Transcript Topic 4 Marketing Review marketing_review_powerpoint

MARKETING
Topic 4 Review
SUSIE ROBERTS
1/2012
Definition of Marketing
 The “Bridge” between the producer and the
consumer.
 The PROCESS of getting customers interested in a
product; giving customers what they want or need in
products (GOODS, SERVICES, IDEAS)
 The management task that links the business to the
consumer by meeting the needs of the customers
profitably; “getting the right product at the
right price to the right place at the right
time”.
MARKET SIZE
HOW IS MARKET SIZE Measured?
Definition: the total level of sales of all producers
within a market
 Two
Ways: Volume
and
Value
 Market size can be measured by volume but is usually
measured by VALUE.
Market Growth and Decline
Market VS Product Orientation

External Factors on GROWTH or DECLINE include:
State of the Economy
 Technology
 Demographic and Social Change
________________________________________
 Market Orientation vs Product Orientation

Market-oriented: what customers want; an outward –looking
approach basing product decisions on consumer demand as
established by market research VS Product-the concerns and
convenience of internal production
 Product oriented: an inward-looking approach that focuses on
making products that can be made or have been made for a long time
and then trying to sell them; companies quickly lose market share as
customers move to product more tailored to customers’ needs.

MARKET SHARE
 Measures what proportion of the total market’s sales
is held by one organization.
 Businesses can gain market share at the expense of
competitors through a successful advertising
campaign (example).
Goods, Services, Ideas-things that are marketed
 Goods: Tangible items that you can touch and hold
 Services: Intangible items that must be used and
can’t be returned; they can’t be touched-think TIME,
Accounting and Legal Advice and Athletic Trainers
 Ideas: “Litter and it will hurt”, “Friends don’t let
friends drink and drive”, the pink ribbon. Nonprofits often market for donations.
Marketing Plan and Objectives
 The Marketing Plan includes:
 Key Marketing Objectives
 Strategic Plans
 Specific Marketing Actions
 Marketing Budget
The Marketing Mix- the 4 P’s plus 4
“Marketing is a PROCESS”
 Product
 Price
 Place
 Promotion
 People
 Physical Evidence
 Packaging
 Process
 “ONLY WHEN ALL THE ELEMENTs are
combined in the correct way will the marketing
objectives be met”.
Definitions
 Marketing Audit: looks at the cost and
effectiveness of marketing activity on a periodic
basis.
SWOT: strengths and weaknesses are internal to a
business; opportunities and threats consider the
external environment
Market Research: A collection of objective data
about a market, competitors, and consumers;
essential to creating a successful product and in
marketing it effectively; Primary and Secondary.
Primary and Secondary Research Data
 Primary is collected directly from consumers.
 Secondary is data that has already been collected and
then published; trade journals, gov’t reports and
surveys, consumer groups, market reports.
General
 May not be current

>Quantitative including random samples and cluster samples may
be used to identify trends.
>Qualitative looks in far more depth at the buying process.
Potential for BIAS. TECHNOLOGY allows businesses to target
customers.
MARKET Segmentation-Refers to the process of
dividing a market into smaller sub-groups.
 MASS Marketing:
 NICHE Marketing:
 Looking at the market as a
 Segmenting a market such
whole, rather than
segmenting it.
as by 1)Geographics,
2)Demographics, and
3)Psychographics
 Businesses try to identify
key sub-groups in a market
and aim to generate profit
by meeting specific needs
of those consumers.
Consumer
Profiles
Businesses create
consumer profiles
which are detailed
characteristics of the
consumers of a
particular product.
DEMOGRAPHICS:
 Age
 Gender
 Income
 Social Group
 May also include: Profession,
Education Level, Ethnicity
PSYCHOGRAPHICS:
 Attitudes
 Beliefs
GEOGRAPHICS:
Location (Urban or Rural, Latitude,
Country)
The TARGET MARKET: the market segment that
a particular product is aimed at.
Positioning
Unique Selling
Proposition USP’s
 Businesses analyze the
 USP’s are key in
current state of the
market.
 Using a Market or
Position Map allows the
business to see where
existing brands are
aimed and identify
profitable niches in the
market.
protecting a niche once
a business has
identified it.
 Companies spend time
and money ensuring
that their product is
differentiated in design
and branding.
PRODUCT
The Product Mix:
The Product Life Cycle:
 The complete range of
 5 Stages of the Product
products produced by a
business including
product lines and
individual products.
 A product line is a group
of products within the
mix that are closely
related to each other.
Life Cycle:
 Development
 Introduction
 Growth
 Maturity
 Decline
Product Life Cycles do not
have a set duration.
Product (continued)
Extension Strategies
Product Diffusion Curve
or Adopters
 Extending the life of
 This describes how
quickly customers adopt
a new product:
existing products by
updating to prevent it’s
decline.
 Examples: Oreos,
Monopoly, Lays chips,
Uggs





Innovators
Early adopters
Early majority
Late majority
Laggards
The Product Portfolio Analysis
The Boston Matrix (BCG)
Growth Rate and Market
Share
 Cash Cow
 Cash Cow-Low growth
 Star
 Question Mark or
Problem Child
 Dog
and high market share
 Star-High growth and
high market share
 Question Mark-High
growth and low market
share
 Dog-Low growth and
low market share
BRANDING
“BRANDS ARE WELL-KNOWN NAMES OF
INDIVIDUAL COMPANIES OR PRODUCTS.
THE MOST SUCCESSFUL BRANDS BECOME
SYNONYMOUS WITH THE NAME OF THE
PRODUCT ITSELF”.
EXAMPLES: KLEENEX, Q-TIPS,
ROLLERBLADE
Branding
A strong
brand will
allow a
business to
differentiate
itself from its
rivals.
 Brand Awareness-Ensuring
that customers recognize the
offerings, name, and products of a
particular business.
 Brand Development- Trying to
increase the power of the name or
logo in order to increase the
brand awareness and therefore
gain higher sales.
 Brand Loyalty-The willingness
of consumers to purchase the
same brand repeatedly.
PRICE
PRICING STRATEGIES:
1)COST-BASED PRICING
2)COMPETITION-BASED PRICING
3)MARKET-BASED PRICING (PRICE
PENETRATION AND PRICE SKIMMING)
PRICE TO BE FAIR,
TO BE COMPETITIVE, AND
TO MAKE A PROFIT
PROMOTION
Above the Line Advertising:
 Above the Line: Direct
Advertising through
consumer channels.
 Persuasive advertising is
aimed to convince consumers
to buy a particular product.
 Informative advertising aims
to make consumers aware of
the features and
characteristics of the product.
Below the Line Advertising:
 Price Promotions/Price Deals
 Direct Marketing
 Direct Personal Selling
 Loyalty Cards
 Point of Sale Displays
 Public Relations
 Money-Off Coupons
 Buy One-Get One Free
 Contests/Games/Competitions
 Sponsorship
 Factors to Consider:
Promotional
Mix
All the forms of
promotion in
the list will be
effective for
certain
businesses in
certain
situations.
 Who is the product aimed at?
Whole market or smaller
segments?
 How much will it cost?
 How effective will my promotion
be?
PLACE
DISTRIBUTION CHANNELS:
1)MANUFACTURER TO CONSUMER
2)MANUFACTURER TO RETAILER TO
CONSUMER
3)MANUFACTURER TO WHOLESALER TO
RETAILER TO CONSUMER
4)AGENTS MAY ALSO EXIST, PARTICULARLY
IN SERVICE INDUSTRIES
21st Century Marketing Issues
 International Marketing: must take into account
how the marketing mix (4 P’s) needs to be adapted to
fit the different cultural, political, legal, social, and
economic issues of each new market.
 E-Commerce: Business to Business Commerce and
Business to Consumer Commerce; The 4 P’sProduct can be customized and the “Longtail” affect;
Price is more competitive; Promotion is a two-way
process; Place is a low cost alternative to “brick and
mortar”.
What is the “Longtail”?
SELLING A LARGE NUMBER OF UNIQUE
ITEMS IN SMALL QUANTITIES, USUALLY IN
ADDITION TO SELLING FEWER POPULAR
ITEMS IN LARGE QUANTITIES.
EXAMPLES: NETFLIX, AMAZON
Other marketing techniques:
Viral Marketing
Guerilla Marketing
 The use of social
 Was invented as an
networking sites or text
messages to increase
brand awareness or sell
products.
 Youtube and other online
outlets are commonly
used.
 Also called “marketing
buzz”.
unconventional system of
promotions that relies on time,
energy and imagination rather
than a big marketing budget.
Typically, guerrilla marketing
campaigns are unexpected and
unconventional, potentially
interactive, and consumers are
targeted in unexpected places.
 Examples: Graffiti, sticker
bombing, flash mobs.
And…that’s a wrap!
HERE’S THE CHALLENGE:
CAN YOU GET A PRODUCT
FROM THE PRODUCER TO
THE CONSUMER
(AND MAKE A PROFIT)?