CHAPTER 7 MARKETING STRATEGY * * * * * * * GERBER S

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CHAPTER 7

• MARKETING STRATEGY

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MARKETING STRATEGY

• Growth Strategies
• Marketing Choices
• Guerrilla Marketing
• Marketing Mix

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GROWTH STRATEGIES

• Internal Growth
• External Growth

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INTERNAL GROWTH

• Market Penetration existing products in
  existing markets
• Product Development new products in existing
  markets
• Market Development existing products in new
  markets

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MARKET PENETRATION

• Use more of product
• Cross-sell products
• Take competitors business

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MARKET PENETRATION EXAMPLES

• Arm Hammer
• Bank Services
• Frito-Lay

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BANK CROSS-SELLING

• Checking accounts
• Credit/Debit cards
• Safety deposit boxes

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PRODUCT DEVELOPMENT

• Bring out new products
• Modify existing products
• Continuous product changes

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PRODUCT DEVELOPMENT EXAMPLES

• 2013 Honda
• Heinz blue ketchup
• 2013 designer clothes

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CONTINUOUS PRODUCT CHANGES

• New Yearly Products
• Seasonal Fashions
• New Technologies

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MARKET DEVELOPMENT

• Expand geographical market
• Expand overseas
• Sell to new markets

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MARKET DEVELOPMENT EXAMPLES

• Pappas expands to Chicago
• Scantrons sold to large hospitals
• Lenovo sells smartphones outside of China

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INTENSIVE GROWTH OF BLUE BELL ICE CREAM

• Market Penetration
• - Increase sales of existing products
• Product Development
• - Introduce a new line of Diet Blue Bell
• Market Development
• - Enter Oklahoma with Blue Bell

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CANNIBALIZATION ISSUES

• Products
• Introducing new products which take
• revenue from existing products
• Retail Stores
• Introducing new stores which take
• revenue from existing stores

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EXTERNAL GROWTH

• Backward Integration
• - Control of supply system
• Forward Integration
• - Control of distribution system
• Horizontal Integration
• - Control of competition

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BACKWARD INTEGRATION EXAMPLES

• McDonalds making own hamburger buns
• Ford operating their own steel mills
• Kroger operating own milk plant

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KROGER MANUFACTURING FACILITIES

• Dairy plant
• Bakery
• Meat plant
• Carbonated beverages

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HORIZONTAL INTEGRATION EXAMPLES

• Ernst and Whinney merging with Arthur Young
• Chevron buying Gulf Oil
• Black Decker merging with Stanley

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MARKETING CHOICES

• Niche Markets
• Multiple Revenue Streams
• Market Positioning

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NICHE MARKETS

• Concentrated Niche
• - One target market
• Multiple Niches
• - Multiple target markets

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CONCENTRATED NICHE EXAMPLES

• Cliff Notes
• Blue Jeans
• New Toy Niches

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CONCENTRATED NICHES FOR BLUE JEANS

• Not Your Daughters Jeans
• Male Skinny Jeans
• Long Haul Jeans

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TOY NICHE MARKETS USING iPADS

• Crayola iMarkers
• Griffin toy helicopter
• FisherPrice laugh and learn

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MULTIPLE NICHE EXAMPLES

• General Motors
• Anheuser Busch Beer
• Procter Gamble detergents

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GENERAL MOTORS AUTOMOBILES

• Chevrolet
• Cadillac
• Buick

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ANHEUSER BUSCH BEER

• Budweiser
• Michelob
• Busch

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PROCTER GAMBLE DETERGENTS

• Tide
• Cheer
• Bold

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MULTIPLE REVENUE STREAMS

• Harry Potter
• Angry Birds
• UH Football

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MULTIPLE REVENUE EXAMPLES HARRY POTTER

• Sold books 400 million
• Movie revenue 6.4 billion
• Theme park 200 million

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MULTIPLE REVENUE EXAMPLES ANGRY BIRDS

• Angry Birds Apps
• Stuffed Toys
• T-Shirts

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UH FOOTBALL REVENUE

• Seat tickets
• Parking
• Food and drinks

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MARKET POSITIONING

• The perception a buyer has about your product
  versus your competitors product

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MARKET POSITIONING EXAMPLES

• Lite Beer
• Gerber baby food
• Barbie doll

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GERBERS POSITIONING STATEMENT
Babies Are Our Business Our Only Business

• Heinz makes ketchup
• Swift makes meat
• Beechnut makes gum

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GUERRILLA MARKETING

• Unconventional marketing intended to get
• maximum results from minimal resources

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GUERRILLA MARKETING EXAMPLES

• Bauer student organizations
• borrowing tables
• Mobile taco stands
• Free publicity

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MARKETING MIX
Target Market(s)
Product/Service Strategy
Distribution Strategy
Pricing Strategy
Promotion Strategy
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MARKETING MIX STRATEGIES

• Girl Scout Cookies
• College Text Books

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GIRL SCOUT COOKIES

• Product Strategy
• Distribution Strategy
• Promotion Strategy
• Pricing Strategy

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COLLEGE TEXTBOOK OPTIONS

• Buy new
• Buy used
• Rent
• Buy online
• Buy eBook