Unit 4 Review

4.1: Intro to Marketing

What is Marketing?

4.3: Product Life Cycle

4.2: Branding

4.5: Marketing Mix

4.4: Brand Management

4.6: Creative Marketing

4.7: Marketing Research

All of the activities involved in getting goods and services from the business that produces them to the consumer

Two fundamental roles

Marketing Activities

To sell what a business makes

To manage the brand

Advertising

Promotion

Distribution

Sales

Development

Research

The process of determining the viability of a new service/product by conducting research directly with potential customers

Different kinds of research:

Competitive

Pricing

Motivation

Product

Market

Advertising

Consumer

Bringing a product/service from concept/idea to market release

Invention or innovation/improvement

Activities related to selling or the number of goods sold in a targeted period of time

Supply and demand

How the product/service will be distributed to consumers

A tool that can influence the buying behavior of customers

Examples: TV, social media, billboards, posters, etc.

The process of advertising with a persuasive message about products and/or services

Push/pull strategies

Consider location, size, types of ads

Creates an image for products and services

Brand name

Logo

Slogan

The word(s) a business uses to make its products distinguishable from that of the competition

How the company is identified

Helps product compete for consumer awareness

Symbol that is associated with the company or product

Logo forms:

Visual symbol

Abstract symbol

Monogram

Why do companies use logos?

Stylized writing

Represents something

Not representative of actual things

Helps people remember the business

Increases the company image

Represents the business’ name

Helps people who can’t read

Helps people when travelling abroad

Can show what the product is

Ties together packaging/advertising/promotions

Short and/or catchy advertising phrase associated with a company or product

Brand, price, quality, convenience - what does the consumer value most?

How to measure the impact
of marketing

Sales

Consumer reaction to the brand

Brand Equity

The value of the brand in the marketplace

Product Life Cycle

What percent of a particular market
does the brand have?

Shows the changes in popularity or sales of a product
over time (the progress of the brand)

Traditional

Non-traditional

Growth

Maturity

Introduction

Decline

Decision point

Product launch, where curious/adventurous consumers buy the product first (make them the target market)

Sales increase as word spreads, competitors enter the market and fight for consumer attention, marketers manage products carefully to gain more consumers and not push them away

Constant sales, brand equity at its highest point, the company is making the most profit and is now able to pay off early costs. Advertising must be continued to keep consumer attention

Inevitably, sales start to slow down and profits decrease

Reposition the brand to revitalize interest, e.g. reformulate, re-package products, new promotion and pricing

Or choose to discontinue product

Fads

Niches

Seasonal

An extremely popular product with a certain market
for a short period of time (big introduction, fast decline)

Very specific market with loyal consumers; few competitors (flat line)

Products that are popular during a specific time/season; inventory management is important (waves of popularity)

Push

Pull

Manufacturer concentrates
on selling product to retailers

Offers special pricing

Manufacturer pays a retailer to stock a product ("shelf allowance"); this covers the cost of rearranging the shelf

Displays flashy items "shelf talkers", point of sales materials

"Taking the product to the customer"

Manufacturer concentrates on
creating demand at the consumer level

Make the customers ask for it

Lots of advertising and media promotion, word of mouth referrals

"Getting the customer to come to you"

Customer relationship management

What is a market?

A group of people with similar wants and needs for a product/service (a target market)

A place where goods/services are exchanged for something of value

Functions of marketing

To help a business determine its target market

To give consumers what they want (4Ps)

Marketing mix elements:

4Ps

2Cs

Product/service

Price

Promotion

Place

Competition

Consumer

Must satisfy a consumer’s need/want (better than an existing product or service)

Consider innovation and improvement; how do you get your product into a position where people will want/need it?

Brand names, trademarks, packaging, and labeling all need to be given thought

Consumers must feel that it is a reasonable price taking into account the quality and price of same or similar products/services

Must cover the cost of production and allow for profit

Need to find a balance between what price the consumers are willing to pay and your profitability

The methods by which businesses inform potential customers about the availability and benefits of the product/service

The goal is to convince people that your goods/services are superior to others

Examples: personal selling (door-to-door), sales promotion (discount coupons), publicity (news), public relations (good reputation), advertising (paid use by sponsor, internet)

Where and how it is sold

Direct

Indirect

Specialty

Producer to consumer (e.g. farmer's market)

Intermediaries (e.g. wholesalers, retailers)

The competitive market - who are you up against?

Market share - percentage of the market that a
company’s brand has (brand equity)

Businesses study and target potential users of a product/service to figure out how to be as successful as possible

Consumers can be identified by:

Demographics (age, gender, religion, culture, income (stereotyping))

Lifestyle (the way people live, values, beliefs and motivations)

Consider:

Cleverness

Humourous?

Uniqueness

Have a clear purpose

For print ads: not too wordy, not cluttered,
consider theme/font choices,
have a "call to action", use images

Consumer research

Market research

Motivation research

Pricing research

Competitive research

Product research

Advertising research

Two ways to collect data

Primary

Secondary

Information collected by others

Current information that is collected
and analyzed for a specific purpose

Websites, databases, reports

Surveys, test marketing, observation

Looks for opportunities in areas where competition is weak or absent and determines what competitors are doing

Discovers what type of product consumers want and predicts the overall sales potential for that product

Researchers use the primary data collection methods such as phone surveys and personal interviews to get consumer opinions

Identifies specific groups of consumers who would use a particular product or service

Marketers then create profiles of these groups using demographic and psychographic studies

Examines both the emotional (the way we feel) and the rational (the way we think) motives that influence our buying decisions (find out why we buy)

Examine each detail of a product or service and analyze the impact these details might have on the market

What are the most effective ways to reach your target market with your product?

Helps the marketer determine if the company can sell the product for a competitive price and still make a profit

Also looks at how different prices affect demand and sales

Places that do not fall into direct or indirect distribution (e.g. vending machines, online shopping)

Is it eye-catching?