1. SUSIE ROBERTS 1/2012 MARKETING Topic 4 Review

2. Definition of Marketing The “Bridge” between the producer and the consumer. The PROCESS of getting customers interested in a product; giving customers what they want or need in products (GOODS, SERVICES, IDEAS) The management task that links the business to the consumer by meeting the needs of the customers profitably; “getting the right product at the right price to the right place at the right time”.

3. MARKET SIZE HOW IS MARKET SIZE Measured? Definition: the total level of sales of all producers within a market Two Ways: Volume and Value Market size can be measured by volume but is usually measured by VALUE.

4. Market Growth and Decline Market VS Product Orientation  External Factors on GROWTH or DECLINE include:  State of the Economy  Technology  Demographic and Social Change ________________________________________  Market Orientation vs Product Orientation  Market-oriented: what customers want; an outward –looking approach basing product decisions on consumer demand as established by market research VS Product-the concerns and convenience of internal production  Product oriented: an inward-looking approach that focuses on making products that can be made or have been made for a long time and then trying to sell them; companies quickly lose market share as customers move to product more tailored to customers’ needs.

5. MARKET SHARE Measures what proportion of the total market’s sales is held by one organization. Businesses can gain market share at the expense of competitors through a successful advertising campaign (example).

6. Goods, Services, Ideas-things that are marketed Goods: Tangible items that you can touch and hold Services: Intangible items that must be used and can’t be returned; they can’t be touched-think TIME, Accounting and Legal Advice and Athletic Trainers Ideas: “Litter and it will hurt”, “Friends don’t let friends drink and drive”, the pink ribbon. Non- profits often market for donations.

7. Marketing Plan and Objectives  The Marketing Plan includes:  Key Marketing Objectives  Strategic Plans  Specific Marketing Actions  Marketing Budget

8. The Marketing Mix- the 4 P’s plus 4 “Marketing is a PROCESS” Product Price Place Promotion People Physical Evidence Packaging Process “ONLY WHEN ALL THE ELEMENTs are combined in the correct way will the marketing objectives be met”.

9. Definitions  Marketing Audit: looks at the cost and effectiveness of marketing activity on a periodic basis. SWOT: strengths and weaknesses are internal to a business; opportunities and threats consider the external environment Market Research: A collection of objective data about a market, competitors, and consumers; essential to creating a successful product and in marketing it effectively; Primary and Secondary.

10. Primary and Secondary Research Data Primary is collected directly from consumers. Secondary is data that has already been collected and then published; trade journals, gov’t reports and surveys, consumer groups, market reports.  General  May not be current >Quantitative including random samples and cluster samples may be used to identify trends. >Qualitative looks in far more depth at the buying process. Potential for BIAS. TECHNOLOGY allows businesses to target customers.

11. MARKET Segmentation-Refers to the process of dividing a market into smaller sub-groups. MASS Marketing: Looking at the market as a whole, rather than segmenting it. NICHE Marketing: Segmenting a market such as by 1)Geographics, 2)Demographics, and 3)Psychographics Businesses try to identify key sub-groups in a market and aim to generate profit by meeting specific needs of those consumers.

12. Consumer Profiles Businesses create consumer profiles which are detailed characteristics of the consumers of a particular product. DEMOGRAPHICS: Age Gender Income Social Group May also include: Profession, Education Level, Ethnicity PSYCHOGRAPHICS: Attitudes Beliefs GEOGRAPHICS: Location (Urban or Rural, Latitude, Country)

13. Positioning Unique Selling Proposition USP’s Businesses analyze the current state of the market. Using a Market or Position Map allows the business to see where existing brands are aimed and identify profitable niches in the market. USP’s are key in protecting a niche once a business has identified it. Companies spend time and money ensuring that their product is differentiated in design and branding. The TARGET MARKET: the market segment that a particular product is aimed at.

14. The Product Mix: The Product Life Cycle: The complete range of products produced by a business including product lines and individual products. A product line is a group of products within the mix that are closely related to each other. 5 Stages of the Product Life Cycle: Development Introduction Growth Maturity Decline Product Life Cycles do not have a set duration. PRODUCT

15. Extension Strategies Product Diffusion Curve or Adopters Extending the life of existing products by updating to prevent it’s decline. Examples: Oreos, Monopoly, Lays chips, Uggs This describes how quickly customers adopt a new product: Innovators Early adopters Early majority Late majority Laggards Product (continued)

16. The Boston Matrix (BCG) Growth Rate and Market Share Cash Cow Star Question Mark or Problem Child Dog Cash Cow-Low growth and high market share Star-High growth and high market share Question Mark-High growth and low market share Dog-Low growth and low market share The Product Portfolio Analysis

17. “BRANDS ARE WELL-KNOWN NAMES OF INDIVIDUAL COMPANIES OR PRODUCTS. THE MOST SUCCESSFUL BRANDS BECOME SYNONYMOUS WITH THE NAME OF THE PRODUCT ITSELF”. EXAMPLES: KLEENEX, Q-TIPS, ROLLERBLADE BRANDING

18. Branding A strong brand will allow a business to differentiate itself from its rivals. Brand Awareness-Ensuring that customers recognize the offerings, name, and products of a particular business. Brand Development- Trying to increase the power of the name or logo in order to increase the brand awareness and therefore gain higher sales. Brand Loyalty-The willingness of consumers to purchase the same brand repeatedly.

19. PRICING STRATEGIES: 1)COST-BASED PRICING 2)COMPETITION-BASED PRICING 3)MARKET-BASED PRICING (PRICE PENETRATION AND PRICE SKIMMING) PRICE TO BE FAIR, TO BE COMPETITIVE, AND TO MAKE A PROFIT PRICE

20. Above the Line Advertising: Below the Line Advertising: Above the Line: Direct Advertising through consumer channels. Persuasive advertising is aimed to convince consumers to buy a particular product. Informative advertising aims to make consumers aware of the features and characteristics of the product. Price Promotions/Price Deals Direct Marketing Direct Personal Selling Loyalty Cards Point of Sale Displays Public Relations Money-Off Coupons Buy One-Get One Free Contests/Games/Competitions Sponsorship PROMOTION

21. Promotional Mix All the forms of promotion in the list will be effective for certain businesses in certain situations. Factors to Consider: Who is the product aimed at? Whole market or smaller segments? How much will it cost? How effective will my promotion be?

22. DISTRIBUTION CHANNELS: 1)MANUFACTURER TO CONSUMER 2)MANUFACTURER TO RETAILER TO CONSUMER 3)MANUFACTURER TO WHOLESALER TO RETAILER TO CONSUMER 4)AGENTS MAY ALSO EXIST, PARTICULARLY IN SERVICE INDUSTRIES PLACE

23. 21 st Century Marketing Issues International Marketing: must take into account how the marketing mix (4 P’s) needs to be adapted to fit the different cultural, political, legal, social, and economic issues of each new market. E-Commerce: Business to Business Commerce and Business to Consumer Commerce; The 4 P’s- Product can be customized and the “Longtail” affect; Price is more competitive; Promotion is a two-way process; Place is a low cost alternative to “brick and mortar”.

24. SELLING A LARGE NUMBER OF UNIQUE ITEMS IN SMALL QUANTITIES, USUALLY IN ADDITION TO SELLING FEWER POPULAR ITEMS IN LARGE QUANTITIES. EXAMPLES: NETFLIX, AMAZON What is the “Longtail”?

25. Viral Marketing Guerilla Marketing The use of social networking sites or text messages to increase brand awareness or sell products. Youtube and other online outlets are commonly used. Also called “marketing buzz”. Was invented as an unconventional system of promotions that relies on time, energy and imagination rather than a big marketing budget. Typically, guerrilla marketing campaigns are unexpected and unconventional, potentially interactive, and consumers are targeted in unexpected places. promotionsmarketingbudget interactiveconsumers Examples: Graffiti, sticker bombing, flash mobs. Other marketing techniques:

26. HERE’S THE CHALLENGE: CAN YOU GET A PRODUCT FROM THE PRODUCER TO THE CONSUMER (AND MAKE A PROFIT)? And…that’s a wrap!