Marketing 1.Purpose and Roles of Marketing 2.The Product Life Cycle 3.The Four P’s of Marketing 4.The Two C’s of Marketing

Purpose of Marketing 1. To sell what a business produces (goods) and/ or offers (services). 2. To manage a business’s brand and brands

Marketing Marketing involves all the activities involved in getting the goods and services from the business that produces them into the hands of consumers. Marketing involves all the activities involved in getting the goods and services from the business that produces them into the hands of consumers.

Roles of Marketing 1. To sell what a business produces (goods) and/ or offers (services). 1. To sell what a business produces (goods) and/ or offers (services). 2. To manage a business’s brand and brands 2. To manage a business’s brand and brands Research Product Development Sales Pricing and Distributing Promotion and Advertising

Branding Branding  Usually represented by a name (brand name), a logo and/or a trademark and/or a slogan. Purpose of Branding  Branding is used to help a company distinguish itself and its products from competitors’ products – thus helping to creating an image for the company.

Brand Names Brand names should: Brand names should: 1. be distinctive and stand out from the competition. 1. be distinctive and stand out from the competition. 2. be easy to pronounce 2. be easy to pronounce 3. easy to remember 3. easy to remember

Brand Names Examples: Bib-Label Lithiated Lemon-Lime Soda (1929 product name) vs.7’Up

Logo or Trademark A symbol or that is associated with a company and/or product. A symbol or that is associated with a company and/or product. It helps promote awareness and brand recognition of a company and/or product. It helps promote awareness and brand recognition of a company and/or product.

Logo or Trademarks Three possible forms of logos: 1. Monogram 2. Visual Symbol 3. Abstract symbol

Logos or Trademarks Monogram  A stylized rendering of the company’s initials or a combination of initials and numbers  Sometimes used to update an image that has become outdated.

Logos or Trademarks Visual Symbols  Usually line drawings of people, animals, or things  When seen the logo becomes directly associated with the brand name.

Logos or Trademarks Abstract Symbol Shapes that carry a visual message but are not representative of actual Shapes that carry a visual message but are not representative of actual things. things.

Slogans Slogans  A short, catchy phrase that is usually attached to the company’s name and logo. Examples: 1. I’m lovin it. 2. Priceless 3. It’s in you to give

Measuring Marketing Effectiveness Effective marketing will: 1. Increase Brand Equity  Increases value of the brand in the marketplace  For example, Coca-cola’s brand equity is valued at $39 billion. The brand name itself is worth $39 billion.

Measuring Marketing Effectiveness Good marketing will develop brand awareness where consumers can identify what type of product or service the brand represents. Better marketing will develop brand loyalty where customers prefer and support a particular brand. Best marketing will develop brand insistence where the customer will not accept any other substitutes over a particular brand name. The greater the brand insistence, the greater the brand equity.

Product Life Cycle The progress of a brand can be charted on a Product Life Cycle Chart. Marketers use the product life cycle to determine what type of marketing efforts they should use on a brand.

The Product Life Cycle 1. Product Introduction Stage Characteristics  Product enters the market through a product introduction, often called a launch.  The introduction may be national, international, or by city, region, or province.  Marketing efforts are focused on informing consumers about the product’s features, availability, package, design, and brand identification.  Initial customers, known as early adopters, are usually curious or adventurous or those who like to be the first to won a new product and/or can afford the higher price that new products often carry.  Few, if any, competitors.  Profitability is uncertain  Risk of success is high

The Product Life Cycle 2. Growth Stage Characteristics  As popularity increases, competition increases  Competitors modify the original product either by adding features and improving the quality or by making a cheaper model and offering it at a lower price.  Promotions and advertisements increase amongst competitors and consumers may want to see what all the fuss is about and sales increase.  The more competitors there are, the cheaper the items becomes and more sales may be made.

The Product Life Cycle 3. Maturity Stage Characteristics  Profitable companies survive while others drop out of the race, thus leaving a few top competitors.  Growth is flat. New consumers replace those who leave to purchase a competing product.  Brand equity is at its highest  Advertising generally serves as a reminder to consumers  Company costs of sales and distribution are low thereby allowing for large profits.  Mature products which become cash cows allow for the companies to research and develop new products.

The Product Life Cycle 4. Decline Stage Characteristics  Seasonal changes or new competition may cause a temporary sales decline.  If sales decline continues, businesses use market research to determine whether and why consumers are actually rejecting the brand.  A small change in price or a new advertising campaign may reverse a temporary decline.  If brand equity drops, the company must make some decisions.

The Product Life Cycle 5. Decline and Decision Making Time  If consumers are rejecting the brand, possible marketing strategies may be used to reverse the decline and increase or brand equity. 1. Price change 1. Price change 2. Re package and re-introduce a “new and improved” product. 2. Re package and re-introduce a “new and improved” product. 3. New promotions 3. New promotions 4. Target new group of consumers 4. Target new group of consumers 5. Advertise new product uses 5. Advertise new product uses  If new marketing strategies are not successful, the company may discontinue producing the brand.  New technology also makes products obsolete such as DVD’s versus VHS, cassette walkman versus MP3 Players.

Non-Traditional Product Life Cycles Includes: 1. Fad products 2. Niche Products 3. Seasonal products Fads  Products that are extremely popular for a short period of time and target a select target market – usually 14 and under. Niches  A section of the market in which a particular company’s product dominates into which very few competitors enter due to barriers to entry.

Barriers To Entry Factors that make it difficult for competitors to enter the market with a similar product of a competitor with a similar product of a competitor  Such factors may include: the small size of the market (not very many people who would purchase the product); the small size of the market (not very many people who would purchase the product); the cost of research and development; the cost of research and development; advertising expenses; advertising expenses; factory and equipment costs; factory and equipment costs; design costs; design costs; lack of distribution channels, and; lack of distribution channels, and; the cost of raw materials. the cost of raw materials.

Non-Traditional Product Life Cycles Seasonal  Seasonal items will sell only during a particular season, such as Christmas ornaments, Halloween costumes, ice cream cones.  Styles and items may change from one year to the next so businesses must be careful with the amount of inventory they bring in for each season. If it does not sell, it may be out of style for the next season. Inventory Management  The act of balancing the quantity of goods in inventory with the projected sales.

Sources Wilson, Jack et al. The World of Business., 5 Ed., Nelson Education Ltd., Canada, 2007