Products

4 PsProduct, Pricing, Place/Distribution, PromotionProductsGoods, Services, and EventsInvention or InnovationA new idea must always start by solving aproblem or meeting a consumer need

InventionNew devices, methods, or processes developed from study and experimentation

InnovationImproves on existing products, processes, or distribution methods.

Canadian Inventions E-ActivityVisit the following hyperlink and complete the chart below http://www.worldofmarketing.nelson.com/studactivities.html

Chapter 5 Canadian Inventors Use the 2nd and 3rd link in number 2

Canadian InventionCanadian InventorWhen was it invented?What problem did it solve?1.2.3.The Stages of Product DevelopmentFeasibility StudyIs this financially feasible?Idea ScreeningTest consumer reaction and competitive situation.Concept DevelopmentDesign a prototypeMarket StrategyIdentify target market, and create marketing plan.Idea GenerationWhat do consumers want?Product DesignWhat features does the target market want?Test MarketingTarget market will test the product and provide feedbackMarket EntryThe product enters the product life cycleThe Product Life CycleDescribes the change in consumer demand over time.Based on the knowledge that no product can be in demand forever.

Celebrity Life Cycle ActivityCelebrities 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 DecisionsProduct AttributesBrandingPackagingLabellingProduct-Support ServicesProduct PositioningThe way the product is defined by consumers on important attributes.

The place the product occupies in the consumers minds relative to competing products.

ExamplesBMW positioned on performanceHonda on economyVW on safety

Steps in Positioning a ProductIdentify possible competitive advantages ( Recall)

Selecting the right competitive advantage

Effectively communicating and delivering the chosen position to the marketExamples of Positioning StrategyBest quality

Best service

Lowest price

Best value

Best technologyFadsGo to the following link and complete the chart belowhttp://www.crazyfads.com

List two fads from the 80sList two fads from the 90sList two current fads1.

2.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?PricingFactors involved in PricingExternal FactorsNature of Market and DemandCompetitionOther environmental factors (economy, gov., resellers

Internal FactorsMarketing ObjectivesMarketing Mix StrategyCostsOrganizational ConsiderationsExamples of Pricing DecisionsInternal Factors an example:Days Inn have positioned themselves as motelsthat provide economical rooms for budget conscious travellers this position requires charging a low price.

Examples of Pricing DecisionsExternal 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.

Economies of scaleThe more products a company makes, thelower the cost of production for each item.ORThe more product a company buys, thelower the cost to purchase each item.

Example, WalMart buys in such largequantity that they can force a supply tolower their pricePricing StrategiesPenetration 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.

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) = $15Pricing ActivityVisit 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:

Placea.k.a DistributionDefining Key Terms:Manufacturer: Produces the product

Wholesaler: Sells the product in bulk

Retailer: 3rd channel of distribution. Buys from the wholesaler!Distribution Strategies1. Conventional Marketing Channel

Example: Kelloggs selling their product at Metro grocery stores.

Distribution Strategies2. Direct Marketing Channel

Example: Dell computerssold directly to consumers by their website or over the phone.ManufacturerConsumerDistribution3. Vertical Marketing System (VMS)

Example: WalMartwith their huge buying power has a

Example: WalMart with their huge buying power has major influence over the distribution channel

LogisticsThe process of designing and managing a supply chain.

How to get the product from the manufacturer to the consumer.

http://www.youtube.com/watch?v=95EeUAvAba4http://www.youtube.com/watch?v=mRAHa_Po0Kg

LegalitiesComplete the legalities activity to investigate the legalities of logistics.PromotionPromotion IncludesAdvertising

Sales Promotion

Public Relations & Publicity

Personal Selling

Goals of AdvertisingBrand Awareness & Positioning Inform target market about the brands 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

Goals of AdvertisingBrand Reminder Remind consumers that the brand is still available

Brand Repositioning- Changing the target market to reflect new trends and technology

AIDAAttention Attract the consumersattention

Interest Get their interest

Desire Build their desire for the product

Action Provide a method for theconsumer to take actionDo These Ads Follow AIDA?Check out 3 past Super Bowl ads at http://superbowl-ads.com/article_archive

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 advertisementCommercial123AIDAInnovative PromotionsAmazon.com target market of one

AND1 Mix Tape Tour

Bumvertising UW student uses Bums atbusy intersections to hold up signs advertising his gambling website

More Innovative PromotionsLevis Silvertab jeans Painted historic Queen St. Silver

Celebration, Florida Entirely brandedtown, a Disney creation

Marketing StuntsGo to http://www.entrepreneur.com/slideshows/index.html-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.PromotionType of PromotionCompanyMediumMessage, Models, etc.AdvertisingRBKTelevisionCrosby using RBK gear and is awesome! You can be awesome too!Sales PromotionMBNA MastercardSporting Events-Scotiabank PlaceFree Sens T-Shirt/Blanket when you sign up for a card.Public RelationsOttawa 67s OHL HockeyLocal newspapers cover the eventRead or visit children at CHEO.