Professor Kudek

Choose a product(s) from your Fortune 500 company. Answer the following questions in a two-page paper (no need for cover page) 1. What need does the product (“really”) fill? 2. Who is the target audience? 3. Describe the market segment. 4. List the 4-Ps of the product. 5. What promotional strategy is being used? 6. What product life cycle stage is the product in? 7. Who are a couple competitors? 8. Describe the current marketing environment. Explain your answer(s)

TEN PRINCIPLES OF ECONOMICS 3

 “When you make an agreement with your neighbor to buy or sell property, you must not take advantage of each other.  The L ORD demands accurate scales and balances; he sets the standards for fairness. TEN PRINCIPLES OF ECONOMICS 4

1. Define marketing/marketing strategy and how to identify target market. 2. Identify 4Ps, marketing research, branding, packaging 3. Identify pricing strategies 4. Explore supply-chain management 5. Describe promotion mix 6. Explain product life cycle 7. Describe factors influencing consumer behavior 8. Describe opportunities in field of marketing

1. Define marketing/marketing strategy and how to identify target market.

 “…a set of processes for creating, communicating and delivering value to customers and for improving customer relationships.”

 Product- Features & Benefits  Setting Price  Identify Target Market  Make Customers Aware

 Product- Features & Benefits  Setting Price  Identify Target Market  Make Customers Aware  Get People To Buy  Deliver Purchased Product  Managing Relationships With Customers  After Delivery

“You can have the car in any color as long as it is black.” Henry Ford

“…a specific group of consumers …particularly interested in your product …who have access to it and have the to buy it.”

 Consumer Market  Industrial Market

ConsumerBusiness Product When Made Service __________ _________ key When Made Service __________ _________ key Place Where sold Promotion _______ Media Timing _______ Media Timing Price How set

ConsumerBusiness Product Made B/4 Sale Service Helpful Style key After Sale Service Critical Function is key Place Where sold Promotion _______ Media Timing _______ Media Timing Price How set

ConsumerBusiness Product Made B/4 Sale Service Helpful Style key After Sale Service Critical Function is key Place Buyer to SellerSeller to Buyer Promotion _______ Media Timing _______ Media Timing Price How set

ConsumerBusiness Product Made B/4 Sale Service Helpful Style key After Sale Service Critical Function is key Place Buyer to SellerSeller to Buyer Promotion Mass Media Frequent Trade Pubs Infrequent Price How set

ConsumerBusiness Product Made B/4 Sale Service Helpful Style key After Sale Service Critical Function is key Place Buyer to SellerSeller to Buyer Promotion Mass Media Frequent Trade Pubs Infrequent Price One SetNegotiable

“…groups of potential customers with common characteristics that influence their buying decisions.”

 Demographic – Age, marital status, gender, ethnic background, income, occupation, education

 Geographic – Climate, region, population density

 Demographic – Age, marital status, gender, ethnic background, income, occupation, education  Geographic – Climate, region, population density  Behavioral – Attitudes toward product, user status, usage rate

 Demographic – Age, marital status, gender, ethnic background, income, occupation, education  Geographic – Climate, region, population density  Behavioral – Attitudes toward product, user status, usage rate  Psychographic – Interests, activities, attitudes, values

1. Define marketing/marketing strategy and how to identify target market. 2. Identify 4Ps, marketing research, branding, packaging

“…the process of collecting and analyzing the data that’s relevant to a specific marketing situation.”

Secondary Already Collected Company Documents Government Data

Secondary ◦ Already Collected ◦ Company Documents ◦ Government Data

Secondary ◦ Already Collected ◦ Company Documents ◦ Government Data Primary New Information Surveys Personal Interviews Focus Groups

“…word, letter, sound, or symbol that… differentiate(s)… products on the market.” ® - trademark registered with the US Patent Office

Generic Branding Private Branding Manufacturer Branding

“…any added value generated by favorable consumer experiences…”

Packaging - “container that holds the product.” – Primary, secondary, etc. Labeling – “…what… (is said) about the product on… (the) packaging.”

1. Define marketing/marketing strategy and how to identify target market. 2. Identify 4Ps, marketing research, branding, packaging 3. Identify pricing strategies

New  Skimming  Penetration

New  Skimming  Penetration Other  Cost-Based  Demand-Based  Target Costing  Prestige  Odd-Even

Intermediary – “…a wholesaler or retailer who helps move products from their original source to the end user…” Each intermediary in the channel of distribution requires a profit margin, thus increasing the cost of the product.

◦ Example -  Assume four producers –  Assume four consumers – How many transactions possible? What is the purpose of the channel?

◦ Assume 4 producers/consumers ◦ Assume one distributor ◦ How many potential transactions?

Information Gathering Promotion Contact Matching Negotiation Distribution Financing Risk Taking Servicing

“…companies require suppliers to deliver materials to their facilities just in time to go into the production process.”

 Cost  Speed  Match of Mode to Good  Dependability  Accessibility

 Truck (65%)- expensive and can go anywhere in a reasonable time  Train (4%)- moderately priced, generally accessible, faster than ship & slower than plane  Plane (8%)- faster but cost more  Ship (9%)- inexpensive but slow  Pipeline (3%)- fine for liquid product  Multimodal (11%)- includes rail, truck, and water

1. Define marketing/marketing strategy and how to identify target market. 2. Identify 4Ps, marketing research, branding, packaging 3. Identify pricing strategies 4. Explore supply-chain management

“…the entire range of activities involved in delivering value to customers…”

1. Define marketing/marketing strategy and how to identify target market. 2. Identify 4Ps, marketing research, branding, packaging 3. Identify pricing strategies 4. Explore supply-chain management 5. Describe promotion mix

“…the means by which (companies) communicate with customers…”

Advertising PersonalSelling SalesPromotion Publicity & Public Relations

Purpose of Promotion? Target Market? Product Features to Emphasize? Afford? Similar to Competitors?

1. Define marketing/marketing strategy and how to identify target market. 2. Identify 4Ps, marketing research, branding, packaging 3. Identify pricing strategies 4. Explore supply-chain management 5. Describe promotion mix 6. Explain product life cycle

Product Awareness Limited Competition Skim-Pricing Approach Few Channels

Building Sales Competition = Lowering Prices Multiple Channels Profitable

Sales Grow At Decreasing Rate Differentiate from Competition Price Wars Profits Up With Sales Changing Consumer Preferences

Demand Down Intense Price Competition Profits Low Or Losses Revitalize Or Pull Product

1. Define marketing/marketing strategy and how to identify target market. 2. Identify 4Ps, marketing research, branding, packaging 3. Identify pricing strategies 4. Explore supply-chain management 5. Describe promotion mix 6. Explain product life cycle 7. Describe factors influencing consumer behavior

Baby-Boomers = 1946 – 1964 Generation X = 1965 – 1975 Generation Y =

“…the decision process that individuals go through when purchasing or using products.”

1. Define marketing/marketing strategy and how to identify target market. 2. Identify 4Ps, marketing research, branding, packaging 3. Identify pricing strategies 4. Explore supply-chain management 5. Describe promotion mix 6. Explain product life cycle 7. Describe factors influencing consumer behavior 8. Describe opportunities in field of marketing

 Advertising  Brand/Product Management  Marketing Research  Supply Chain/Logistics Management  Retailing  Sales