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Marketing Unit 2
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Marketing objectives - the purpose of marketing
Marketing objectives are the goals that the firm sets to allow it to achieve its corporate objectives (overall aims of the business). Market segmentation – who is the target market? Market share – what is the market size and what share is your firm aiming for? Marketing mix: Product – what type and range of products will you sell? Pricing strategy – what price will you set for your products? Place – where will you sell and how will you distribute your product? Promotion – how will you effectively target your market?
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The Marketing Mix What is this?
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The Marketing Mix This has 4 key areas: Product Price Place Promotion….
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The marketing mix – the 7Ps
Product Promotion Place People Process Physical evidence Price
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People Process Physical evidence Influences on the marketing mix
However, the extended marketing mix takes into account other important variables that particularly affect services to make the 7Ps: People Process Physical evidence
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What is a Product? There are 4 general categories of ‘products’: Good
Service Place Person Can you think of an example for each category? Refer to their handout – add some of their own examples
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Goods
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Services
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Place
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Person
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What is the difference between TANGIBLE & INTANGIBLE?
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Tangible & Intangible Products
Is more quantitative… Can be measured specifically & see the actual results E.g. Car speed, safety standards, efficiency (mpg) Intangible Is more qualitative… Cannot be scientifically measured. Focuses on how people feel or the image or pleasure gained…
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The Product Life Cycle
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Product Life Cycle….. Saturation Maturity Decline Growth
No of sales Saturation Maturity Decline Growth Launch / Introduction Time line Research & Development (R&D)
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Where would you place these products on the life cycle?
No of sales Time line
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Today & next lesson focuses on PRODUCT…
More info in textbook. Product Life Cycle…. Read through handout Copy typical ‘Product Life Cycle Diagram’
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Product Life Cycle….. Saturation Maturity Decline Growth
No of sales Saturation Maturity Decline Growth Launch / Introduction Time line Research & Development (R&D)
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Back to handout…. Apply Life cycle
Draw the Product life cycles for the products on your handout….. You will be called out to draw your interpretation…. Note the gradient of the cycle is IMPORTANT…. Be prepared to explain your interpretation!
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An enlightening video???? Explain why the standard 100 watt light bulb is being phased out by leading retailers Why are customers prepared to pay a higher price for energy-saving light bulbs? How does this link to the Product Life Cycle?
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Typical products at different life stages.
R & D Introduction Growth Maturity Saturation Decline For each product decide what life stage it belongs to!
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R & D - Tesla Tesla – sponsored by Founder of Paypal – an electric sports car capable of 250 miles on 1 charge, 3 hour recharge, 0-60 in 4 sec & top speed 130mph & only £50,000 Initial design – R&D Launch model….
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Roll up TV Screen A pioneering Teesside research facility aiming to make a paper-thin roll-up TV screen become a reality, has received backing from a major international player. The then make-believe subject of flexible roll-up computer and TV screens featured in the Tom Cruise film Minority Report in But thanks to Teesside expertise that fiction could soon become a reality.
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Apple Mac future plans
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Identify the implications of each life cycle stage….
R&D INTRODUCTION GROWTH MATURITY DECLINE Sales none Low Cost per unit Very High Falling Very Low Competitors Very Few Lots Product Prototype remove weaker items Promotion focus raise media curiosity… target new segments Distribution None Limited Price not for sale! Skimming or penteration Penetration or push up price Competitive price Increase to exploit loyal customers? Or Discount
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Identify the implications of each life cycle stage….
ANSWERS R&D INTRODUCTION GROWTH MATURITY DECLINE Sales none Low speeding up At highest Falling Cost per unit Very High Falling At lowesr Low Competitors Very Few few growing Lots Product Prototype One basic model Product modification & improvements New models, diversified remove weaker items Promotion focus raise media curiosity… Build awareness target new segments Stress differences with competitors Lower budget to keep costs down Distribution None Limited Growing no of outlets High levels of distribution Reduce unprofitable channels Price not for sale! Skimming or penteration Penetration or push up price Competitive price Increase to exploit loyal customers? Or Discount
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Extension Strategies These are ways to re-invigorate sales of a product after sales have hit maturity! New uses for product Enter new markets Develop product range Change packaging Encourage more frequent usage! Can you think of any recent products that have used any of these extension strategies?
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Product Life Cycle….. Saturation Maturity Decline Growth
No of sales Saturation Maturity Decline Growth Launch / Introduction Time line Research & Development (R&D)
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The Product Mix Is where a company phases out old products and introduce new ones. The company tries not to have a ‘vacuum’ of sales – i.e. a gap When one product is declining another is growing while a third might just be about to be launched. What would this look like?
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Why use the Product Life Cycle?
Identify trends /possible revenue to be earned Identify ‘times’ in future where a company should INVEST in R&D Identify when extension strategies should be used Identify when to ‘end’ the life of a product.
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New technology…. In development
Another video clip New technology…. In development The future of Keyboards: You will need access to the internet to watch this video clip.
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Homework Design your own product life cycle diagram using images of your own choice…
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Plenary – what are the stages of the PLC diagram
Any volunteer to Draw the shape? Then 7 other volunteers to plot the labels for each section.
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Product Life Cycle….. Saturation Maturity Decline Growth
No of sales Saturation Maturity Decline Growth Launch / Introduction Time line Research & Development (R&D)
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