1. Chapter 8: Marketing Day 1: The Role and Impact of Marketing

2. Today’s Response Journal
What is your favourite advertisement? Why is it your favourite? What type of medium (TV, magazine, Internet, radio, etc.) is your favourite ad created in? ***Save as Nov. 14 in your Response Journal Folder***
Knorr Sidekicks TV Commercial

3. Introduction to Marketing
_____________ includes all the activities involved with getting goods and services from the _____________ that produces them to the _____________ that want to buy them
Marketing has two fundamental roles;
To sell what a business makes
To manage a business’s brands
Marketing includes; research, development, pricing, sales, distribution, advertising and promotion
Production of goods and services is not part of Marketing
Marketing
Business
Consumers

4. Marketing not much would be sold
Without marketing, ___________________________
Consumers wouldn’t know what goods and services are available
Manufacturers wouldn’t know what to make
There would be no channels of distribution to get products into the hands of consumers all over the world
Non-profit businesses also use marketing to promote their cause and the services they provide
Read paragraph 1 on page 229

5. Branding
____________ is the process of creating a unique image for a product or service in the consumers' mind, mainly done through advertising campaigns 
Some businesses spend hundreds of thousands of dollars to create an image for their product or service, while others spend very little
In either case, the following make up an image;
Brand Name
Logo or Trademark
Slogan
Branding

6. Branding
1. Brand Name
A _________________ is a word or group of words used by a business to distinguish its products from the competition
Most important part of a product or a company’s image because it is how they’re identified
Should be distinctive, easy to remember and stand out from the competition
Read the Roots example in paragraph 3 on page 230
Brand Name

7. Branding
2. Logo or Trademark
A _________________________ is a special symbol that is associated with a product or company
The logo or trademark helps the product compete for consumer awareness
Logo or Trademark

8. Branding
3. Slogan
A _____________ is a short, catchy phrase that is usually attached to the company’s name and logo
Examples:
Skittles: Taste the Rainbow
Maxwell House Coffee: Good to the Last Drop
McDonalds: I’m Loving It!
Canadian Blood Services: It’s in You to Give
Slogan

9. Brand Identification
Once a company develops a name, slogan, and logo for a product everything associated with that product should carry the identification, this includes;
Font style
Colours
Package design
No consumer should ever have to guess whether this is the product they want
Competition is so fierce that no company wants its product to get lost on a store shelf

10. Day 1 Assigned Work Students please complete the following;
Complete the Activity: Slogans (posted on ClassNet under Tasks)

11. Chapter 8: Marketing Day 2: The Product Life Cycle

12. Today’s Response Journal
What is a Fad? Provide a definition and a minimum of 4 products and/or services that you believe were or are fads. ***Save as Nov. 17 in your Response Journal Folder***

13. The Impact of Marketing
The impact of marketing can be measured in 2 ways;
1. A Sales Analysis
Have sales increased? Have we sold more than our competition?
2. Measure consumer reaction to the brand
Effective marketing increases ________________: the value of the brand in the marketplace
Good marketing develops _______________________: customers can name your brand and recognize it as part of a specific category
Better marketing develops ___________________: customers prefer your brand and support it
The Best marketing develops _____________________: the customer will accept no substitutes
E.g. some people will only drink Coca-Cola, some people will only use a BlackBerry as their smart phone, etc.
Brand Equity
Brand Awareness
Brand Loyalty
Brand Insistence

14. Product Life Cycle
The Product Life Cycle, is the ______________ that a product goes through during its life
Marketers use the product life cycle to determine what type of marketing efforts to use
Phases

15. 1. Introduction
The product enters the marketplace through a product introduction, often called a _____________
Consumers need to know the product’s …
Features
Availability
Package design
Brand identification
Marketers sometimes use celebrities to introduce their new product
Initially, marketers usually focus their selling efforts on _____________________
Consumers who like to be the first to own a new product
Launch
Early Adopters

16. 2. Growth
Once early adopters find and use a new product, others soon try it and popularity and sales _______________
This is the stage where competitors start entering the market
Competitors modify the original product by adding features and increasing quality or by making a similar product and offering it at a cheaper price
E.g. Crystal Light first introduced individual serving size packages to mix with water – Nestea and Kool-Aid have since followed – who will be next?
Increase

17. 3. Maturity
During this stage, growth is ______; no increase or decrease
Companies manage their mature products by continuing to advertise; this keeps the product in the public eye and reminds consumers of its advantages over the competition
Cost of sales and distribution are low
Products in this category usually make large profits and are often referred to as ____________; mature products that generate high profits for a company
E.g. Kellogg’s Corn Flakes, Coca-Cola and Tide detergent
Flat
Cash Cows

18. 4. Decline
At some point, most products fail to attract new customers to replace those who leave to buy other brands, therefore, sales of the product ___________
Sometimes a small change in price or a new ad campaign can reverse a temporary decline, but not always
E.g. VCRs
– did not make a come back
Decrease

19. 5. Decision Point
At the final point in the life cycle, marketers make some important brand management decisions
Often they use what brand equity they have left and try to reposition the product, this could involve …
Reformulating
Repackaging
Re-introducing a “new and improved” product
E.g. an old brand of liquid detergent could re-enter the market with a convenient new pour spout
However, decision point management usually involves new promotion and repricing
Often new technology makes old products obsolete, and then no amount of marketing can help
E.g. Flat screen TVs have replaced the picture tube TV

20. Non-Traditional Product Cycles
Some products do not follow the traditional product life cycle, including …
Fads
Niches
Seasonal

21. Fad
A Fad is a product that is _____________ popular for a ___________ period of time
Not a trend (they last longer)
Fads appear in a very select target market (usually under 14 age group) and last less than a year
Old Fads: Pogoballs and Tamagotchis
You may still be able to find these products but they are no longer as popular
When a fad dies, it dies very quickly
Companies can make lots of money on fads if they get out of the market when it reaches it peak
Newer Fad: Silly Bands
Extremely
Short

22. Niche
Some products have a very short growth stage that leads to a solid, but not financially spectacular, maturity stage – these products have what is called a __________;
A product that has a section of the market that they dominate and where few competitors enter
Niche products are usually invented and companies hold exclusive patents or formulas, therefore, by the time other companies can create a competing product it’s too late
E.g. manufacturing specialized computer parts
Niche

23. Seasonal
Seasonal products are products that are only popular during a specific ___________ or ______________
The difficulty with selling a seasonal product is knowing how much ________________ to carry
Don’t want to run out but don’t want to have extra as it’s expensive to store
E.g. Christmas trees, snowboards, ice cream, etc.
Time
Season
Inventory

24. Day 2 Assigned Work Students please complete the following;
Play the Logos and Slogans Quiz Game as a class
Answer Review Question #4 on page 238
Logos and Slogans Quiz Game – saved in the BMI3C Chapter 6 folder

25. Chapter 8: Marketing Day 3: Marketing Concepts

26. 4 Ps of Marketing Read paragraph 2 on page 238
A good marketing campaign considers the 4 P’s of Marketing;
Product
Price
Place
Promotion
These 4 P’s are referred to as the ____________________, and they must be properly combined for an effective marketing campaign
Marketing Mix

27. 1. Product Good product and service development takes into account …
Quality
If you improve the quality of your product, you will attract more customers. E.g. vacuum cleaners that pick up more dirt, movie theatres with moving seats, etc.
Low quality is part of product development as well. If a product can meet consumer need and be less expensive because of lower quality, that product has a good chance of success as well. E.g. Food Basics, no-name products, etc.
Design
We often buy one product over another because we like the way it looks
A package design should consider function, make it easy for consumer use and make the product easy to identify
Services have design features as well
Read paragraph 2 on page 241

28. 1. Product Continued Features Benefits
Product features includes the materials used in construction, the scent, the size, or the taste
Read paragraph 3 on page 241
Service providers outline what they do
Read paragraph 4 on page 241
Benefits
People buy most products and services for a particular purpose - towels for drying, microwaves to cook food quickly, etc.
Consumers must recognize the benefits of a product/service in order to interested enough to buy

29. 1. Product Continued The Product/Service Mix
Many business sell a _____________ of both products and services
E.g. stores such as Ikea adds extras to the products they sell such as delivery, installation and product warranties
E.g. a service business such as a movie theatre also sells products that compliment the service they provide such as soft drinks, popcorn, fries, etc.
Mixture

30. 2. Price
Pricing decisions can make the difference between a successful product and a failure
Businesses need to decide how much to charge for the product or service they provide
Consumers are very aware of price and often compare different brands and stores before buying
Marketers need to know if consumers are ___________________; how much sales will go up or down based on changes in price
Price Sensitive

31. 3. Place
Also known as ___________________________, are paths of ownership that goods follow as they pass from producer to consumer
Businesses use different methods to sell and distribute its products to consumers
A marketer can use 3 types of distribution channels;
Direct
Indirect
Specialty
Channels of Distribution

32. Maker-User Relationship
3. Place
A. Direct Channel
Selling directly to the consumer
E.g. farmer’s market, bakery, etc.
With a direct channel, there is no _________________ (middle person) to increase the cost to the consumer
Also known as a __________________________ because consumers can inform businesses about their needs and they may feel more confident because they know the actual source of the products they are buying
Intermediary
Maker-User Relationship

33. 3. Place B. Indirect Channel Have one or more intermediaries
Could be an importer, wholesaler or retailer
An ______________ is someone who searches for foreign businesses that want to sell their product to Canadian consumers
A _______________ buys goods from producers or importers and then resells to retailers
A ______________ doesn’t make their own product, but sells other business’s product’s to the consumer
E.g. Canadian Tire
Importer
Wholesaler
Retailer

34. 3. Place C. Specialty Channels
A specialty channel is an indirect channel of distribution that does not involve a retail store
Examples include …
Vending machines
Telemarketing
Catalogue sales
E-commerce
Door-to-door sales

35. 4. Promotion Promotion is any attempt to ______ a product or service
___________________ encourages consumers to buy products using any of the following methods;
Coupons
Contests
Premiums
Samples
Special events
Sell
Sales Promotion

36. 4. Promotion
A. Coupons
Coupons offer consumers money off the price of a product
Coupons are presented at the point of purchase and treated like cash
Canadian consumers are exposed to more than 1200 coupons a year, and therefore most coupons end up in the garbage
Advertisers measures the effectiveness of a coupon by looking at the ____________________; the percentage of coupons actually used by consumers
The average redemption rate is approximately ____
Redemption Rate 5%

37. 4. Promotion
B. Contests
Contests are an exciting way to increase brand recognition and sales
By law, businesses must organize contests so that anyone can enter and they must require people to demonstrate a skill or answer a skill-testing question
Read the Tim Hortons Roll Up the Rim example in paragraph 4 on page 247

38. Customer Loyalty Cards
4. Promotion
C. Premiums
Premiums are _______________; something a consumer gets for free when purchasing a product
E.g. a toy in a cereal box
Many businesses encourage brand loyalty by giving free products to regular customers, through the use of __________________________
These cards are stamped each time the consumer makes a purchase
E.g. TCBY – buy 10 Shivers, get the 11th one free
Giveaways
Customer Loyalty Cards

39. 4. Promotion
D. Samples
Samples encourage consumers to ______ a product
Often samples are small “trial” sizes of the product
Samples are usually distributed door-to-door, at a retail outlet (mall, supermarket, etc.) or through the mail
Samples are an effective way to _______________ but are also very ___________
Try
Increase Sales
Expensive

40. 4. Promotion E. Special Events
Special events are organized to attract consumers and increase product sales
E.g. book signings, celebrities visiting stores that sell their brand of shoes, etc.
The main purpose of a special event is to excite consumers, encourage their participation, and ultimately get them to buy
Consumers are ________ likely to buy if they are having _______
More
Fun

41. Day 3 Assigned Work Students please complete the following;
Complete the 4 Ps of Marketing worksheet (posted on ClassNet under Tasks)

42. Chapter 8: Marketing Day 4: Marketing Concepts Part 2

43. Two Cs of Marketing
In order to put together a marketing mix, the marketing department must consider the following two major external factors, also called the 2 Cs of Marketing …
The Competition Market
The Consumer Market

44. 1. Competition Market
The Competitive Market consists of all the ___________ of a specific product
Often expressed in terms of the dollar value spent annually on a specific product
Read paragraph 2 on page 249
___________________ is the percentage of the market that a company or brand has
Read paragraphs 3 & 4 on page 249
See Table 8.1 on page 250
Sellers
Market Share

45. 1. Competition Market
A ___________________ is a part of the overall market that has similar characteristics
For example the Soft Drink Market can be further divided into a flavoured segment, a diet segment and an energy drink segment
Market Segment

46. 1. Competition Market
Competition Among Products
Products that are very similar to one another are in ______________________
The consumer chooses between products in direct competition because of minor differences
E.g. Ritz crackers vs. Premium Plus crackers
Direct Competition

47. 1. Competition Market Competition among Products
__________________________ is competition between products or services that are not directly related to each other
E.g. movies and pizza – read the example found in paragraph 3 on page 251
Indirect Competition

48. 1. Competition Market - Income
_______________________ is used to pay for basic necessities, and is the money a person makes after taxes have been paid
___________________________ is the income that you have that is not already committed to paying for necessities (food, clothing, shelter) and can be used to buy items for comfort and pleasure
Disposable Income
Discretionary Income

49. 2. Consumer Market
Companies study the types of consumers that buy their products
These consumers can be identified in at least two ways;
Demographics
Lifestyle

50. 2. Consumer Market Demographics
Demographics is the study of obvious characteristics that categorize people, such as …
Age
Gender
Family life cycle
Income level
Ethnicity and culture
Businesses use demographics to target specific consumers

51. 2. Consumer Market
Lifestyle
Lifestyle is the way people ________, which includes their _________, __________ and _______________
Less obvious than demographics, but just as important
A person’s beliefs influence what he or she buys
E.g. an environmentally conscious person would not buy an SUV
Live
Values
Beliefs
Motivations

52. Day 4 Assigned Work Students please complete the following;
Complete the Demographics Worksheet provided to you
Review Questions #5 – 8 on page 254

53. Chapter 8: Marketing Day 5: What Makes a Good Ad?

54. Advertising
The goal of advertising is … to encourage consumers to remember the product.

55. Rules for a Good Ad
Attention Interest Desire Action

56. Attract Attention Print Ads A good headline that mentions the brand
Rarely more than 7 words
Broadcast Ads
Attract attention using sound, unusual visuals, a celebrity or attractive person
Want to hold attention for 60 seconds

57. Gain Interest Print Ads Should be simple and easy to read
Consistent font
Message should be clear and to the point
Broadcast Ads
Should try to get to the main message as soon as possible

58. Build Desire
The sales message should be connected to the visual message
Goal is to get the consumer to want your product
Useful to set up a problem that your product solves
Read Sprite example – paragraph 3 page 256

59. Get Action Always ask for the sale Summarize the reasons to buy
Print Ad
Want logo, slogan, brand name and contact information in the bottom right-hand corner
Print and Broadcast Ads
Should repeat a phone number and web address

60. Terminology Advertising
The paid-for promotion of a business’s goods and services over a variety of mass media to a target market of consumers
Publicity
Media information about a business that the business doesn’t pay for
Can be positive or negative

61. Types of Advertising
Most often, advertising is classified according to the type of medium used to carry the message, such as …
Direct-to-home
Out-of-home
Radio TV
Newspapers
Magazines
Internet

62. Direct-to-Home An advertising message that comes to your home
E.g. flyer or catalogue that is delivered to your home
Consumers do not ask or pay for this type of advertising
Ads on the Internet can also fall into this category

63. Out-of-Home
Any advertising message that the consumer receives when not at home
E.g. billboards, bus and subway ads, etc.

64. Radio The “go anywhere” medium
An effective ad uses words and sounds to gain interest
Coke Radio Ad

65. TV Combines words, sounds and images An extremely effective medium
Very expensive
Audience is potentially millions

66. Newspaper Have a choice about distribution
Local or national
Small companies might choose a local paper
Large companies could be local or national
Expensive to place a large ad, but inexpensive to place a small ad

67. Magazines Many advantages over newspapers including; Use of colour ads
Use of specialty magazines to target specific groups of consumers (using demographics)
E.g. women, new parents, young people, retired people, etc.

68. Internet There are 3 Types of Internet Advertising; Company websites
Attracts consumers who are interested in the company in the first place
Can convert interest into sales
Banner advertising on other websites
Target consumers on one site and directs them to another
advertising
If a consumer subscribes to a specific site and are expecting updates, offers and ads, then this form can be effective
Can be annoying to get messages from companies you don’t know

69. Day 5 Assigned Work Students please complete the following;
Complete the Comparing Types of Advertising Worksheet provided to you
Review Question #14 on page 262

70. Chapter 8: Marketing Day 6: Market Research

71. Overview Market Research
___________________ is the collection and analysis of information that is relevant to the marketing strategy
Types of Market Research include;
Consumer
Market
Motivation
Pricing
Competitive
Product
Advertising
Market Research

72. Types of Data Marketing research relies on 2 types of data … Primary
Current information that researchers collect and analyze for a specific purpose
Collected in a number of ways including test marketing, internal information sources, surveys, observation and focus groups

73. Types of Data continued…
Secondary
Information that has been collected by others
Sources include websites, books, professionally prepared research reports
It is free
Disadvantage is that data wasn’t collected specifically for you so it may not meet all your needs
E.g. Statistics Canada

74. Sources of Primary Data
Researchers can collect Primary Data in the following ways;
Test Marketing
Introducing a product to a specific area in small quantities
Area is usually selected based on demographics
Very expensive so must be done carefully if results are to be used
E.g. Scotiabank tested the chip card in this area before making it available to all bank customers
E.g. Tim Hortons tested the ice cappuccino in this area before making it available at all their locations

75. Sources of Primary Data
Internal Information Sources
Using information generated by the business (sales records, inventory data, advertising and promo results) and analyzing it
Can help identify who purchases what and when
Can also be shared with suppliers
E.g. Air Miles can track where you buy and can partner with other companies to send you coupons and information

76. Sources of Primary Data
Surveys
A set of carefully planned questions that are used to gather data
Most surveys use __________________________
Questions that require the respondent to select an answer from two or more choices
E.g. Yes/No, Agree/Disagree, Select a, b, c, d
These types of questions are easy to answer and easy to score
Open-Ended Questions
More complicated
Require respondents to develop their own answers
Difficult to answer and analyze
Closed-Ended Questions

77. Sources of Primary Data
Observation
Watching the behaviour of others without them knowing
E.g. using two-way mirrors, cameras, etc.
The goal is to observe how people react in certain situations

78. Sources of Primary Data
Focus Group
A company-arranged meeting of potential consumers
One of the most popular forms for consumer research
The company usually offers an incentive to consumers for participate in the focus group such as:
Free meal, money, samples of product, etc.

79. Day 6 Assigned Work Students please complete the following;
Working with a partner, create a minimum of 10 survey questions that you could ask your fellow schoolmates before putting on the next school dance. The questions should provide you with information on theme ideas, price, dates and time, etc.
Read the about the 7 Types of Market Research on page 263 and write the definition of each in your notes