Transcript THE MARKETING MIX: Product

FrontPage: Think of a commercial you’ve seen that made you
want to buy a product. What made it effective?
When artist Jimmy Kuehnle decided to invent an invisible bicycle, man, does he go
(almost) all the way. Notice the invisible clothing and invisible helmet. Yes, the cycle is
completely transparent, except for the chain and bearings. Constructed of Lexan or
"bullet proof glass," the bike exists in a dual reality as sculpture and transportation. Once
again the outfit compliments the bicycle sculpture this time as a clear vinyl suit. Citizens
of Austin and San Antonio saw all or nothing since the bike and the suit were "invisible."
Last Word: Equipment/Inventory & GR 11 due Friday
CHAPTER 11:
MARKETING AND
DISTRIBUTION
THE CHANGING ROLE OF MARKETING:
THE DEVELOPMENT OF MARKETING
• The sole purpose of marketing is to convince
consumers that a certain product or service will
add to their utility.
• Form utility is converting raw materials into
desired/needed products.
• Place utility is providing the good/service where
the customer wants it to be.
• Time utility is providing the good/service at
precisely the time the customer wants it.
• Ownership utility is providing goods/services that
people are pleased to own.
THE CHANGING ROLE OF MARKETING:
MARKET RESEARCH
• Should be done before the product is made or
service is offered
• Timing—before, during production (samples),
after product/service hits market
• Surveys—gather information about who might
buy the product
• Testing new products—offer the item for sale
in a small market before selling it to larger
area
THE MARKETING MIX: PRODUCT
• What good or service should be produced?
• What services should be offered with the product?
• How should product be packaged? Consider size, design,
color, catch phrases and coupons or rebates.
• How should product be identified? Consider logos, songs,
celebrity endorsements, and packaging.
• Additional services may be provided to help make a sale.
THE MARKETING MIX: PRICE
• Determined by law of supply and demand
• Price leadership occurs when competing
companies sell their products for similar prices.
• Selling a new product for a low price to entice
people to buy it is called penetration pricing.
THE MARKETING MIX: PLACE
• Where should the product be sold?
• Past experience with similar products will help
the marketing department make this decision.
THE MARKETING MIX: PROMOTION
• Informing customers about product or service
• Type of promotion depends upon the product,
the target customer, and amount of money the
company wants to spend.
• Examples of promotions: direct-mail
advertising, free samples, cents-off coupons,
and rebates.
THE MARKETING MIX: PRODUCT
LIFE CYCLE
• A series of stages from first introduction to
complete withdrawal from the market.
• Marketing programs are different for each stage.
• Pricing can be different for each stage.
• Marketers try to extend the life of product by
changing its looks, uses, and the advertising focus.
DISTRIBUTION CHANNELS:
WHOLESALERS AND RETAILERS
• Wholesalers sell goods to retailers, not to consumers.
• Retailers sell goods directly to the public.
• Full service wholesalers warehouse goods and deliver
them after retailers pay for them.
• Drop shippers are wholesalers that buy the goods
under the condition that the producer will store and
ship the goods after the wholesaler has sold them.
• A cash-and-carry wholesaler sells merchandise, but
buyer must pay shipping.
• A truck wholesaler sells and delivers at the same time.
DISTRIBUTION CHANNELS:
STORAGE AND TRANSPORTATION
• Storing goods for future sales
• Moving goods from producers and/or sellers to
buyers
• The type, size, weight of the good and how fast
it is needed factor into storage and
transportation.
DISTRIBUTION CHANNELS:
DISTRIBUTION CHANNELS
• Warehouse club shopping lets people buy a
limited number of models and brands in huge
quantities so the warehouse will get favorable
prices from manufacturers.
• Direct marketing is done through catalogs, the
Internet, and “space ads.”
PERSUASIVE TECHNIQUES
• Pathos – appeal to emotion
• Logos – appeal to logic or reason (the facts)
• Ethos – appeal to credibility or character
• More specific techniques
– Avant garde
– “Special” words
• Weasel words, Buzz words
– Magic ingredients
– Patriotism
– Transfer
– Plain folks
– Snob appeal
– Bribery
– Bandwagon
– Testimonial
EXAMPLES – WHAT ELEMENTS CAN YOU
IDENTIFY?
• VW Force Ad: http://www.youtube.com/watch?v=R55e-
uHQna0
• State Farm Aaron Rogers Ad:
http://www.youtube.com/watch?v=j9Rv7czl9cU
• Allstate Mayhem Ad:
http://www.youtube.com/watch?v=EA1tQ_SF48&feature=related
• Snickers Betty White Ad:
http://www.youtube.com/watch?v=c4WorCP_D9s
• Geico Caveman Ad:
http://www.youtube.com/watch?v=0trj6jCsm6E&playnext=
1&list=PL54009BDBDE3A8C8D&feature=results_video
• Lego Build Together Ad:
http://www.youtube.com/watch?v=EI_RT00DXaU