1. Chapter 9 The Role and Functions of Marketing

2. Product Life Cycle (Fads and Seasonal look different)

3. Brand Management Strategies Push Strategy Push Strategy Goods flow through the channels of distribution where they pass from producer to consumer via importers, wholesalers and retailers Goods flow through the channels of distribution where they pass from producer to consumer via importers, wholesalers and retailers Main goal is to sell to retailer who sells to consumer Main goal is to sell to retailer who sells to consumer Push to obtain good sales space (reasonable compared to established brands already carried?) Push to obtain good sales space (reasonable compared to established brands already carried?) May offer deals: cheaper cost prices, cooler to store drinks in (doesn’t take up shelf space), store contests, pay for advertising (shelf allowance) May offer deals: cheaper cost prices, cooler to store drinks in (doesn’t take up shelf space), store contests, pay for advertising (shelf allowance)

4. Pull Strategy Pull Strategy Goes straight to consumers instead of through retailers Goes straight to consumers instead of through retailers They attempt to convince consumers who, in turn, convince retailers to carry products by going into stores to look for the product. This convinces the retailer that they should carry it. They attempt to convince consumers who, in turn, convince retailers to carry products by going into stores to look for the product. This convinces the retailer that they should carry it. Often do this through advertising Often do this through advertising

5. Marketing Research 1. Consumer Research What type of products do consumers want? What type of products do consumers want? Surveys and interviews Surveys and interviews Focus groups (get potential consumers together to talk about an idea for a product) Focus groups (get potential consumers together to talk about an idea for a product) 2. Market Research Identify who would use certain products using demographics and psychographics Identify who would use certain products using demographics and psychographics 3. Motivation Research Why do we buy? Why do we buy? Analyze emotional and rational motives that determine consumer behavior Analyze emotional and rational motives that determine consumer behavior

6. 4. Pricing Research Helps marketer determine the price that can be assigned to products so they are competitive and still make a profit Helps marketer determine the price that can be assigned to products so they are competitive and still make a profit 5. Competitive Research Similar products are studied to see where there have been mistakes made and where there is room for a new market Similar products are studied to see where there have been mistakes made and where there is room for a new market 6. Product Research Examines details of products (color, packaging, flavor, size, texture, scent design, sound) and how they have an impact on the market; maybe it can be made easier for consumers to use Examines details of products (color, packaging, flavor, size, texture, scent design, sound) and how they have an impact on the market; maybe it can be made easier for consumers to use 7. Advertising Research Provide information on most effective way to get the message across to customers Provide information on most effective way to get the message across to customers

7. Product Development Product Design Product Design Form – what product looks like, shape, color/ patterns, material Form – what product looks like, shape, color/ patterns, material Function – what product is designed to do Function – what product is designed to do Packaging – protection, easy to use, shape (identification), label Packaging – protection, easy to use, shape (identification), label Branding – identifies product Branding – identifies product

8. Channels of Distribution Product does not change along the way Product does not change along the way If it has changed, it is at the end of the current chain and at the beginning of a new one (example: wheat into bread) If it has changed, it is at the end of the current chain and at the beginning of a new one (example: wheat into bread) 1. Direct Channel – sell directly to consumers (costs less money because you don’t have to give up some profit to intermediaries along the way). Provides direct feedback to businesses and people know where their products are coming from (farmer’s market).

9. 2. Indirect Channels – product goes through different businesses along the way Importers – products are brought into Canada from another country and sold Importers – products are brought into Canada from another country and sold Wholesalers – buy products in large volumes and then resell them to businesses Wholesalers – buy products in large volumes and then resell them to businesses Retailers – buy products and sell to consumers Retailers – buy products and sell to consumers 3. Specialty Channels – indirect channel that does not use a retailer Vending machines Vending machines Telemarketing (sales pitch) Telemarketing (sales pitch) Catalogue sales Catalogue sales E-commerce E-commerce Door-to-door sales Door-to-door sales

10. Types of Advertising Direct-to-home – any ads that come to your home (flyer, internet ad, catalogue) Direct-to-home – any ads that come to your home (flyer, internet ad, catalogue) Out-of-home – any advertising message that the consumer is supposed to receive while not at home (billboard, buses, subways, transit shelters) Out-of-home – any advertising message that the consumer is supposed to receive while not at home (billboard, buses, subways, transit shelters) Radio Radio Television Television Newspapers Newspapers Magazines Magazines

11. Sales Promotions Coupons (redemption rate = % of coupons distributed that actually get used by consumers; average = 5%) Coupons (redemption rate = % of coupons distributed that actually get used by consumers; average = 5%) Contests Contests Premiums - get something free with product (customer loyalty cards) Premiums - get something free with product (customer loyalty cards) Samples Samples Special Events Special Events

12. Activity 1. Design a product 2. Choose one type of research that you will do to make sure the product will sell. What do you feel will be the results of the research? (hypothetical) 3. Will you use the pull or push strategy? Describe how. 4. Product Development: describe one feature from each category. 5. What channel will you sell it through and why? 6. Choose one type of advertising you will use and one type of sales promotion (describe).