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Unit 4 Review - Coggle Diagram
Unit 4 Review
4.1
Intro To Marketing
What is Marketing?
All activities involved in getting goods and servicesfrom the business that produces them to the consume
research
The process of determining the viability of a new service or product through research conducted directly with potential customers.
Different types of research:
consumer research
market research
motivation research
pricing research
competitive research
product research
advertising research
distribution
advertising
a promotional tool that can influence the buying behavior of customers
tv, newspaper, online,
social media, magazines, billboards, etc
poster ads, videos, PSAs, interviews etc.
promotion
push / pull strategies
location, size, types of ads
sales
location, size, types of ads
push / pull strategies
the process of influencing the buying behavior of customers or clients with a persuasive selling message about products and/or services
activities related to selling or the number of goods sold in a given targeted time period.
consider supply and demand
development
the stages involved in bringing a product from concept or idea through to market release. Invention or innovation/improvement
4.4
Push
Strategies:
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
eg. Jones Soda Co. – place special coolers stocked with their product in trendy clothing stores > get young people to try it/ see it
Push Tactics:
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
Pull:
Pull tactics
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
Pull strategies:
manufacturer concentrates on creating demand at the consumer level
customers will ask for it
lots of advertising and promotion
Ex: Pepsi commercials
4.5
4 Ps
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.
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
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.
Product
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.
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?
2Cs
Competition
All the sellers of a specific product
Market Share
The percentage of the market that a company’s brand has
4.2
Branding
Creating an image for products and services
Brand Name
words a business uses to distinguish its products from that of the competition
How the company is identified
Logo
Symbol that is associated with the company or product
Types of Logos:
Monogram: Stylized writing
Visual Symbol: represents something
Abstract Symbol: Not representative of actual things
Trademark
A recognizable sign, design or expression that identifies products or services and gives the owner exclusive rights
Slogan
Short or catchy advertising phrase associated with a company or product
Brand Identification
Everything associated with a product
slogan
name
logo
Why do companies use them?
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
4.3
Impact of Marketing
Sales
Consumer reaction to the brand.
Brand Equity
the value of the brand in the marketplace.
The Product Life Cycle
The changes in popularity or sales of a product over time.
Charts the progress of the brand
Stages Of The Product Life Cycle:
Introduction:
2: Growth:
Word spreads, sales increase rapidly
Competitors enter market, battle for dominance
Marketers manage products carefully
1: Product Launch
Curious/adventurous consumers buy product first – market to them
3: Maturity
Constant sales, Brand equity highest
Most profitable, paid off early costs
Continued advertising as reminder
4: Decline:
Sales decrease, inevitable
5: Decision point:
Try to reposition brand (reformulate, re-package, re-introduce)
New promotion and pricing
Or discontinue
Non Traditional Product Life Cycle:
Fads
a product that is extremely popular with a select market for a short time
Seasonal
Some products are popular during a specific time or season
Inventory Management important
4.7
Marketing Research
Types of marketing research
consumer research
uses methods such as phone or personal interviews to discover what type of products consumers want and predicts the sales potential of that product.
market research
identifies specific groups of consumers who would use a particular product or service.
motivation research
tries to find out why we buy, by looking at the emotional and rational motives that influence buying decisions.
pricing research
helps a company decide if they can sell a product for a competitive price and make a profit.
consumer research
looks for opportunities where competition is weak or absent and determines what competitors are doing.
market research
motivation research
pricing research