Transcript Marketing - BCCBUSINESSSTUDIES

Welcome to Marketing
• Find a chair.
• Tell me is 2 sentences what you think the following quote means:
“Money coming in says I've made the right marketing decisions.”
-Adam Osborne
This does not require any verbal or non-verbal communication with
anyone else in the class.
Marketing
9.1
Chapter Overview
• Identify the role of marketing and its relationship with other business
activities.
• Examine the factors influencing supply and demand.
• Look at the features of different markets.
• Identify the difference between producer and consumer markets.
• What is the difference between a niche market and mass markets
• What are the different methods of segmenting a market.
The Role of Marketing
• What is marketing?
• All business need customers.
• Marketing is the function of business that is responsible for
understanding customer needs and developing the right product,
setting the right price and promoting and distributing the product.
The Importance of Marketing
• Effective marketing occurs when a firm fully understands the
requirements of its customers and is able to meet those needs
successfully.
• Why is marketing always changing?
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Customers needs change. (Blackberry and IPhone)
Business environment can change.
Competitors enter the market.
A firm changes and develops.
Effective Marketing Results
• Effective marketing should have some affect on potential customers
as well as established customers.
• How to measure marketing:
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Customers are likely to come back more.
Likely to tell their friends and post on social media.
Willing to try new product launches by the company.
Become loyal to the brand name.
Defining Marketing
• It is an exchange between the business and the customer.
• Both sides gain something from the exchange.
• A firm wants to identify and anticipate customer needs.
• It aims to delight customers.
• The purpose of marketing is to match the abilities and strengths of
the business to the needs of the market.
Marketing and Other Functions
• When figuring out what customers need what questions do you ask?
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What is produced?
How many are produced?
What is the range of products to be produced?
What price should the product be sold at?
• The marketing department will communicate with the operations,
finance and human resource department regularly.
Marketing Objectives and Corporate
Objectives
• Marketing objectives are the targets set for the marketing function.
• Sales targets
• Market share
• Brand awareness
• A marketing objective is a marketing target for the business setting
out what it wants to achieve and when.
• A marketing strategy is a marketing plan to achieve the marketing
objective.
Marketing Objectives Cont.
• Sales targets – A sales target is a goal set for a salesperson or sales
department measured in revenue or units sold for a specific time.
• How many IPhones should we sell this wee, month, year
• Market Share - The percentage of an industry or market's total sales
that is earned by a particular company over a specified time period.
Market share is calculated by taking the company's sales over the
period and dividing it by the total sales of the industry over the same
period.
Marketing Targets
Homework
• Finish: Hugh Davidson Case Study Q 1-2
• Finish: BAT in Russia Q 1-2
Due on Monday November 2nd
Welcome to Marketing
• Find a chair.
• Tell me is 2 sentences what you think the following quote means:
“Supply always comes on the heels of demand”
-Robert Collier
This does not require any verbal or non-verbal communication with
anyone else in the class.
Marketing
9.2
Supply Curve
• A market is made of buyers and sellers. The buyers demand the product
and the sellers supply the product.
• It is usually upward sloping because as price increases producers are willing
to make more of the product so they can make more money with the
higher prices.
• A supply curve shows how much producers are willing to supply at each
price level.
• Supply of a product depends on:
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Number of businesses producing the item
Time period of production (easy to enter and exit the market)
Technology – faster ways of production (robots)
Costs reduce costs to produce more (airlines and fuel costs)
Demand Curve
• The demand curve shows how much customers are willing and able
to buy at each and every price with all other factors unchanged.
• It is usually downward sloping because as price falls customers can
afford to buy more with the same income.
• Factors that determine a demand curve.
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Income of buyers
Price of rival products
Price of complementary products
Marketing activities (effective marketing)
Look at Supply and Demand Curve
Welcome to Marketing
• Find a chair.
• Tell me is 2 sentences what you think the following picture:
This does not require any verbal or non-verbal communication with anyone else in
the class.
Marketing
9.3 Cont. & 9.4
Problems with Measuring Market Share/Growth
• Market share and market growth is not easy to measure.
• Difficult to find accurate figures
• Difficult to define the market
• Market growth measures the percentage increase in growth in market
sales over a given period.
Implications of change in Market Share and Growth
• A change in market share means that the sales of a business account
for a greater proportion of the total sales in the market in a given
period.
• Market remains unchanged that means your increasing sales.
• Market declines your market share could increase even if sales are falling.
• Keep in mind the total market size.
• Don’t just look at the % increase of decrease take into consideration
the market.
• 1% increase in market share for mobile phones is a big increase!
Marketing
9.4
Producer and Consumer Markets
• Consumer market simply is the buyer is going to be the consumer of
that product. Examples: when you buy food, clothes, a DVD. You are
part of the consumer market. (Large Market)
• Producer Market (industrial market) good are to be used in a
production process.
• Buyers generally are more concerned with how this machine, transport or
technology can help efficiency of the business. If it will save the company
money and it makes sense they will usually purchase it if they can.
• (Small Market)
Cont.
• Producer Market
• Relatively Small
• Professional
• Consumer Market
• Usually large
• Individual buyers
Marketing
9.5
Niche Versus Mass Marketing
• Niche marketing occurs when a firm targets a specific segment of the
market.
• Ferrari targets the luxury sports car market.
• Rolex targets the luxury watch market.
• Focusing on smaller markets a firm can focus and understand the
requirements of the group.
• Usually small business will focus on a niche market.
• http://izismile.com/2013/07/31/crazy_products_that_are_totally_rea
l_33_pics.html
Niche Marketing (Pros)
• It focuses on just one segment of the market and therefore the
resources required may be relatively small, this makes it easier to
start the business.
• Doesn’t threaten larger firms. Larger firms will not cut prices or try to
influence stores to have them stop distributing the product.
Niche Marketing (Cons)
• Total number of customers is likely to be low.
• Could have significant effect on demand.
• If product is successful will get the attention of larger firms.
• Small firms to not have the resources to compete with larger firms.
Mass Marketing
• Mass marketing targets the majority of the market.
• Usually involves high levels of production compared to niche
production.
• Possible for a niche market to become mainstream and become a
mass market.
• Toothpaste, laptops, even mobile phones started out as a niche market.
Homework
Marketing
9.6
Segmentation Methods
• A market segment is a group of similar needs and wants.
• For example: within the market for newspapers there are some readers who
are most interested in sports, others who want financial information.
• So there was the creation of Sporting News and the Wall Street
Journal each covers different segments.
Geographic Segmentation
• Marketers can segment according to geographic criteria—nations,
states, regions, countries, cities, neighborhoods, or postal codes.
• The geo-cluster approach combines demographic data with
geographic data to create a more accurate or specific profile.
• With respect to region,
• In rainy regions merchants can sell things like raincoats, umbrellas and
gumboots.
• In hot regions, one can sell summer clothing.
• Geographic Segmentation is important and may be considered the
first step to international marketing, followed by demographic and
psychographic segmentation.
Demographic Segmentation
• Segmentation according to demography is based on variables such as
age, gender, occupation and education level or according to perceived
benefits which a product/service may provide.
• Benefits may be perceived differently depending on a consumer's
stage in the life cycle.
• Demographic segmentation divides markets into different life stage
groups and allows for messages to be tailored accordingly
• Example: the types of toys a 3 year old likes will be different than toys a 13
year old likes.
Behavioral Segmentation
• Behavioral segmentation divides consumers into groups according to
their knowledge of, attitude towards, usage rate, response, loyalty
status, and readiness stage to a product.
• There is an extra connectivity with all other market related sources.
Behavioral segmentation divides buyers into segments based on their
knowledge, attitudes, uses, or responses concerning a product.
• Many marketers believe that behavior variables are the best starting
point for building market segments.
Psychographic Segmentation
• Psychographic segmentation, which is sometimes called Lifestyle. This is
measured by studying the activities, interests, and opinions (AIOs) of
customers.
• It considers how people spend their leisure, and which external influences
they are most responsive to and influenced by. Psychographic is highly
important to segmentation, because it identifies the personal activities and
targeted lifestyle the target subject endures, or the image they are
attempting to project.
• Mass Media has a predominant influence and effect on Psychographic
segmentation. Lifestyle products may pertain to high involvement products
and purchase decisions, to specialty or luxury products and purchase
decisions.
Benefits and Limitations of Market Segmentation
• By segmenting managers can target what type of customer they want
to target.
• Can identify how certain markets are developing by market
segmentation.
Classification of products and how marketing
might differ for different types of goods and
services.
• Consumer products that are bought by the final user.
• Convenience items such as newspapers and milk.
• Shopping items these products such as clothes or electrical goods
which are more expensive than convenience items.
• Specialist products such as Rolex watches and Ferraris these are
products customers have probably thought about for a long period of
time.
• Industrial products which are bought buy a business to use in there
production process.
Homework
Case Study:
Bic for Her
Questions #8-#10
Worksheet Packet
Review Period Monday November 12th
TEST November 13th