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Unit 4 Review - Coggle Diagram
Unit 4 Review
4.1 - Into to Marketing
Marketing is all the activities involved in getting goods and services from the business that produces them to the consumer.
Two Fundamental Roles:
To sell what a business makes
To manage the brand(s)
Marketing activities can include
research
development
sales
distribution
advertising
promotion
4.3 - The Product Life Style
the amount of popularity a item has over time.
Product of Life
Introduction:
-Product Launch
-Curious/adventurous consumers buy product first – market to them
Growth:
-Competitors enter market, battle for dominance
-Word spreads, sales increase rapidly
-Marketers manage products carefully
Maturity:
-Constant sales, Brand equity highest
-Most profitable, paid off early cost
-Continued advertising as reminder
Decline:
-Sales decrease
-Inevitable
Decision Point:
-Try to reposition brand (reformulate, re-package, re-introduce)
-New promotion and pricing
-Or discontinue
Non- traditional Product of life
Fads:
-A product that is extremely popular with a select market for a short time
Niches:
-Very specific market, few competitors
Seasonal:
-Some products are popular during a specific time or season
-Inventory Management important
For Example: this is a common life cycle for models of cars
4.2 - Branding
The creation of a image for products or service. Brand names and logos and slogans. For Example, McDonalds Golden Arches and "I'm Loving It"
Branding can also involve trademark symbols
Why Do Companies Use Branding?
Helps people remember the business
Increases the company image
Represents the business’ name
Helps people who can’t read
Helps when travelling abroad
Can show the use of the product
Ties together packaging/advertising/promotions
4.5 - The Marketing Mix
Meaning of market:
A place where goods or services are exchanged for something of value
A market is a group of people with similar wants and needs for a product or service.
2 Functions to marketing
Helps a business determine its target market - group of consumers the business wants to reach.
To give consumers what they want - (4Ps - Product, Price, Place and Promotion).
The elements of the marketing mix are the 4Ps - Product/Service, Price, Place, Promotion and 2 Cs – Competition and Consumer
4 P - Product/service:
-A successful product or service must satisfy a consumer’s need or want better than existing product or service.
-Brand names, trademarks, packaging and labeling are part of the product that need to be given adequate attention
-Innovation and improvement are the keys to successful marketing.
4 P - Price :
-Price is one of the most critical elements contributing to the success or failure of a product or service.
-Consumers must feel that the price is reasonable, taking into account the quality and prices of the same or similar product or service.
-The price must cover the cost of production and allow for a profit. At what price are the consumers willing to buy the product?
4 P - Promotion :
This refers to the methods by which businesses or individuals inform potential customers about the availability and benefits of the product/service. The goal of promotion is to convince the consumers that the good/service are superior to others.
Promotion Activities include:
Personal selling - sales person, door-to-door, telemarketing.
Sales promotion - free samples, discount coupons, rebates, etc. Publicity - news, documentary.
Public relations - good reputation to the public, charitable activities, customer relations.
Advertising (paid use by sponsor) - Newspapers, magazines, Internet, radio, TV, Direct mail, Door-to-door, Outdoor, etc.
4 P - Place : Where and How It’s Sold :
Direct Channels - Producer to Consumer : Eg. farmer’s market
Indirect Channels - Intermediaries : Eg. wholesalers, retailers, importers
Specialty - Vending machines, telemarketing, e-commerce
2 C - Competition:
The Competitive Market - All the sellers of a specific product
Market Share - The percentage of the market that a company’s brand has
2 C - Consumer : Businesses study and target potential users of a product or service to be competitive
Consumers can be identified by:
-Demographics – age, gender, religion, culture, income
-Lifestyle – the way people live, values, beliefs and motivation
4.4 - Brand Management Stragties
Push
manufacturer concentrates on selling product to retailers:
-offers special pricing
-provides display materials - “shelf talkers”, point-of-sales materials (signage)
-provides specialized racking, fridges
-pay retailer a shelf allowance - $ a manufacture pays a retailer to stock a product – covers the cost of rearranging the shelf
*
a glorified bribe
Examples of Push tatics
Trade show promotions to encourage retailer demand
Direct selling to customers in showrooms or face to face
Negotiation with retailers to stock your product
Efficient supply chain allowing retailers an efficient supply
Packaging design to encourage purchase
Point of sale displays
For example: car sales men, packages to encourage the sale of the product
Pull
manufacturer concentrates on creating demand at the consumer level:
-customers will ask for it
-lots of advertising and promotion
Example of Pull tatics
Advertising and mass media promotion
Word of mouth referrals
Customer relationship management
Sales promotions and discounts
For Example: Social media networks, Email advertising
4.6 - Creative Advertising : When coming up with creative advertising you have to be innovative and relateable. you have to keep your target confers in mind and come up with something they will relate to.
creative marketing can be funny, witty, sad you just have to come up with an idea that gets your point across while connection with the consumers on an emotional level.
Things to keep in mind:
-Keep it brief because you'll lose their attention
-Use a catchy phrase to grab attention
-Get straight to the point and put words wisely
4.7 Marketing Research
Types of Marketing Research
Consumer research : Discovers what type of product the consumers want, and what the overall sales will be for that product. these researchers will use primary data like surveys.
Market research : Finds certain groups of consumers who like a specific product or service. Marketers create profiles for these groups using demographic and psychographic findings.
Motivation research : Looks at both emotional (how we feel) and rational (how we think) on how the consumers buy. and tries to find the best way we buy.
Pricing research : Looks at the competition and sees if the product will still sell for their set price will making profit. pricing research looks at
Competitive Research : finds opportunities in areas where the competition is weak or non existent and determine what the competitors are doing.
Product Research : looks at all details of a product or service and analyzes the impact these specific details will have on the product.
Advertising Research : finds inflations on the most benefitical ways to get a message out to the consumers.
Types of Data
Secondary data : Information collected by others
Websites
Data Bases
Indexes
Primary data
Surveys
Focus groups
Observations
