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
Niches: Short growth creating solid but not finan
Seasonal:
Lesson 2: Marketing Concepts
Four P’s Of Marketing
Marketing Mix: Used to describe the different kinds of choices organizations have to make during the process of bringing a product or service to the market
Key Factors:
Product: Good or a service that company offers to customers
Must be compelling and create demand or fulfill existing consumer demand
Marketers need to understand lifecycle of product
Many successful products have been the first in their category
Type of product dictates other 4PS
Apple; touchscreen smartphone
Price: Cost consumers pay for a product
Must link the price to products perceived value of product
Considerations: Supply costs, Seasonal discounts, Competitors Prices
Lower Price: More consumers will buy it
Raise Price: Create appearance of product being a luxury
Discounts: Sometimes draw in more customers or can give the impression that product is less exclusive/luxurious
Place: Where a company should sell a product and how to deliver the product to the market
Get products in front of consumers likely to buy
Refers to specific location or display of product at location
Promotion: Includes advertising, public relations and promotional strategy
Tend to tie place and promotion together to reach right audience
Reveal to consumers why they need it
Nike: Sport celebrities wear their merch as well as famous teams
Autocratic Leadership: The leader makes decisions alone.
Democratic Leadership: The leader includes the team in decision making.
Laissez-Faire: The leader lets the team work independently.