What is Marketing (Part 2) Marketing Activities

The Main Components of Marketing Research Product Development Packaging Pricing Branding Sales Distribution Inventory Management Storage Promotion

Research Purpose: to learn about the market  Consumer preferences, habits, lifestyle  Competitors Examples:  Surveys  Media research  Focus groups

Product Development Purpose: Make a product that effectively and profitably meets the needs/wants of consumers

Packaging Must provide protection for the product while also serving as a promotional tool  Package must be attractive/enticing to the consumer  Must also obey government regulations and environmental standards

Pricing Setting the price of a product/service in order to maximize profit for the company  The lowest price is not always the best Based on  Cost to produce and market the product  What the customer is willing to pay  Competitor pricing  Brand image

Branding Creates an identity in the mind of consumers Key components:  Trademark  Logo  Slogan  Package design  Product Image and associations Examples: Mac vs PC Ad – BoxMac vs PC Ad – Box Nike- Good vs Evil Old Spice - QuestionsNike- Good vs EvilOld Spice - Questions - The un-cola - Impossible is nothing. - Don't leave home without it. - We try harder. - Have it your way. - Welcome To The Human Network. - Does she or doesn't she? - It's in the game. - Because I'm worth it - Life's Good. - I Am Canadian

Sales Convincing potential customers to purchase your product/service Goal is to increase the size of your market  Acquire new customers while retaining old ones

Distribution Moving products to their final destination  From the manufacturing plant, to distributors, to retailers Must be done efficiently and inexpensively

Inventory Management Retailers must make sure they have enough product on hand to meet demand, but not too much  Don’t want to have more products than you can sell Products take up space Older products become difficult to sell Must also keep track of inventory so you know when to order more, are aware of thefts, etc.

Storage Arranging and maintaining storage for products until they are needed May be done by a manufacturer, distributor, or retailer

Promotion Used to make consumers aware of a company’s products/services Examples  Advertising  Coupons  Samples