Product, Pricing, Place/Distribution, Promotion

Goods, Services, and Events

A new idea must always start by solving a problem or meeting a consumer need

 New devices, methods, or processes developed from study and experimentation

 Improves on existing products, processes, or distribution methods.

 Visit the following hyperlink and complete the chart below s.html  → Chapter 5 → Canadian Inventors → Use the 2 nd and 3 rd link in number 2 Canadian Invention Canadian Inventor When was it invented? What problem did it solve?

Feasibility Study Is this financially feasible?  Idea Screening  Test consumer reaction and competitive situation. Concept Development Design a prototype Market Strategy Identify target market, and create marketing plan. Idea Generation What do consumers want? Product Design What features does the target market want? Test Marketing Target market will test the product and provide feedback Market Entry The product enters the product life cycle

 Describes the change in consumer demand over time.  Based on the knowledge that no product can be in demand forever.

 Celebrities go through a lifecycle just as products do. Your task is to create a celebrity life cycle that includes a picture of a celebrity at each stage of the lifecycle. You must also include a paragraph explaining why you included a particular celebrity at a certain stage.

Product Attributes Branding Packaging Labelling Product-Support Services

 The way the product is defined by consumers on important attributes.  The place the product occupies in the consumers’ minds relative to competing products.  Examples… BMW positioned on performance Honda on economy VW on safety

 Identify possible competitive advantages ( Recall…)  Selecting the right competitive advantage  Effectively communicating and delivering the chosen position to the market

 Best quality  Best service  Lowest price  Best value  Best technology

 Go to the following link and complete the chart below  List two fads from the 80’s List two fads from the 90’s List two current fads In a short paragraph explain why you think these fads became popular at a particular time? Do you think these fads will become popular again, why or why not?

 External Factors Nature of Market and Demand Competition Other environmental factors (economy, gov., resellers  Internal Factors Marketing Objectives Marketing Mix Strategy Costs Organizational Considerations

 Internal Factors an example: Days Inn have positioned themselves as motels that provide economical rooms for budget conscious travellers ; this position requires charging a low price.

 External Factors an example: Summer 2005 N. American automakers (Ford, GM, Chrysler) getting beaten down by Foreign autos (Honda, Toyota) offer employee pricing to all consumers.

 The more products a company makes, the lower the cost of production for each item. OR  The more product a company buys, the lower the cost to purchase each item. Example, WalMart buys in such large quantity that they can force a supply to lower their price

 Penetration Pricing – initially setting a low price for a product to attract consumers  Market Skimming – initially setting a high price for a product before competitors enter the market.

 Premium Pricing. Use a high price where there is a unique brand. This approach is used where a substantial competitive advantage exists. Such high prices are charged for luxuries. brand  Economy Pricing. This is a very low price. The costs of marketing and promoting a product are kept to a minimum.

 Psychological Pricing. This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis.  Promotional Pricing. Pricing to promote a product is a very common application. (ex. BOGOF)

 “Cost Plus” Pricing: A very common strategy. Ex. Cost ($10) plus … $5 (desired profit margin) = $15

 Visit 3 company websites of your choice.  Prepare a table showing the company, a pricing strategy it uses, and an explanation for the strategy.  Your table headings should look like this:

a.k.a Distribution

 Manufacturer: Produces the product  Wholesaler: Sells the product in bulk  Retailer: 3 rd channel of distribution. Buys from the wholesaler!

 1. Conventional Marketing Channel  Example: Kellogg’s selling their product at Metro grocery stores.

 2. Direct Marketing Channel  Example: Dell computers sold directly to consumers by their website or over the phone. Manufacturer Consumer

 3. Vertical Marketing System (VMS)  Example: WalMart  with their huge buying power has a  Example: WalMart with their huge buying power has major influence over the distribution channel

 The process of designing and managing a supply chain.  How to get the product from the manufacturer to the consumer.

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 Complete the legalities activity to investigate the legalities of logistics.

 Advertising  Sales Promotion  Public Relations & Publicity  Personal Selling

 Brand Awareness & Positioning – Inform target market about the brand’s name, availability, benefits, and appearance  Brand Trial – Offering a coupon or free sample of a product to entice purchase  Brand Preference – Try to convince consumers that their product is preferred by most purchasers

 Brand Reminder – Remind consumers that the brand is still available  Brand Repositioning - Changing the target market to reflect new trends and technology

 Attention – Attract the consumers’ attention  Interest – Get their interest  Desire – Build their desire for the product  Action – Provide a method for the consumer to take action

 Check out 3 past Super Bowl ads at  Briefly describe the commercial (ie. brand, what happens, goal of ad). Then explain how and when each step of the AIDA formula is used in the advertisement Commercial123 A I D A

 Amazon.com target market of one  AND1 Mix Tape Tour  Bumvertising – UW student uses Bum’s at busy intersections to hold up signs advertising his gambling website

 Levi’s Silvertab jeans – Painted historic Queen St. Silver  Celebration, Florida – Entirely branded town, a Disney creation

 Go to -View “Top 10 Successful Marketing Stunts” and “Marketing Stunts Gone Wrong”.... Search for them with the “find” function Task: 1. Choose two successful marketing stunts and two unsuccessful stunts. 2. Explain why you think these stunts were successful or unsuccessful. 3. Create an innovative marketing stunt for a Product Concept you know of or one you have in mind.

Type of Promotion CompanyMediumMessage, Models, etc. AdvertisingRBKTelevisionCrosby using RBK gear and is awesome! You can be awesome too! Sales PromotionMBNA Mastercard Sporting Events- Scotiabank Place Free Sens T- Shirt/Blanket when you sign up for a card. Public RelationsOttawa 67’s OHL Hockey Local newspapers cover the event Read or visit children at CHEO.