Untitled Flashcards Set

Lesson 1: The Role & Impact Of Marketing 

• Two Fundamental Roles:

  • Sell what a business makes

  • Manage a businesses brand or brands 

• Marketing: activities involved in getting goods and services from the business to the consumers 

• Marketing Includes

  • Research Development 

  • Sales

  • Distribution 

  • Advertising 

  • Promotion 

• Without Marketing: Consumers wouldn’t know what goods or services are available or trends 

• If you have something you want others to buy or believe in you will use marketing 

  • Producers Market To Sell To Stores

  • Stores Sell Products to Consumers 

  • Service Let People Know Where They Are & What They Offer 

  • Politicians Market To Sell Ideas

Branding 

• Branding = Brand Name + Logo/Trademark + Slogan 

• Everything associated with a product should carry the same identifications 

  • Slogan, Logo/Trademark, Brand Name

• All Branding Should Be Cohesive: Colors, Distinctive Packaging

• Brand Name: a word or group of words that a business uses to be identified 

  • Distinguishes a businesses products from competitors products 

  • Distinctive / Stands out 

  • Easy to Remember 

• Logo/Trademark: combination of their name with a special symbol associated with product 

  • Helps Product Compete For Consumer Awareness 

    • Monogram: stylized company initials 

      • KFC (Kentucky Fried Chicken) 

    • Visual Symbols: line drawings of people, animals or things

      • Directly associated with the brand 

        • Apple → Apple

        • Frosted Flakes → Tony The Tiger

    • Abstract Symbol: visual message but not a representation of actual things 

      • Obscure Company Initials 

      • Harder to remember 

        • Nike → “Swoosh” 

• Slogan: short catchy phrase attached to the company’s name & logo 

  • Tagline for both print & broadcast advertisements 

  • A slogan will often remind people of the entire ad

    • Sprite → “Obey Your Thirst” 

    • Canadian Blood Services → “It’s in You to Give” 

    • MasterCard’s → “Priceless” 

The Product Life Cycle 

• Marketing is measured in two ways 

  • Sales Analysis: 

    • Have sales increased? 

    • Have we sold more than our competitors have sold? 

  • Consumers Reaction To The Brand:

    • What do consumers think and say about the brand? 

• Brand Equity: the value of the brand in the marketplace

• Effective Marketing = Higher Brand Equity 

• Brand Awareness: Consumers can name your brand as part of a specific category 

• Better Marketing → Develops Brand Loyalty 

• Best Marketing → develops brand insistence (customer will not accept anything EXCEPT your brand) 

• Product Life Cycle: Progress of the brand 

  • Part #1: Product Introduction (launch) 

    • Consumers don't know product exists 

    • Early Adopters: first consumers who influence later consumers (trendsetters) 

    • Focus: selling efforts to early adopters

    • Hope: some people will become early adopters 

  • Part #2: Growth 

    • After early adopts use a new products others try it → sales increase 

    • Product Popularity Increases = Competitors Enter Market

    • Competitors: modify original product and lower the price (dilute profitability) 

    • Competition = Fuels Growth 

    • Only few survive after GROWTH 

  • Part #3: Maturity - growth is flat & does not increase or decrease

    • Brand Equity: Highest 

    • Management: Continued advertising (keeps brand in public eye) 

    • Costs: Manufacturer major costs are paid for 

    • Established:

      • Effective Distribution Method

      • Costs Of Sales & Distribution Low 

      • Large Profits 

      • Manufacturer Major Costs Paid For 

    • Cash Cow: income generated by mature products to fund development of new products 

  • Part #4: Decline - sales decrease & fails to attract new customers 

    • Temporary Decline: Seasonal Changes or New Competition 

    • Need To Determine: Are consumers rejecting the brand (market research) 

    • Modifications can reverse temporary declines 

      • Small Change In Price

      • New Advertising Campaign 

    • Brand Equity Drops = Serious Problem 

  • Part #5: Decision Point - important brand management choices to reposition brand equity left 

    • Efforts To Save Brand 

      • Reformulate 

      • Repackage

      • Re-Introduce “New & Improved Product” 

      • New Promotion 

      • Repricing - may be able to boost brands popularity 

    • Example: develop a campaign to target an old product to a new consumer group 

    • All FAils: Decline continues the manufacture discontinues 

    • Obsolete: new technology makes old products obsolete 

• Style Curve: Graph of product life cycle (product sales overtime) 

• Purpose Of Product Life Cycle: Determine what types of marketing efforts to implement 

Non-Traditional Product Life Cycles 

• Non Traditional Product Life Cycles: Exceptions of the product life cycle stages

• Fads: a product that is extremely popular for a short period of time 

  • Trends last LONGER & Fads last SHORTER

  • Trends influence MORE & Fads influence LESS

  • Items still exist but they are less popular 

  • Profits With Fads: Sell most of stock before Fad ends

  • Knock Off: Cheaper version of the Fad 

  • Problem: When Fads die business get stuck with large inventory (money lost)

  • Examples: Yo-Yo, Hula Hoops, Tamoagotchis