Transcript PPT - School

Marketing
Fundamentals
What is Marketing??
Marketing is the sum of all the activities involved in
planning, pricing, promoting, distributing, and selling
of goods and services to satisfy consumers’ needs and
wants.
• Marketing seeks to
– discover the needs and wants of prospective
customers;
and
– satisfy them.
• The key to achieving these two objectives is
the idea of exchange: the trade of things of
value between buyer and seller so that each is
better off after the trade.
Example:
ME: Hungry
McD’s: Needs to sell food
ME: Buy food
McD’s: Makes money
Requirements for Marketing to Occur
1. Two or more parties with unsatisfied needs
– I need of food, McD was in need of selling
food in order to make money
2. Desire and ability to satisfy those needs
– I want to curb my hunger and have money, McD has
food and a way for me to purchase it from them
3. A way for the parties to communicate
– I watch TV, McD advertises its products on TV
– I receive mail, McD sends out coupons
4. Something to exchange
– I have money, McD has food
The Marketing Mix
• In order to achieve your marketing objectives and
successfully “put the right product in the right place, at
the right price, at the right time, you need to create a plan
• In marketing, this plan revolves around the 4 Ps and 2 Cs.
• Each “P” and “C” or element must be taken into
consideration in order to effectively market your business
to your customer
• These elements are interrelated and must be planned in
combination with each other – there is no “order” as to
when each is done
The 4 Ps are:
Product
• Tangible object or service
• Do market research to find out who customer is and
what they want
• Results will tell you what to make, how to package it,
brand name ideas, image to portray, etc.
Price
• The process of
determining what to charge for the product or service
• Needs to reflect what the customers are willing and
able to pay
• To set your price, you need to look at many variables
such as:
- production costs (materials, labour,
packaging, advertising, etc)
- state of supply and demand
- competition
Place
• Essentially asks
“Where is your product or service going to be?”
• You need to figure out how to make it easy for your customer
to find and buy your product or service
• Look at :
Place: retail (display, where on shelf – cereal low)
Direct sales, internet, etc..
Timing: all time (ie cereal) vs seasonal (Xmas)
Promotion
• Actual marketing of product or service…make
customer aware of it and how to get it
• Advertising (newspaper, radio, TV,
internet), Public Relations, sales force…etc,
• To promote you need to decide on the “message” you
want to get across
• In order to accomplish this, you need to focus on the 5
W’s:
Where, When, Why, What, Who
• If you can get the 5 W’s across, you will be successful
Joke Break
What did one snowman say to the other?
A: Do you smell carrots??
The 2 “C”s
• In order to perform an effective “Marketing Mix” assessment,
a marketer must also consider the 2 “C”s of marketing:
• Customer
• Competition
• By understanding who we are selling to and who we’re
competing against, we are more likely to be successful in
selling our product or service
Customer
• Who is your customer??
• A successful marketer must do their homework and find out the
demographics of their customer
– Who they are, what they look like, where they are, etc….
• By researching your customer, a marketer will be able to find out
your “target market” and their characteristics
– Ie - buying habits, interests, gender, age and ethnicity,
geographic range.
• If we have a differentiated product that provides a benefit to a
customer we know, we are well on our way to success !!!
Competition
• there is a common phrase in business that states:
“you need to know your competition better than
yourself”
• although this is impossible, the intention is critical to
your success
• you must understand what it is you do better or different
than your competition….and make sure this is the
focus of everything you do !!!
Conclusion
• Although much research has been done on
“marketing”, it is not a science – you need to try
things out, re-evaluate, make changes…
• It’s a “calculated risk” vs “blind risk”
Famous Marketing Blunders
1. Scandinavian vacuum manufacturer Electrolux used the following in an American campaign:
"Nothing sucks like an Electrolux."
2. Coors put its slogan, "Turn It Loose," into Spanish where its translation was read as "Suffer
From Diarrhea."
3. Clairol introduced the "Mist Stick", a curling iron, into German only to find out that "mist" is
slang for manure. Not too many people had use for the "manure stick."
4. When Gerber started selling baby food in Africa, they used the same packaging as they did in
the U.S., with the beautiful Caucasian baby on the label. Later they learned that in Africa,
companies routinely put pictures on the label of what's inside, since most people can't read.
Yikes!
5. Pepsi's "Come alive with the Pepsi Generation" translated into "Pepsi brings your ancestors
back from the grave", in Chinese.
6. The Coca-Cola name in China was first read as "Ke-kou-ke-la", meaning "Bite the wax tadpole"
or "female horse stuffed with wax", depending on the dialect. Coke then researched 40,000
characters to find a phonetic equivalent "ko-kou-ko-le", translating into "happiness in the
mouth."
7. When Parker Pen marketed a ball-point pen in Mexico, its ads were supposed to have read, "It
won't leak in your pocket and embarrass you." Instead, the company thought that the word
"embarazar" (to impregnate) meant to embarrass, so the ad read: "It won't leak in your pocket
and make you pregnant."
Let’s look at some examples of a company’s
marketing mix analysis:
Porsche
Porsche
PRODUCT
• describe in detail what
services/products/ideas they
sell
PRICE
• describe the price range
• (i.e. Very Expensive $5000
gold watch)
• (i.e. Low price – “Dollarama”)
 Porsche sell high performance
automobiles that are perceived
as being “elite”
 Only the highest end parts /
equipment / engineering are
used to create these
automobiles
 Cars are engineered for speed
and comfort
 $50,000 - $500,000 Canadian
 Very expensive, price creates
“image” of high quality / status
PLACE
• in general, where are they
located?
•
Busy area, convenience, high
traffic, etc.
PROMOTION
• what forms of advertising do
they use?
•
what types of promotions
and/or sponsorships do they
use?
• Porsche dealerships
• Dealerships are very clean and
portray an image of high quality
and status
• Customers “pull” these cars
through the distribution chain,
therefore location is not critical
• Porsche use a variety of media to
promote their cars (TV, magazines,
internet, auto shows)
• In each case, they will portray an
image of high end performance and
status
• Media are focused on high income
customers & their interests
CONSUMER
• describe who their typical
customer is
 male, 35-60, high income, post• i.e. Think of their age, gender,
secondary education, professional
income level, where they
career, price insensitivity
come from, interests,
education, type of
employment...
COMPETITION
• who is their direct
competition?
• who is their indirect
competition?
• how do they differ from their
competition?



Direct: Other high end auto manufacturers
(Lamborghini, Mercedes, Roll-Royce, Aston
Martin, etc.)
Indirect: Any other high priced “toy” (i.e. –
TVs, boats, plane, etc.)
Porsche differ from their competition through
reputation and strengthening their brand equity
within the marketplace
Apple
Apple
PRODUCT
• describe in
detail what
services /
products / ideas
they sell
Portable Computers – including Mac products such as Mac
Book Pro, iMac, MacBook Air, Mac Mini, Xserve
Servers – including Xserve, Xsan, MacOS X Ser, MobleMe.
AppleTV
Accessories – including MagicMouse, Keyboard, Led Cinema
Display.
Wi-fi Based Stations - including Airport Express, Airport
Extreme, Time Capsule.
Developer – including Developer Connection, Mac Program,
iPhone Program.
iPod – including iPod Shuffle, iPod Nano, ipod Classic.
iPhone – including iPhone3GS, iPhone3G, iPad.
iTunes – including movies, TV shows, audio books, games.
Periphal products – including Printers, Storage devices, digital
videos cameras
PRICE
•describe the price
range
•(i.e. Very
Expensive $5000
gold watch)
•(i.e. Low price –
“Dollarama”)
Apple is a premium brand computer that does not
attempt to compete on price. The company has
reduced prices after some initial product launches. It
uses skimming and preimuim pricing strategies.
The AppleiPad is priced at a minimum of $499.
The Apple iPhone costs begin at $99.
The Apple iPod Classic is priced starting at $249.
The Apple iPod Nano costs $149.
The Apple Mac Book costs $999.
The Apple MacBook Pro is priced at $1199.
The Apple Quicktime Pro for Windows costs $29.99
Apples iPad pricing strategy includes the flexibility to
lower the prices if consumer response dictates such
action.
In 2009 Apple announced a reduced cost pricing
structure for iTunes - songs will cost 69 cents, 99
cents or $1.29. Changes are said to be a response to a
slower pace of music downloads.
PLACE
• in general, where are
they located?
•
Busy area,
convenience, high
traffic, etc.
Apple, Inc Headquarters are located at is located
at 1 Infinite Loop, Cupertino, California.
Apple service providers are certified technicians,
who complete regular Apple training and
assessments, and offer repair services, and
exclusive access to genuine Apple parts.
They are located in Asia/Pacific, Africa, the
Middle East Europe and Latin America.
Apple has over 200 retail stores worldwide
including the US, UK and Canada. Apple
recently opened a new retail store in Shanghai
China.
Apple also sells through numerous on-line and
Bick and Mortar retailers.
PROMOTION
•what forms of
advertising do they
use?
•what types of
promotions and/or
sponsorships do they
use?
Apple uses a variety of media to promote their cars
(TV, magazines, internet)
In each case, they will portray an image of high
quality, ease of use and style
Media casts a wide net on the tech savvy and the
those who know nothing about tech, but want to be in
style.
Apple offers special discounts on refurbished
MacIntosh computers, iPod Nanos, and the iPod
Touch.
The online Apple Store offers free shipping for
orders over $50.
Apple sometimes provides rebates when you
purchase a specific product.
Apple has packaged back-to-school offers, including
some aimed at college students.
CONSUMER
• describe who their typical
customer is
• i.e. Think of their age,
gender, income level,
where they come from,
interests, education, type of
employment...
COMPETITION
• who is their direct
competition?
• who is their indirect
competition?
• how do they differ from
their competition?
Huge worldwide market with target consumers
aged 12+. Specific markets that are targeted
include those who are willing to pay more for
Apple products even though there are plenty of
cheaper options. People who are really interested
in being up to date with the latest technology,
and who want to be connected to the internet all
the time to keep up with the latest news. Music
fans. Professionals who need to be able to
connect to the internet any time anywhere


Direct and Indirect: Other high end
electronics / computer / cell phone / Music
player / music service providers and
manufacturers (Samsung, HTC, Nokia,
RIM, Sony, etc.)
Apple differs from their competition
through a reputation of style, functionality
and quality.