Chapter 7: The Marketing Mix & Product Promotion

Chapter 7: The Marketing Mix Chapter 7: The Marketing Mix & Product Promotion& Product Promotion

Vocabulary (1)Vocabulary (1)• Mix-things put togetherMix-things put together

– Product mix or product mix or product Product mix or product mix or product assortment supplied by an enterpriseassortment supplied by an enterprise

• Item---thing for sale.Item---thing for sale.•Life cycleLife cycle– The product profit changing processes The product profit changing processes

from prosperity to decline, and then from prosperity to decline, and then from decline to prosperity.from decline to prosperity.

• Channels of distributionChannels of distribution– Channels of sale.Channels of sale.

• PromotionPromotion– To promote the sales or to push the To promote the sales or to push the

sales.sales.

Vocabulary (2)Vocabulary (2)

• Specification sheetsSpecification sheets– Formal instructionsFormal instructions

• Sales literatureSales literature– Sales document such as sales confirmationSales document such as sales confirmation

• Product manualsProduct manuals– Product instructionsProduct instructions

• Sales brochuresSales brochures– Sales catalogues or cataloguesSales catalogues or catalogues

1. The Marketing Mix1. The Marketing Mix

• Definition----marketing program or Definition----marketing program or strategy strategy

• Marketing mixMarketing mix

-how to develop the firms products (product)-how to develop the firms products (product)

-how to price those products (price)-how to price those products (price)

-how to sell those products (promotion)-how to sell those products (promotion)

-how to distribute those products to the firm -how to distribute those products to the firm customers.(place)customers.(place)

2. Product Planning 2. Product Planning

• They see it as a total product, They see it as a total product, consisting of a physical unit and the consisting of a physical unit and the satisfaction it will give themsatisfaction it will give them ；；

• Choosing satisfactory products is Choosing satisfactory products is important because it helps a firm important because it helps a firm replace old ones that have lost their replace old ones that have lost their market appealmarket appeal ；；

• Increasing life cycle.Increasing life cycle.

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Product Life Cycle TheoryProduct Life Cycle Theory

• Describes the evolution of marketing Describes the evolution of marketing strategiesstrategies

• StagesStages– New productNew product– Maturing productMaturing product– Standardized productStandardized product

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Stages in the Product Life CycleStages in the Product Life Cycle

New Product Stage

Maturing Product Stage

Standardized Product Stage

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Figure 6.4a The International Product Figure 6.4a The International Product Life Cycle: Innovating Firm’s CountryLife Cycle: Innovating Firm’s Country

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Figure 6.4b The International Product Figure 6.4b The International Product Life Cycle: Other Industrialized CountriesLife Cycle: Other Industrialized Countries

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Figure 6.4c The International Product Figure 6.4c The International Product Life Cycle: Less Developed CountriesLife Cycle: Less Developed Countries

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Market Strategy Must Support Business Market Strategy Must Support Business StrategyStrategy

Differentiation

Focus

Cost leadership

3. Product Pricing3. Product Pricing

• Fair priceFair price– Evaluating their own costsEvaluating their own costs– Current pricing lawsCurrent pricing laws– What the competition is doingWhat the competition is doing– Types of discounts and terms of salesTypes of discounts and terms of sales

国际企业一般会采取以下国际企业一般会采取以下 33种价格政策之一：种价格政策之一： 1. 1. 标准标准价格政策；价格政策； 2. 2. 双层定价；双层定价；3.3. 市场定价市场定价

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1. 1. 采取以全球为中心的国际市场营销战略的企业采取以全球为中心的国际市场营销战略的企业，会采用标准价格策略，不论在哪里或面对怎样的，会采用标准价格策略，不论在哪里或面对怎样的顾客，企业对其产品和服务均收取相同的价格；顾客，企业对其产品和服务均收取相同的价格； ((快餐）快餐）2. 2. 采取以种族为中心的市场营销策略的国际企业采取以种族为中心的市场营销策略的国际企业，会采用双层定价策略，企业对国内销售的产品制，会采用双层定价策略，企业对国内销售的产品制定一个价格，而对国际销售的产品采取另一个价格定一个价格，而对国际销售的产品采取另一个价格（例：奢侈品，留学学费）（例：奢侈品，留学学费）3. 3. 采取多中心国际市场营销的国际企业，会采用采取多中心国际市场营销的国际企业，会采用市场定价策略。市场定价是市场定价策略。市场定价是 33 个价格策略中最复杂个价格策略中最复杂、最常用的。采用市场定价的企业，会根据每个市、最常用的。采用市场定价的企业，会根据每个市场客户制定不同的价格，以保证利润最大化场客户制定不同的价格，以保证利润最大化 (( 能能源源 ))

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Risks to Market Pricing Risks to Market Pricing PolicyPolicy

Charges of dumping

Development of a gray market

Consumer resentment

Damage to brand name

Copyright 2010 Pearson Education, Inc.

5. Product Promotion5. Product Promotion

• Promotion----aims to stimulate Promotion----aims to stimulate demand for the companydemand for the company’’s s products;products;

• Common promotional techniques Common promotional techniques include advertising, packaging, include advertising, packaging, branding,personal selling, sales branding,personal selling, sales manuals and so on.manuals and so on.

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Promotion MixPromotion Mix

Advertising Personal Selling

Sales Promotion Public Relations


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Factors Affecting Advertising StrategyFactors Affecting Advertising Strategy

• The message it wants to conveyThe message it wants to convey

• The media available for conveying The media available for conveying the messagethe message

• The extent to which the firm wants to The extent to which the firm wants to globalize its advertising effortglobalize its advertising effort


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Personal SellingPersonal Selling

私人销售：在私人合同的基础上销售产品。私人销售：在私人合同的基础上销售产品。通过销售代表拜访潜在消费者，并试图向通过销售代表拜访潜在消费者，并试图向其出售企业的产品或者服务，是私人销售其出售企业的产品或者服务，是私人销售最常见的方法。最常见的方法。 (Amway(Amway ，美容业，美容业 ))


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Advantages of Personal Selling for Advantages of Personal Selling for International FirmsInternational Firms

• Local sales representatives understand Local sales representatives understand local culture, norms, and customslocal culture, norms, and customs

• Personal selling promotes close, personal Personal selling promotes close, personal contact with customerscontact with customers

• Personal selling makes it easier for firm to Personal selling makes it easier for firm to adopt valuable market informationadopt valuable market information


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Sales PromotionSales Promotion

Sales promotion: Sales promotion: comprises comprises specialized specialized

marketing efforts designed to offer an marketing efforts designed to offer an

incentive for behavior such as coupons, incentive for behavior such as coupons, in-in-

store promotions, sampling, direct mail store promotions, sampling, direct mail

campaigns, cooperative advertising, campaigns, cooperative advertising, and and

trade fair attendance. trade fair attendance.


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Public RelationsPublic Relations

Public Relations Public Relations consists of efforts consists of efforts

aimed at enhancing a firm’s reputation aimed at enhancing a firm’s reputation and and

image with the general public, as image with the general public, as opposed opposed

to touting the specific advantages of an to touting the specific advantages of an

individual product or serviceindividual product or service. .


6. Advertising6. Advertising

• DefinitionDefinition– It is a major mode of communicating with It is a major mode of communicating with

customer throughout the worldcustomer throughout the world

• Advertising agencyAdvertising agency– Familiar with the foreign environment is critical Familiar with the foreign environment is critical

to the success.to the success.

• If sell industrial products, assortment of If sell industrial products, assortment of magazines covering international market magazines covering international market is helpful.is helpful.

• Other forms of advertising and promotion Other forms of advertising and promotion

7. Product Packaging7. Product Packaging

• Designed to attract buyerDesigned to attract buyer’’s attentions attention

• Identify the productIdentify the product

• Provide a reason to buyProvide a reason to buy

• Redesign for foreign tastesRedesign for foreign tastes

• Designing packages for foreign Designing packages for foreign shipment shipment

8. Breaking the Language 8. Breaking the Language BarriersBarriers

• Clearly present product and Clearly present product and instructions in the language of the instructions in the language of the useruser

• The cost and effort required to The cost and effort required to translate is minimal compared to the translate is minimal compared to the liability they could incur for liability they could incur for misinterpreted informationmisinterpreted information

Comprehension questionsComprehension questions(Page 62)(Page 62)

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Chapter 7: The Marketing Mix & Product Promotion