Objectives
Course Organization
Tasks of Marketing
Major Concepts & Tools of Marketing
Marketplace Orientations
Marketing’s Responses to New
Defining Marketing
Marketing is a societal process by
which individuals and groups obtain
what they need and want through
creating, offering, and freely
exchanging products and services of
value with others.
Simple Marketing System
Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
Information
Production Concept
Product Concept
Selling Concept
Marketing Concept
Consumers prefer products that are
widely available and inexpensive
Consumers favor products that
offer the most quality, performance,
or innovative features
Consumers will buy products only if
the company aggressively
promotes/sells these products
Focuses on needs/ wants of target
markets & delivering value
better than competitors
Company Orientations
Towards the Marketplace
Objectives
Define value & satisfaction - understand
how to deliver them
The nature of high-performance
businesses
How to attract & retain customers
Improving customer profitability
Resources
Organization
and
aligning...
High Performance Business
Processes
By improving
critical business...
Stake-
holders
Set strategies to
satisfy key...
Satisfied Customers:
Are loyal longer
Buy more (new products & upgrades)
Spread favorable word-of-mouth
Are more brand loyal (less price
sensitive)
Offer feedback
Inactive or
ex-customers
Customer Development
Partners
Advocates
Clients
Repeat
customers
First-time
customers
Suspects
Prospects
Disqualified
prospects
Customer/Product
Profitability Analysis
P
1 profitable Highly productP
2 Profitable productP
3 Losing productP
4 Mixed-bag productP
r
o
d
u
c
t
s
+
+
+
High
profit
customer
+
-
Mixed-bag
customer
+
-
-
Losing
customer
C
1C
2C
3Customers
Objectives
Corporate and division strategic planing
Business unit planning
The marketing process
Product level planning
Market-Oriented Strategic
Planning
Objectives
Skills
Resources
Opportunities
Market-Oriented Strategic
Planning
Objectives
Skills
Resources
Opportunities
Profit
and
Growth
Corporate Headquarters
Planning
Define the corporate mission
Establish strategic business units
(SBUs)
Assign resources to SBUs
Plan new business, downsize older
The Marketing Plan
Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
Objectives
Components of a marketing information
system
Criteria of good marketing research
Decision support systems for marketing
management
A marketing information system (MIS) consists of
people, equipment, and procedures to gather, sort,
analyze, evaluate, and distribute needed, timely, and
accurate information to marketing decision makers.
A marketing intelligence system is a set of
procedures and sources used by managers to obtain
everyday information about developments in the
Research Approaches
Behavioral
Focus-group
Survey
Experimental
Observational
Secondary-Data Sources
Internal Sources
Government Publications
Periodicals and Books
Commercial Data
On-Line
Associations
Good Marketing Research:
Is scientific
Is creative
Uses multiple methods
Realizes the interdependence of
models & data
Acknowledges the cost & value of
information
Maintains “healthy” skepticism
Demand
Market
Demand
Company
Estimating Current Demand
Total Market Potential
Area Market Potential
Industry Sales
Estimating Future Demand
Survey of Buyers’ Intentions
Composite of Sales Force Opinion
Expert Opinion
Past Sales Analysis
Objectives
Tracking & Identifying Opportunities in
the Macroenvironment
Demographic, Economic, Natural,
Technological, Political, & Cultural
Developments
Macroenvironmental Forces
World trade enablers
Asian economic power
Rise of trade blocs
International monetary crises
Use of barter & countertrade
Move towards market economies
Macroenvironmental Forces
Opening of “new” markets
Emerging transnational firms
Cross-border strategic alliances
Regional ethnic & religious conflict
Demographic Environment
Worldwide Population Growth
Population Age Mix
Ethnic Markets
Household Patterns
Educational Groups
Geographical Shifts in Population
Economic Environment
Income Distribution
Subsistence economies
Raw-material-exporting economies
Industrializing economies
Industrial economies
Savings, Debt, &
Credit Availability
Natural
Environment
Higher Pollution
Levels
Increased Costs
of Energy
Shortage of
Raw Materials
Changing Role
of Government
Accelerating Pace
of Change
Unlimited Opportunities
for Innovation
Increased
Regulation
Issues in the Technological
Environment
Varying
Political-
Legal
Environment
Increased
Legislation
Special-
Interest
Groups
Social/Cultural Environment
Of
Organizations
Of
Nature
Of
Oneself
Of
Society
Of
the Universe
Of
Others
Views
That Express
Values
Objectives
Influences on Buying Behavior
Simple Response Model
Culture
Cultural Factors
Subculture
Social Class
Social Factors
Reference
Groups
Roles &
Statuses
Family
Influences on Consumer
Behavior
Personal Influences
Age and Family Life
Cycle Stage
Lifestyle
Occupation &
Economic Circumstances
Personality &
Self-Concept
Psychological Factors
Perception
Learning
Beliefs &
Attitudes
Motivation
Four Types of Buying
Behavior
Complex
Buying
Behavior
Dissonance-
Reducing Buying
Behavior
Variety-
Seeking
Behavior
Habitual
Buying
Behavior
Significant
differences
between
brands
Few
differences
between
brands
High
Involvement
Low
Involvement
Total
Set
Decision Making Sets
Aware-
ness
Set
Consid-
eration
Objectives
How Business & Consumer Markets Differ
Organizational Buying Situations
Participants in the Business Buying
Process
Major Influences on Organizational Buyers
Business Buyer Decision Making
Organizational Factors
Purchasing-
Department
Upgrading
Cross-
Functional
Roles
Centralized
Purchasing
Decentralized
Purchasing
of Small
Ticket Items
Internet
Purchasing
Long-Term
Contracts
Purchasing-
Performance
Evaluation &
Pro. Buyers
Lean
Production
Problem Recognition
General Need Description
Product Specification
Supplier Search
Proposal Solicitation
Supplier Selection
Order Routine Specification
Performance Review
Post
Purchase
Purchase
Info
Search/
Eval
Need
Recognition
Institutional Markets
Captive Patrons
Low Budgets
Government Markets
Domestic Suppliers
Open Bids
Cost Minimization
Public Review
Paperwork
Objectives
Identifying Competitors
Evaluating Competitors
Competitive Intelligence Systems
Competitive Strategies
Industry Competition
Number of Sellers - Degree of
Differentiation
Entry, Mobility, Exit barriers
Cost Structure
Degree of Vertical Integration
Analyzing Competitors
Competitor
Actions
Objectives
Strengths &
Weaknesses
Reaction
Patterns
Strategies
Competitor’s Expansion Plans
Markets
Pr
oduc
ts
Individual
Users
Commercial
& Industrial Educational
Personal
Computers
Hardware
Accessories
Software
Dell
Hypothetical Market Structure
& Strategies
40%
Market
leader
30%
Market
challenger
20%
Market
follower
Expand Market
Defend Market Share
Expand Market Share
Attack leader
Status quo
Imitate
10%
Market
nicher
Special-
ize
Defense Strategies
Attacker
(3) Preemptive
defense
(4) Counter-
offensive
defense
Defender
(1)
Position
defense
(5)
Mobile
defense
(2) Flank defense
(6) Contraction
defense
Attack Strategies
Attacker
Defender
(3) Encirclement attack
(4) Bypass attack
(2) Flank attack
(5) Guerilla attack
(1) Frontal attack
Specific Attack Strategies
Price-discount
Cheaper goods
Prestige goods
Product proliferation
Product innovation
Improved services
Distribution innovation
Manufacturing cost reduction
“
Nichemanship”
End-user specialist
Vertical-level specialist
Customer-size specialist
Specific-customer specialist
Geographic specialist
Product or product-line specialist
Product-feature specialist
Job-shop specialist
Quality-price specialist
Service specialist
Balance
Competition
Customer
+ Fighter orientation
+ Alert
+ Exploit weaknesses
- Reactive
+ ID opportunities
+ Long-run profit
Objectives
Identifying Market Segments
Market-Segmentation
Procedure
Survey
Motivations
Attitudes
Behavior
Analysis
Factors
Clusters
Profiling
Bases for Segmenting
Consumer Markets
Occasions, Benefits,
Uses, or Attitudes
Behavioral
Geographic
Region, City or Metro
Size, Density, Climate
Demographic
Age, Gender, Family size
and Life cycle, Race,
Occupation, or Income ...
Lifestyle or Personality
Psychographic
Bases for Segmenting
Business Markets
Demographic
Operating Variables
Purchasing Approaches
Situational Factors
Personal Characteristics
Measurable
Accessible
Substantial
Differential
• Segments must be large or
profitable enough to serve.
• Segments can be
effectively reached and
served.
Actionable
• Size, purchasing power,
profiles of segments can
be measured.
• Segments must respond
differently to different
marketing mix elements &
actions.
• Must be able to attract and
serve the segments.
Effective Segmentation
Additional Segmentation
Criteria
Ethical Choice of Market Targets
Segment Interrelationships &
Supersegments
Segment-by-Segment Invasion Plans
Objectives
Identify Differentiating Attributes
Choosing & Communicating Effective
Positioning
Marketing Strategies Along the Product
Life Cycle
Product Differentiation
Form
tures
Fea-
mance
Perfor-
Quality
Conform-
ance
Quality
Dura-
Delivery
Services Differentiation
Ordering
Ease
Maintenance
& Repair
Customer
Training
Installation
Customer
Consulting
Miscell
ane
ous
Se
rvice
s
Differentiation
Personnel
Media
Atmosphere
Symbols
Events
Differences Worth
Establishing
Affordable
Superior
Profitable
Preemptive
Distinctive
Important
Positioning is the act of
designing the company’s
offering and image to
occupy a distinctive
place in the the target
Sales & Profit Life Cycles
Introduction Growth
Maturity
Decline
Time
Sales
&
profits
Four Introductory
Marketing Strategies
Rapid-
skimming
strategy
Rapid-
penetration
strategy
Slow-
penetration
strategy
Slow-
skimming
strategy
Price
Low
High
Promotion
High
Low
Maturity Stage
Market Modification
Product Modification
Decline Stage
Decrease investment
Resolve uncertainties - stable
investment
Selective niches
Harvesting
Market Evolution
Emergence
Growth
Maturity
Objectives
Challenges in New Product Development (NPD)
Organizational Structure & NPD
Stages & Management of NPD
Why New Products Fail
“
Over Championing”
Overestimated Demand
Poor Design
Poor Marketing Execution
High Development Costs
Challenges in NPD
Idea Shortage
Fragmented Markets
Social & Governmental Constraints
Cost
Capital Shortage
Need for Speed
Probability of Success
Probability
of technical
completion
Overall
probability
of success
=
Probability of
commercialization
given technical
completion
X
Probability of
economic
success given
commercialization
X
Concept Development & Testing
1. Develop Product Ideas into
Alternative Product Concepts
2. Concept Testing - Test the Product
Concepts with Groups of Target Customers
Consumer-Goods Market Testing
Sales-
Wave
Research
Test offering trail to
a sample of
consumers in
successive
periods.
Simulated
Test Market
Test in a simulated
shopping environment
to a sample of
consumers.
Standard
Test Market
Full marketing campaign
in a small number of
representative cities.
Controlled
Test Market
A few stores that have
agreed to carry new
Commercialization
When
Where
Whom
Product Price Place PromotionCharacteristics of the Innovation Rate of
Adoption
Relative advantage
Compatibility
Complexity
Divisibility
Communicability
Objectives
Factors to Consider Before Going Global
Selecting Foreign Markets
Foreign Market Entry
Product Adaption for Global Marketing
Major Decisions in International Marketing
Deciding whether to go abroad Deciding which markets to enter Deciding how to enter the marketDeciding on the marketing program
Deciding on the marketing organization
Challenges in Going Global
Shifting borders
Unstable governments
Foreign-exchange
Corruption
Technological pirating
Criteria for Entry
Market Attractiveness
Risk
Five Models of Entry
Into Foreign Markets
Direct
invest-
ment
Joint
ventures
Licensing
Direct
exporting
Indirect
Exporting
Internationalization Process
No Export
Export via Agents
Sales Subsidiaries
Production Abroad
Five International Product
and Promotion Strategies
Dual
adaptation
Promotion
Product
Product
adaptation
Adapt
product
Straight
extension
Do not change
product
Do not change
promotion
Communi-
cation
adaptation
Adapt
promotion
Develop new
product
Product
invention
Pricing Challenges
>
Price Escalation
>
Dumping charges
>
Gray markets
Whole-channel Concept for International
Marketing
Seller
Seller’s international
marketing headquarters
Channels between
nations
Channels within
foreign nations
Final buyers
Objectives
Product Characteristics
Building & Managing the Product Mix & Product Lines
Brand Decisions
Specialty Products Unsought Products Shopping Products
Buy less frequently
> Gather product information > Fewer purchase locations > Compare for:
• Suitability & Quality • Price & Style
Convenience Products
Special purchase efforts > Unique characteristics > Brand identification > Few purchase locations
New innovations
> Products consumers don’t want to think about.
>Require much advertising & personal selling
Buy frequently & immediately > Low priced
> Many purchase locations > Includes:
• Staple goods • Impulse goods • Emergency goods
Product Mix
Width - number of
different product lines
Length - total number
of items
within the lines
Depth - number of
versions of each
product
Product Mix -
all the product
Product-Line Length
Line Stretching
Downmarket
Upmarket
Two-way
Line Filling
Line Modernization
What is a Brand?
Attributes Benefits Values Culture
User
Brand Equity
No Brand Loyalty
(customer will change)
Satisfied Customer
(no reason to change)
Satisfied & Switching Cost Values the Brand
(brand as friend)
Devoted to Brand
Brand Strategies
Brand
Extension
New
Bra
nd
Na
me
Product Category
Line
Extension
Existing
Existing
Multibrands
New
New
Brands
Good Brand Names:
Suggest
Product
Benefits
Distinctive
Lack Poor
Foreign
Language
Meanings
Suggest
Product
Qualities
Easy to:
Pronounce
Recognize
Remember
Why Package Crucial as a
Marketing Tool
Self-service
Consumer affluence
Company & brand image
Labels
Identify
Describe
Objectives
Service Definitions & Classifications
How Services Differ Goods
Improving Service Differentiation, Quality, & Productivity
Categories of Service Mix
Pure
Service
Tangible
Good
w/
Services
Major
Service
w/ Goods
Hybrid
Pure
Tangible
Good
Services Inseparability Services cannot be separated from their providers Perishability Services cannot be stored for later sale or use
Intangibility Services cannot be seen, tasted, felt, heard, or smelled before purchase Variability Quality of services depends on who provides them and when, where, and how
Services
Inseparability
Increase
productivity of
providers
Perishability
Match supply
and demand
Intangibility
Use cues to
make it tangible
Variability
Standardize
service
production
& delivery
Service Differentiation
Offer
Delivery
Determinants of Service Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Service
Excellence
Strategic Concept
Top-Management Commitment
High Standards
Monitoring Systems
Satisfying Customer Complaints
Satisfying Both Employees & Customers
Complaint Resolution
Hiring Criteria & Training for Employees
Develop Guidelines for Fairness
Remove Complaint Barriers
Objectives
Setting the Price
Adapting the Price
Types of Costs
Total Costs
Sum of the Fixed and Variable Costs for a Given
Level of Production
Fixed Costs
(Overhead)
Costs that don’t
vary with sales or
production levels.
Executive Salaries
Rent
Variable Costs
Costs that do vary
directly with the
level of production.
Pricing Methods
Markup Pricing
Target Return Pricing
Perceived Value Pricing
Value Pricing
Going-Rate Pricing
Some important pricing definitions
Utility: The attribute that makes
it capable of want satisfaction
Value: The worth in terms of
other products
Price: The monetary medium of
exchange.
Value Example:
Caterpillar
Tractor is
$100,000
vs. Market
$90,000
$90,000 if equal
7,000 extra durable
6,000 reliability
5,000 service
2,000 warranty
$110,000 in benefits -
$10,000 discount!
Psychological Pricing
Most Attractive?
Better Value?
Psychological reason to price
this way?
A
32 oz.
$2.19
B
26 oz.
$1.99
Discriminatory Pricing
Time
Product-form
Customer
Segment
Objectives
Work Performed by Marketing Channels
Channel-Design Decisions
Channel-Management Decisions
How a Distributor Reduces the
Number of Channel Transactions
= Customer
= Manufacturer
A. Number of contacts
without a distributor
M x C = 3 X 3 = 9
1
3
2
4
5
6
7
8
9
How a Distributor Reduces the
Number of Channel Transactions
= Distributor
= Customer
= Manufacturer
B. Number of contacts
with a distributor
M x C = 3 + 3 = 6
Store
1
2
3
4
5
6
Distribution Channel Functions
Ordering
Payments
Communication
Transfer
Negotiation
Financing
Risk Taking
Physical
Distribution
Information
Customers’ Desired Service Levels
Lot size
Waiting time
Spatial convenience
Product variety
Service backup
Channel Management Decisions
Selecting
FEEDBA
CK
Motivating
Training
Evaluating
Types of Vertical Marketing Systems
Corporate
Common Ownership at Different Levels of the Channel
Contractual
Contractual Agreement Among Channel Members
Administered
Leadership is Assumed by One or a Few Dominant Members
Conventional Distribution Channel vs.
Vertical Marketing Systems
Vertical
marketing
channel
Manufacturer
Retailer
Conventional
marketing
channel
Consumer
Manufacturer
Consumer
Retailer
Wholesaler
Wh
ol
es
ale
r
Causes of Channel
Conflict
Incompatibility
Difference in Perception
Dependence
Legal & Ethical Issues in
Channel Relations
Exclusive Dealing
Exclusive Territories
Tying Agreements
Objectives
Retailing
Wholesaling
Four Levels of Retail Service
Self-service
Self-selection
Limited-service
Classification Of Retailer Types
Specialty Stores Department Stores Supermarkets Convenience Stores Off-Price Retailer Superstores Catalog ShowroomWide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items
Wide Variety of Food, Laundry, & Household Products
Limited Line of High-Turnover Convenience Goods
Inexpensive, Overruns, Irregulars, and Leftover Goods
Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services
Broad Selection, Fast Turnover, Discount Prices Narrow Product Line, Deep Assortment
Store Type Length and Breadth of Product Assortment
Types of NonStore Retailing
Direct Selling
Direct Marketing
Buying Services
NonStore Retailing
Accounts for More Than 12% of All Consumer Purchases, and is trending up.
Low Price
Low Status
Low Margin
Mid Price
Mid Status
Mid Margin
High Price
High Status
High Margin
Wheel of Retailing
Why are Wholesalers Used?
Wholesaler Functions Management
Services & Advice
Selling and Promoting Market Information Buying and Assortment Building
Risk Bearing Bulk Breaking
Transporting
Goals of the Logistics System
• Provide a Targeted Level of Customer Service at the Least Cost.
• Maximize Profits, Not Sales.
Higher Distribution Costs/ Higher Customer Service Levels
Lower Distribution Costs/ Lower Customer Service Levels
Inventory When to order How much to order
Just-in-time Costs Minimize Costs of Attaining Logistics Objectives Warehousing Storage Distribution Order Processing Submitted Processed Shipped Logistics Functions Transportation Water, Truck, Rail, Pipeline & Air
Rail
Nation’s largest carrier, cost-effective for shipping bulk products, piggyback
Truck
Flexible in routing & time schedules, efficient for short-hauls of high value goods
Water
Low cost for shipping bulky, low-value goods, slowest form
Pipeline
Ship petroleum, natural gas, and chemicals from sources to markets
Air
High cost, ideal when speed is needed or to ship high-value, low-bulk items
1. Speed.
2. Dependability.
3. Capability.
4. Availability.
Checklist for Choosing
Transportation Modes
Rating Transportation Modes
Rail 3 4 2 2 3 Water 4 5 1 4 1 Truck 2 2 3 1 4 Pipeline 5 1 5 5 2 Air 1 3 4 3 5Source: See Carl M. Guelzo; Introduction to Logistics Management Englewood Cliffs, NJ:
Prentice Hall, 1986), p. 46. (Door-to- door delivery time) (Meeting Schedules on Time) (Ability to Handle Various Products) (No. of Geographic Points Served) (Per Ton- Mile)
Advertising
Personal Selling
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.
Sales Promotion Short-term Incentives to
Encourage Trial or Purchase.
Public Relations
Direct Marketing Direct Communications With
Individuals to Obtain an Immediate Response. Protect and/or Promote Company’s Image/products.
Personal Presentations.
Message Problems
Selective Attention
Selective Distortion
Effective Communications
Step 1. Identifying the Target Audience
Purchase Conviction Preference Liking Knowledge Awareness
Step 2. Determining the Communication Objectives Buyer Readiness Stages
Step 3. Designing the Message
Message Source Expertise, Trustworthiness, Congruity Message Format Layout,Words, & Sounds, Body Language Message Structure Draw Conclusions Argument Type Argument Order Message Content Rational Appeals Emotional Appeals Moral Appeals
Step 4. Select Communications Channel
Nonpersonal Communication
Channels
Personal Communication
Channels
Step 5. Establish the Budget
Competitive
Parity
Objective
& Task
Affordable
Sales
% Of
Step 6. Decide on Communications Mix
Advertising
Public, Pervasive, Expressive, Impersonal
Sales Promotion
Communication, Incentive, Invitation
Public Relations & Publicity Credibility, Surprise, Dramatization
Personal Selling
Personal Confrontation, Cultivation, Response
Direct Marketing
Step 7. Measure Results
Factors in Developing Promotion Mix
Strategies
Product
Life-Cycle Stage
Type of
Product/
Market
Push vs.
Pull Strategy
Buyer/
Readiness
Stage
Push Versus Pull Strategy
Producer
Producer
Interme-
diaries
Marketing
activities
End users
Marketing
activities
Demand
Interme-
diaries
Demand
Push Strategy
Pull Strategy
End users
Marketing activities
Demand
Objectives
Developing & Managing an Advertising Program
Deciding on Media & Measuring Effectiveness
Sales Promotion
Informative Advertising
Build Primary Demand
Persuasive Advertising
Build Selective Demand
Comparison Advertising
Compares One Brand to Another
Reminder Advertising
Keeps Consumers Thinking
About a Product.
Advertising Objectives
Specific Communication Task
Accomplished with a Specific Target Audience
Advertising Budget Factors
Stage in the
Product Life Cycle
Market Share &
Consumer Base
Competition &
Clutter
Advertising
Frequency
Product
Substitutability
Profiles of Major Media Types
Newspapers
Advantages: Flexibility, timeliness; good local market coverage; broad acceptance, high believability
Limitations: Short life; poor reproduction quality; small pass-along audience
Television
Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses
Limitations: High absolute costs; high clutter; fleeting exposure; less audience selectivity
Direct Mail
Advantages: Audience selectivity; flexibility, no ad compe-
tition within same medium; allows personalization
Radio
Advantages: Mass use; high geographic and demographic selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences
Magazines
Advantages: High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership
Limitations: Long ad purchase lead time; waste circulation; no guarantee of position
Outdoor
Advantages: Flexibility; high repeat exposure; low cost; low message competition
Limitations: Little audience selectivity; creative limitations
Advertising Strategy
Message Execution
Typical Message Execution Styles TestimonialEvidence Slice of Life
Scientific Evidence Lifestyle Technical Expertise Fantasy Musical Personality Symbol Mood or Image
Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.
Advertising Evaluation
Advertising Program Evaluation
Communication Effects Is the Ad Communicating Well?
Sales Effects
Why the increase in Sales Promotion?
Growing retailer power
Declining brand loyalty
Increased promotional sensitivity
Brand proliferation
Fragmentation of consumer market
Short-term focus
Increased managerial accountability
Competition
Long-Term Promotional Allocation
0
10
20
30
40
50
60
1986
88
90
92
94
1996
Year
%
t
of total
-
3
y
r.M
A
Trade Promo
Media Adv
Cons. Promo
Channels of Sales Promotions
MANUFACTURER RETAILER Trade Promotions CONSUMER Consumer Promotions PushConsumer Promotion
Consumer-Promotion Objectives Consumer-Promotion Tools Point-of-Purchase Displays Premiums Price Packs Cash Refunds Coupons Samples Patronage Rewards Games Sweepstakes Contests Advertising Specialties Patronage Rewards Entice Consumers toTry a New Product Lure Customers Away From Competitors’ Products Get Consumers to “Load Up’
on a Mature Product Hold & Reward Loyal
Customers
Consumer Relationship Building
“
Deal Proneness,”
Liechtenstein, Burton, &
Netemeyer,
Journal of
Retailing, Summer 1997
Examination of “deal proneness”
among consumers in a
supermarket setting
Surveys
&
Grocery Receipts
used
Eight types of deals:
Cent-off, One-free, Gift,
Display, Rebate, Contest,
Sale, & Coupon
“
Deal Proneness,”
Liechtenstein,
Burton, & Netemeyer
Cluster analysis yielded two
interpretable results:
49%
are “deal prone,”
51%
not
24%
High “Deal prone,”
50%
intermediate,
26%
deal insensitive
“Deal-proneness” a generalized
construct - (crosses type of
promotion)
