Marketing Part 1

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MarketingPart 1 Introduction and Product
planning
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INTRODUCTION

• MARKETING
• The performance of business activities that
  direct the flow of goods and services from
  producer to consumer
• MARKETING PLAN
• A set of strategies for accomplishing marketing
  objectives marketing plan

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MARKETING MIX

• The combination of
• Product
• Price
• Place (Distribution)
• Promotion
• directed to reach a particular target market.

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Where to begin

• In implementing the marketing concept the first
  step is to listen to consumers about their needs
  and wants.
• Effective marketing research involves listening
  to employees, shareholders, dealers, and
  customers.

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WHAT DO CONSUMERS WANT?
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What do consumers want?

• Consumers buy products because they have a
• use for the good
• like the convenience
• take pride in ownership

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Who are our customers?

• MARKET SEGMENTATION
• Process of dividing a market by similar traits
• TARGET MARKET
• A market segment toward which a firm directs its
  marketing effort is target market.
• Pepsi directs their advertising to the 18 to 34
  age group

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Market research

• What do you think?
• Internal data
• Accounts receivable
• Comparisons of sales by territory or product line
• Profitability of particular divisions
• External data
• Observation
• Studies
• Surveys

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• Market segmentation allows market researchers to
  determine how and why certain groups of people
  buy products and services
• Demographics age, sex, income, occupation,
  household size, education
• Geographic weather, culture

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Classifying products

• Industrial goods good purchased by industry
  commerce, government, and intermediary companies
  for the production of other goods or for the
  resale to consumers (B2B)
• Consumer finished goods intended for use by the
  consumer for personal, family, or household use

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• Specialty goods require even more shopping
  effort because they have special qualities
• Shopper is willing to make special effort to buy
• Custom-made furniture, gourmet foods,
  high-quality clothes
• Fine wines, artwork
• May require considerable time, effort, and money
  to find

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Classifying Services

• Industrial
• Consumer

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Product Life Cycle

• Introduction
• Inform/promotion
• Growth
• Maturity
• Declining
• Extend products life
• Persuading consumers that they need additional
  items.
• Finding new uses for the product.
• Changing sizes, packaging, and labeling.

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Introduction

• Challenge of making potential customers award of
  the products existence, its features, benefits,
  and uses, consumer awareness and acceptance of
  the product is very low, no competitors have hit
  the market, profits are low, and promotional
  expenses are very high

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Growth

• Acceptance by public, repeat sales, profits begin
  to happen , and competition begins

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Maturity

• Reaches its peak in sales and profits, there
  begins a slight decline in sales and profits and
  company needs to make a decision about the
  products life

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Decline

• Sales volume falls greatly, profits are near zero
  and there is little hope for the product to ever
  be a profitable success

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Naming your product

• Simplicity
• 5-7 letters
• Easy to remember
• Cost
• Easy to pronounce
• No tongue twisters
• In-line with the product
• Turtle for a computer?
• Suggestive of the quality or use of the product
• Examples Spray Wash, Gold Medal, and Brisk.
• Distinctive and individual
• Able to stand the test of time
• Not based on a short-lived fad

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Packaging

• All are elements of product packaging attention
  getters, divide contents into usable portions,
  used to inform users of the product, both
  marketing and functional value
• All those activities involved in developing and
  providing a container for a product are
  packaging.

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Terms

• PRODUCT LINE
• Kelloggs producing Corn Flakes, Raisin Bran,
  Rice Krispies, etc, is an example of product
  line.
• PRODUCT MIX
• General Mills selling yogurt, cereal, and baking
  products is an example of product mix.
• TRADEMARK
• A brand that is registered with the U.S. Patent
  and Trademark Office to legally protect it
  trademark.