08PR_04,基于消费者洞察的广告策略,中山大学吴柏林老师,绝密资料_02a2

Chapter 11—Setting Product and Brand StrategyTrue/False Questions1. A product is anything that can be offered to a market to satisfy a want or need. True (easy) p. 2122.The most fundamental level of a customer value hierarchy is called the expected product. False(moderate) p. 2123. A potential product is a set of attributes and conditions that buyers normally expect when they buythe product. False (difficult) p. 2134.The fourth level of the customer value hierarchy is when the marketer prepares an augmented productthat exceeds customer expectations. True (moderate) p. 2135.Hotel guests expect a clean bed and fresh towels. This is the core benefit level of the hotel ―product.‖False (easy) p. 2126.Nondurable goods are tangible goods that are normally consumed in one or a few uses, such as beerand soap. True (moderate) p. 2147.Unsought goods are tangible goods that normally survive many uses, such as refrigerators. False(moderate) p. 2148.Shopping goods are goods that consumers do not know about or do not normally think of buying,such as smoke detectors. False (moderate) p. 2149. A person‘s consumption system includes the way the person performs the task of getting, using,fixing, and disposing of the product. True (easy) p. 21310.Supplies are short-lasting goods and services that facilitate developing or managing the finishedproduct. True (moderate) p. 21411.The length of a product mix refers to how many variants of each product are offered. False (difficult)p. 21412.Product line length refers to the total number of items in the mix. True (moderate) p. 21513.Product line consistency refers to the total number of items in a product mix. False (moderate) p.21514.Stretching a product line upward runs the risk of cannibalization of the product line. False (moderate)p. 21515.When Suzuki announces a low-priced, fully equipped sport bike to attract customers into theshowroom, it is an example of a downward stretching of the product line. True (moderate) p. 215 16.The addition of jalapeño flavored kettle chips to the Lays snack line is an example of line-filling.True (moderate) p. 21613717.The most enduring meanings of a brand are its values, culture, and personality. True (easy) p. 21718.When Coca-Cola introduced its new Vanilla Coke brand it illustrated an example of line extensions.True (moderate) p. 22219.One way to extend a brand is through licensing the company name for use on other products. True(moderate) p. 22320.A Dodge pickup with a Cummins diesel engine in it provides an example of multiple-sponsor co-branding. False (difficult) p. 223Multiple Choice Questions21.An airline is considering offering Internet access and satellite-sent videos on demand in their alreadyposh first class sections. These additions represent _______________.a.)the core benefitb.)the basic productc.)the expected productd.)the augmented producte.)the potential product (easy) p. 21322.The most fundamental level of a customer value hierarchy is called the _______________.a.)core benefit (moderate) p. 212b.)basic productc.)expected productd.)augmented producte.)potential product23.Which of the following is the best example of a basic product?a.)Zhou buys a used Schwinn bicycle for transportation.b.)Marlinda stays in a Marriott because she likes the nightly mint on her pillow.c.)Tate eats at Wendy‘s because she likes the 99-cent value products.d.)Sophie gets a clean room at the Ramada Inn. (moderate) p. 212e.)Morgan enjoys the coupons in the Sunday newspaper.24.A(n) _______________ is a set of attributes and conditions that buyers normally expect when theybuy the product.a.)core benefitb.)basic productc.)expected product (moderate) p. 212d.)augmented producte.)potential product13825.Absolute Snowboard Shop offers an extended warranty on the boards it sells; a free checkup onemonth into the season; and even tunes up and delivers boards. In terms of the customer valuehierarchy, the board shop is offering a(n) _______________ product.a.)coreb.)basicc.)service-addedd.)expectede.)augmented (difficult) p. 21326.Which of the following is not a quality normally associated with services?a.)They are intangible.b.)They are variable.c.)They are perishable.d.)They are durable. (easy) p. 214e.)They normally require more quality control.27.Which of the following best describes the way in which the user performs the tasks of getting, using,fixing, and disposing of the product?a.)consumption system (moderate) p. 213b.)distribution systemc.)purchasing systemd.)convenience systeme.)shopping system28.Which of the following is not normally true of durable goods?a.)They survive many uses.b.)They require more personal selling and service.c.)They command higher margins.d.)They require more seller guarantees.e.)They are more variable in their delivery of core needs. (moderate) p. 21429._______________ are tangible goods that are normally consumed in one or a few uses such as beerand soap.a.)Nondurable goods (easy) p. 214b.)Durable goodsc.)Extensive goodsd.)Specialty goodse.)Unsought goods30.Which of the following is the BEST example of nondurable goods?a.)living room furnitureb.)aluminum cookwarec.)watchesd.)breakfast cereals (easy) p. 214e.)computer monitors13931.Which of the following are tangible goods that normally survive many uses?a.)nondurable goodsb.)durable goods (easy) p. 214c.)extensive goodsd.)specialty goodse.)unsought goods32.Products that are bought frequently, immediately, and with little effort, such as newspapers or snackitems are called _______________ goods.a.)nondurableb.)convenience (easy) p. 214c.)heterogeneous shoppingd.)staplese.)homogeneous shopping33.Bowers will drive hours to buy an item for his Nirvana memorabilia collection. It is hard to find goodand original items associated with Nirvana because there are so many collectors of this memorabilia.In terms of the consumer-goods classification, Nirvana memorabilia is an example of a_______________ good.a.)convenienceb.)nondurablec.)heterogeneous shoppingd.)specialty (moderate) p. 214e.)homogeneous shopping34._______________ are goods that consumers do not know about or do not normally think of buying,such as smoke detectors.a.)Convenience goodsb.)Shopping goodsc.)Specialty goodsd.)Unsought goods (moderate) p. 214e.)Homogeneous goods35.Unprocessed grain, cotton, iron ore, and bulk copper are all classified as _______________.a.)component materialsb.)capital itemsc.)supplies and business servicesd.)raw materials (moderate) p. 214e.)component partsputer chips, heavy duty batteries, and wiring assemblies are all examples of _______________.a.)component materialsb.)capital itemsc.)supplies and business servicesd.)raw materialse.)component parts(moderate) p. 21414037.Long-lasting goods such as a metal stamping equipment or an industrial drill press are classified as_______________.a.)component partsb.)supplies and business servicesc.)capital items (moderate) p. 214d.)component materialse.)operating supplies38._______________ are short-lasting goods and services that facilitate developing or managing afinished product.a.)Supplies (moderate) p. 214b.)Commoditiesc.)Component partsd.)Office equipmente.)Component materials39.The number of different product lines offered by a company is termed the product mix‘s_______________.a.)depthb.)lengthc.)flexibilityd.)width (moderate) p. 214e.)consistency40.The __________ of a product line refers to how many variants of each product are offered.a.)depth (moderate) p. 214b.)lengthc.)flexibilityd.)widthe.)consistency41.Which of the following refers to the total number of items in the mix?a.)depthb.)length (moderate) p. 214c.)flexibilityd.)widthe.)consistency42.The _______________ of the product mix refers to how closely related the various product lines arein end use, production requirements, distribution channels, or in some other way.a.)depthb.)breadthc.)lengthd.)widthe.)consistency (moderate) p. 21414143.When Honda added the Passport and CRV SUVs, and the Odyssey minivan to its range of automotiveofferings it engaged in _______________.a.)line featuringb.)line pruningc.)line filling (moderate) p. 216d.)line dancinge.)line modernization44.Which of the following is a risk associated with a downward stretch strategy?a.)The new low-end item will definitely cannibalize higher-end items.b.)The downscale product may cannibalize the core brand. (difficult) p. 215c.)The low-end item might provoke more competition as other companies move to the low end.d.)Higher-end competitors may be too firmly entrenched for the company to recoup its investmentcosts.e.)The professionalism of the sales force may become a problem when they are asked to serve thelow end of the market.45.The addition of jalapeño flavored kettle chips to the Lays snack line is an example of_______________.a.) a downward stretchb.)an upward stretchc.)line augmentationd.) a two-way stretche.)line-filling (moderate) p. 21646.The Craftsman tools is an example of the brand conveying which level of meaning?a.)attributes (moderate) p. 217b.)valuesc.)featuresd.)benefitse.)personality47.When the manufacturer of Snapper lawn mowers runs ads that equate its products with the power ofthe dependable turtle, it is conveying the _______________ of the brand.a.)attributes (moderate) p. 217b.)featuresc.)valuesd.)benefitse.)personality48.SecuRite alarm systems is a brand name that conveys what level of brand meaning?a.)attributesb.)valuesc.)personality, attributes, and benefitsd.)benefits (difficult) p. 217e.)user14249.―Animal,‖ the drummer for the Route 66 Killers is running low on replacement drum sticks. Heheads downtown to AMP Music, but finds they do not carry his favorite brand, Pro-Mark. Instead of buying other-branded sticks, Animal chooses to order online from . This is an example of _______________.a.)brand acceptabilityb.)brand awarenessc.)brand loyalty (moderate) p. 217d.)brand perceptione.)brand preference50.Brand equity _______________.a.)is tied closely to specific product linesb.)is closely related to the number of customers who are devoted to the brand (difficult) p. 218c.)reduces the amount of product management effort a company needs to expendd.)may actually hinder the launching of brand extensionse.)will be destroyed when the product‘s manufactur er launches a premium pricing strategy51._________ refers to estimating the total financial value of the brand.a.)Brand loyaltyb.)Brand equityc.)Brand valuation (moderate) p. 218d.)Brand identitye.)Brand building52.A company produces several different products and wants to avoid confusion between its differentproducts. Its best choice for a branding strategy would be _______________.a.)store brand namesb.) a blanket family namec.)brand name licensingd.)separate family names for all products (difficult) p. 221e.) a company trade name with individual product names53.A diet supplement product has the brand name of Mega-Mass. This is a desirable brand name becauseit exhibits which of the following brand name characteristics?a.)The brand name suggests something about the product’s benef it. (difficult) p. 221b.)The brand name sounds like a lot of other similar muscle-enhancing products.c.)The brand name is static and suggests no action.d.)The brand name promises success.e.)The brand name emphasizes the product‘s features.ing an existing brand name and extending to new sizes or flavors in the existing product categoryis called _______________.a.)line extension (moderate) p. 222b.)brand extensionc.)multibrandsd.)co-brandse.)complex brands14355.Mars recently tested a fudge-flavored Snickers candy. Mars is using a _______________ strategywith the Snickers brand.a.)multibrandb.)brand extensionc.)new brandd.)line extension (moderate) p. 222e.)co-brand56.Line extensions result in _______________.a.)new excitement and commitmentb.)the ability of one brand to benefit from the strength of another brandc.) a higher chance of survival for the new product (difficult) p. 222d.)instant recognition and early acceptancee.)the guaranteed success of a premium pricing strategy57.Many consumers now view brands as being of relatively equal value, and are therefore less loyal to aparticular brand. This is calleda.)brand ladderingb.)brand parity (moderate) p. 220c.)brand equityd.)brand acquisitione.)brand extension58.When the Harley-Davidson Motor Company licensed its logo for use on special edition Ford F150trucks, it was an example of a manufacturer using a(n) _______________ strategy.a.)innovationb.)line extensionc.)brand extensiond.)multibrande.)co-brand (moderate) p. 22359.New brand names introduced in the same product category are called ______________.a.)line extensionb.)brand extensionc.)multibrands (moderate) p. 223d.)co-brandse.)complex brands60.DaimlerChrysler markets vehicles under the brand names of Jeep, Chrysler, Mercedes, Mini Cooper,and Dodge, all targeted to different market segments. DaimlerChrysler is using a(n)_______________ strategy.a.)innovationb.)line extensionc.)brand extensiond.)multibrand (moderate) p. 223e.)co-brand14461.The King Ranches of Texas and Hawaii authorized Ford Motor Company to use their name and logofor a special edition F150 pickup. This is an example of the use of a _______________ strategy.a.)line extensionb.)co-branding (moderate) p. 223c.)repositioningd.)brand extensione.)line filling62.Kid-oriented yogurt cups are falling from favor as moms and kids are showing a preference fordrinkable forms of yogurt packaged in tubes. Manufacturers of cup-based yogurts think they still have a good product – one that has nutritional benefits for consumers. Their best branding strategy would be _______________.a.)line extensionb.)co-brandingc.)repositioning (moderate) p. 223d.)brand extensione.)multibranding63.White Castle wanted to attract more health-conscious consumers by adding a grilled chickensandwich, the ―Chicken Castle‖ to its menu. This is an example of a _______________ strategy.a.)line extensionb.)co-brandingc.)repositioning (moderate) p. 223d.)brand extensione.)multibranding64.An example of a secondary package would be a _______________.a.)bag of Sunkist orangesb.)carton containing twelve cans of Pepsi (moderate) p. 224c.)can of Libby‘s brand vienna sausaged.)bag of Fit ‗N Trim dog foode.)bottle of Mountain Dew soda65.Some companies are offering cardboard (as opposed to plastic) refill packages of liquid detergent andfabric softener to cut down on solid waste. This environmentally aware packaging is an example of a(n) _______________.a.)Self-service opportunityb.)consumer affluencec.)image repositioningd.)innovation opportunity (difficult) p. 224e.)social perception66.The green bottle that holds Quaker State motor oil contributes to Quaker State‘s marketing effort inthe sense that _______________.a.)it looks prettyb.)it aids in the self-service functionc.)it helps consumers feel more affluentd.)it helps build company and brand image (moderate) p. 224e.)it allows Quaker State to be more innovative14567.When Staples receives their order for Sharpie brand permanent markers, the case inside the shippingbox is called _______________.a.)the primary packageb.)the secondary package (easy) p. 224c.)the shipping packaged.)individual packagee.)unit package68.Yamaha makes engines, musical instruments, and motorcycles, among other products. If Yamahadecided to enter the farm equipment industry with the Yamaha brand, this would be an example of _______________.a.)brand dilutionb.)multibrandingc.)experiential brandsd.)functional brandinge.)brand extension (moderate) pp. 222-223 has a good brand name because the name _______________.a.)suggests something about the product‘s benefitsb.)suggests product qualitiesc.)tells where the company is basedd.)is distinctive (moderate) p. 221e.)is easily forgotten70.Which of the following would be considered a line extension for the Coca-Cola Company?a.)Diet Caffeine-Free Coke (moderate) p. 222b.)Minute Maid Orange Juicec.)Orangina Orange Sodad.)Inca Kolae.)Georgia CoffeeEssay Questions71.The Japanese restaurant chain Beni-Hana provides a chef that cooks the meal in an entertaining wayon a large table in front of your group. List and explain the five product levels as they relate to the Beni-Hana experience.Answer:The core benefit of a visit to Beni-Hana is a full stomach. The basic product includes food, seating, and entertainment. The expected product probably includes a basic level of freshness, hygiene, and nutrition. The augmented product would be anything that goes above and beyond the diners‘expectations, such as a chef that tells jokes or explains about Japanese culture as he prepares the meal.The potential product could include any number of services or products added to the basic Beni-Hana experience described. Examples might be free rice wine samples, cooking participation by the diners, or embossed napkins that you can take home with you.(moderate) pp. 212-21314672.In a short essay, explain how a marketer can classify a product according to durability and tangibilityand determine the marketing strategies for the corresponding classifications. Give examples from both the consumer market and the industrial market.Answer:Nondurable goods are tangible goods normally consumed in one or a few uses. Because these goods are consumed quickly and purchased frequently, the appropriate strategy is to make them available in many locations, charge only a small markup, and advertise heavily to induce trial to build preference.Examples for consumer market: beer, candy bar, and soap. Examples for industrial market: glue stick, stamps, disposable syringes, and paper towels. Durable goods are tangible goods that normallysurvive many uses. Durable goods normally require more personal selling and service, command a higher margin, and require more seller guarantees. Examples for consumer market: refrigerator, automobile, lawn mower, and clothing. Examples for industrial market: copying machine, computer, laser printer, walk-in freezer, and dog kennel. Services are intangible, inseparable, variable, and perishable products. As a result they normally require more quality control, supplier credibility, and adaptability. Examples for consumer market: day care, haircut, vacation cruise, and maid service.Examples for industrial market: management consulting, accounting, and an employment agency.(difficult) p. 214petition in the soft drink industry is intense. In a short essay, describe a soft drink brand you arefamiliar with—Coca-Cola, Fanta Orange, 7Up, Mountain Dew, etc.—in terms of the six levels of meaning a product brand has.Answer:Student answers will vary according to which brand of soft drink they select. If, for example, they were to select Mountain Dew, their answers might look something like the following:a.)Attributes: Mountain Dew suggests youth, fun, and a little daring.b.)Benefits: Mountain Dew has one of the highest levels of caffeine on the market, so one of itsbenefits is energy.c.)Values: Mountain Dew brand has a thumb-your-nose-at convention air.d.)Culture: Mountain Dew stands for GenXers.e.)Personality: There is an cocky under-thirty image projected by the product.f.)User: Mountain Dew suggests an under thirty, unconventional, highly motivated person whodoesn‘t mind taking risks(moderate) p. 21774.Detail Aaker‘s five levels of customer attitude toward a brand. What is brand equity and how is itrelated to the Aaker‘s five levels?Answer:The customer has no brand loyalty and will change brands, especially for price reasons. 2) Thecustomer has no reason to change brands, s/he is satisfied. 3) The customer is satisfied with the brand and would actually have to incur costs to switch. 4) The customer values the brand and sees it as a friend. 5) The customer is devoted to the brand.Brand equity is the positive effect that knowing the brand name has on customer response to theproduct or serv ice. Brand equity is highly related to levels 3, 4, and 5 of Aaker‘s framework. More brand equity translates to an ability to reduce marketing costs, to bargain harder with distributors and retailers that carry your product, and it allows the firm to charge consumers higher than the average prices, relative to the product category.(moderate) p. 21814775.French Connection has a very popular clothing line brand name, FCUK. Their motto is ―vive le fcuk:British fashion with a French accent.‖ Discuss how this brand name might attract the kinds ofcustomers French Connection wants.Answer:FCUK is a very aggressive brand name which seeks to offend while making money for the company.In terms of levels of brand meaning, the name does not say much about product attributes. It does not speak to the benefits of wearing the clothes. It probably speaks to the company‘s values and culture (in-your-face). The personality of the FCUK brand is, again, considered aggressive, and this extends to the type of person that is attracted to a brand that is obviously meant to offend someone. Onewould expect that the FCUK brand would appeal to consumers with strong personalities, who want to be different and don‘t mind showing it. They are likely to rail against the status quo and try t o shock others through their behavior and clothing choices.(difficult) p. 217Mini-CasesMini-Case 11-1In the processed meat industry, Sara Lee Meats (SLM) is a star. Sara Lee had almost $4.6 billion in sales last year with sales in more 140 nations. It owns and operates meat-processing plants in 40 different nations. SLM‘s business strategy includes product innovation, acquisitions and mergers, and market leadership in a number of different categories. Its growth strategies support an annual 6 percent growth in sales. Important U.S. brands in the Sara Lee product line are Kahn‘s, Jimmy Dean, Hillshire Farms, Bryan, State Fair, and Best‘s Kosher, and Tastefuls! According to SLM executive George Chivari, ―We work very hard at Sara Lee on brand equity. . . . We have to make sure our new ideas are not only profitable and achieve big volume for our [retail] customers, but also that they are consistent with the quality of the brand and there is a good fit.‖ One of SLM‘s recent new products that seems to have a good fit with the company‘s other products was Tastefuls! Tastefuls! brand is described as a lunch combination. It features two small sandwiches, chips, and dessert. The lunch combination was developed and marketed by Jimmy Dean foods, a company that prior to the introduction of this product had just made sausage.76.Refer to Mini-Case 11-1. Given what you have read about Sara Lee Meats, you would think that itsexecutives want you to classify the SLM products as _______________.a.)homogeneous shopping productsb.)specialty products (moderate) p. 214c.)convenience productsd.)staplese.)impulse products77.Refer to Mini-Case 11-1. When Hillshire Farms, a manufacturer of various kinds of sausages,introduced a new line of sausages made with turkey meat under the Hillshire Farms brand, it was an example of a _______________ strategy.a.)co-brandingb.)brand licensingc.)line extensiond.)multibrandinge.)brand extension (moderate) pp. 222-22314878.Refer to Mini-Case 11-1. The introduction of Tastefuls! was an example of a _______________strategy.a.)multibranding (moderate) p. 223b.)family brandingc.)co-brandingd.)licensed brandinge.)brand extensionMini-Case 11-2Volkswagen plans to enter the sport-luxury car market with an upscale automobile based on the Passat platform. The new car will have all-wheel drive, a small-block V-8 engine, GPS navigation equipment, leather interior, and 18‖ low profile tires, among other attributes. Base prices are expected to start at $43,995, though few options are not already included. Promotion will focus on men in their 30s and 40s who are successful at their jobs, report annual incomes in excess of $100,000, and who like speed and high technology.79.Refer to Mini-Case 11-2. A person who only views cars as a way to get from point A to point Bwould see this vehicle in terms of a(n) _______________.a.)potential productb.)augmented productc.)expected productd.)basic producte.)core benefit (easy) p. 21380.Refer to Mini-Case 11-2. The Passat fully-loaded with all the ―bells and whistles‖ is priced in themid-high $30,000s. This example of VW moving upscale is called _________ and is especially risky because __________.a.)market stretching; starting a new car brand can costs millions of dollarsb.)upmarket line stretching; it could cannibalize VW’s core brand (difficult) p. 215c.)brand building; awareness of the brand could be too great and cause shortagesd.)cult branding; consumers might reject VW as a luxury automobile producere.)brand dilution; consumer may stop thinking about the brand81.Refer to Mini-Case 11-2. VW will call the car the LS8-C, which stands for Luxuriöser Sport 8-Cylinder. This brand name is based on _______________.a.)the attributes of the car (moderate) p. 217b.)the benefits of the carc.)the personality of the card.)the driver/user of the care.)the culture of the company149。

主题04 体验营销定位[主题要点]营销大师科特勒在1988年就指出：定位是指公司设计出自己的产品和形象，从而在目标顾客心中确定与众不同的有价值的地位，定位要求公司能确定向目标顾客推销的差别数目及具体的差别。

定位是适应市场竞争的加剧而产生的营销观念，定位的目的就是要将差异化做出来。

在营销理论中，市场细分（Segmentation）、目标市场（Targeting）与定位（Positioning）都是公司营销战略的要素，被称为营销定位决策STP。

这一战略在体验营销中也不例外。

※市场细分。

市场细分包括消费者市场细分和产业市场细分。

其中，消费者市场细分的依据有两大类，一是消费者的基本特征，如地理、人口和心理要素等；二是消费者行为，如时机、状态、使用率和品牌忠诚度等。

详见表1.4.1表1.4.1消费者市场细分产业市场的细分要素还包括用户类型与购买者规模等。

※目标市场。

企业选择目标市场是在市场细分的基础上进行的。

通过分析细分市场需求满足的程度，发现那些尚未得到满足的需求，而企业自身又具有满足需求的条件，就可选定为目标市场。

※定位。

体验营销的定位是以形象为导向的体验，描述品牌代表什么。

企业确定了目标消费者是远远不够的，因为这时企业还处于“一厢情愿”的阶段，让目标消费者也同样以你的产品作为他们的购买目标才更为关键。

为此，企业需要将产品定位在目标消费者所偏爱的位置上，并通过一系列营销活动向目标消费者传达这一定位信息，让消费者注意到这一品牌并感到它就是他们所需的，这样才能真正占据消费者的心，使你选定的目标市场真正成为你的市场。

如果将市场细分和目标市场抉择比喻为“靶子”的话，那么，定位就是将“箭”射向靶子。

如喜力（Heineken），以喜爱清闲感受的消费者作为其目标市场，该品牌以“使人心旷神怡的啤酒”为定位，令消费者觉得喜力是满足他们所需的啤酒，从而赢得了目标消费者的青睐；海尔“小小神童”的成功上市也是市场细分的结果。

Part I Understanding Marketing ManagementChapter 1 – Defining Marketing for the Twenty-First CenturyI. Chapter Overview/Objectives/OutlineA. OverviewMarketing is the organizational function charged with defining customer targets and the best way to satisfy needs and wants competitively and profitably. Since consumers and business buyers face an abundance of suppliers seeking to satisfy their every need, companies and nonprofit organizations cannot survive today by simply doing a good job. They must do an excellent job if they are to remain in the increasingly competitive global marketplace. Many studies have demonstrated that the key to profitable performance is to know and satisfy target customers with competitively superior offers. This process takes place today in an increasingly global, technical, and competitive environment.Marketing management is the conscious effort to achieve desired exchange outcomes with target markets. The marketer’s basic skill lies in influencing the level, timing, and composi tion of demand for a product, service, organization, place, person, idea, or some form of information.There are several 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.The marketing concept moves toward a more enlightened view of the role of marketing. The marketing concept holds that the main task of the company is to determine the needs, wants, and preferences of a target group of customers and to deliver the desired satisfactions. The four principles of the marketing concept 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 that achieves 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.”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 continues to intensify 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 reevaluating various marketing concepts and tools that focus on relationships, databases, communications and channels of distribution, as well as marketing outside and inside the organization.B. Learning Objectives∙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 is critical to different types of organizations and in different environments.C. Chapter OutlineIntroductionI.The New EconomyA.Focus on the digital revolution (Internet and related) and the impact onbusinesses and consumers in terms of capabilities.1.For Consumers - Multiple new capabilities related to increases in buyingpower, variety of goods and services available, information, interactivity,and product comparability.2.For Companies - Enhanced marketing reach, direct connectivity,information on all of the stakeholders and competitors, communications(internal and external), customized services and products, enhancedlogistics, and enhanced training.B.The Information Age Versus the Industrial Age1.Management has to recognize the potential quickly2.Marketing - “Meeting needs profitably”II.Marketing TasksA.Radical Marketing - Breaking the Existing Marketing Rules1.Firms are moving closer to the customer versus expensive research andmass marketing.2.Stages in marketing practice - entrepreneurial, formulated, andintrepreneurial.3.Focus on formulated marketing versus creative marketing.B.Scope of Marketing - Involves a Broadened View of Marketing1.Products - Anything offered for sale or exchange that satisfies aneed or want.2.Products can be goods, services, and ideas.3.Includes people, places, activities, organizations, and information.C.The Decisions That Marketers Make1.Focus on demand states and marketing tasks, along with the questionsthat marketers ask to remain aware and focused.2.Consumer markets and business markets each requires new tools andcapabilities to better understand and respond to the customer.3.Global Markets, Nonprofit markets, and governmental marketsbecoming more sophisticated in recognizing and dealing with marketingchallenges and decisions.III.Marketing Concepts and ToolsA.Defining Marketing1. A social and managerial process by which individuals and groups obtainwhat they need and want through creating, offering, and exchangingproducts of value with others.B.Core Marketing Concepts1.Target Markets and Segmentationa)Every product or service contains features that a marketer musttranslate into benefits for a target market.b)The consumer perceives these benefits to be available in aproduct and directly impacts the perceived ability to meet theconsumer need(s) or want(s).2.Marketplace, Marketspace, and Metamarketa)Marketplace - physicalb)Marketspace - digitalc)Metamarket - cluster of complementary goods and servicesacross diverse set of industries. Includes metamediaries.3.Marketers and Prospectsa) A marketer is someone actively seeking one or more prospectsfor an exchange of values.b) A prospect is willing and able to engage in the exchange.4.Needs, Wants, and Demandsa)To need is to be in a state of felt deprivation of some basicsatisfaction.b)Wants are desires for specific satisfiers of needs.c)Demands are wants for specific products backed by an abilityand willingness to buy them.5.Product or offeringa)Value proposition - Benefits companies offer to satisfycustomer needs.b)Brand - An offering from a known source. Brand image isthe associations that are connected to the brand.6.Value and Satisfactiona)Customer value triad - Combination of quality, service, and price(QSP).b)Value is the consumer’s estimate of the product’s overallcapacity to satisfy his or her needs.c)Marketers respond by changes in the triad.7.Exchange and Transactionsa)Five conditions must be satisfied.b)An exchange means obtaining a desired product by offeringsomething desirable in return.c) A transaction is the trade of values (involves several dimensions).8.Relationships and Networksa)Relationship marketing seeks long-term, “win-win” transactionsbetween marketers and key parties (suppliers, customers,distributors).b)The ultimate outcome of relationship marketing is a uniquecompany asset called a marketing network of mutually profitablebusiness relationships.9.Marketing Channelsa)Reaching the target market is critical.b)Achieved via two-way communication channels (media-newspapers through the Internet), and physical channels (productand service).c)The marketer also must decide on the distribution channel, tradechannels, and selling channels (to effect transactions).10.Supply chaina)Refers to the long channel process that reaches from the rawmaterials and components to the final product/buyers.b)Perceived as a value delivery system.petitiona)Includes actual and potential rival offerings and substitutes.b) A broad view of competition assists the marketer to recognizethe levels of competition based on substitutability: brand,industry, form, and generic.12.Marketing Environmenta)The task environment includes: immediate actors in theproduction, distribution, and promotional environmentsb)The broad environments include: demographic, economic,natural, technological, political-legal, and social-cultural.13.Marketing Programa)Marketing mix - The set of marketing tools the firm uses topursue marketing objectives in the target market.b)Involves recognition and use of the four Ps (product, price, place,and, promotion) and the four Cs (customer solution, customercost, convenience, and communication) in the short run and thelong 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 - Assumesthe key to achieving organizational goals consists of being more effective than competitors in integrating marketing activities toward determining and satisfying the needs and wants of target markets.1.Target Market - No company can operate in every market and satisfyevery need.2.Customer Needs - It is not enough to just find the market.a)Marketers must also understand their customer’s needs andwants. Not a simple task.b)Key marketer actions: Responsive marketing, anticipativemarketing, and creative marketingE.Integrated Marketing - When all a firm’s departments must work together toserve customer interests(a company-wide activity).1.Involves external and internal marketing.2.Profitability - The ultimate purpose of marketing is to help organizationsachieve their objectives.3.Hurdles to Adopting a Marketing Orientationa)Organized Resistance - Some departments see marketing as athreat to their power in the organizationb)Slow Learning - Despite efforts by management, learning comesslowly.c)Fast Forgetting - There is a strong tendency to forget marketingprinciples.4.The Customer Concept - Moving beyond the marketing concept—especially for firms with considerable customer informationF.The Societal Marketing Concept1.The organization’s task is to determine the needs, wants, andinterests of target markets.2.Also to deliver the desired satisfactions more effectively andefficiently than competitors.3.And in a way that preserves or enhances the consumer’s and thesociety’s well-being.a)Cause-related marketing - Firms with an image act to enhancetheir reputation, etc., via causes.V.How Business and Marketing are ChangingA.Major new forces changing the way marketing process1.Customers expect more and better2.Rising brand competition3.Store-based retailers sufferingB.Trends of Company Responses and Adjustments1.Reengineering key processes versus functional depts.2.Outsourcing everything3.e-commerce trend4.Benchmarking based on world-class performers5.Alliances, supplier-partnerships, market-centered, global/local anddecentralized.C.Marketer Responses and Adjustments1.Focus on relationship marketing (versus transactional marketing)2.Creation of customer lifetime value orientation3.Focus on customer share marketing versus only market share4.Target marketing (versus mass marketing)5.Individualization of marketing messages and offerings6.Customer databases for data-mining7.Integrated marketing communications for consistent images8.Consideration of channel members as partners9.Recognition of every employee as a marketer10.Model and fact-based decision making versus intuition aloneVI.SummaryII. LecturesA. “Marketing Enters the 21st Century”The focus in this discussion is on the increasingly important role of the marketing processin the ever-changing domestic and global business environment.Teaching Objectives∙To explain the concepts related to understanding the role and potential of marketing in the larger business environment.∙To provide students a new and possibly different perspective on the role of marketing in business and society.∙To indicate areas where the marketing process and concept will be useful to the student in assessing business developments.DiscussionI NTRODUCTIONMany observers argue that all new or important directions in management thought and practice are marketing oriented. Marketing is no longer something done when a company has extra revenue to invest. It must be implemented for a business to survive.The marketing concept has changed dramatically over the last several decades, and recently the focus increasingly has moved to customers (versus products and selling), marketing globally, and the various technology issues that impact the market. In addition, there is renewed emphasis in marketing on creating and innovating with new and better products and services rather than just competing against other firms and following the marketing patterns established by competitors.The marketing concept is a matter of increased marketing activity, but it also implies better marketing programs and implementation efforts. In addition, the internal market in every company (marketing your company and products to and with the employees of the company) has become as challenging as the external marketplace due to diversity and many other social/cultural issues.C HANGES IN C ONSUMER B EHAVIORThere have been many major marketing shifts during the last few decades that have shaped marketing in the 21st century. There is a view among professional marketers that there is no longer the substantial product loyalty that existed over the last few decades. Product and brand loyalty, many argue, has been replaced by something more akin to a consumer decision that is based on the absence of a better product or service. In addition, there are major changes in the way customers look at market offerings. During the 1980s customers were optimistic, and in the early 1990s they were pessimistic. Later in the 1990s, consumers appeared rather optimistic, but still cautious at times. The following chart demonstrates some of the major shifts that have occurred to the present:1980s 1990s PresentConspicuous consumer Frugal consumer, becomingmore well-off Suspicious but generally well-off consumerImage driven Value and quality driven Highly eclecticTrusting Skeptical and cynical A “prove it” attitudeBrand loyal Does not exhibit loyalty Believes that there is alwayssomething betterEmotional buyer Informed buyer Highly informed and specialized Dreamers Escapists Focused on personal needs Overindulgent Health, wellness-conscious Health, wellness and someoverindulgence, withoutexpectation of costs orconsequencesOverworked Burnt-out, stressed out andplacing tremendous value onconvenience and time Reliant on technology and telecommunications to save time in making purchase decisionsIndustrious Baby Boomer Responsible Baby Boomer Unconvinced Generation Xer Increasingly it is clear that while the 4 Ps (product, price, promotion, and place) have value for the consumer, the marketing strategies of the 21st century will use the four “4 Cs” as added critical marketing variables:1.Care: It has replaced service in importance. Marketers must really care about theway they treat customers, meaning that customers are really everything.2.Choice: Marketers need to reassess the diversity and breadth of their offeringsinto a manageable good-better-best selection.munity: Even national marketers must be affiliated, attached toneighborhoods wherever they operate stores.4.Challenge: The task of dealing with the ongoing reality of demographic change.E ND OF THE M ASS M ARKETDuring the late 1990s, we witnessed the death of the concept of mass market. Regardless, some marketers continue to argue that database marketing will never replace mass marketing for most products. The view is that communicating with users by e-mail, Web site, mail, telephone, or fax will never become cost-efficient enough to justify the return. However, the success of the Internet provides considerable evidence that one-to-one marketing is and will be appropriate for many packaged goods and other high- and low-involvement products that in the past sold almost exclusively with brand advertising.Through the 1970s, only high-end retailers and personal-service firms could afford to practice one-to-one marketing. For the most part, they did it the old-fashioned way with personal selling and index-card files. In the 1980s, as the mainframe computer became more practical, airlines got into the act with a proliferation of frequent flyer programs. Frequency marketing programs such as these relied on monthly statement mailings and large, batch-processed databases of customer records.During the 1990s, bookstore chains, supermarkets, warehouse clubs, and even restaurants began to track individual purchase transactions to build their “share of the customer.”Many of these programs now run on PC platforms or workstation environments much more powerful than the most capable mainframes of the 1970s. It is possible today to track 5 or 6 million customers for the same real cost as tracking a single customer in 1950. With Internet-based databases and remote access, this capability literally has exploded in the last few years. The situation will become even more interesting as one-to-one marketing becomes even increasingly pervasive. With an increasingly powerful array of much more efficient, individually interactive vehicles, the options are virtually unlimited, including on-site interactivity, Web site connections, fax-response, e-mail, and interactive television.Most households today either have direct Internet access, or with TV sets that also provide real-time interactivity through the Internet. We are closing rapidly on the time where individuals will interact with their television and/or computer simply by speaking to it. Via various Web sites, computers work for us to enable us to remember transactions and preferences and find just the right entertainment, information, products, and services. Likewise, online capabilities enable providers to anticipate what a consumer might want today or in the future. Unfortunately, the system has been slower to protect consumers from commercial intrusions that they may not find relevant or interesting.The increasing level of market definition and refinement (and resulting opportunities for marketers) is possible through the massive social, economic, and technological changes of the past three decades. There is no longer a U.S. mass market because lifestyles have changed so dramatically. Some of the important demographic shifts have been:∙Increasing diversity of the population. The United States has always been an immigrant nation. However, large numbers of immigrants from Latin Americaand Asia have increased the proportion of minorities in the country to one inthree, up from one in five in 1980. This diversity is even more noticeable in theyounger market.∙Changing family and living patterns. There has been a substantial rise in the divorce rate, cohabitation, non-marital births, and increased female participationin the labor force. In addition, married couples with one earner make up only 15percent of all households. Dual-earner households have become much morecommon—the additional income is often necessary for the family to pay theirbills. Thus, the stereotypical family of the 1950s has been replaced by two olderand harried, working parents with much less time available.∙Emergence of a new children’s market. Minorities are over-represented in the younger age brackets due to the higher fertility and the younger populationstructure of many recent immigrants. The result is that one in three children inthe United States is black, Hispanic, or Asian. In addition, nearly all of today’schildren grow up in a world of divorce and working mothers. Many are doingthe family shopping and have tremendous influence over household purchases.In addition, they may simply know more than their elders about productsinvolving new technology such as computers.∙Income and education increases are two other important demographic factors impacting the marketing management arena. Generally, incomeincreases with age, as people are promoted and reach their peak earning years, and the level of education generally has increased over the last fewdecades. Family units today often have higher incomes because they may havetwo earners. Accordingly, there is an increased need for products and servicesbecause they likely have children and are homeowners.In sum, the need for market analysis and marketing decision-making, and managers to perform those tasks has never been greater. But, as the course will demonstrate, the complexities of, and analytical tools required for, these activities have never been greater. Be prepared for a challenging experience.B. “The Changing Image of Marketing”Focus: the changing perceptions of marketing in the contemporary business environment.Teaching Objectives∙To explain the concepts related to understanding the role and potential of marketing in the larger business environment.∙To provide students a new and possibly different perspective on the role of marketing in business and society.∙To indicate areas where the marketing process and concept will be useful to the student in assessing business developments.DiscussionI NTRODUCTIONWhat image comes to mind when you hear the word “marketing”? So me people think of advertisements or brochures, while others think of public relations (for instance, arranging for clients to appear on TV talk shows). The truth is, all of these—and many more things—make up the field of marketing. The Knowledge Exchange Business Encyclopedia defines marketing as “planning and executing the strategy involved in moving a good or service from producer to consumer.”With this definition in mind, it’s apparent that marketing and many other business activities are related in some ways. In simplified terms, marketers and others help move goods and services through the creation and production process; at that point, marketers help move the goods and services to consumers. But the connection goes even further: Marketing can have a significant impact on all areas of the business and vice versa.M ARKETING B ASICSIn introductory marketing you learned some basics—first the four P’s, and then the six P’s: ∙Product—What are you selling? (It might be a product or a service.)∙Price—What is your pricing strategy?∙Place or distribution—How are you distributing your product to get it into the marketplace?∙Promotion—How are you telling consumers in your target group about your product?∙Positioning—What place do you want your product to hold in theconsumer’s mind?∙Personal relationships—How are you building relationships with your target consumers?The sum of the above is called the marketing mix. It is important to have as varied a mix as possible in marketing efforts, since each piece plays a vital role and boosts the overall impact. Let’s take a closer look at the basic P’s of marketing and particularly at how they might affect what you do in business.▪ProductMarketers identify a consumer need and then provide the product or service to fill that need. The marketer’s job is to pinpoint and understand existing needs, expand upon them, and identify new ones. For example, because there are more singles and small families these days than in years past, marketers might see a need for products to be sold in smaller quantities and offered in smaller packages.How can this impact other professionals in the business/marketing process? Let’s say your company has developed a new product that generates enormous consumer demand. Your marketing department may ask you to find a way to speed up the workflow in order to crank out more products faster. A year after the product is introduced, however, the market might be flooded with cheap imitations. Since one marketing strategy is to keep products price-competitive, a marketer may then ask you to find a way to make the product less expensively. This relationship works both ways. There may be production and industrial engineers who may see a way to change the work process that would create additional options for consumers. Those engineers will also be instrumental in design and development of products for which human factors and ergonomics are important considerations. Maybe there’s room to add another product line. For instance, that product X is still blue but new product Y is red. You can suggest this to your marketing department; it, in turn, would do research to gauge potential consumer demand for the new line.▪PriceIdeally, a marketer wants to be proactive in setting price rather than simply react to the marketplace. To that end, the marketer researches the market and competition and plots possible price points, looking for gaps that indicate opportunities. When introducing a new product, the marketer needs to be sure that the price is competitive with that of similar products or, if the price is higher, that the consumers perceive they’re getting more value for their money.Various other technical professionals can have an important impact on marketers’ pricing decisions. Again, you may be asked to determine if productivity can be enhanced so that the product can be manufactured and then sold—for a lower price.▪Place or distributionWhat good is a product if you can’t get it to people who want to purchase it? When marketers tackle this issue, they try to figure out what the optimum distribution channels would be. Forexample, should the company sell the product to distributors who then wholesale it to retailers or should the company have its own direct sales force?Marketers also look at where the product is placed geographically. Is it sold regionally, nationally, and internationally? Will the product be sold only in high-end stores or strictly to discounters? The answers to all of these questions also help shape how a product can be distributed in the best way.Such distribution questions are potentially of great significance to many professionals, including industrial and other types of engineers in a company. For instance, whether a product will be marketed regionally or internationally can have enormous implications for package design as well as obvious areas of the supply chain: logistics, transportation, distribution, and warehousing.▪PromotionPromotion encompasses the various ways marketers get the word out about a product—most notably through sales promotions, advertising, and public relations.Sales promotions are special offers designed to entice people to purchase a product. These can include coupons, rebate offers, two-for-one deals, free samples, and contests.Advertising encompasses paid messages that are intended to get people to notice a product. This can include magazine ads, billboards, TV and radio commercials, Web site ads, and so forth. Perhaps the most important factor in advertising success is repetition. We’re all bombarded with an enormous number of media messages every day, so the first few times a prospective customer sees an ad, it usually barely makes a dent. Seeing the ad over and over is what burns the message into people’s minds. That’s why it’s good to run ads as frequently as possible.Public relations refers to any non-paid communication designed to plant a positive image of a company or product in consumers’ minds. One way to accomplish this is by getting the company or product name in the news. This is know n as media relations, and it’s an important aspect of public relations.As with price, changes in demand created by promotions can have a direct impact on the work of many other professionals.▪PositioningBy employing market research techniques and competitive analysis, the marketer identifies how the product should be positioned in the consumer’s mind. As a luxury, high-end item? A bargain item that clearly provides value? A fun product? Is there a strong brand name that supports how the image is fixed in the consumer’s mind? Once the marketer answers these kinds of questions, he or she develops, through a host of vehicles, the right image to establish the desired position.This, too, can affect the work you do. If an upscale image is wanted, the materials used in the product and packaging are likely to be different from those used in a bargain product—a fact that could make the workflow significantly more complex. On the other hand, with your engineering knowledge, you may be able to suggest alternative materials that would preserve the desired image but be easier or less expensive to use.。

PART II -- ANALYZING MARKETINGOPPORTUNITIESCHAPTER4--G ATHERING I NFORMATION AND M EASURINGM ARKET D EMANDOVERVIEW:Marketing information is a critical element in effective marketing as a result of the trend toward global marketing, the transition from buyer needs to buyer wants, and the transition from price to non-price competition. All firms operate some form of marketing information system, but the systems vary greatly in their sophistication. In too many cases, information is not available or comes too late or cannot be trusted. Too many companies are learning that they lack an appropriate information system, still do not have an information system, lack appropriate information, or they do not know what information they lack or need to know to compete effectively.A well-designed market information system consists of four sub-systems. The first is the internal records system, which provides current data on sales, costs, inventories, cash flows, and accounts receivable and payable. Many companies have developed advanced computer-based internal reports systems to allow for speedier and more comprehensive information.The second market information subsystem is the marketing intelligence system, supplying marketing managers with everyday information about developments in the external marketing environment. Here a well-trained salesforce, purchased data from syndicated sources, and an intelligence office can improve marketing intelligence available to company marketing managers. The third subsystem, marketing research, involves collecting information that is relevant to specific marketing problems facing the company. The marketing research process consists of five steps: defining the problem and research objectives; developing the research plan; collecting information; analyzing the information; and presenting the findings. Good marketing research is characterized by the scientific method, creativity, multiple methodologies, model building, and cost/benefit measures of the value of information.The fourth system is the Marketing Decision Support System (MDSS marketing system) that consists of statistical and decision tools to assist marketing managers in making better decisions. MDSS is a coordinated collection of data, systems, tools and techniques with supporting software and hardware. Using MDSS software and decision models, the organization gathers and interprets relevant information from the business and the environment and turns it into a basis for marketing action. MDSS experts use descriptive or decision models, and verbal, graphical, or mathematical models, to perform analysis on a wide variety of marketing problems.To carry out their responsibilities, marketing managers need estimates of current and future demand. Quantitative measurements are essential for market opportunity, planning marketing programs, and controlling the marketing effort. The firm prepares several types of demandestimates, depending in the level of product aggregation, the time dimension, and the space dimension.A market consists of the set of actual and potential consumers of a market offer. The size of the market depends on how many people have interest, income, and access to the market offer. Marketers also must know how to distinguish between the potential market, available market, qualified available market, served market, and the penetrated market. Marketers must also distinguish between market demand and company demand, and within these, between potentials and forecasts. Market demand is a function, not a single number, and as such is highly dependent on the level of other variables.A major marketing research task is to estimate current demand. Total demand can be estimated through the chain ratio method, which involves multiplying a base number by successive percentages. Area market demand can be estimated by the market-buildup method (for business markets) and the multiple-factor index method (for consumer markets). In the latter case, geodemographic coding systems are proving a boon to marketers. Estimating industry sales requires identifying the relevant competitors and estimating their individual sales, in order to judge their relative performance.To estimate future demand, the company can use several major forecasting methods: expert opinion, market tests, time-series analysis, and statistical demand analysis. The appropriate method will vary with the purpose of the forecast, the type of product, and the availability and reliability of data.LEARNING OBJECTIVES:After reading this chapter students should:∙Understand demand measurement terminology∙Know the methods of estimating current demand∙Know the methods of estimating future demandCHAPTER OUTLINE:I.Introductionponents of a Modern Marketing Information SystemA.Consists of people, equipment, and procedures to gather, sort, analyze, evaluate,and distribute needed, timely, and accurate information to marketing decisionmakers.III.Internal Records SystemA.The Order-to-Payment Cycle - the heart of the internal records systemB.Sales Information Systems - technology has allowed sales reps to haveimmediate access to information about their prospects and customers.IV.Marketing Intelligence SystemA. A set of procedures for managers to obtain everyday information about pertinentdevelopments in the marketing environment.B.Internal records systems supplies “results” data, and the marketing intelligencesystem supplies “happenings” data.C.There are four steps to improving marketing intelligence: train the sales force,motivate intermediaries to share intelligence, purchase information from outsidesuppliers, and establish an internal marketing information center to collect andcirculate intelligence.V.Marketing Research SystemA.Marketing research -- the systematic design, collection, analysis, and reporting ofdata and findings relevant to a specific marketing situation facing the company.B.Suppliers of marketing research - can be achieved through an in-housedepartment, an outside marketing research firm, or a variety of other costefficient ways. Increasing amounts of information available via the Internet.C.The Marketing Research Process1.Define the Problem and Research Objectives2.Developing the Research Plan - decisions on data sources, researchapproaches, research instruments, sampling plan, and contact methods.3.Collect the Information - phase most expensive and prone to error.4.Analyze the Information - extract pertinent findings from the collecteddata.5.Present the Findings - pertinent to the major marketing decisions facingmanagement.D.Overcoming Barriers to The Use of Marketing ResearchVI.Marketing Decision Support System (MDSS)A.Coordinated collection of data, systems, tools and techniques with supportingsoftware and hardware by which an organization gathers and interprets relevantinformation from business and environment and turns it into a basis formarketing action. Explanation of how an MDSS works.VII.An Overview of Forecasting and Demand MeasurementA.Measures of Market Demand - see TextB.Which Market to Measure? - available market, qualified available market, targetmarket, or penetrated marketC. A Vocabulary for Demand Measurement1.Market demand2.Market forecast3.Market potentialpany demandpany sales forecastpany sales potentialD.Estimating Current Demand1.Total Market Potential2.Area Market Potentiala)Market-buildup methodb)Multiple-factor index method3.Estimating Industry Sales and Market Shares - identifying competitorsand estimating their salesE. Estimating Future Demand1.Survey of Buyers' Intentionsposite of Sales-Force Opinion3.Expert Opinion4.Past-Sales Analysis5.Market Test MethodVIII.SummaryMARKETING AND ADVERTISING1. Marriott has boosted annual revenues over $12 billion by working to identify and satisfy the differing needs and preferences of travelers. The Marriott ad shown in Figure 1 is targeted toward health-conscious business travelers. What internal data sources can the company use to identify opportunities such as this? To identify problems with a particular part of the service offering such as the health club or pool? How would a marketing intelligence system help Marriott compete against Hilton and other rivals who target the business travel market? If you were designing Marriott's marketing intelligence system, what would you include? Why?Answer: To identify opportunities such as meeting the needs of health-conscious business travelers, Marriott might examine internal data sources such as records of trends in usage of its hotels' swimming pools and other health facilities and sales by room service and hotel restaurants of foods favored by health-conscious consumers; students may suggest additional internal data sources. Internal sources of data about problems with the service offering include written complaints and responses to customer satisfaction surveys; students may suggest additional sources. Marriott might use a marketing intelligence system to find out about changes in its competitors' hotels and service offerings geared toward the business travel market (such as new offers of in-room laptops, 24-hour copy center availability, and so on). Such intelligence would allow Marriott to evaluate rivals' actions and consider suitable responses. Students may have many ideas for what to include in a marketing intelligence system for Marriott. Two ideas: Ask suppliers about unusual or large orders placed by rival hotel chains; listen to competitors' speeches and visit their exhibits at conventions and other industry events.2. Bayer Aspirin, the product featured in this ad, is locked in competitive battle with Tylenol, Advil, and a wide range of other pain-killers. In planning next year's marketing programs, the company wants to estimate future demand. Would a survey of buyers' intentions be appropriate for this product? Would you suggest using past-sales analysis or a direct market test? What effect would the unexpected introduction of a new pain-killing drug from a rival firm—supported by a high-profile, multi-million dollar campaign—be likely to have on Bayer's forecast of future demand?Answer: No, a survey of buyers' intentions would not be appropriate for Bayer aspirin, because consumers are unlikely to plan purchases of aspirin for the months ahead. A past-sales analysis would be more helpful than a direct market test, because past sales can be thoroughly analyzed as a way of projecting future sales. Direct market tests are more useful for new products or products being expanded into additional channels or areas, not for an established product such as Bayer aspirin. The unexpected introduction of a new pain-killing drug from a rival firm, supported by a major promotional campaign, would probably change actual sales results, making Bayer's forecasts of future demand inaccurate and out-dated.Focus on TechnologyEvery year since 1994, the Georgia Institute of Technology has conducted two World Wide Web user surveys to find out who is using the Web, what technology is being used, the problems users are encountering, how much individuals and companies are spending online, and how they are using on-line financial services. To learn more, point your Web browser to Georgia Tech's WWW Survey site (/gvu/user_surveys/). Look through the latest survey results. What limitations should companies bear in mind when using these survey results? What kind of sample does this survey represent,and why should marketers care? How could a company such as United Airlines apply the results of this survey in its efforts to sell more airline tickets on the Web?Answer: Companies using the results of this survey should bear in mind that the data may not be representative of a target population, since the respondents are self-selected. The results of the survey may be biased by the exclusion of people who do not use the Internet or prefer not to answer on-line surveys. This survey is a convenience sample, selecting from among an accessible population of Internet users. Knowing this helps marketers realize that they cannot measure the sampling error in such a sample. United Airlines might use the results of this survey to determine what Internet users like, dislike, want, and do not want when making on-line purchases of goods and services; it will also reveal attitudes toward privacy concerns and other problems that bother Internet users. This survey will help the airline get a sense of the demographics of Internet users for comparison with the company's targeted segments. Students may suggest other uses of this survey.Marketing for the MillenniumPrudential is one of many companies using data mining to target its marketing outreach. Through data mining, the firm has saved money and improved response by more narrowly targeting the mailing lists for specific product offers. Visit Prudential's Web site () and select one type of product, such as life insurance. Identify two ways that data mining could be applied to market life insurance. What potential problems or dangers do you see in using data mining? What additional marketing applications can you foresee for Prudential's use of data mining?Answer: Students may suggest various ways that Prudential could use data mining to market life insurance. Two sample ideas for Prudential: (1) sift its complete customer database to identify consumers who have not yet bought life insurance from Prudential to identify prospects for such products; and (2) search the database to find the average age and other demographics of Prudential's most profitable life insurance customers, then search external databases to find other prospects who match the same profile and send them offers for Prudential life insurance. Some potential problems or dangers of data mining are: consumer concerns about privacy; the need for extensive safeguards to protect such valuable data; concerns about future regulation of databases containing sensitive consumer data; students may identify additional issues. Other marketing applications for data mining within Prudential include the ability to assign sales people only to prospects with the highest potential for purchasing selected products; and the ability to rank customers in order of overall profitability so Prudential can target more profitable customers formore/better service and use less-expensive methods for less-profitable customers (students may also offer other ideas).YOU'RE THE MARKETER: SONIC MARKETING PLANMarketing information systems, marketing intelligence systems, and marketing research systems are used to gather and analyze data for various parts of the marketing plan. These systems can help marketers examine changes and trends in markets, competition, product usage, and distribution channels, among other areas. They can also turn up evidence of important opportunities and threats that must be addressed.You are continuing as Jane Melody's assistant at Sonic. Referring to Table 3-3 in Chapter 3, answer the following questions about how you can use MIS and marketing research to support the development and implementation of Sonic's marketing plan:∙For which sections will you need secondary data? Primary data? Both? Why do you need the information for each section?∙Where can you find suitable secondary data? Identify two non-Internet sources and two Internet sources, describe what you plan to draw from each source, and indicate how you willuse the data in your marketing planning.∙What surveys, focus groups, observation, behavioral data, and/or experiments will Sonic need to support its marketing strategy, including product management, pricing, distribution, andmarketing communication? Be specific about the questions or issues that Sonic should be ableto resolve using market research.As your instructor directs, enter information about Sonic's use of marketing data and research in the appropriate sections of a written marketing plan or type them in the corresponding sections of the Marketing Plan Pro software.Answer: Students should review the data about Sonic shown in Chapter 3 and look at their answers to the marketing plan questions in Chapter 3 before answering these questions. Referring to Table 3.3, students will need secondary data as well as primary data as they look at Sonic's current marketing situation, the opportunity and issue analysis, and marketing strategy. This is because they need to collect primary data from internal sources (such as historical sales figures) and from external sources (such as consumer surveys) and gather secondary data (such as competitive product specifications) as background for writing about the marketing situation, analyzing opportunities and issues facing Sonic, and developing a suitable marketing strategy.Students may offer different ideas for sources of appropriate secondary data for this marketing plan. Some sample ideas include: searching printed materials or Internet sites maintained by trade associations to learn about trends in sales of products similar to the Sonic product line; and searching government publications and Internet sites to find out about current and pending regulations that might affect Sonic's ability to buy parts from international suppliers or sell finished products in international markets.In addition, students are likely to offer various answers about surveys, focus groups, observation, behavioral data, and/or experiments Sonic needs to support its marketing strategy decisions. Evaluate their responses on the basis of how well the marketing research they describe will help Sonic answer specific questions and resolve specific issues important to the company's marketing planning process. As one example, the research should help Sonic better describe attractive, profitable market segments to be targeted.。

全国贸易经济类核心期刊１１１名人广告热的理性思考世纪初，美国智威汤逊广告公司在力士香皂的广告中开始使用影星照片，名人广告（Ｃｅｌｅｂｒｉｔｙ　Ａｄ）由此成为重要的广告表现策略。

在我国，自１９８９年表演艺术家李默然代言三九胃泰以来，请名人代言广告产品，借名人提升产品知名度和体现品牌实力，已成为众多广告竞相采用的方式。

鉴于这种情况，有人说，中国的广告业已经进入“形象代言人时代”。

名人广告的现状及存在问题名人广告之所以备受广告主的青睐，源于其在吸引受众的注意力，扩大品牌知名度和提升品牌附加值方面的巨大作用。

名人广告助推品牌成功的案例有很多，从早些年的王姬与孔府家酒、成龙与小霸王学习机，到现在的李连杰与柒牌男装、周杰伦与动感地带、赵本山与北极绒保暖内衣等，这些名人形象甚至成为品牌识别的一种符号。

ＴＣＬ曾以１０００万元人民币的酬劳请金喜善代言其手机产品，一年内净赚３亿人民币，并使其手机品牌成为国产品牌中的佼佼者；东风—千里马慧眼选用当时才崭露头角的刘翔代言，不仅在资金投入上得到了实惠，而且刘翔后来的成功使上内容摘要：名人广告（Ｃｅｌｅｂｒｉｔｙ Ａｄ）是一种重要的广告表现策略，系指在广告中借助名人的形象助推品牌。

近年来，名人广告呈泛滥之势，公众对名人广告的认同感和信任度直线下降，名人广告的负面效应愈发显现出来。

面对名人广告所带来的无限商机和重重陷阱，广告主应以更为理性的态度选择名人和制定名人广告策略，才能将名人效应发挥至最大。

关键词：名人广告 名人效应 风险思考■庾 为（北京联合大学商务学院 北京 １０００２５）◆中图分类号：Ｇ２１１ 文献标识码：Ａ千里马的形象提升数倍，做成了一笔绝对超值的品牌形象策划。

但是也应看到，名人广告是一把“双刃剑”，一方面适当使用可以助推品牌，另一方面，不当使用只能白白支付巨额的明星代言费而收不到预期的广告效果。

现今名人代言费节节攀升，而与名人代言费直线上升形成鲜明对比的是，公众对名人广告认同感和信任度的直线下降，名人广告的负面效应愈发显现出来。

Chapter 9 – Identifying Market Segments and Selecting Target MarketsI.............................................................................................. C hapter Overview/Objectives/OutlineA.OverviewSellers can take three approaches to a market. Mass marketing is the decision to mass-produce and mass distribute one product and attempt to attract all kinds of buyers. Product-variety marketing attempts to offer a variety of products to broaden the customer base. Target marketing is the decision to distinguish the different groups that make up a market to develop corresponding products and marketing mixes for each target market. Sellers today are moving away from mass marketing and product differentiation and are moving toward target marketing because the latter is more helpful in spotting market opportunities and developing winning product marketing mixes.The key steps in target marketing are market segmentation, market targeting, and product positioning. Market segmentation is the act of dividing a market into distinct groups of buyers with different needs or responses. The marketer tries different variables to see which reveal the best segmentation opportunities. For each segment, a customer segment profile is developed. Segmentation effectiveness depends upon arriving at segments that are measurable, substantial, accessible, and actionable. The primary steps in target marketing are to identify and profile distinct groups of buyers that may require different products or marketing mixes, selecting oneor more market segments to enter, and establish and communicate the key distinctive benefitsof the product or service to the target market (positioning).The seller should target the best market segment(s). The seller must evaluate the potentialof each segment, which is a function of segment size and growth, segment attractiveness, and company objectives and resources. Then, the seller should determine how and when it can ignore segment differences (undifferentiated marketing), develop different market offers for several segments (differentiated marketing), or go after one or a more market segments (concentrated marketing). In choosing target segments, marketers need to consider the ethical choice of market targets, segment interrelationships and super segments, and potential segment invasion plans.B.Learning Objectives............................................................................................................................. U nderstand what it means to “segment” a market.............................................................................................................................. K now the basic steps in segmenting a market.............................................................................................................................. U nderstand the bases used to segment consumer and business markets.............................................................................................................................. K now how to evaluate and select segments for targeting of marketing programs.C.Chapter OutlineI (I)ntroduction - Target marketing requires the following: identify and profile distinctgroups of buyers with distinct needs/preferences, select one or more market segments,establish and communicate distinctive benefits of the market offering to each targetsegment.II.................................................................................................................... U sing Market Segmentation - Buyers differ in many ways.ntroduction1............................................................................................... Mass Marketing - One product/marketing mix available for all buyers.2............................................................................................... Micro Marketing - The response to the decline in favor for massmarketing.B. ........................................................................................................ S egment marketing - A large identifiable group within a market. Midpoint between mass and individual marketing.C. ........................................................................................................ N iche Marketing - A narrowly defined smaller group whose needs not currently met effectively.D......................................................................................................... L ocal Marketing - Programs targeted to the needs and wants of local customer groups.E (I)ndividual Marketing - “One-to-One” Marketing1............................................................................................... Mass-customization and choice board2............................................................................................... Customerization - Empowering customers with the means to design theirown products.atterns of Market Segmentation - homogenous, diffused, and clusteredpreferencesG......................................................................................................... Market Segmentation Process - survey, analysis, and profile1............................................................................................... Focus on needs-based market segmentation and market partitioning.H......................................................................................................... Effective Segmentation - Segments must be measurable, substantial, accessible,differentiable, and actionable.III. ................................................................................................................. Segmenting Consumer and Business MarketsA......................................................................................................... Bases for Segmenting Consumer Markets:1............................................................................................... Geographic - nations, states, regions, counties, cities, and neighborhoods2............................................................................................... Demographic - age and life cycle, gender, income, generation, and socialclass.3............................................................................................... Psychographic - lifestyle, personality, and values4............................................................................................... Behavioral - purchase occasions, benefits, user status, usage rate, loyaltystatus, buyer-readiness stage, and attitude5............................................................................................... Multiattribute Segmentation (geoclustering): Assumes people who livenear each other and exhibit similar traits from all of the abovesegmentation bases.a) ................................................................................... Targeting Multiple Segments - Because consumers no longer canbe neatly pigeonholed into one segment.b)................................................................................... Geoclustering via PRIZM clusters (American dreams, ruralindustria, gray power, country squires) - Focus on increasingdiversity.B. ........................................................................................................ Bases for Segmenting Business Markets1............................................................................................... Based on their stage in the purchase decision process and channelpreferences.2............................................................................................... Types of buyers: programmed, relationship, transaction, and bargainhunters3............................................................................................... Business buyer groups: price-oriented (transactional selling), solutionoriented (consultative selling), and strategic value (enterprise selling)IV.Market Targeting StrategiesA......................................................................................................... Evaluating and selecting the market segments. Factors: Segment size and growth,segment structural attractiveness, company objectives, and resources.1............................................................................................... Single-Segment Concentration - Firm concentrates on one market onlyfor its one product.2............................................................................................... Selective Specialization - Firm selects a number of attractive andappropriate segments and develops products that appeal to eachsegment.3............................................................................................... Product Specialization - Firm focus is on a product it can sell to severalsegments.4............................................................................................... Market Specialization - Firm satisfies multi-faceted needs of oneparticular group.5............................................................................................... Full Market Coverage - Firm serves all customer groups with productsthey might need.a) ................................................................................... Undifferentiated Marketing - Entire market receives the sameprogram.b)................................................................................... Differentiated Marketing - Different programs for differentsegments.B. ........................................................................................................ T argeting Multiple Segments and Super segments - use of mega marketingC. ........................................................................................................ E thical Choice of Market Targets - targeting sometimes generates controversyV.................................................................................................................... S ummaryII. Lecture“Understanding Market Segments”This discussion begins the teaching/learning process where students begin to understand that marketing and marketers cannot be all things to all people, and there is a need for increasing focus and segmentation.Teaching Objectives........................................................................................................................ T o appreciate the value of segmenting and targeting markets......................................................................................................................... T o comprehend the process through which marketers engage in segmentation......................................................................................................................... T o learn about companies/industries making use of segmentation.DiscussionU NDERSTANDING THE I SSUEMarket segmentation is a process based on factual information rather than marketer intuition. The value of market segmentation is obvious. Customers are different and are likelyto be attracted to different products throughout various stages in their lifetimes. For an illustration of this concept, consider the automobile industry.Note to the Instructor: To develop this issue, ask students to offer the names of various brands and models (placed on the board). Then, ask them to identify which brands and modelsare likely to appeal to specific characteristics - age, income, gender, etc. From this illustration, it will become obvious that not all products appeal to everyone on a mass level.The segmentation process involves dividing a market into distinct groups of buyers who might require separate products or marketing mixes, recognizing that all buyers have unique needs and wants. Still, it is usually possible in consumer markets to identify relatively homogeneous portions or segments of the total market according to shared preferences, attitudes, or behaviors that distinguish them from the rest of the market. These segments may require different products and/or separate mixes, and in the contemporary one-to-one marketing approach segmentation is a critical step.T ARGETING AND P OSITIONINGMarket targeting is the follow-up to the segmentation process and is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. Given effective market segmentation, the firm must choose which markets to serve and howto serve them. In targeting markets to serve, the firm must consider its resources and objectives in setting strategy.Market positioning is the process of formulating competitive positioning for a product and a detailed marketing mix. The firm must have a plan for how to present the product to the consumer, and the product’s position is defined by how consumers view it on important attributes. The text discusses this concept in detail.The consumer market is often segmented according to variables such as: demographics, psychographics, geographic location, behavior, etc. Major segmentation variables for business markets obviously vary from the consumer market. The important variables here are as follows:........................................................................................................ D emographics. Industry segmentation focuses on which industries buy theproduct. Company size can be used. Geographic location may be used togroup businesses by proximity......................................................................................................... O perating Variables. Business markets can be segmented by technology (whatcustomer technologies should we focus on?), user/nonuser status (heavy,medium, light), or customer capabilities (those needing many or few services)......................................................................................................... P urchasing Approaches. Five approaches are possible:o............................................................................................... S egment. “Segmentation” can be by purchasing function organ ization(centralized or decentralized).o............................................................................................... P ower structure. Selecting companies controlled by a functional specialty.o............................................................................................... T he Nature of Existing Relationships. Current desirable customers ornew desirable customers.o............................................................................................... G eneral Purchase Policies.Focus on companies that prefer somearrangements over others such as leasing, related support servicecontracts, sealed bids.o............................................................................................... P urchasing Criteria.Focus on non-compensatory criteria such as price,service, or quality.In addition, there can be situational factors that influence the business market segmentation effort. Situational segmentation may be based upon urgency (such as quickdelivery needs), specific application (specific uses for the product) or size of order (few large or many small accounts).PERSONAL CHARACTERISTICSPersonal comparisons can lead to segmentation by buyer-seller similarity (companies with similar personnel and values), attitudes toward risk (focus on risk-taking or risk-avoiding companies), or loyalty (focus on companies that show high loyalty to their suppliers).There are several steps in the segmentation and target marketing process, but first it is necessary to establish that the market can be segmented. As mentioned in the text, some of the questions a company should answer with regard to determining candidates for segmentation are:........................................................................................................ C an the market(s) be identified and measured? (I)s the segment large enough to be profitable? Related issue: Is the segmentstable and long-term? (I)s the segment reachable? (I)s the segment responsive? (I)s the segment expected not to change quickly?........................................................................................................ C an the segment be protected (protectability)? In other words, can competitorschoose to target this segment easily and with a high level of success (I)nteraction with other segments? Meaning: Will the different messages receivedcause confusion about the product among different segments?........................................................................................................ W hat is the risk with this segment or segmentation action?F INDING “H EALTHY”C USTOMERS IN THE M EDICALI NDUSTRYAs members of its industry begin to understand the mass-market approach is no longer viable, health care providers are moving from a product orientation to a marketing orientation. Market segmentation has become a tool that is widely used by a financially squeezed health care industry. Aiming their marketing efforts at those segments of the market that are likely to prove most profitable helps to conserve their limited resources. Some of the characteristics health care providers use to choose the proper target markets include underlying needs, demographics, and patterns of behavior.Because hospitals maintain detailed information on patients, the information necessary to determine the “typical” patient is available. Through medical and business records, health care marketers have access to usage rates for a predetermined number of years, services received, payment (or nonpayment) history, and, at the simplest level, name and address information. The search for data also can extend to external sources, such as state agencies, trade associations, and syndicated sources. Once the marketer has gathered this data, he or she can begin the process of analyzing it to determine market share for the various lines of health care services.Overlaying demographic with psychographic information allows hospitals to learn aboutthe people who compose the market. By combining this information with its own product line mix, and disease incidence rates, segmentation opportunities become readily apparent. For example, one hospital recently recognized the potential for outpatient substance-abuse counseling services among upscale members of the business community. Although acompetitor currently offered an in-patient program, the target group most likely to utilize the service found the in-patient option unappealing for many reasons, one of which was that many potential patients lived in close proximity to the hospital.Based on an understanding of its target market, the marketing-oriented hospital developed an outpatient program and spoke directly to the target audience via promotional efforts in publications and television. A direct mail effort also targeted the businesses where those upscale patients were likely to be found. As a result, the hospital gained significant market share and won the favor of the community. This was no small feat in today’s competitive health care marketplace.S ENIOR C ITIZENS E NJOY S URFING…T HE I NTERNETMany members of the older generation are out to dispel beliefs that they are resistant to new technology. Internet clubs, consisting of members who are in their later years, have been formed all over the United States. The seniors use the Internet to obtain many types of new information, order products, and meet and/or “chat” with other seniors throughout the country. A number of marriages have evolved out of these connections.Smart marketers realize that this segment of the market represents a substantial audience for products advertised via the Internet. Why? One reason is the information explosion. Consider the amount of information that is available on the Internet. In today’s society, few of us in the work force have the leisure time available to spend learning about the power of the Internet. We tend to bookmark the information we need on a regular basis but rarely venture out on exten sive “surfing” expeditions. Retired persons do have this kind of time, so when they log on to the Internet, they are likely to stay a while. In addition, many of the people in their golden years have physical limitations that may restrict their mobility. The Internet is an ideal way to stay connected to the outside world and beat the loneliness that may ensue from an inability to venture beyond their home.Note to the Instructor: It is important to note here that when a marketer considers the needs of one segment over all other segments, controversy is likely to ensue. A good way to begin a discussion in this topic area is to ask students for some of the dangers and/or disadvantages that may result from segmenting and targeting markets.III................................................................................................... Background ArticleIssue: Gaining Perspective On Niche Market SegmentsSource: “RTD Coffee: The Little Segment That Could -Convenience Corner,” Beverage Aisle, October 15, 2001, p. 48.Ready-to-drink coffee (RTD), the cold, refreshing, bottled offshoot of America’s classic hot morning beverage, has found a home in the convenience channel. An up-and-coming category, RTD coffee generated less than $50 million at retail in 1996, but soared to over $100 million in 1997, driven by Frappuccino from Starbucks/PepsiCo, which still owns most of the category.Today, while the bottled variety represents a tiny fraction of the overall coffee category (3 percent of total coffee sold in grocery, drug, and mass merchandisers combined), an analysis of ACNielsen Convenience Track data shows that the product is selling especially well in convenience stores (c-stores). The convenience channel owns 38 percent of the $175 million segment on a four-channel basis. But while the segment is up just percent in grocery, percentin dr ug, and down over 16 percent in mass, it’s up percent in the convenience channel.What accounts for that growth? Part of it may be explained by the product’s appeal to teens and young adults, who prefer to get their caffeine from a cold drink. The product comesin sweet flavors such as mocha and caramel. We know that families with teenagers account for21 percent of the dollars spent on the bottled coffee category across all channels, whereas they account for just percent of the population—for a dollar volume index of 137. Because kids are frequent shoppers in c-stores, they may account for some of the c-store volume.But kids aren’t the only consumer group fueling RTD coffee growth. The product indexes high with households that are affluent (dual-earners, well educated, employed in white-collar professions) and urban, segments that do not traditionally shop in c-stores as much as their counterparts. The result is an opportunity for convenience retailers to attract new customers to their stores at a time when they could certainly use some.Based on an analysis of ACNielsen Homescan consumer panel data, c-stores have experienced a decline in shopping penetration, sliding from 52 percent of the population in 1998 to 48 percent in 2000. Other channels have been chipping away at the convenience channel’s main selling proposition, with grocers installing gas pumps and drug stores and selling more food (earning the moniker “the convenience store for women”), video stores selling candy and soft drinks, and everyplace, from coffee shops to clothing stores, selling mints.Perhaps convenience store operators could use the RTD coffee segment to target more affluent consumers. If the strategy succeeds, it won’t be just the consumers who get a boost from the product.RTD Coffee Sales by Channel $174,617,058 (*)Change from One YeAgo (%)Grocery+Convenience+Drug(*)Source: ACNielsen Convenience Track, 52 wks ending 8/4/01. Grocery, Drug, Convenience combined.IV.CaseEastman Kodak Co., Funtime FilmHBS Case: 594-111 TN: 5-597-080Teaching PerspectivesThis is a rather short case, and the issues are fairly clear, leaving time for students to undertake in-depth analysis. It could also be used in the pricing module of a marketing management course since the issue of whether to take a price cut your flagship brand instead of proliferating the line is important. Because of the magnitude of the market issuch that one (1) share point in the market is worth $13 million in gross margin dollarsper year to Kodak, it captures student interest. The profitability of the business declinedby about $80 million during the last five years. Thus, Kodak must “do something”but figuring out a viable plan for stemming the share loss without loss in profitability is a challenge.While Eastman Kodak still maintained a dominant position in the . film market in 1993, its share had declined to 70 percent from 76 percent only five years earlier. This erosion was at the hands of Fuji, which held the No. 2 position at 11 percent share, andprivate label suppliers. Some observers felt the film industry had become more commodity-like as actual performance differences between brands became insignificant. To deal with this eroding share position, Kodak management prepared to launch a “fighting brand” called Funtime to compete with less expensive rivals. Funtime would involve a vertical product line proliferation strategy whereby Kodak would offer a “good, better, best” selection of films for amateur users. The case sets out the market situation and the proposed Funtime strategy. The discussion focuses on diagnosing the source of Kodak’s problems, establishing realistic objectives for the film business going forward, evaluating the Funtime strategy and developing an alternative action plan if the Funtime strategy should fail.The case is designed to:Allow students to ascertain the forces underlying amarket’s move to commodity status producing share pressure on thehigh priced offerings in the market.Expose students to the “fighting brand” strategy and more generally the issues involved in managing vertical product lineproliferation, . “good, better, best” strategies.P rovide opportunity for quantitative analysis, such as margin calculations and break-even analysis, in assessing marketing strategy.Provide a setting in which to analyze the importance of a “brand name” in consumers’ decision making and how that mayvary by customer segment, usage occasion and over time.Analysis of the case has four major parts:1.......................................................................................................... Diagnosis of th e reasons for Kodak’s market share loss and assessment oflikely development of the market if Kodak maintained the status quo.2.......................................................................................................... Specification of what Kodak’s objectives ought to be at this point. Thisinvolves possible trade-offs between market share, profitability and brandequity.3.......................................................................................................... Evaluation of the general concept of Funtime proposal and its implementationdetails given consumer behavior.4.......................................................................................................... Consideration of other action plan options such as a price cut on the flagshipGold Plus brand.There are a number of reasons for the market share shift, but they basically all revolve around the idea that the added value that Kodak delivers to consumers, relative to competitors, has declined over time, while Kodak has maintained its 17 percent price premium over Fuji and 30 percent over private label brands. The reasons can be set out along customer, competitor, and company lines. The reason is that customers “tend to view film as a commodity, often buying on price alone. Accordingly, there is a growing body of price-sens itive consumers.”Evaluating the competition in the film category, the competitors are growing and succeeding. Fuji is growing in reputation and acceptance in the . market and Polaroid, a well-known entrant into the conventional film market, is operating at low prices. In addition, private label film is becoming more acceptable and no longer perceived as low quality.Questions:。