Transcript 4P`s: Product: Brand Names - U2W09-2010

Business English Upper Intermediate
U2W09
John Silberstein
[email protected]
Agenda
•4P’s: Branding
•4P’s: Pricing
•Numbers
Marketing
4P’s: Product: Brand Names
Social Media Passion Index: Golf Brands
Published on June 16, 2010
Consumers love the Callaway Golf Company—and are
more passionate it than for any other golf brand in the
US, according to the NetBase Brand Passion Index,
which measures the intensity of consumer passion for
brands among users of online communities.
In anticipation of Father's Day and the US Open
Championship final on June 20, the brand passion index
measured consumers' emotional involvement around
major US golf brands.
Marketing
4P’s: Product: Brand Names
Callaway's high love score (large green bubble, below)
is a function of the intensity of love expressed for
Callaway in online conversations—as well as the high
level of online chatter in the context of that emotion—
much of it around the X-22 Irons Series.
Though Nike Golf and Callaway are the subject of nearly
equal amounts of online chatter, Nike Golf is "liked" by
most consumers (yellow bubble)—rather than "loved."
Nike's association with Tiger Woods has apparently not
affected the passion level for the Nike Golf brand—as
indicated by little negative online chatter in that regard.
Marketing
4P’s: Product: Brand Names
Overall, golfers expressed little hate toward any of the
major brands (in contrast to last month's Index
findings about Wal-Mart).
Titleist registered the least amount of love, due to an
abundance of "like only" online chatter about that brand.
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Marketing
4P’s: Product: Brand Names
Using measures across a spectrum of
emotions—love, like, dislike, and
hate—the Netbase Brand Passion
Index reads and understands what
people are saying online, then
surfaces and aggregates those likes
and dislikes, as well as the emotions
and behaviors associated with
brands.
Marketing
4P’s: Product: Brand Names
Nike Golf had a high like score, a result of a full spectrum of
consumer chatter:
"@Country_Steve I just hate Nike full stop. How on earth did they
get into golf? They are the Rupert Murdoch of sports gear.“
"Can anyone recommend a decent golf ball...not too expensive,
not too cheap?“
"I like the Nike Golf Power Distance Soft.“
"I love my new Nike Method Putter!“
About the data: To generate the June 2010
Index, ConsumerBase analyzed golf-related online conversations
across the Web over the previous 12 months.
Marketing
4P’s: Product: Brand Names
What is the relevance of this
article?
How should this impact how
companies market their products?
What is the difficulty in measuring
this kind of activity?
Marketing
4P’s: Pricing: Pricing Strategies
Pricing is one of the most important elements of the marketing mix, as it is
the only part of the mix, which generates a profit for the organization. The
remaining 3p’s are the variable cost for the organization.
It costs to produce and design a product, it costs to distribute a product and
costs to promote it. Price must support these elements of the mix. Pricing is
difficult and must reflect supply and demand relationships. Pricing a product
too high or too low could mean a loss of sales for the organization. Pricing
should take into account the following factors:
Fixed and variable costs,
Competition,
Company objectives,
Proposed positioning strategies,
Target group and willingness to pay.
Marketing
4P’s: Pricing: Pricing Strategies
Type of Pricing Strategies
Penetration Strategy
Where the organisation sets a low price to
increase sales and market share
Skimming pricing
The organisation sets an initial high price and
then slowly lowers the price to make the product
available to a wider market. The objective is to
skim profits of the market layer by layer.
Marketing
4P’s: Pricing: Pricing Strategies
Competition Pricing
Setting a price in comparison with competitors.
Product Line Pricing
Pricing different products within the same
product range at different price points.
Bundle Pricing
The organisation bundles a group of products at
a reduced price.
Marketing
4P’s: Pricing: Pricing Strategies
Psychological pricing
The seller here will consider the psychology of
price and the positioning of price within the market
place. The seller will $199 instead of $200
Premium pricing
The price set is high to reflect the exclusiveness of
the product.
Optional pricing
The organization sells optional extras along with
the product to maximize its turnover. This strategy
is used commonly within the car industry.
Marketing
4P’s: Pricing: Pricing Strategies
Penetration, Skimming, Competition,
Product Line, Bundle, Psychological,
Premium, Optional.
Are these pricing strategies mutually
exclusive?
What is an example of where 2 or more of
these pricing strategies may be combined?
Numbers
Easy
100
225
545
Numbers
Still Easy
100.35
225.50
545.45
Numbers
Not as simple
1100
3225
7545
Numbers
Not as simple
1100.50
1150.50
3,225.63
7,545.99
Numbers
Not as simple
125,386
5,345,902
645,095,476.98
Numbers
Not as simple
125,386
5,345,902
645,095,476.98
12,700,000
15,100,000
Numbers
Explaining Numbers
How would you describe:
2008 sales revenue of 12,345,00 and
14,653,000 in 2009.
Sales changed from 65,300,000 in 2008
and in 2009 61,450,000.
Sales in 2008 of 12,345,000 and 2009
sales revenue of 24,000,000
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Describing Graphs
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