1. Introduction to Business: Functions of a Business - Marketing

2. I will be able to explain the role and impact of marketing
Learning Goals
I will be able to explain the role and impact of marketing

3. Chapter 8: Marketing The Role and Impact of Marketing
Marketing is all activities involved in getting goods and services from the businesses that produce them to the consumer.
Marketing has two fundamental roles: to sell what a business makes and to manage the brand. Marketing activities include
Branding
Businesses can spend millions creating an image for products and services with a brand name, logo or trademark, and a slogan.
research
development
sales
distribution
advertising
promotion
Marketing does not include the production of goods and services.

4. Chapter 8: Marketing The Role and Impact of Marketing
Brand Name
A brand name is a word or group of words a business uses to distinguish its products from that of the competition. Brand names should be distinctive, stand out, and memorable.
Logo or Trademark
A logo is a symbol that is associated with the company or product. It can take the following forms: monogram, visual symbol, or abstract symbol.
A trademark is a word, symbol, design, or a combination of all three that a business uses to distinguish its goods or services from others.
BRANDING
Brand Name
A brand name is how a product and company are identified and it is important to organizational success.
When people talk with others about brand preference this is free publicity for the company.
Logo or Trademark
A logo or trademark helps a product compete for consumer awareness.
Monogram: a stylized rendering of a company’s initials or a combination of initials and numbers.
Examples include IBM (International Business Machines) who wanted to consumers to associate them with computers not adding machines, and KFC (Kentucky Fried Chicken) who did not want consumers seeing the work “Fried”, etc.
Visual symbol: These are line drawings of people, animals, or things such as Apple Computer’s apple and Kellogg’s Frosted Flakes’ Tony the Tiger.
Abstract symbol: These are shapes that carry a visual message but are not representative of actual things.
The Nike “swoosh” is an example and one of the world’s most well recognized logos.

5. Chapter 8: Marketing The Role and Impact of Marketing
Slogan
A slogan is a short or catchy advertising phrase associated with a company or product.
Brand Identification
Everything associated with a product, such as the slogan, name, and logo, must be used consistently to ensure that the brand is always identifiable to the consumer.
BRANDING
Slogan
Slogans are taglines for both print and broadcast advertisements.
Examples include; MasterCard’s “Priceless,” Canadian Blood Services’ “It’s in You to Give,” and Sprite’s “Obey Your Thirst”.
Brand Identification
The writing, the colours used, the design of the package should always be used in association with the product, this way it is always clear to the consumer that they are getting the product they desire.
THE PRODUCT LIFE CYCLE
Successful marketing efforts created brand awareness; customers can name you brand as part of a specific category.
Brand loyalty is when customers prefer your brand and support it.
Brand insistence is when customers will not accept a substitute for a particular brand.
Brands that have reached brand insistence have enormous equity.

6. Company Names, Logos & Jingles

7. Examine the following Logos Which are effective and which are not and why?

8. Slogan Group Activity

9. Chapter 8: Marketing The Role and Impact of Marketing
BRANDING
Slogan
Slogans are taglines for both print and broadcast advertisements.
Examples include; MasterCard’s “Priceless,” Canadian Blood Services’ “It’s in You to Give,” and Sprite’s “Obey Your Thirst”.
Brand Identification
The writing, the colours used, the design of the package should always be used in association with the product, this way it is always clear to the consumer that they are getting the product they desire.
THE PRODUCT LIFE CYCLE
Successful marketing efforts created brand awareness; customers can name you brand as part of a specific category.
Brand loyalty is when customers prefer your brand and support it.
Brand insistence is when customers will not accept a substitute for a particular brand.
Brands that have reached brand insistence have enormous equity.

10. SuperBowl Commercials
The following two commercials have been rated the best commercials of all time. When you watch them consider why?

11. Chapter 8: Marketing The Role and Impact of Marketing
The Product Life Cycle
THE PRODUCT LIFE CYCLE
Product Introduction: Is the launch of a product into the marketplace. It may be done locally, all the way to internationally. Businesses need to inform potential customers about the products features, availability, package design, and brand identification. Early adopters are individuals who like to be one of the first to try a new product. Marketers often focus their early efforts on these trendsetters who can be sports icons, celebrities, or even students.
Growth: As the new product sales increase competitors enter, this can decrease profitability due to decreased market share. They often compete by adding features, improving quality, or sell at a lower price;.
The product line becomes very visible and is promoted on commercials, billboards, print ads, etc.
Some competitors start to drop out of the competitive race at this stage.
Maturity: Growth is flat; it does not increase or decrease, and brand equity is at its highest.
Businesses keep advertising the product to keep it in the consumers’ eye.
Products, also know as cash cows, at this stage usually make large profits and this income can be used to develop and fund new products for the company. Examples include Tide and Kellogg’s Corn Flakes.
Decline: When sales decrease because customers leave to by other brands, and they are not replaced, a product can enter the decline stage.
Sometimes a change in price or advertising can slow down or stop the decline.
The Decision Point: The business may make an effort to regain original sales figures and brand equity or they may discontinue the product altogether. If they try to save the product a variety of options are available:
Repositioning: making the product popular with a new consumer group
Reformulate (new scent), repackage (new container and spout), and re-introduce (new and improved) the product.
Repricing to gain popularity.
New promotion.
Obsolete technology utilized in the product will make such that no amount of marketing efforts will restore product position.

12. Chapter 8: Marketing The Role and Impact of Marketing
Non-traditional Product Life Cycles
Fads
A fad is a product that is extremely popular with a select market for a short time, usually less than a year.
Niches
A niche is a section of the market in which a product dominates and into which few competitors enter. Niche marketers are often left alone because of barriers to entry—the factors that prevent competition from being profitable in a given market.
Seasonal
Some products are popular during a specific time or season. Balancing product quantity with seasonal sales is called inventory management. To be left with little seasonal inventory, businesses calculate the amount of product to keep on hand.
Trend
General direction and last longer than fads and influence other areas.
NON-TRADITIONAL PRODCUT LIFE CYCLES
Fads
Trends are not fads, trends last longer and influences other areas.
Some well-known fads are hula hoops, yo-yos, Pogs, and Tamagotchis.
Businesses who plan well, and sell most of its stock and get out of the market just before the fad reaches its peak, can make an excellent profit.
Some companies market knock-offs of fads, often a cheaper version. If they do not sell off their inventories before the fad quickly dies off they can stand to lose money.
Niches
A niche product tends to have a short growth stage and leads to a solid, but not financially spectacular, maturity stage.
Niche marketers usually invent their products and hold exclusive patents or formulas.
By the time the competition can produce a competitive product the niche marketers have cornered that market.
Barriers to entry include the small market size, the cost of R&D, advertising expenses, factory and equipment costs, design costs, lack of distribution channels, and the cost of raw materials.
Seasonal
Christmas and summer are seasonal time frames within which certain products are marketed.
Inventory management is the balancing of product quantity with sales.

13. Chapter 8: Marketing Marketing Concepts
Marketing can be divided into two major concepts: the product concept and the market concept. Product concept involves the four Ps of marketing and market concept involves the two Cs of marketing.
The Four Ps of Marketing
A good combination of all four elements, called the marketing mix, translates into an effective campaign.
Product
Price
Place
Promotion
The Four Ps of Marketing are the four elements of a good marketing campaign: product, price, place, and promotion.
The Two Cs of Marketing are the two major external factors in marketing: the competition and the consumer.
THE FOUR Ps OF MARKETING
The four Ps of marketing are product, price, place and promotion.
See Figure 8.3, “The Marketing Mix”, on page 240.

14. Chapter 8: Marketing Marketing Concepts
Products and Services
The two reasons businesses develop product are because they can and they see a need. The development of good products and services considers quality, design, features, and benefits.
Quality
Improvements made to the quality of a product attracts more customers.
Design
Every product and service has a design component. Consumers will often buy one product over another because of the way it looks.
Features
Product developers consider the features used, such as the materials, scent, size, or the taste, when constructing a new product. Service providers outline or detail what they do best.
THE FOUR Ps OF MARKETING
Products and Services
Quality
Consumers depend on the quality of many established brand names.
Consumers know that higher quality usually means that the product or service is more expensive.
Some products are successful because they can meet consumer needs, at a lower quality, and therefore a lower price.
Design
We often think of design in relation to clothing, such as jeans that come in many different styles.
When a package is designed the function has to be considered.
Packaging protects the product from light, dirt, germs, air, water, tampering, and damage.
Packaging can aid ease of use, such as a spout or a resealable bag.
Product identification or recognition benefits from package shape and colour, such as the Coca-Cola bottle.
Label design is also an aspect of design and it can help a product stand out. Labels also give information such as size, weight, ingredients, and nutritional facts.
Services consider design features in their web pages and the physical design of their store.
Features
Some examples of product features are the smell of different perfumes, foam or feather pillows, and laundry detergent can be spring sent or sent-free.

15. Chapter 8: Marketing Marketing Concepts
Benefits
Consumers buy products and services for a particular purpose. Businesses need to make consumers aware of the advantages of a product to be motivated to buy it.
The Product/Service Mix
A retail store provides services and a service business sells a product. The resulting product/service mix can increase sales to existing customers and attract new ones.
Price
Prices for products must be set with care to ensure their success. Today consumers are very price conscious and look for competitive prices at other stores or on the Internet. Businesses need to be price sensitive and look at their competitors’ prices for the same products.
THE FOUR Ps OF MARKETING
Products and Services
Benefits
Examples of benefits are a microwave that cooks food faster or a can opener that does not leave a sharp edge.
The Product/Service Mix
A retail store could offer a delivery service, an installation service, or a gift-wrapping service.
A service business, such as a veterinarian could not only assist ill pets but could sell pet food products as well.
Price
If consumers think the price of a product is too high, it will not sell.
Consumers can easily find out product prices by searching on the Internet.
Marketers need to be aware of how price sensitive their product is: how much sales will go up or down when the price goes up or down.

16. Chapter 8: Marketing Marketing Concepts
Price
Premium (higher priced)
Competitive (in line with what the competition is offering
Discount (lower priced that the competition)

17. Chapter 8: Marketing Marketing Concepts
Place (Channels of Distribution)
Channels of distribution are the paths of ownership that goods follow as they pass from the producer or manufacturer to the consumer. The three types of channels of distribution are direct, indirect, and specialty.
Direct Channels
Direct channels of distribution connect the consumers to the producers of the goods or services. This is also referred to as the maker-user relationship.
THE FOUR Ps OF MARKETING
Place (Channels of Distribution)
A product does not change as it moves through the distribution chain.
If the product is changed or altered that is the end of that channel and a new one begins.
See Figure 8.4, “Channels of Distribution”, on page 243.
Direct Channels
Simplest form of distribution.
Direct channel distribution does not use intermediaries or businesses that take possession of the goods before the consumers do, they add costs to the product so that they realize a profit.
With direct channels consumers can readily inform the producers of their needs and they may feel more confident about the product because they deal directly with the company that produces it.
Indirect Channels of Distribution
Importers: Importers are businesses that seek out foreign products to bring into their own country. Importers may negotiate distribution deals with foreign manufacturers, buy the goods, store the goods, and may sell the goods. To eliminate risk importers can arrange only delivery of foreign goods to Canadian businesses.
Wholesalers: Wholesalers buy goods from producers or importers and resell the goods to retailers. The manufacturer may require that the retailer buy a minimum quantity of goods. Using a wholesalers may mean that the retailer pays a higher price but they get the quantity they need and the wholesaler may store the products close by.
Retailers: Linked directly to consumers, retailers buy merchandise customers want, keep it in stock, and display it so that customers can examine it in an easy-to-reach location.

18. Chapter 8: Marketing Marketing Concepts
Indirect Channels
Indirect channels of distribution have one or more intermediaries who import products (importers), wholesale goods (wholesalers), or retail products (retailers).
Specialty Channels
A specialty channel of distribution is an indirect way to distribute products by using vending machines, telemarketing, catalogue sales,
e-commerce, and door-to-door sales. No retail store is involved.
THE FOUR Ps OF MARKETING
Place (Channels of Distribution)
Specialty Channels
See Figure 8.5, “Specialty Channels of Distribution”, on page 246.
Vending Machines: Vending machines, that can sell virtually anything, can be placed where consumers are.
Telemarketing: Using the telephone to sell products and services is very popular. A sales pitch or scripted presentation that anticipates all possible consumer responses is delivered to people once the automated call distributors (ACDs), a computerized dialing system, calls them.
Catalogue Sales: Catalogues from retailers provide information about merchandise that consumers can purchase by mail, phone, or at the store.
E-commerce: The most important specialty channel, e-commerce is selling products and services online. For consumers it is convenient and competitive and for manufacturers and retailers it reduces distribution costs.
PROMOTION
Coupons: offer consumers money off the price of a product but redemption rates, a method of determining effectiveness, are only about 5%.
Contests: increase brand recognition through an anyone can enter and win concept that is not gambling and cannot require a purchase to enter.
Premiums: are when the consumer makes a purchase and they get something for free.
Customer loyalty cards are stamped with each purchase and, when full, entitles the customer to a discount or a free product.
Samples: samples are small “trail” sizes of a product that are given to consumers, it is expensive but often results in increased sales.
Special Events: are used to attract customers and increase sales.

19. Chapter 8: Marketing Marketing Concepts
The Two Cs of Marketing
The marketing department must consider two major external factors: the competition and the consumer.
1. The Competitive Market
The competitive market refers to the sellers of a specific product, and is often expressed in terms of the total dollars spent annually on the product. The percentage of the market that a company or brand has is called its market share. A market segment is a part of the overall market with similar characteristics.
Competition among Products
Indirect competition means products or services are not directly related to each other. Products that are similar to one another are called direct competition.

20. Chapter 8: Marketing Marketing Concepts
2. The Consumer Market
In their effort to be competitive, businesses study and target the consumer market, the potential users of a product or service. These consumers can be identified by demographics and lifestyle.
Demographics
Demographics is the study of obvious characteristics that categorize human beings. Some examples of demographics include the following:
Lifestyle
Lifestyle is the way people live, including their values, beliefs, and motivations.
Family Life Cycle: single adult, new couple, couple with children, couple with teenagers, launching children, family in later life.
age
gender
family lifestyle
income level
ethnicity and culture

21. Chapter 8: Marketing Marketing Concepts
Marketing Mix Activity
Marketing the Unmarketable
Create a marketing team of no more than 4 students. Choose people that you work well with as you will be working with them throughout the marketing unit.

22. Chapter 8: Marketing The Role and Impact of Marketing - Promotion
BRANDING
Slogan
Slogans are taglines for both print and broadcast advertisements.
Examples include; MasterCard’s “Priceless,” Canadian Blood Services’ “It’s in You to Give,” and Sprite’s “Obey Your Thirst”.
Brand Identification
The writing, the colours used, the design of the package should always be used in association with the product, this way it is always clear to the consumer that they are getting the product they desire.
THE PRODUCT LIFE CYCLE
Successful marketing efforts created brand awareness; customers can name you brand as part of a specific category.
Brand loyalty is when customers prefer your brand and support it.
Brand insistence is when customers will not accept a substitute for a particular brand.
Brands that have reached brand insistence have enormous equity.