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?