IB Winter 2012

Making So what is it we sell?

Product Strategy Product mix  products a company sells Product line  similar products  similar group of buyers  use them in a similar fashion

Product Life  R&D  Life  Death

R&D New  products  variations  uses Rarely  cheap  predictable  successful

R&D Process 1.ideas 2.screening 3.concept testing 4.business analysis 5.prototype 6.product & market testing 7.commercialization

Product Life  R&D  Life  Death

declinematuritygrowthintro Life Cycle t $ sales loss profit

Life Cycle intro  monopoly  intro and final r&d costs  no profits  price high  promotion inform customers generate demand

declinematuritygrowthintro Life Cycle t $ sales loss profit

Life Cycle growth  rapid sales growth  new competitors enter  cost of aggressive promotion  prices lowered  promotion brand identity preference

declinematuritygrowthintro Life Cycle t $ sales loss profit

Life Cycle maturity  industry sales level off  market becomes more aggressive  profits begin to decline  late maturity some firms will be begin to leave market  brand shake-outs  promotion brand value

declinematuritygrowthintro Life Cycle t $ sales loss profit

Life Cycle decline  product becomes obsolete  sales drop  promotion brand loyalty  some firms may raise prices

Product Life  R&D  Life  Death

Marketing So how do we get people to want to buy?

Sorting Out Terms  Strategy  Marketing  Promotion  Advertising  Publicity  Sales

All communication in business is an attempt to persuade someone of something. Sorting Out Terms  Strategy Marketing  Promotion »Advertising »Publicity  Sales How can we thrive? How do we get people to want to buy? How can we get people to hear? buying space for our message getting our message out for free How can we get people to actually buy? So far as I can tell:

4 P’s of Marketing Neil Borden ProductPrice Place Promoti on target market

Brands  the current obsession in business brand value brand positioning brand definition brand differentiation Be your own brand! A “brand” is what floats up in a person’s imagination when they hear your product’s name. The most useful definition I know:

Brand types  National  Licensed  Private  Generic

Brand types  National  Licensed  Private  Generic

Brand types  National  Licensed  Private  Generic

Brand types  National  Licensed  Private  Generic

Protection Trademark  exclusive right to use a brand name Patent  protects an invention Copyright  exclusive rights to created work

Packaging Physical container May enhance product features  sealed  user-friendly Legally mandated

Labelling  brand  product  contents  benefits?

Labelling & Packaging  blurring together

Promotion goals  product awareness knowledge value preference purchase

Ad Name ImpressionsClicksCTR CPC Spent Business School in Fall? 242, Business School? 234, Dbl Major: Ag &; Business 6, Major Ag and Business 3, Joint Ag/Business Degree 3, Joint Ag/Business Degree 1 14, Joint Ag/Business Degree 2 8, Joint Ag/Business Degree 3 110, Joint Ag/Business Degree 4 3, Joint Ag/Business Degree 5 2, Joint Ag/Business Degree 6 1, Joint Ag/Business Degree 7 1, Joint Ag/Business Degree 8 3, Joint Ag/Business Degree 9 4, Joint Ag/Business Degree 10 53, New Bus + Ag Degree 28, New Bus + Ag Degree 1 131, New Bus + Ag Degree 2 40,

 objectives information positioning added value sales volume  mix advertising  Yellow Pages  newspapers  magazines  direct mail  catalogues  radio  television  Internet »click-through »search engine »or…  outdoor  sidewalk flyers  skywriting  strategies push pull personal selling  door-to-door  in-store  word-of-mouth  one-on-one sales promotion  coupons  POP displays  purchase incentives »sales »premiums  trade shows  contests publicity Promotion Plan

 objectives  strategies  mix

Promotion Plan  objectives information positioning added value sales volume

Promotion Plan  objectives  strategies push pull

Promotion Plan  objectives  strategies  mix depends on  nature of product  nature of audience  budget

Promotion Plan  objectives  strategies  mix advertising personal selling sales promotion publicity

Mix Advertising  Yellow Pages  Newspapers  Magazines  Direct mail  Catalogues  Radio  Television  Internet click-through search engine or…  Outdoor  Sidewalk flyers  Skywriting

Mix Advertising  Yellow Pages  Newspapers  Magazines  Direct mail  Catalogues  Radio  Television

Mix Advertising  Internet click-through search engine or…  Outdoor  Sidewalk flyers  Skywriting

Mix Advertising Personal selling Sales promotion Publicity

Mix Personal Selling  door-to-door  in-store  word-of-mouth  one-on-one

Mix Promotions  coupons  POP displays  purchase incentives sales premiums  trade shows  contests  events

Mix Publicity  news media free minimal control usually product focus

 objectives information positioning added value sales volume  mix advertising  Yellow Pages  newspapers  magazines  direct mail  catalogues  radio  television  Internet »click-through »search engine »or…  outdoor  sidewalk flyers  skywriting  strategies push pull personal selling  door-to-door  in-store  word-of-mouth  one-on-one sales promotion  coupons  POP displays  purchase incentives »sales »premiums  trade shows  contests publicity Promotion Plan

Public Relations  usually company focus  image the company’s “brand”