BUS261 Class 4 _ Marketing 2

Class Overview

By the end of today’s class, you should be able to:

Define the 4 Ps of Marketing: Understand how product, price, place, and promotion interact to create a successful marketing strategy.
Discuss various product decisions: Explore how to select product features, branding, and packaging that align with consumer expectations.
Explain the significance of distribution strategies: Analyze various distribution channels and their impact on market reach and consumer accessibility.
Describe the three major pricing strategies: Evaluate and compare pricing strategies, assessing how they influence consumer perception and sales.
Appreciate the role of different marketing communication channels in integrated marketing: Recognize how each type of media interacts to deliver a cohesive brand message.

Definition: Products can include tangible goods, services, ideas, persons, events, places, or organizations.
Key considerations:
- What is it? Clearly define the product.
- What does it do? Explain the functionality and benefits.
- Product Name and Branding: Importance of a memorable logo and attractive packaging.
- Size/Format and Ingredients: Options based on consumer preferences and market trends.
- Variations and Customization Options: Highlighting ways to tailor products to meet individual customer needs.

Definition: Refers to the distribution strategy that makes the product available to consumers.
Key Components:
- Understand direct vs. indirect marketing channels.
- B2C (Business to Consumer) vs. B2B (Business to Business) marketing channels.
Strategies: Leveraging online and offline distribution methods, optimizing e-commerce platforms for better reach, and ensuring availability in physical stores.

Pricing Strategies:
- Customer Value-Based Pricing: Prices based on customer perceptions of product value, considering how consumers assess worth.
- Cost-Based Pricing: A calculation based on total production costs plus markup; importance of understanding both fixed costs (e.g., rent, salaries) and variable costs (e.g., materials, commissions).
- Competition-Based Pricing: Setting prices in relation to competitors, examining market conditions, and influencing factors such as consumer behavior and competitor actions.

Importance of Integrated Marketing Communications: Preventing inconsistencies in brand messages is essential for creating a coherent identity.
Channels of Promotion: Utilizing a blend of paid media, earned media, shared media, and owned media to maximize consumer engagement and reach objectives effectively.

Definition: Distribution channels streamline the availability of products or services to customers.
Types of Channels:
- Direct Channels: Manufacturer sells directly to consumers, fostering direct relationships and feedback.
- Indirect Channels: Involves intermediaries such as wholesalers and retailers, which can lead to wider market reach.
Example Channels:
- B2C consumer marketing channels (online stores, physical retail locations).
- B2B business marketing channels (distributors, wholesalers).
Reasons to Use Distributors:
- Reduces the number of direct contacts needed to connect manufacturers with customers.
- Allows expansion of market reach without necessitating an increased sales force.

Brand Equity: The value that a well-known brand name adds to a product, impacting consumer trust and loyalty.
Lovemarks: A concept by Saatchi & Saatchi suggesting emotional connections with brands enhance customer loyalty.
Examples of Leading Brands (2024):
- Apple
- Microsoft
- Amazon
- Google
- Samsung

Customer Value-Based Pricing: Focus on perceived value by consumers, ensuring products reflect that value in their pricing.
Cost-Based Pricing: Prices set based on total costs of production, the significance of calculating an acceptable profit margin to assure sustainability.
Fixed and Variable Costs: Understanding the importance of managing both types of costs to ascertain competitive pricing effectively.

Integrated Marketing (360° Marketing): A coordinated approach across all marketing channels to create a consistent brand message, ensuring that all communications work synergistically.
Key Questions for Marketing Plan:
- Who is the target audience?
- Who are the main competitors?
- What differentiates the brand? (Unique Selling Proposition)
- What does the brand offer in terms of the 4 Ps?
- Recommendations for improvements based on analysis and consumer feedback.

Keeping the target customer in focus is paramount for successful marketing initiatives.
Continuous evaluation and adjustment of marketing strategies are essential to adapt to shifting markets and consumer preferences, ensuring long-term success.