MarketingMarketing

1.Purpose and Roles of Marketing

2.The Product Life Cycle

3.The Four P’s of Marketing

4.The Two C’s of Marketing

Purpose of MarketingPurpose of Marketing

1. To sell what a business produces 1. To sell what a business produces (goods) and/ or offers (services).(goods) and/ or offers (services).

2. To manage a business’s brand and 2. To manage a business’s brand and brandsbrands

MarketingMarketing

• Marketing involves all the activities Marketing involves all the activities involved in getting the goods and services involved in getting the goods and services from the business that produces them into from the business that produces them into the hands of consumers.the hands of consumers.

Roles of MarketingRoles of Marketing

1. To sell what a business produces (goods) and/1. To sell what a business produces (goods) and/ or offers (services). or offers (services).

2. To manage a business’s brand and brands2. To manage a business’s brand and brands

Research Product Development

SalesPricing and Distributing

Promotion and Advertising

BrandingBranding

BrandingBranding Usually represented by a name (brand Usually represented by a name (brand

name), name), a logoa logo and/or a and/or a trademark trademark and/or and/or a a slogan.slogan.

Purpose of BrandingPurpose of Branding Branding is used to help a company Branding is used to help a company

distinguish itself and its products from distinguish itself and its products from competitors’ products – thus helping to competitors’ products – thus helping to creating an image for the company.creating an image for the company.

Brand NamesBrand Names

Brand names should:Brand names should:

1. be distinctive and stand out1. be distinctive and stand out from the competition. from the competition.

2. be easy to pronounce2. be easy to pronounce

3. easy to remember3. easy to remember

Brand NamesBrand Names

Examples:Examples:

Bib-Label Lithiated Lemon-Lime SodaBib-Label Lithiated Lemon-Lime Soda(1929 product name)(1929 product name)

vs.vs.

7’Up7’Up

Logo or TrademarkLogo or Trademark

A symbol or that is associated with aA symbol or that is associated with a company and/or product. company and/or product.

It helps promote awareness and brandIt helps promote awareness and brand recognition of a company and/or product. recognition of a company and/or product.

Logo or TrademarksLogo or Trademarks

Three possible forms of logos:Three possible forms of logos:

1.1. MonogramMonogram

2.2. Visual SymbolVisual Symbol

3.3. Abstract symbolAbstract symbol

Logos or TrademarksLogos or TrademarksMonogram Monogram A stylized rendering of the company’s A stylized rendering of the company’s

initials or a combination of initials and initials or a combination of initials and numbersnumbers

Sometimes used to update an image that Sometimes used to update an image that has become outdated.has become outdated.

Logos or TrademarksLogos or Trademarks

Visual SymbolsVisual Symbols Usually line drawings of people, animals, Usually line drawings of people, animals,

or thingsor things When seen the logo becomes directly When seen the logo becomes directly

associated with the brand name.associated with the brand name.

Logos or TrademarksLogos or Trademarks

Abstract SymbolAbstract Symbol

Shapes that carry a visual messageShapes that carry a visual message but are not representative of actual but are not representative of actual

things. things.

SlogansSlogans

SlogansSlogans A short, catchy phrase that is usually A short, catchy phrase that is usually

attached to the company’s name and logo.attached to the company’s name and logo.

Examples:Examples:1. I’m lovin it.1. I’m lovin it.2. Priceless2. Priceless3. It’s in you to give3. It’s in you to give

Measuring Marketing EffectivenessMeasuring Marketing Effectiveness

Effective marketing will:Effective marketing will:

1. Increase 1. Increase Brand EquityBrand Equity Increases value of the brand in the Increases value of the brand in the

marketplacemarketplace

For example, Coca-cola’s brand equity is For example, Coca-cola’s brand equity is valued at $39 billion. The brand name valued at $39 billion. The brand name itself is worth $39 billion.itself is worth $39 billion.

Measuring Marketing EffectivenessMeasuring Marketing Effectiveness

Good marketingGood marketing will develop will develop brand awarenessbrand awareness where where consumers can identify what type of product or service consumers can identify what type of product or service the brand represents.the brand represents.

Better marketingBetter marketing will develop will develop brand loyaltybrand loyalty where where customers prefer and support a particular brand.customers prefer and support a particular brand.

Best marketingBest marketing will develop will develop brand insistencebrand insistence where the where the customer will not accept any other substitutes over a customer will not accept any other substitutes over a particular brand name.particular brand name.

The greater the brand insistence, the greater the brand The greater the brand insistence, the greater the brand equity.equity.

Product Life CycleProduct Life Cycle

The progress of a brand can be charted on a Product Life Cycle Chart.

Marketers use the product life cycle to determine what type of marketing efforts they should use on a brand.

The Product Life CycleThe Product Life Cycle1.1. Product Introduction Stage CharacteristicsProduct Introduction Stage Characteristics

Product enters the market through a product Product enters the market through a product introduction, often called a introduction, often called a launch.launch.

The introduction may be national, international, or by The introduction may be national, international, or by city, region, or province.city, region, or province.

Marketing efforts are focused on informing consumers Marketing efforts are focused on informing consumers about the product’s features, availability, package, about the product’s features, availability, package, design, and brand identification.design, and brand identification.

Initial customers, known as Initial customers, known as early adoptersearly adopters, are , are usually curious or adventurous or those who like to be usually curious or adventurous or those who like to be the first to won a new product and/or can afford the the first to won a new product and/or can afford the higher price that new products often carry.higher price that new products often carry.

Few, if any, competitors.Few, if any, competitors. Profitability is uncertainProfitability is uncertain Risk of success is highRisk of success is high

The Product Life CycleThe Product Life Cycle

2. Growth Stage Characteristics2. Growth Stage Characteristics As popularity increases, competition increasesAs popularity increases, competition increases Competitors modify the original product either by Competitors modify the original product either by

adding features and improving the quality or by adding features and improving the quality or by making a cheaper model and offering it at a making a cheaper model and offering it at a lower price.lower price.

Promotions and advertisements increase Promotions and advertisements increase amongst competitors and consumers may want amongst competitors and consumers may want to see what all the fuss is about and sales to see what all the fuss is about and sales increase.increase.

The more competitors there are, the cheaper the The more competitors there are, the cheaper the items becomes and more sales may be made.items becomes and more sales may be made.

The Product Life CycleThe Product Life Cycle

3. Maturity Stage Characteristics3. Maturity Stage Characteristics Profitable companies survive while others drop out of Profitable companies survive while others drop out of

the race, thus leaving a few top competitors.the race, thus leaving a few top competitors. Growth is flat. New consumers replace those who Growth is flat. New consumers replace those who

leave to purchase a competing product.leave to purchase a competing product. Brand equity is at its highestBrand equity is at its highest Advertising generally serves as a reminder to Advertising generally serves as a reminder to

consumersconsumers Company costs of sales and distribution are low Company costs of sales and distribution are low

thereby allowing for large profits.thereby allowing for large profits. Mature products which become Mature products which become cash cowscash cows allow for allow for

the companies to research and develop new products.the companies to research and develop new products.

The Product Life CycleThe Product Life Cycle

4. Decline Stage Characteristics4. Decline Stage Characteristics Seasonal changes or new competition may Seasonal changes or new competition may

cause a temporary sales decline.cause a temporary sales decline. If sales decline continues, businesses use If sales decline continues, businesses use

market research to determine whether and why market research to determine whether and why consumers are actually rejecting the brand.consumers are actually rejecting the brand.

A small change in price or a new advertising A small change in price or a new advertising campaign may reverse a temporary decline.campaign may reverse a temporary decline.

If brand equity drops, the company must make If brand equity drops, the company must make some decisions.some decisions.

The Product Life CycleThe Product Life Cycle5. Decline and Decision Making Time5. Decline and Decision Making Time If consumers are rejecting the brand, possible marketing strategies If consumers are rejecting the brand, possible marketing strategies

may be used to reverse the decline and increase or brand equity.may be used to reverse the decline and increase or brand equity.

1. Price change1. Price change

2. Re package and re-introduce a “new and improved” product. 2. Re package and re-introduce a “new and improved” product.

3. New promotions 3. New promotions

4. Target new group of consumers4. Target new group of consumers

5. Advertise new product uses5. Advertise new product uses

If new marketing strategies are not successful, the company may If new marketing strategies are not successful, the company may discontinue producing the brand.discontinue producing the brand.

New technology also makes products obsolete such as DVD’s New technology also makes products obsolete such as DVD’s versus VHS, cassette walkman versus MP3 Players.versus VHS, cassette walkman versus MP3 Players.

Non-Traditional Product Life CyclesNon-Traditional Product Life Cycles

Includes:Includes:1.1. Fad productsFad products2.2. Niche ProductsNiche Products3.3. Seasonal productsSeasonal products

FadsFads Products that are extremely popular for a short period of time and Products that are extremely popular for a short period of time and

target a select target market – usually 14 and under.target a select target market – usually 14 and under.

NichesNiches A section of the market in which a particular company’s product A section of the market in which a particular company’s product

dominates into which very few competitors enter due to dominates into which very few competitors enter due to barriers to barriers to entry.entry.

Barriers To EntryBarriers To Entry

Factors that make it difficult for Factors that make it difficult for competitors to enter the market competitors to enter the market

with a similar product of awith a similar product of a competitor competitor

Such factors may include:Such factors may include: the small size of the market (not very many people the small size of the market (not very many people

who would purchase the product);who would purchase the product); the cost of research and development;the cost of research and development; advertising expenses;advertising expenses; factory and equipment costs; factory and equipment costs; design costs;design costs; lack of distribution channels, and; lack of distribution channels, and; the cost of raw materials.the cost of raw materials.

Non-Traditional Product Life CyclesNon-Traditional Product Life Cycles

SeasonalSeasonal Seasonal items will sell only during a particular season, Seasonal items will sell only during a particular season,

such as Christmas ornaments, Halloween costumes, ice such as Christmas ornaments, Halloween costumes, ice cream cones.cream cones.

Styles and items may change from one year to the next Styles and items may change from one year to the next so businesses must be careful with the amount of so businesses must be careful with the amount of inventory they bring in for each season. If it does not inventory they bring in for each season. If it does not sell, it may be out of style for the next season.sell, it may be out of style for the next season.

Inventory ManagementInventory Management The act of balancing the quantity of goods in inventory The act of balancing the quantity of goods in inventory

with the projected sales.with the projected sales.

SourcesSources

Wilson, Jack et al. Wilson, Jack et al. The World of Business.The World of Business., 5 , 5 Ed., Nelson Education Ltd., Canada, 2007Ed., Nelson Education Ltd., Canada, 2007