Transcript Marketing - Lawton Community Schools

Marketing
1.Purpose and Roles of Marketing
2.The Product Life Cycle
3.The Four P’s of Marketing
Purpose of Marketing
1. To sell what a business produces (goods)
and/ or offers (services).
2. To manage a business’s brand and
brands
Producing & Marketing Goods and
Services
 Marketing

Defined
An organizational function and a set of
processes for creating, communicating, and
delivering value to customers and for
managing customer relationships in ways that
benefit the organization and its stakeholders
More money is spent in business-tobusiness marketing than in
marketing products to final
consumers!
Marketing Activities





You see:
Ads
Brand names on
packages/clothes
Product descriptions
on websites
Interactions
w/salespeople







Less Obvious:
Storing products
Moving products
(distribution)
Estab./accepting
credit
Arranging payment
Gathering data
Testing products
Marketing Businesses



Advertising agencies
Marketing research firms
Transportation companies
(trucking, railroad, and air
freight move products)
 Shipping and delivery
companies
 Financial companies
(issue/manage credit cards)
 Wholesalers/retailers
(distribution)
Functions of Marketing
1. To sell what a business produces (goods) and/
or offers (services).
2. To manage a business’s brand and brands
Sales
Product
Management
Information
Management
Pricing
Promotion
&
&
Distributing
Advertising
7 Marketing Functions
(1 & 2)
1.
Product/Service Management
 Designing, developing, maintaining, improving, and
acquiring products and services that meet
customers’ needs
2.
Distribution
 Determines the best ways for customers to locate,
obtain, and use the products and services of an org.
7 Marketing Functions – 3 & 4
3.
Selling

4.
Communicating directly with potential customers to
determine and satisfy their needs
• Face-to-face
• Phones, instant messaging, videoconferencing,
etc.
Marketing Information Management

Obtains and organizes information needed to make
marketing decisions. (Market research)
7 Marketing Functions – 5 & 6
5.
Financial Analysis

6.
Budgeting for marketing activities, obtaining funds,
and providing financial assistance to customers for
purchasing products/services
Pricing

Setting and communicating the value of products and
services.
• Low enough for willing customers, high enough to make a
profit
7 Marketing Functions - 7
7.
Promotion


Advertising (television,
newspapers, magazines,
radio, direct mail, etc.) is
used to encourage
customers to buy.

Other methods include
contests, product
displays, sponsorships,
and public relations
activities
Involves
communication with
consumers to
encourage purchases.
Marketing Planning
2 steps

Marketing Strategy- a company’s plan that identifies
how it will use marketing to achieve its goals.

Step One = Identifying a target market
• A clearly identified group of consumers with similar
wants and needs that the business wants to
satisfy.






Adolescents, Children (age)
Males, Females (sex)
Middle-aged females (age & sex)
Hispanics, African Americans (ethnicity)
Physically handicap children (need)
Medical personnel (profession)
Step #2
The Four P’s of Marketing – The
Marketing Mix
1.
2.
3.
4.
Product and Services
Price
Place (Channels of Distribution)
Promotion

The 4 P’s of marketing are interrelated. For example, if your
product is targeting low-income families, you are not going to sell
it for a price that a wealthy family can afford. You are also not
likely going to advertise funeral homes during Saturday morning
cartoons.

A company must consider all 4 P’s of marketing to create an
effective marketing campaign that results in product/service sales.
Companies must master selling the right product at the right price
at the right time.
1. Products and Services
 Product
and service development take into
consideration:
1. Quality
2. Design and packaging
3. Features
4. Benefits
5. Warrantees and after sale services
1. Product and Services
Quality
 If you can improve the quality of your product,
you will gain new customers

If you can produce a cheaper version, even
while decreasing the quality, you may still gain
sales through a new customer base.

Consider products whose quality have improved
over time….
1. Product
Design, Packaging and Labeling
 Consumers often pick one competing
product over another because of the way it
looks.
 i.e. A Ford sedan versus a GM sedan.
 Design
includes every detail from colour,
thread type, shape, button fly vs. zipper,
plastic versus aluminum etc.
1. Product
Design, Packaging and Labeling
 Will it be packaged in glass, plastic, cardboard,
paper, tin, a combination, etc?

Will it be resealable, need a hand grip?

What information do we legally have to provide
on the label?

What additional information do we want to
include on the label?
1. Product and Services
Features
 Features are perks or specific functions
a product or service offers.
For example:
 A HD LCD flat screen TV offers a
contrast of 40,000:1 while another offers 1,000,000:1.
Viewing features may include 60 Hertz, 120 Hertz, or
240 Hertz.

Detergent may come in liquid, powder, or solid form.

Foods may add additional nutrients to their products.
1. Products and Services
Benefits
 Consumers purchase items due to some benefit
it will provide to them.

Cosmetics advertise the benefit of “beauty”
and/or “youthfulness", if you purchase their
products.

Macdonald’s offers a “healthy choice” menu to
appeal to the trend of healthier eating.
1. Product
Warrantees and After Sales Services
 Depending on the business or service ,
business may consider offering
warrantees, delivery services, installation,
gift wrapping, free parking, coffee, etc.
 All
additional sales services help the store
to be competitive.
2. Price

Pricing decisions must take into consideration the
following variables among others.
1. The cost of production, fixed costs and/or
unit purchase cost.
2. The price/quality relationship.
3. Who the target market is?
4. Competitor pricing?
5. Price sensitivity – how much sales will go up
or down when the price goes up and down
and still be able to make a profit.
Fixed Costs
 The costs of running the business irregardless of how
many items it sells. For example, rent, hydro, telephone
bill, equipment, etc.
3. Place (Distribution Channel)
Distribution Channel
 Methods or path products follow from
being produced to making its way into the
hands of consumers.
 Companies
decide which distribution
channel(s) they will use.
Specialty Channels of Distribution
Telemarketing
Vending Machines
E - Commerce
Network Marketing
Catalogue Sales
Door-to-Door Sales
Now it’s time to……….
 Go
to
kahoot.it
4. Promotion and Advertising
Promotion

Includes any attempt to sell a prdouct.

Note: Advertising is one example of many different
types of promotions.
Promotions include:
1.
Publicity
2.
Public Relations
3.
Sales promotions such as coupons, contests,
premiums, samples, and special events.
4.
Advertising
Publicity
Company public exposure obtained most
often through company related events or
incidents that are reported in the media.
Example: World-wide recall of a certain
product due to a potentially dangerous
outcome of its use.
Publicity does not cost the company anything, and
can be both positive or negative depending on
what happened and how the company chooses
to respond to the events and media attention.
Consider Tiger Woods, Johnson and
Johnson and the Tylenol scare
Public Relations
Publicity paid for by the company
A Public Relations (PR) spokesperson may release
certain information about a new product launch or other
company related information
The company may sponsor a major event like Coca-Cola
being a major sponsor for the 2009 winter Olympic
games
Sales Promotions
Coupon Facts
 Canadian consumers are
exposed to more than 1200
coupons a year

Only about 5% of coupons
are redeemed (used by
customers)

The larger the value of the
coupon, the higher the
redemption rate.
Sales Promotions
Contests
 Provide an exciting way to
increase brand recognition

Legally, anyone enter a
company contest
(No purchase required)

The law forbids gambling in
contests, thus winners often
have to answer a skill-testing
question to win.
Sales Promotions
Premiums
 Giveaways that consumers receive
free with purchase of a product.

Can be an unrelated product that
sometimes carries the logo of the
company and/or product.

Companies often use loyalty cards
to encourage purchases.
Sales Promotions
Samples
 Trial sizes may be
delivered to your door

Trial sizes may be given
out at various stores

Food sampling is often
done in stores such as
Costco
Sales Promotions
Special Events
 Authors visit book stores to
autograph newly published
books

Sports heroes, music and
movie celebrities take part in
special events to promote
their new shoe or instrument
or perfume.

May include other types of
sales promotions such as
contests, samples, etc.
Advertising
Advertising

One-way, paid-for
promotion of a business’
goods and services.

Business control what
information is
communicated unlike
publicity.
Rules For Creating Good Advertising
AIDA
1. Attract Attention
3. Build Desire
2. Gain Interest
4. Get Action
Attract Attention
1. Print Advertisements
A good headline with the Brand name
in it and is rarely more than seven
words.
Example: “Sprite: Obey Your Thirst”
2. Broadcast Ads
 Sound, unusual visuals, an attractive person, a
famous celebrity or hilarious moment is often
used to attract attention
 The key is to hold the attention for up to 60
seconds.
Gain Interest
1. Print and Broadcast Ads
 Simple and easy to read
 Clear message and to the point
 Avoid clutter
Build Desire

Connect the brand name with benefit(s)
achieved with the use of the advertised product
or service.

What problem does your product or service
solve?

The more benefits the viewer or reader can
identify with, the greater the desire created.
Get Action
 Advertisements
should ask for the sale.
 Summarize reasons to buy
 Include the logo, brand name, contact
information
Types of Advertising Mediums
1.
2.
Direct-to-home – flyers, brochures, catalogues, internet
Out-of-home - billboards, buses, subways, public benches,
transit shelters
3.
4.
5.
6.
7.
Radio
Television
Newspaper
Magazines
The Internet
Comparing Types of Advertisements
When contemplating which advertising
medium to use, companies will consider the
following variables:
1.
2.
3.
4.
5.
6.
7.
8.
Reach
Frequency
Selectivity
Durability
Lead-time
Mechanical requirements
Clutter
Costs
Branding
Branding
 Usually represented by a name (brand
name), a logo and/or a trademark and/or
a slogan.
Purpose of Branding
 Branding is used to help a company
distinguish itself and its products from
competitors’ products – thus helping to
creating an image for the company.
Brand Names
Brand names should:
1. be distinctive and stand out
from the competition.
2. be easy to pronounce
3. easy to remember
Brand Names
Examples:
Bib-Label Lithiated Lemon-Lime Soda
(1929 product name)
vs.
7’Up
Logo or Trademark
A symbol or that is associated with a
company and/or product.
It helps promote awareness and brand
recognition of a company and/or product.
Logo or Trademarks
Three possible forms of logos:
1.
2.
3.
Monogram
Visual Symbol
Abstract symbol
Logos or Trademarks
Monogram
 A stylized rendering of the company’s
initials or a combination of initials and
numbers
 Sometimes used to update an image that
has become outdated.
Logos or Trademarks
Visual Symbols
 Usually line drawings of people, animals,
or things
 When seen the logo becomes directly
associated with the brand name.
Logos or Trademarks
Abstract Symbol
Shapes that carry a visual message
but are not representative of actual
things.
Slogans
Slogans
 A short, catchy phrase that is usually
attached to the company’s name and logo.
Examples:
1. I’m lovin it.
2. Priceless
3. It’s in you to give
Comparing Media
Reach/Circulation
 The number of people who are exposed to the message.
Frequency
 The number of times an audience will see or hear the ad
over a given period of time
Selectivity
 The ability of the medium to focus on a specific target
audience.
Durability
 How long the advertisement will last (ie. 30 second
commercial versus a 30 day billboard)
Comparing Media
Lead-Time
 How much time before the ad needs to be ready for print or
airing.
Mechanical requirements
 How complex is it to prepare the ad for medium? (i.e. radio
vs. tv)
Clutter
 How many other ads are nearby and competing for the
same audience’s attention? The more clutter, the less
effective.
Costs
 One must consider the costs to prepare and the space and
time in the medium to run it. One must weigh the costs
with the many of the other variables outlined above.
Media Rating Chart
TV
Radio
Mag.
News.
Out of
home
Direct
to
home
Internet
Specialty
Reach
8
7
7
7
10
10
7
3
Frequency
1
1
8
3
9
1
10
8
Selectivity
6
7
10
3
1
9
10
5
Durability
1
1
10
7
9
3
10
10
Lead-time
2
9
1
8
2
4
10
4
Mechanical
Req.
3
9
2
7
1
4
8
10
Clutter
3
2
3
4
7
2
2
9
Costs
3
6
6
6
3
7
9
5
Measuring Marketing Effectiveness
Effective marketing will:
1. Increase Brand Equity
 Increases value of the brand in the
marketplace

For example, Coca-cola’s brand equity is
valued at $77.8 billion (2012).
Measuring Marketing Effectiveness
Good marketing will develop brand awareness where
consumers can identify what type of product or service
the brand represents.
Better marketing will develop brand loyalty where
customers prefer and support a particular brand.
Best marketing will develop brand insistence where the
customer will not accept any other substitutes over a
particular brand name.
The greater the brand insistence, the greater the brand
equity.