被认为是高贵、典雅和精力旺盛的象征。

可见文化是在发展变化的。

我们这里所说的文化，是指一国中大多数人与消费有关的崇尚爱好和风俗习惯，如风俗习惯、宗教信仰、价值观、语言文字等，这些文化因素对消费者作出的购买决策会产生巨大的潜在影响。

从上面所举的例子我们可以看出，文化具有这样几个特点：①文化不是先天遗传来的，而是在后天的社会环境中形成的。

C HAPTER 14--DESIGNING AND MANAGING SERVICES OVERVIEW:As the United States moves increasingly toward a service economy and beyond, marketers need to know more about marketing service products. Services are activities or benefits that one party can offer to another that are essentially intangible and do not result in ownership of anything tangible. Services are intangible, inseparable, variable, and perishable. Each characteristic poses problems and requires strategies. Marketers have to find ways to make tangible the intangible; to increase the productivity of providers who are inseparable from the product; to standardize quality in the face of variability; and to influence demand movements and supply capacities better in the face of service perishability.Because services generally are intangible, customers perceive them as a more risky proposition and evaluation more difficult. Accordingly, they tend to rely more on personal references or information sources, reputation (brand name and image), and the price and / or facilities of the service provider as an indication of quality. Among the means by which the service provider can reinforce these elements and overcome the perceptions of risk is to reduce the complexity involved with the service (paperwork and bureaucracy), stress the positive elements of tangibility in the service, make all communications with the customer very clear and unambiguous, and focus constantly on service quality.Service industries have typically lagged behind manufacturing firms in adopting and using marketing concepts, but this is changing. Services marketing strategy calls not only for external marketing but also for internal marketing to motivate employees, and interactive marketing to create skills in the service providers. Further, in the future customers will use more technical and functional criteria to judge the quality of services.Even product-based companies must provide and manage a service bundle for their customers; in fact, their services bundle may be more critical than the product in winning customers. The service mix includes pre-sale services such as technical advice, dependable delivery, as well as post-sale services such as prompt repair and personnel training. The marketer has to decide on the mix, quality, and source of various product support services for customers. Service marketers, to succeed, must create competitive differentiation, offer high service quality, and find ways to increase service productivity without reducing the perceived service level.LEARNING OBJECTIVES:After reading the chapter the student should understand:∙How services are defined and classified∙The distinctive characteristics of services as opposed to goods∙How service firms can improve their differentiation, quality, and productivity∙How goods-producing companies can improve their customer-support service CHAPTER OUTLINE:IntroductionI.The Nature of Services - a service is any act or performance that one party can offer toanother that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.A.Categories of Service Mix --There are five major categories of offer: puretangible good, tangible good with accompanying services, hybrid, major servicewith accompanying minor goods and services, and pure service. The degree ofpeople and equipment based service activity provides an important variable in thegoods-to-service mix.B.Characteristics of Services and Their Marketing Implications1.Intangibility - services cannot be seen, heard, touched, tasted or felt. Acritical element here is the signs or evidence of service quality totransform intangible services into meaningful benefits2.Inseparability - services are produced and consumed simultaneously, andthe provider-client interaction is an important aspect in the outcome.3.Variability - the quality of a service depends on when, where and bywhom they are provided, with training a crucial differentiator.4.Perishability - services cannot be stored for later use. There are severalstrategies that can be used for producing a better match between servicedemand and supply.II.Marketing Strategies for Service Firms - three extra “Ps” in service marketing: people (they should be competent, caring and responsive), physical evidence (development of a look and observable style), and processes (how the service is delivered). The goal is toachieve a high level of interactive marketing between provider and client. The maintasks are:A.Managing Differentiation - through the offer, the delivery, and the imageperceived by customers, and to develop a differentiated offer, delivery or imageas the alternative to price competition.B.Managing Service Quality - one way to differentiate is through consistentlyhigher quality service that meets or exceeds customer expectations (perceivedversus expected service). There are five gaps that cause unsuccessful servicedelivery and five determinants of service quality. Various studies have shownthat excellently managed service companies share the following commonpractices:1. a strategic concept: "customer obsessed"2. a history of top-management commitment to quality3.high standards4.systems for monitoring service performance5.systems for satisfying customer complaints6.an emphasis on employee and customer satisfaction.C.Managing Productivity - There are seven approaches to improve serviceproductivity and to reduce costs. However, a goal is to avoid pushingproductivity too hard and thus reduce perceived quality ('high-tech" versus 'high-touch.")III.Managing Product Support Services - for product-based industries that must provide a service bundle to their customers, responding to three specific customer worries related to reliablity, service dependability, and maintenance.A.Post-Sale Service StrategyB.Major Trends in Customer ServiceIV.SummaryMarketing and Advertising1. Figure 1 shows a BellSouth ad geared for business and consumer audiences. How does the content ofthis ad reflect BellSouth's application of the three additional Ps for its service business? How does the ad provide evidence of service quality to reduce the uncertainty business customers have about buying an intangible product? What segments of the business and consumer markets does BellSouth seem to be targeting with this ad?Answer: The BellSouth ad reflects people, physical evidence, and process, the three additional Ps for service businesses. People are represented by the representative pictured and quoted in the ad; the physical evidence is the telephone bill, which is available in Spanish in Florida; and the process is represented by the matching of customers to service representatives fluent one of eight languages. The ad provides evidence of service quality by pointing to the way BellSouth helps its customers in "new and creative ways," as the copy states—specifically, by offering multilingual service representatives. BellSouth seems to be targeting companies and consumers that do business primarily in Spanish and other languages.2. This GMAC ad illustrates one of General Motors' product support services: affordable financing for new car buyers. Is this GMAC service being offered for presale or postsale use? Is the offering bundled or unbundled? Does it represent a facilitating service or a value-augmenting service? Explain your answers.Answer: The GMA C service in the ad is being offered for presale use—before the customer buys a new car. The offering looks unbundled but it is actually bundled, because customers cannot get the low lease rates unless they buy a General Motors vehicle. It represents a facilitating service, because it helps customers buy a GM vehicle.Focus on TechnologyThe Internet is fast becoming part of every marketer's service support strategy. Nearly any product can be differentiated through online service support—even 3M's Post-it notes, those ubiquitous removable notes available in paper and software format. "What did you ever do without them?" asks the Post-it Web site. In case consumers and business users get stuck for an answer, they can surf over to the Post-it site, which offers an ever-changing array of ideas, contests, and good-natured fun.Stop by the Post-it site (/Post-it) and look at the product section, the downloads, and the monthly feature. Why would 3M establish this relatively extensive Web presence for such a well-known product? How do you think Post-it customers are likely to react? What other basic office products for home or commercial use might benefit from similar online service support?Answer: The Post-it Web site showcases value-augmenting services to keep customers buying 3M brand removable notes. It also reinforces the brand image, differentiates the product, and offers post-sale service such as suggestions for additional uses of the product. (Students may identify additional justifications.) Post-it customers are likely to be pleased with this site and find the tips useful in home or business use of removable notes. Students may offer various ideas for other basic office products that could benefit from such online service support.Marketing for the MillenniumLifelong learning is important for career development as well as personal growth. Now computer users who want to empower themselves by learning programming, database techniques, Web site design, and other skills for today's technology can take online classes through ZD University. ZDU is an online service offered by Ziff-Davis, a company that publishes a wide variety of magazines on information technolo gy. For a flat monthly or yearly fee, students can sign up for as many ZDU courses as they like, learning at their own pace and on their own schedule.Browse the ZD University Web site (/), noting especially the course catalog, free offers, and ZDU Handbook. How does ZDU manage students' expectations of this online learning service? How does it demonstrate its service quality? Explain how ZDU delivers a winning combination of high tech and high touch to sati sfy its students.Answer: ZDU manages expectations of its online learning service by offering a free trial period so students can see for themselves. Its handbook also explains what students should expect from their online courses at ZDU. The company demonstrates its service quality by (1) offering easy sign-up, which represents responsiveness, one key determinant of service quality; (2) offering assurance through such tangible features as the privacy notice telling students that their personal data will not be shared, another key determinant of service quality; and (3) offering tangibles such as the Journal, the resource library, and other communication materials, a third determinant of service quality. Students may mention additional features that demonstrate service quality. ZDU uses both high tech and high touch to sati sfy students by delivering the latest information and courses conveniently, via the Web, yet personalizing the experience and customizing it to meet students' needs (students may offer additional responses here).YOU'RE THE MARKETER: SONIC MARKETING PLANMarketers of any type of good or service need to develop a service strategy when preparing their marketing plans. If their products are intangible, they will want to consider how to manage customers' expectations and satisfaction; if their products are tangible, they will want to create suitable support services.As Jane Melody's assistant, you are charged with planning product support services for Sonic's shelf stereo products. Start by reviewing the company's current situation and the information you previously entered in your marketing plan. Then respond to the following questions to plan your service strategy (indicating, where necessary, any additional data and research that may be needed):∙What support services do buyers of shelf stereo products want and need? (As you answer this question, look back at your customer research, Sonic's strengths, and the competitiveinformation you have gathered.)∙What postsale service arrangements should Sonic have or improve in order to satisfy customers' complaints?∙What kinds of guarantees should Sonic offer to be competitive? To beat the competition?∙What type of internal marketing will Sonic need to effectively implement the external marketing of your product service support?Consider how your service strategy will help Sonic's overall marketing efforts. Finally, as your instructor directs, summarize your recommendations and plans in a written marketing plan or type them into the Service part of the Marketing Strategy section of the Marketing Plan Pro software.Answer: Sonic knows that its customers value easy, fast, accurate repair services, so this is a key support service. Students may suggest other services, such as a good warranty offer, as well. For postsale arrangements, Sonic must be sure it has a good network of repair centers in every region where its products are sold; it should also have a Web site or local phone numbers or a toll-free central number for customers to call with complaints and questions. The kinds of guarantees Sonic offers depend on what students learn about competitive guarantees; if Sonic's products are better quality than those of its rivals, it can take a small risk and offer a better guarantee. At a minimum, the internal marketing needed to implement the external marketing of product service support includes training of company employees, distributors, and repair or service centers; students may suggest additional internal marketing programs.。