Presentation on theme: "TOPIC:Topic 4: Marketing LESSON TITLE:The Marketing Mix (Product) LEARNING INTENTION: To understand the process involved in the product component of the."— Presentation transcript:
TOPIC:Topic 4: Marketing LESSON TITLE:The Marketing Mix (Product) LEARNING INTENTION: To understand the process involved in the product component of the marketing mix. COMPETENCY FOCUS: Creativity: learners will develop skills in creativity and design by firstly looking at how promotion is used in business to help them to reach their goals and secondly, to design their own promotional campaign responding to a creative brief from the client. Reasoning: Learners will develop skills in reasoning as after providing advantages and disadvantages for the use of the promotional mix, you will be required to make a reasoned judgment. [IB Learner Profile Development: Innovator] Success Criteria By the end of the lesson, I can… 1) Identify 3 tools used to create a product mix 2) Explain each of the 4 tools/models used to create a successful product. 3) Apply each of the models/tools to a real product. SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development. CRITICAL THINKING KEY: Knowledge Application Analysis Evaluation
The Marketing Mix Also known as the 4P’s (product)/7P’s (service) Businesses must consider its marketing mix in order to market its products successfully To meet customer’s wants/needs, marketers must create the right product, at the right time, at the right price, make it available at the right place and let customers know about it through promotion.
PRODUCT What is the product? Who are the potential customers? What are the features/benefits? Has the product got a ‘unique selling point’ (USP)? What makes the product appealing to customers? How is the product better than the competition?
PRODUCT Anatomy of a product CORE Actual Product Augmented Product Additional value/add-ons i.e. warranty, free delivery etc The physical (tangible) item you are selling. What does your product offer compared to competitors? This is where your branding, added features come in to play. The main reason for its existence Can you apply this principle to the Apple Ipad?
Product Life Cycle (PLC) 1)What might the PLC look like for a new games console? Say the Playstation 3? 2)How might the organisation be affected at each stage of the cycle?
PLC: Extension Strategies How might putting an extension strategy in affect an organisation? Types of strategy include:
CASE STUDY TASK Kommunic8, a mobile phone company developed a new phone that was smaller, lighter and contained many more applications than its nearest rival. The phones sold well, but are now passing from the growth stage into the maturity stage. Competitors have already entered the market. Give two extension strategies that Kommunic8 can use to hold on to sales.
Ansoff’s Matrix Igor Ansoff (1957) Looked at strategies for growing a business CURRENTNEW CURRENT Market PenetrationProduct Development NEWMarket Development Diversification PRODUCT MARKET
Ansoff’s Matrix Market Penetration: Achieving growth with existing product in existing market. For example: encouraging consumers to use the product more regularly/buy more of it! Market Development: Marketing existing products in new markets, E.g. marketing product abroad or opening more branches nationwide.
LO1) Ansoff’s Matrix Diversification: New products in new markets (spreads risk) Product development: Marketing new/modified products in existing markets. E.g. Ford Focus replaced Escort or Nestle KitKat Chunky Caramel.
TASK You are the Marketing Director and Marketing Executive at Alton Towers. In pairs, you MUST construct an Ansoff’s Matrix grid to present to your Managing Director (MW) to show what activities they are currently operating in and what might you suggest for future growth strategies and why!
Task Extension The R&D Director has decided that the company should utilise the knowledge they have built up in engineering and branch out into formula 1 racing cars. Apply this to your matrix and explain the benefits of this strategy to the company.
BCG Product Portfolio STARQUESTION MARK CASH COWDOG MARKET SHARE MARKET GROWTH HIGH LOW
TASK Working in pairs, you will be given a company and you will have to apply this company and its products to the BCG Portfolio. (20mins)
Part B You should have now done your introduction to your presentation. For each of your companies, you have to explain the growth strategies that they have in place for ONE product. You should apply these to Ansoff’s & BCG Audit (i.e. Draw them!!!) Add these to your presentation!
WRITING FRAME 1)Start by generally explaining what Ansoff’s matrix is and BCG Product Portfolio. HINT: draw them! 2)For each of your companies: 3)Apply ONE product to Ansoff’s matrix and explain why you think the company chose this strategy. 4)Apply products to BCG Product Portfolio and explain your thinking behind it. 5)Research the companies and apply real products/services to the theory!
EXAM TECHNIQUE Complete practice exam questions on pg. 278- 279.