1. In the Marketing Mix: Product

2. The Marketing Mix
“Put the right product in the right place, at the right price, at the right time.”
In marketing, revolves around the ‘4 Ps’ and the ‘2 Cs’.
Each ‘P’ and ‘C’ must be considered

3. Marketing Mix Decisions: The 4 Ps
Target Market
Product
Functionality Brand
Appearance Warranty
Packaging Quality
Service/Support
Price
List Price Discounts
Allowances Financing
Leasing Options
Place
Channel Members
Motivation Market
Location Logistics Coverage
Service Levels
Promotion
Advertising Media
Personal Selling Budget
Public Relations
Messages
Marketers have essentially four variables to use when crafting a marketing strategy and writing a marketing plan. They are price, promotion, product and distribution (also called placement). They are sometimes referred to as the four Ps. A marketing mix is a combining of these four variables in a way that will meet or exceed organizational objectives. A separate marketing mix is usually crafted for each product offering. When constructing the mix, marketers must always be thinking of who their target market are. Mix coherency refers to how well the components of the mix blend together. A strategy of selling expensive luxury products in discount stores has poor coherency between distribution and product offering.
Product
What product(s) should we sell?
How should they be branded?
What is the best positioning?
Price
What are the pricing objectives? How much should we charge?
Place
Where, when and how will consumers access our products?
How will we distribute?
Promotion
What value does our product add for consumers?
What is the best way for us to convey our message to consumers?

4. Marketing Mix Decisions: The 2 Cs
The Customer
The person who is going to buy your product (target market)
Must consider: age, income level, where they come from, interests, education, etc…
The Competition
Who is your competitor?
What do they offer?
How can you differentiate yourself?
Tip: the customers are the people who make purchase decisions and buy goods from a particular firm; consumers are people who use (“consume”) particular goods or services – but may or may not be customers to a given firm

5. “A Dramatic Shift”
Companies, marketers and advertising agencies are facing a dramatic shift in marketing reality - and are increasingly failing to connect with consumers. The big challenge in times of exchangeable products, the rise of social media and mature and rather brand sceptic consumers: To find new ways how to get people engaged again in products, advertising and in brands.
Source:

6. “A Dramatic Shift” - Questions
Did you identify with any of the issues presented in the video? If so, which ones?
What present-day marketing ‘challenges’ could you identify in the video?
Challenges:
Promotion:
What value does our product add for consumers?
What is the best way for us to convey our message to consumers?
Was there confusion over the value of the products?
How is the message being conveyed to consumers? “Bombarded”?
2. Place:
Where, when and how will consumers access our products?
How will we distribute?
Did you see any issues with how the consumer accessed the product? Where it was located?
3. Differentiation:
Are the products differentiated the same way? Do they all seem the same … generic?
4. Product:
There are multiple brands, but do the products really look unique?
Are they branded in a way that sets them apart?

7. What is Branding? An organization will use Name Phrase Design Symbol
Either one of, or a combination of, these things will distinguish products from those of competitors
Create product image
Consumers will more easily identify the product or service

8. Can you guess the company by the slogan?
“Maybe she’s born with it ...”
“Just do it”
“They’re Grrrrrrrrreat”
“It keeps going, and going, and going …”
“Good to the last drop”
“Like a rock”

9. What about these characters?

10. What about these logos?

11. We are all impacted by branding!
What brands do we have on/with us in this classroom?
Why do we buy brands?
Are brands better than non brands?
How do marketers convince us that brands are better than non brands?

12. Brand Personality Human characteristics associated with a brand
When consumers assign personality traits to products, they then tend to buy the products that are consistent with their own/desired image.
Olympic Brand Personality: Patriotism, Pride, “Own the Podium”, Passion
HBC website: “Show your Passion”; “Show your Pride”
During the Olympics: Shoppers began lining up at 5:30 in the morning, in the rain, to get into the Vancouver Olympic superstore that didn’t open until 9:00 am. The shortage of $10 mittens means that they are now going for 3 or 4 times that price now on eBay.

13. Brand Equity
The added value that a brand name gives to a product beyond functional benefit
Provides competitive advantage
Consumers are often willing to pay a higher price – a premium for one brand over another
Resides in the minds of consumers, developed over time from what they’ve learned, felt, seen, and heard about a brand.

14. The World’s Most Valuable Brands (2013)
IBM Microsoft Visa Coca-Cola McDonald’s Google AT&T Marlboro Apple China Mobile
Rank
Brand
Brand Value ($m) 1
$185.1 2
$113.6 3
$112.5 4
$90.5 5
$78.4 6
$75.5 7
$69.9 8
$69.3 9
$56 10
$55.3
Apple
Google
IBM
McDonald’s
Coca-Cola
AT&T
Microsoft
Marlboro
Visa
China Mobile
Valuing Brand Equity
It provides a financial advantage to the brand owner and established brand names have an economic value
Brand value: defined as the sum of all earnings that a brand is expected to generate.
Sum of company’s intangible earnings and allocating them to individual brands
Determining portion of intangible earnings attributable to brand alone
Projecting brand value going forward

15. Class Activity
Students must choose which product they will sell in summer of 2014.
Write a story of how you will choose the target market, 4Ps and 2 Cs as you plan for your summer business.

16. Debate