Bell Ringer

• Emillie lost $4,000 in personal belongings due to a flood at her department complex. Fortunately, she had renter's insurance with $500 deductible. How much would she receive from the insurance company if her maximum coverage was $10,000?

Bell Ringer Answer

• $4,000 - $500 deductible = $3,500

Agenda

• Bell Ringer / Attendance – 5 mins• Motivational Video – 10 mins– http://www.youtube.com/watch?v=NAeha727ZWI

• Chapter 6.1 Lecture and Discussion – 30 mins• Cell Phone Assignment – 25 mins

Learning Targets

• I can explain the difference between marketing tactics and strategies.

• I can discuss the importance of planning to stay ahead of the competition.

Vocabulary Words

• Tactic• Strategies• Marketing Intelligence• Trade Shows

Tactics First

• Tactic –> Competitive Mental Angle– A product or service that stands out and above the

competition to consumers.• TACTIC – the way a product or service is

differentiated in the minds of customers from other competing products or services.– Product must truly be different and NOT just

better or cheaper.

Tactics First

• The process of developing a tactic requires extensive knowledge and involvement with customers.

Strategies

• Once the tactic is determined, then a strategy can be determined.

• Strategies – the processes by which the tactics are implemented.

Strategy Example

• Ritz-Carlton Hotel

– Known for luxury– $400 + a night

• Bulgari Hotels and Resorts– X 2– Target Market is the wealthiest or the wealthy– $1,000 + a night per room

Beating the Competition

• To maintain growth, a business must plan to stay ahead of the competition.

What Information is Needed?

• MARKETING INTELLIGENCE - Information is gathered about competitors.– Prices– Distribution Methods– Product/Service Offerings– Promotional Strategies

Pricing

• For some customers, price can be the major factor in the decision to buy.

• Pricing is very important to customers, and the prices being charged by competitors can influence their purchases.

Distribution

• When planning distribution, marketers must make the product convenient for customers to buy.

• Knowing how competing products are made available to customers and the locations where the most sales are occurring, such as over the Internet, can help marketers determine how to make the place utility of their product.

Product / Service Management

• Knowing the product and service offering of competitors can help a business determine how to differentiate its products.

• The goal is to offer additional choices to consumers, not just follow competitors’ leads.

Promotional Efforts

• Analysis of competitors’ promotional efforts will help a business to know the product characteristics competitors are emphasizing, the customers they are targeting, and how much they are spending on their promotions.

Finding the Information

• The Internet• Observations• Trade Shows• Customers

The Internet

• Cost-Effective• Efficient

Observations

• Insight into the company• Provide increased awareness and

understanding of the customer.

Tradeshows

• TRADE SHOWS – major events where people in a related industry meet to show their products, exchange ideas, learn about the latest trends, and so forth.

• Show products to customers and provide information about pricing and distribution.

• Gives salespeople a firsthand look at their competitors’ products, tactics, and strategies.

• Examples RV and Boat Trade Show

Customers

• Volunteered information in a casual conversation about what the competition is offering.

Assignment:

• You are going to research 3 different cell phones using the Internet to determine which company has the comparative advantage.

• After you have completed the chart, answer the following questions:– Which company has the comparative advantage in

your opinion based upon your research? Why?– What can the other two companies do to gain the

comparative advantage?

AssignmentProduct 1: Product 2: Product 3:

Price:

Capacity:

Price:

Colors Offered:

Weight:

Dimensions:

Carriers:

Promotions Offered: