| The leader makes decisions alone. Steve Jobs at Apple: He made key choices independently, shaping product innovation with minimal team input |
| The leader includes the team in decision making. Ben & Jerry’s: Involve employees in decisions, such as new flavor ideas and social initiatives |
| The leader lets the team work independently. Richard Branson at Virgin (Laissez-faire): Branson allowed employees considerable freedom to take initiative and be creative |
Lesson 1: The Role & Impact Of MarketingÂ
Two Fundamental Roles:
Sell what a business makes
Manage a businesses brand or brandsÂ
Marketing: activities involved in getting goods and services from the business to the consumersÂ
Marketing Includes
Research DevelopmentÂ
Sales
DistributionÂ
AdvertisingÂ
PromotionÂ
Without Marketing: Consumers wouldn’t know what goods or services are available or trendsÂ
If you have something you want others to buy or believe in you will use marketingÂ
Producers Market To Sell To Stores
Stores Sell Products to ConsumersÂ
Service Let People Know Where They Are & What They OfferÂ
Politicians Market To Sell Ideas
BrandingÂ
Branding = Brand Name + Logo/Trademark + SloganÂ
Everything associated with a product should carry the same identificationsÂ
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 identifiedÂ
Distinguishes a businesses products from competitors productsÂ
Distinctive / Stands outÂ
Easy to RememberÂ
Logo/Trademark: combination of their name with a special symbol associated with productÂ
Helps Product Compete For Consumer AwarenessÂ
Monogram: stylized company initialsÂ
KFC (Kentucky Fried Chicken)Â
Visual Symbols: line drawings of people, animals or things
Directly associated with the brandÂ
Apple → Apple
Frosted Flakes → Tony The Tiger
Abstract Symbol: visual message but not a representation of actual thingsÂ
Obscure Company InitialsÂ
Harder to rememberÂ
Nike → “Swoosh”Â
Slogan: short catchy phrase attached to the company’s name & logoÂ
Tagline for both print & broadcast advertisementsÂ
A slogan will often remind people of the entire ad
Sprite → “Obey Your Thirst”Â
Canadian Blood Services → “It’s in You to Give”Â
MasterCard’s → “Priceless”Â
The Product Life CycleÂ
Marketing is measured in two waysÂ
Sales Analysis:Â
Have sales increased?Â
Have we sold more than our competitors have sold?Â
Consumers Reaction To The Brand:
What do consumers think and say about the brand?Â
Brand Equity: the value of the brand in the marketplace
Effective Marketing = Higher Brand EquityÂ
Brand Awareness: Consumers can name your brand as part of a specific categoryÂ
Better Marketing → Develops Brand LoyaltyÂ
Best Marketing → develops brand insistence (customer will not accept anything EXCEPT your brand)Â
Product Life Cycle: Progress of the brandÂ
Part #1: Product Introduction (launch)Â
Consumers don't know product existsÂ
Early Adopters: first consumers who influence later consumers (trendsetters)Â
Focus: selling efforts to early adopters
Hope: some people will become early adoptersÂ
Part #2: GrowthÂ
After early adopts use a new products others try it → sales increaseÂ
Product Popularity Increases = Competitors Enter Market
Competitors: modify original product and lower the price (dilute profitability)Â
Competition = Fuels GrowthÂ
Only few survive after GROWTHÂ
Part #3: Maturity - growth is flat & does not increase or decrease
Brand Equity: HighestÂ
Management: Continued advertising (keeps brand in public eye)Â
Costs: Manufacturer major costs are paid forÂ
Established:
Effective Distribution Method
Costs Of Sales & Distribution LowÂ
Large ProfitsÂ
Manufacturer Major Costs Paid ForÂ
Cash Cow: income generated by mature products to fund development of new productsÂ
Part #4: Decline - sales decrease & fails to attract new customersÂ
Temporary Decline: Seasonal Changes or New CompetitionÂ
Need To Determine: Are consumers rejecting the brand (market research)Â
Modifications can reverse temporary declinesÂ
Small Change In Price
New Advertising CampaignÂ
Brand Equity Drops = Serious ProblemÂ
Part #5: Decision Point - important brand management choices to reposition brand equity leftÂ
Efforts To Save BrandÂ
ReformulateÂ
Repackage
Re-Introduce “New & Improved Product”Â
New PromotionÂ
Repricing - may be able to boost brands popularityÂ
Example: develop a campaign to target an old product to a new consumer groupÂ
All FAils: Decline continues the manufacture discontinuesÂ
Obsolete: new technology makes old products obsoleteÂ
Style Curve: Graph of product life cycle (product sales overtime)Â
Purpose Of Product Life Cycle: Determine what types of marketing efforts to implementÂ
Non-Traditional Product Life CyclesÂ
Non Traditional Product Life Cycles: Exceptions of the product life cycle stages
Fads: a product that is extremely popular for a short period of timeÂ
Trends last LONGER & Fads last SHORTER
Trends influence MORE & Fads influence LESS
Items still exist but they are less popularÂ
Profits With Fads: Sell most of stock before Fad ends
Knock Off: Cheaper version of the FadÂ
Problem: When Fads die business get stuck with large inventory (money lost)
Examples: Yo-Yo, Hula Hoops, Tamoagotchis