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The most profitable industrial companies are successful not because they have the lowest costs but because they outmaneuver their competitors on price. These companies analyze the way pricing works in their industries. With this information, these companies design pricing policies that result in extra earnings of millions of dollars. The normal frequency distribution curve that emerges from comparison of orders for a product to its price is called the price band. A series of steps to shift the price band is a pricing strategy.

Companies that link research and development (R&D) and marketing can effectively anticipate, analyze, and exploit market opportunities. The makeup of the marketing and R&D team depends on whether the product or application is in development or being sold. Top management must forge the linkage between marketing and R&D, so each group is concerned not only with market planning but also with offering directions for new research and applications.

A senior manager at Nestle's headquarters is reviewing the role of the central marketing staff with respect to Nestle's operating companies around the world. Two specific examples of the role of the central staff in guiding the advertising and packaging decisions of the operating companies are presented.

The market leader in an overcapacity industry with a commodity product is trying to restore industry price levels. Price cutting has hurt overall industry price levels and the leader must determine whether (and how) to bring up price levels or exit the market.

Presents guidelines for effective marketing planning. Provides a general outline of the contents of a typical marketing plan, the process by which the plan is developed, and considers the benefits successful firms reap from their planning efforts and the problems that mark the efforts of the not-so-successful users of marketing planning. Provides a framework for examining the relationship between a firm's strategy and the design of its marketing organization. Discusses how marketing organizations are structured and some basic principles of organization design.

Broadly describes the scope of marketing research, and describes experiments, non-survey methods, and internal data.

Presents fundamental pricing principles.

Presents some fundamental principles of channels of distribution management.

Describes the outcome of implementation of the standardized plan described in Henkel (A).

Summarizes principal issues involved in product policy.

Promotes discussion on advertising budgeting and media mix decisions in the shampoo market for low-priced, high-volume Suave. Provides various types of market research into consumer behavior and the competition context. The importance of retailers and shelf space is emphasized, and the entire marketing budget is examined.

Describes a framework for evaluating marketing implementation problems and assesses the interfaces between marketing strategy and implementation.

British Airways (BA) has recently introduced a global advertising campaign. The development of the campaign and its implementation are discussed. BA and advertising agency executives must renew the campaign and resolve issues pertaining to its future direction.

Reviews important concepts related to the marketing mix, and summarizes key relationships within the mix and between the mix and other parts of the company's marketing approach.

A brief introduction to the nature and scope of marketing.

Describes and explains the marketing process and its six phases: implementation, programming, allocating and budgeting, analysis and research, marketing planning, strategy formulation, and monitoring and auditing.

In April 1984 Deborah Raymond, president of Raymond Mushrooms was deciding whether or not to raise prices on Raymond canned mushrooms in conjunction with an advertising promotional program to build consumer preference.

Shows how to calculate and use the break-even volume in marketing decision making.

The difficulty of segmenting industrial markets has dissuaded companies from trying, despite the benefits they lose in terms of market analysis and selection. The problem is to identify the most useful variables. One way to do this is to arrange the five general segmentation criteria of demographics, operating variables, customer purchasing approaches, situational factors, and personal buyer characteristics, into a nested hierarchy. The segmentation criteria of the largest, outermost nest are general characteristics about industries and companies. Innermost nests are specific, subtle, and hard-to-assess traits.

Supplements the (A) case.