Chapter 8 Marketing Your Product

Marketing Presenting your business to customers to communicate the value of your product or service

Marketing Plan Detailed guide to marketing 1.Marketing Goals 2.Strategies for reaching goals

Market Share Percentage of a given market population that is buying a product or service

Marketing Mix Combination of strategies a company uses to market its products

5 P’s 1.People- Customers 2.Product- What you sell 3.Place- How and where customers buy 4.Price- $$$ 5.Promotion-create awareness

Features What something does or has Seatbelts A/C V-8 motor

Benefits Reasons customers choose to buy it. Safety Comfort Acceleration

Product Mix Combination of products a business sells

Branding Marketing strategy that can create an emotional attachment to your product in the mind of the consumer

Branding Maintains cusomter satisfaction Brands are perceived in a certain way…. Premium Brand Bougatti Prada

Product Positioning Creating a strong image. Way of influencing potential customers to distinguish your brand’s characteristics from those of the competition.

Mind Share Awareness or popularity a certain product has with consumers

Brand Mark Symbol or graphic design to identify a brand Nike Swosh Golden Arches

Distribution Channels Various ways that a product can reach the consumer

Direct Channel Pathway in which a product goes from the producer straight to the consumer (no stops)

Indirect Channel Pathway in which the product goes from the producer to one or more intermediaries before it reaches the consumer.

Intermediary Bridge between a producer and a consumer Agents Brokers Wholesalers Distributors Retailers

Indirect Channel 1.Manufacturer produces millions of cell phones 2.Wholesaler buys thousands of cell phones 3.Retailer buys hundreds of cell phone 4.Consumer buys one cell phone

Pricing Strategies Something that puts your business ahead of the competition

Demand-Based Pricing Pricing method that focuses on how much customers are willing to pay for a product

Competition-Based Pricing Pricing method that focuses on what the competition charges

Cost-Based Pricing Setting a product’s price based on what it costs your business to provide it

Effective Pricing Strategies 1.Set a slightly higher price than the competition when your product has more benefits 2.Set a high price when introducing a new unique product into the market 3.Lower prices to increase sales volune

Markup Additional amount of money added to the cost of the product to make a profit

Markdown Price Retailer lowers price of a product when they are overstocked or need to make room for new products

Bundling Combining the price of several products or services into one price

AIDA 1.Attention- Grab customers attention 2.Interest- Keep attention by focusing on features and benefits 3.Desire- Make customers want your product (demonstrate) 4.Action- Ask customer to take action

Promotional Mix Combination of promotional elements that a business chooses

1. Advertising Public promotional message paid for by an identified sponsor or company

2. Visual Merchandising Using artistic displays to attract customers into a store. Also how products are visually promoted inside a store

3. Public Relations Activities aimed at creating goodwill toward a product or company

4. Publicity Form of promotion for which a company does not pay. (Free Advertising)

5. Personal Selling Direct (one-on-one) efforts made by a company’s sales representatives to get sales and build customer relationships

6. Sales Promotion Short-Term specials used to motivate potential customers

Media Communication Channels

Forms of Advertising 1.Print Advertising 2.Direct Mail 3.Radio and Television 4.Product Placement 5.Internet 6.Outdoor Advertising

Press Release Written statement that typically consists of several paragraphs of factual information about a product or business

Telemarketing Promoting or selling products or services one on one over the phone

Networking Meeting new people through current friends and business contacts to find new customers- Referrals

CPM Amount of money it will cost to reach 1000 potential customers

Trade-Out Bartering practice whereby you trade your company’s products or services for commercial air time

Premium Giveaway item that has the company’s name and contact information printed on it