Transcript Topic 4 PPT Marketing ppt reviewx

Topic 4
Marketing
By: Selena M.Trey C. Pauline L. Ebrima F. Jaclyn M.
The Role of Marketing
The features of the market
Market size: Represents all sales of a company in a
market, it is measured by volume(of sales) and the value
(of sales).
Market growth: An increase in the total size of a
market(volume or revenue) over a certain period of time.
Market share: The percentage of sales in the total market
sold by one business.
Firms sales for time
period
X 100
The role and nature of marketing
Market orientation: An outward-looking approach basing
product decisions on consumer demand, as established by
market research.
- Requires market research to determine what the
customer wants to buy
Product orientation: 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.
- Businesses invent products they believe will be useful
and consumers will want.
The role of nature and marketing
Marketing of goods and services:
● Target market: Type of customers will change how
products are marketed(adults/children)
● Pricing should be consistent with the use of the product.
● Place: Where the product is placed to obtain the most
profit, how it is presented
● Staff must be trained well in providing service.
● Goods are packaged in a unique way to stick out to the
customers
Marketing in nonprofit organizations
NGO’s use these devices to market their business
● Target market-have a specific group of consumers to
aim their services at
● Branding-build the NGO’s brand
● Online practices- Active website to attract more
donations
● Media marketing- such as email and social media to
help raise awareness for the NGO
The elements of a marketing plan
Marketing plan is a document that puts the company’s
strategic aims into practice.
● Key marketing objectives: goals and targets to meet
corporate objectives
● Strategic plans: an overview of how objectives are
being achieved
● Specific marketing actions: details of the timings and
types of marketing activity to be carried out
● Marketing budget: detailed costing of the marketing
activity
Marketing Planning
The Elements of the Marketing Mix
Product
Price
Place/Packaging
Promotion
People
Process
Physical Evidence
Ethics of Marketing
A collection of principles that underpin decision
making; marketing can fall foul of accusations of
unethical behaviour in a number of ways
Ethical marketing issues are increasing with the
globalization of the world’s markets.
Purpose of Marketing Audit
A regular review of the cost and effectiveness of a
marketing plan including the analysis of external
and internal influences.
A marketing audit answers the question:
What is our current situation?
Marketing Objectives
Define what you want to accomplish through your
marketing activities
SMART approach
The Role and Methods of Marketing Research
Market Research: The process of collecting, recording, and
analyzing data about customers, competitors, and the market
Primary Research: A collection of first-hand data that is directly
related to the researcher’s needs.
Secondary Research: A collection of data from second-hand
sources. Often called “desk” research.
Market Segmentation, Consumer
Profiles and Market Targeting
Market segmentation is dividing the marketplace
into parts which are definable
Target Market: A particular group of consumers at
which a product is aimed
Demographics-age, gender, ethnicity
Geographics-zip code, type
Psychographics-beliefs, values
Meaning of Positioning
Corporate Image
Position or Perception Maps
Unique Selling Point
Product
Classification of Products
Product Mix- The complete range of products
produced by a business including product lines
and individual products
Product Line- A group of products within the mix
that are closely related to each other
Ex:A cosmetic companies makeup line may
include foundation
New Product Design and Development
● Involves determining what can be improved about a
product by looking at how customer needs and
wants have changed
● Can be is minor as adding another product to the
existing product line or as major as the creation of a
new product
● Increases the differentiation of products and results
in a USP
Steps to new product design and
development:
1. Brainstorm ideas
2. Develop ideas
3. Create the product
4. Refine and carry out final testing of the product
5. Launch
6. Ensure continual development
Product Life Cycle
● Shows how sales are likely to be generated
throughout the market life of a product
● Every product goes through this cycle in their
own individual way
Stages of the Product Life Cycle:
1. Development: creation of the product; significant time, money and
energy will be spent in making sure that the product is ready for the
market(no sales during this stage)
2. Introduction: when the product is launched; at this stage the
promotion of the product is stressed(cash outflow is greater than the
cash inflow)
3. Growth: When sales start to take off; different pricing strategies are
used to attract people(cash flow begins to turn positive and product
begins to make a profit)
4. Maturity: the product is established and manufacturer aims to
maintain the product's market share(where most profits are made)
5. Decline: where sales start to decline; businesses either let the product
die or pursue extension strategies(product begins to lose sales)
Product Diffusion Curve
● Groups customers according to how quickly they adopt a
new product. some people will immediately will go out and
buy the latest product as soon as it hits the stores, but others
will wait a long time before buying new products.
Product Portfolio Analysis
● Looking at the range of products a business
offers to ensure that it has products that are
performing well and generating profit
● A portfolio of products which can be analyzed
by using the Boston Matrix
Boston Matrix
● Helps businesses decide where to best devote
their scarce resources of time and money
● A more informal marketing tool used for product
portfolio analysis
Four Categories of the Boston Matrix:
1. Star:high-growth products competing in markets where they are
strong compared with the competition. Often stars need heavy
investment to sustain growth. Eventually growth will slow and many
become Cash Cows
2. Cash Cows: Low-growth products with a high market share. These
are mature, successful products with relatively little need for
investment but they need to be managed for continued
3. Question Mark:Products with low market share operating in high
growth markets. Suggest that they have potential, but may need
substantial investment to grow market share.
4. Dog: Products that have a low market share, may generate enough
cash to break even but rarely worth investing in
Price
Cost-based Pricing
● Also known as cost-plus pricing
● Price is determined by calculating cost of
individual product and a profit margin is added
Competition-based Pricing
● A firm sets a very low price with the intention to
remove competition from the market
● Price Leadership
○ Market leader by market share sets price
Market-based Pricing
● Penetration Pricing
○ Firm tries to undercut existing market firms
with lower price
● Skimming
○ Identify a group/segment and try to target
niche customers by charging high prices to
attract early adopters
Promotion
Promotional Mix
The combination of promotional techniques that are used to
communicate the benefits of the product to the consumer
Decide on the image of the product
Develop a profile of the target market
Decide on the messages to communicate
Set an appropriate budget
Decide how the messages should be communicated
Establish how the success of the promotional mix is to be assessed
Execute the promotional plan
Measure its success
Above the Line
● Advertising
○ Communicating information about a product or business
through the media such as radio, TV, newspaper,
magazines, or billboards.
● Informative
○ Provide info for potential customers (price, features,
where to buy)
● Persuasive
○ Trying to create a distinct image or brand identity
Below the Line
Sales promotions are used to generate short-term gains in
sales.
● Sales or price deals – a temporary reduction in price
● Loyalty programs – airline miles, points earned to redeem for other
products and gifts
● Coupons
● Point-of-sale displays – aisle interrupters, dump-bins
● BOGOF – buy one, get one free offers
● Games and competitions
● Public relations
● Sponsorships
Place
Channels of distribution
Distribution Channel: The chain of businesses or
intermediaries through which a good or service passes until
it reaches the end consumer.
Producer: Business that makes or grows products to be
sold to others.
Wholesalers: Products are bought in bulk and then sold to
retailers rather than to consumers.
Distribution strategy
Distribution Strategy: A plan that specifies how the
business intends to transfer its products to intermediaries,
retailers, and end consumers.
Retailers: Sells products directly to consumers.
Agents: A business with the authority to act on behalf of
another firm to market its products.
International marketing
markets
● Exporting
o Selling a product directly to a foreign customer
o Selling a product to intermediary based in a foreign
country
● International Franchising
o Using a franchise to operate your firm’s activities in
a foreign market
 Can be owned by many individuals
 Can be owned by 1 company operating many
locations
How businesses enter International
Markets
● Joint Ventures
o Agreements between at least 2 companies to
operate a new business venture
● Licensing
o Allows another firm in a foreign country to produce
its branded or patented products under license
usually under strictly controlled terms over quality.
 Goods do not have to be exported if produced
locally
 Food products are fresher
 No capital costs of setting up production facilities
How businesses enter international
markets
● Direct Investment in Subsidiaries
o Company-owned subsidiaries in foreign countries
tend to be more successful than merging with locally
based companies.
o Subsidiaries can:
 Be production or retail operations
 Management can be decentralized
● Local managers make most key decisions
 Management can be centralized
● Controlled from the head office in the home
country
E-commerce
What is meant by e-commerce
Business to business(B2B)- Are commerce transactions
between businesses, such as between a manufacturer and
a wholesaler, or between a wholesaler and a retailer.
Business to customers(B2C)- When companies sell their
online goods to consumers who are the end users of their
products or services.