Product Management: Food Marketing Quiz

Why is marketing one of the most important things in your business?

concerned with attracting and keeping customers, it is how you create profitable relationships with your customers.

4 basic media choices

Print form, Broadcasts, Voice, Net

Print form

it can be used to promote a business via newspaper, magazines, direct marketing, billboards ad other printed formats.

Broadcast

this includes TV, cinema, video, digital video channels and events.

Voice

radio is the most common way of using voice, but new techniques are developing ( such as advertising via Spotify )

Net

Internet, Social Media Advertising, other web ads, this is a rapidly expanding media choice

Difference between digital and traditional marketing

the main differences is the medium used for communication; traditional marketing relies on print, TV, and radio, while digital marketing utilizes online platforms like social media and websites.

Traditional Marketing

traditional marketing still very much has a place in consumers day to day life. It encompasses strategies like print ads, television commercials, and radio spots, focusing on broad audience reach.

Pros of traditional marketing

impactful and easy to understand, printed marketing materials and more permanent, more memorable

Cons of traditional marketing

difficult to measure campaigns, often expensive, no direct interaction within the consumer

Digital Marketing

refers to marketing strategies that utilize the internet and digital technologies to reach consumers. This includes tactics such as social media advertising, email marketing, and search engine optimization.

Pros of digital marketing

more options for engagement, easy to measure your campaigns, makes clever targeting possible

Cons of digital marketing

potentially annoying, less permanent, constantly evolves

what must you do to decide if you are going to use digital or traditional marketing?

understand your target market and consider your budget.

what are the three types of consumers?

traditional consumers, hybrid consumers, digital consumers

traditional consumers

these are often older customers who rely on traditional marketing tools such as leaflets, newspaper advertising and articles

hybrid consumers

they rely on a mix of traditional and digital marketing messages, could expect a newspaper or facebook ad.

digital consumers

these tend to be younger, often called millennials or gen y, and they will expect all marketing via a range of mobile devices and will never look at traditional techniques.

what is the marketing mix?

a tool used to help brands understand what elements must be combined in order to meet their marketing goals and objectives.

4 ps of marketing

Product, Price, Place, and Promotion

Product

a good or service that a company offers to customers to satisfy their needs and wants. marketers need to understand the life cycle of a product to have a plan for dealing with products at every stage of their life cycle.

Price

the value among target audience, price is the cost consumers pay for a product. In some cases businesses will raise prices to give the appearance of being luxury or lower so more consumers can try it.

Place

providing customers access to the product, where they should sell a prodcut and how to deliver the product to the market.

Promotion

public relations, advertising, direct marketing, email marketing, social media marketing, or sales promotions. promotion and placement elements together, both online and offline factors.

7 ps of marketing

extended marketing mix with three additional ps with a focus on the service mix

People

from the front line sales staff to marketing director, having the right people is essential. Examples: founders, employees, customer service.

process

the flow of activities in which service is delivered. customers experience while shopping for the product and the interactions has with the people. Examples: service delivery, complains, response times

physical evidence

all services include a physical element, PDF, print receipt. examples: recommendation, users stories, office premises .

what is brand marketing

a way to promote your product or service by promoting the brand as a whole. tells your service’s or product’s story by emphasizing your whole brand. works best for long term buyers or repeat buyers.

what is the difference between branding and marketing

marketing is how you build awareness of your brand and its products and generate sales, and branding is how you express who your business is for and what it’s all about. investing in a good brand strategy makes marketing campaigns easier.

what are the aspects of branding

the company’s personality. illustrations, logos, typography, and business colors.

what are three questions businesses should ask when putting together their brand marketing strategy.

1. who is your target audience?

2. what is your brands primary goal?

3. how does your brand define success?

McDonalds Brand Marketing strategy

their brand identity and product has been consistent for over 60 years, their logo has stayed the same and taglines have delivered the same message. you want something that has longevity, changes will likely confuse your audience.

Brand Marketing in 5 steps

1. understand your brand purpose

2. research your target market

3. define and sell your story

4. get to know your competitors

5. create brand guidelines

understand your brand purpose

This first step is where you’ll start defining how your brand will look and feel. This means choosing your brand color palette, typography and imagery. Understand why your brand exists.

Brand identity vs brand image

Brand identity is how you want the consumer to perceive your brand. brand image is what customers think of your product

why branding colors matter?

branding colors provide a shortcut straight to your clientele’s hearts. By using the same colors in all your business ventures, you strengthen your brand’s association with those colors, and by extension strengthen brand awareness as a whole.

research your target market

Understand who your customers are by creating customer personas. A customer persona is a comprehensive picture of your perfect purchaser. It will help you create an emotional connection with your audience.

define and sell your story

You can sell your brand’s story by creating the right message. The story you craft and sell will connect your brand with your target audience, encourage loyalty and help with brand recall. Capture your market’s attention with a great story, then let them be part of the story by interacting with your brand.

Get to know your competitors

it’s equally important to get to know your competitors. Research them, determine how you’re different from them, then focus on this difference in your marketing messaging.

create brand guidelines

Once you understand your brand and audience, think about how to connect them in your marketing. Creative brand guidelines are where you’ll cover your logo, colors, fonts, tone of voice and more.

What is the pricing strategy matrix?

determines the appropriate price for a product or service, focused on various factors. cost of production (including marketing, machinery, etc), price elasticity of demand (inelastic - tend to buy when price changes or elastic- price change impacts demands), market competitiveness (monopolies- higher prices, oligopoly- limited competition)

penetration pricing strategy

The bottom right of the Pricing Strategy Matrix shows the penetration pricing strategy. This type of pricing is used to enter a new market or to sell a new product. The penetration price is set low to attract new customers or to lure them away from the competition in the short run. Low intro price might tempt people.

Pro of penetration pricing strategy

Using a penetration price can help attract new customers, make a new product popular, counter existing competition and can have long-term benefits if the product is able to survive in the market with a reasonable market share.

Cons of penetration pricing strategy

Sometimes, the customer might switch back to the old product once prices are raised again. Consumers might begin to associate the low price with the product, not accepting a higher rate for it. Using penetration price might prompt competitors to resort to predatory pricing to drive out the new competition, leading to a price war.

Price Skimming Strategy

On the top left of the quadrant is price skimming. This is a strategy where the business starts off with a high initial price for a product and then lowers it as demand rises. It is the opposite of penetration pricing. This pricing strategy is often used for luxurious products or services to extract as much revenue in the short run as possible.

Pro of Price Skimming Strategy

There are various advantages of a skimming pricing strategy for businesses these include the ability to quickly recover production costs, increase profit margins, engaging distributors with a high profit incentive and generating a sense of quality among consumers.

Con of Price Skimming Strategy

Price skimming often leads of low sales volume, might be unsuccessful as a pricing strategy due to prices lowered by competitors and might not be efficient for recovering initial setup and production costs if sales don’t meet expectations. Price skimming might not be suitable for markets where people have a low purchasing power due to poverty or low incomes.

Economy Pricing Strategy

This pricing strategy looks at the competition instead of the cost of production to set the price. The product’s price might be set below, equal to or above the price of the competition. This strategy is used when a product has been in the market for a while.

Pro of Economy Pricing Strategy

Using economy pricing can be a good way of countering competition and cementing an already established position in the market.

Con of Economy Pricing Strategy

Smaller businesses might not be able to benefit from such an approach. Customer loyalty might be impacted e.g. if the business tries to charge a higher price than the competitor.

Premium Pricing Strategy

Some products or services are priced high as they are considered premium. Lowering the price can have negative consequences, making the product appear as low quality. Premium pricing strategy aims to maintain that consumer perception by charging high prices.

Pro of Premium Pricing Strategy

Such a strategy can lead to extravagant profits, a positive brand image and attract aspirational buyers.

Con of Premium Pricing Strategy

Products with premium pricing are hard to initiate and maintain, producing too much of the product can raise costs, whereas a reduction in production can lead to shortages. Selling such a product can also be hard in tough economic conditions, leading to bankruptcy or closure.

What do the 4 metrics of the pricing strategy do?

serve as a good method for analyzing the right pricing strategy, based on considerations related to quality and price of the product. Setting a price entails a complex process, with careful considerations before, in-between and after the launch of a product.