Slide 1

Product, Pricing, Place/Distribution, Promotion Slide 2 Goods, Services, and Events Slide 3 A new idea must always start by solving a problem or meeting a consumer need Slide 4 New devices, methods, or processes developed from study and experimentation Slide 5 Improves on existing products, processes, or distribution methods. Slide 6 Visit the following hyperlink and complete the chart below http://www.worldofmarketing.nelson.com/studactivitie 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? 1. 2. 3. Slide 7 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 Slide 8 Describes the change in consumer demand over time. Based on the knowledge that no product can be in demand forever. Slide 9 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. Slide 10 Product Attributes Branding Packaging Labelling Product-Support Services Slide 11 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 Slide 12 Identify possible competitive advantages ( Recall) Selecting the right competitive advantage Effectively communicating and delivering the chosen position to the market Slide 13 Best quality Best service Lowest price Best value Best technology Slide 14 Go to the following link and complete the chart below http://www.crazyfads.com List two fads from the 80s List two fads from the 90s List two current fads 1. 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? Slide 15 Slide 16 External Factors Nature of Market and Demand Competition Other environmental factors (economy, gov., resellers Internal Factors Marketing Objectives Marketing Mix Strategy Costs Organizational Considerations Slide 17 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. Slide 18 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. Slide 19 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 Slide 20 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. Slide 21 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. Slide 22 Slide 23 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) Slide 24 Cost Plus Pricing: A very common strategy. Ex. Cost ($10) plus $5 (desired profit margin) = $15 Slide 25 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: Slide 26 a.k.a Distribution Slide 27 Manufacturer: Produces the product Wholesaler: Sells the product in bulk Retailer: 3 rd channel of distribution. Buys from the wholesaler! Slide 28 1. Conventional Marketing Channel Example: Kelloggs selling their product at Metro grocery stores. Slide 29 2. Direct Marketing Channel Example: Dell computers sold directly to consumers by their website or over the phone. Manufacturer Consumer Slide 30 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 Slide 31 The process of designing and managing a supply chain. How to get the product from the manufacturer to the consumer. Slide 32 http://www.youtube.com/watch?v=95Ee UAvAba4 http://www.youtube.com/watch?v=95Ee UAvAba4 http://www.youtube.com/watch?v=mRA Ha_Po0Kg http://www.youtube.com/watch?v=mRA Ha_Po0Kg Slide 33 Complete the legalities activity to investigate the legalities of logistics. Slide 34 Slide 35 Advertising Sales Promotion Public Relations & Publicity Personal Selling Slide 36 Brand 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 Slide 37 Brand Reminder Remind consumers that the brand is still available Brand Repositioning - Changing the target market to reflect new trends and technology Slide 38 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 Slide 39 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 advertisement Commercial123 A I D A Slide 40 Amazon.com target market of one AND1 Mix Tape Tour Bumvertising UW student uses Bums at busy intersections to hold up signs advertising his gambling website Slide 41 Levis Silvertab jeans Painted historic Queen St. Silver Celebration, Florida Entirely branded town, a Disney creation Slide 42 Go 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. Slide 43 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 67s OHL Hockey Local newspapers cover the event Read or visit children at CHEO. Slide 44