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Unit 3 - Marketing (Continued) - Coggle Diagram

- - - - Product = any good or service to meet customers’ needs // life cycle: development (designed and developed)/ steps: generation of ideas, screening ideas, prototyping, test marketing, full launch // introduction (launch stage)/ strategies: price skimming, penetration pricing, heavy advertising, restricted access // growth (introduced, survived, well received) / moment of making price adjustments, economies of scale pick up speed, advertising focuses on brand loyalty and recurring clients // maturity or stabilization (reached or close to reaching its peak)/
      - Product (Continued): sales increase slowly or keep a smooth line, significant market share, sales revenue and profits at highest point, promotional strategies to keep competitors at bay, product is established, strategies to compete with rival products and companies // saturation (competitors with more interesting solutions)/ more offerings than demand, products start a small decline in sales, cash flow is positive, competitive pricing to attract more customers, risk of dying //decline (product‘s sales drop steadily, it will hardly resist)/ not attractive anymore, sales dropping, reducing price to sell stock, product is slowly withdrawn from the market
        
        Extension strategies: to extend the product’s maturity, revert the decline and even go back to growth = selling to new markets, find new uses or adapt the product, change packaging and layout, target different segments, develop promotional strategies, rethink price and place
        
        Strategies from BCG Matrix: holding, building, harvesting, divesting // Remember this matrix is limited = backward-looking and little advice for the future, it demands other strategies
- - - - Parts of branding: awareness: distinguishable from competitors / loyalty: commitment to the brand / development: process of creating, communicating and straightening a brand / value: it is intangible
      - Brand architecture: unitary composite: one name for all products / unitary brand: sub-categories of a master brand/ brand endorsement: parent brand endorses child brand / hybrid: mix of different styles / corporate invisibility: each brand operates on its own
- - - - Promotional objectives: create awareness and persuade consumers about a product / remind consumers of a product to stimulate re-uses and re-purchases / enhance the brand image sales and markdowns have nothing to do with promotion(from internal communications all the way to the point-of-sale POS) markdowns = different concepts
      - Promotional forms: above-the-line (ATL) promotion: a business pays for communication with customers (for example: advertising) - informative, persuasive, reassuring / below-the-line (BTL) promotion-direct marketing, personal selling, sales promotion, public relations (PR)
        
        Social media marketing: recent and successful form of promotion / power of social networking services (SNS)/ benefits of social media marketing: wide reach, more engagement, continual and updated market information, cost savings, brand recognition, speed / drawbacks: accessibility issues and distractions such as pop-ups among others
        
        Guerrilla marketing: all kinds of uncommon media and activities to draw people’s attention unexpectedly (SMS texting, live streaming, pop-up shops among others / benefits: low cost, flexibility, simplicity, proximity to target market, novelty, interaction, accessibility / drawbacks: ethics, opportunity to go haywire, heightened chance of attracting negative attitudes
        
        Before promotional mix setup, bear in mind: cost, legal framework, target market, stage in the product life cycle, type of product
- - - - Marketing mix: product / price / place / promotion / process / physical evidence / people
      - E-commerce: buying and selling online / benefits = ubiquity: available 24/7, customization: customize experiences and cater just-in-time ordering, wider reach: you can shop online wherever you are, multimedia: use of various tools, universal standards: internet standards are the same (UNICODE )// drawbacks = production capacity: you need to produce and ship since everyone can buy, device customization: platform must be fluid or you lose customers, system integration: platform not well connected to stock, may cause problems to customers, maintenance & security: technologies change fast, demands site maintenance and security of sensitive information too