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Marketing

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  • 1. Marketing C OBrien Chanel College
  • 2. Learning Objectives What is Marketing? What is the marketing mix? What is branding? What is public relations (PR) What is advertising? What is the role of ethics inadvertising? C OBrien Chanel College
  • 3. Definition:Marketing is the process of identifyingHuman needs and producing products And services to satisfy them C OBrien Chanel College
  • 4. Marketing Strategy A plan setting out how a business will identify and satisfy customer needs C OBrien Chanel College
  • 5. Marketing Strategy Gap in market/ Product Target Market Marketing MixMarket Segments positioning C OBrien Chanel College
  • 6. Marketing StrategyAnalysing the market1. Market Segmentationo Market Segment/ Niche: Group of peoplein which the product satisfies a similarneed.o Different needs require differentmarketing approacheso Demographic segmentation – age/income/ sex/ social classo Psychological segmentation – attitudes/tastes C OBrien Chanel College
  • 7. Outline the Market SegmentsFor the following products C OBrien Chanel College
  • 8. 2. Target Marketo Target Market – Group of customers atwhich to aim a specific producto Characteristics – Age Gender Income level Lifestyle needs C OBrien Chanel College
  • 9. 3. Research – Product Positioningo Product Positioning- Creating an imageof the product in the customers mind. C OBrien Chanel College
  • 10. Explain the advantages for a businessOf adopting the marketing conceptName: Cost EffectiveExplain: Having an effective marketing concept inplace saves a business money in the long termbecause instead of spending huge amounts ofmoney on what they can make they identifyconsumer needs first and then develop the productExample: ipadName: Time ManagementExplain: Instead of spending time developingproducts businesses use their time moreeffectively by researching consumer needs andthen develop the productsExample: PepsiOBrien Chanel College C Max
  • 11. What is a niche marketNiche Market: A niche market is a smallmarket segment in which a specific product orservice meets a small group of consumerneeds.Example: Bridal shoesWhat is product positioningProduct positioning: This is when a businesscreates an image of the product in theconsumer’s mind.Example: Pepsi Max – Male segment ‘macho’image C OBrien Chanel College
  • 12. C OBrien Chanel College
  • 13. Product Core Product – Main Function Augmented Product- Extras to help sell it. e.g. packaging/ guarantee USP - Feature distinguishing it from competitorsC OBrien Chanel College
  • 14. Product Design and qualityFunction: Product must do what is supposedto do to satisfy target market core needs.Form: Product must satisfy augmented needsIn terms of extras. E.g. Image/ Style C OBrien Chanel College
  • 15. Product life cycle C OBrien Chanel College
  • 16. 1. Introduction: Product is launched. Sales are slow. Focus on distribution – widespread availability Advertising is key2. Growth: Advertising leads to increase in sales Focus on production & quality control to meet demand 3. Maturity: Rate of increase in sales slows Find ways to update product/ provide sales promotion techniques R&D of new products commences C OBrien Chanel College
  • 17. 4. Saturation: Sales have levelled off. Target markets are already buying the product Can only increase sales by taking competitor’scustomers New sales promotion techniques/ advertising/ R&Dneeded5. Decline: Supply of product is greater then the demand of it Attempts to minimise costs by reducing spending onadvertsing to earn as much profit as possible. C OBrien Chanel College
  • 18. PackagingProtection – from damage during distributionPresentation- Attractive to purchaseInformation- Contains info about the productIdentity- Easily recognisable by consumers C OBrien Chanel College
  • 19. BrandDefinition: is a product name which hasbeen registered with the controller ofPatents, Designs and Trade Marks and isprotected against copying by competitors. C OBrien Chanel College
  • 20. Patent:o Is legal protection for a productor process.o Must register product withpatent office.o The patent holder hasexclusive rights to their productfor 10 years C OBrien Chanel College
  • 21. Trade mark:o A sign representing a product/service and can be recognisedevery where.o Name/ Slogan/ Logo/ Colour/Sound C OBrien Chanel College
  • 22. Advantages of Brands 1. Identity: Makes the product more recognisable 2. Differentiation: Shows the differences that Exists compared to competitors products 3. Loyalty: Brand satisfaction develops trust in Consumers and they become loyal to that brand4. New products: An established brand makesIt easier for the business to introduce new productsInto the market C OBrien Chanel College
  • 23. Own BrandsDefinition: Brands registered by retailers C OBrien Chanel College
  • 24. Benefits of own brands• The Retailer: Buys products more cheaply as manufacturer is not advertising• Consumers: Purchase cheaper products where the quality is expected to be at a minimum standard• Producers: Get the products out to supermarket shelves without any marketing costs. C OBrien Chanel College
  • 25. PriceCharacteristics:•Profit: Price must be set high enough to covercosts but make a profit•Sales/ Demand: Lower the price = Higher thesales = higher profits•Image: High price – good quality ; Low price –lower quality C OBrien Chanel College
  • 26. Pricing strategies1. Mark-up pricing: adding a % (mark-up) to the cost of the product and sell it at that price2.Premium pricing: High price reflecting high quality, Give impression of superior quality3. Price Skimming: High price to cover high costs of developing new product. C OBrien Chanel College
  • 27. 4. Penetration pricing: Low price to enter highly competitive market to gain market share5. Predatory pricing: Very low price to drive competitors out of the market. Can lead to ‘price war’6. Price discrimination: Charging different prices to different market segments for the Csame product. OBrien Chanel College
  • 28. Demand Profit Stage inVat Factors influencing product life Price cycle Product Competitors Positioning C OBrien Chanel College price
  • 29. Place• Getting products to consumers!• Channels of distribution: route involved in getting product from producer to consumer. C OBrien Chanel College
  • 30. AStep 1: Wholesalers buy in bulk from the producerStep 2: They store goods in warehouses and sell them on to retailersStep 3: Retailers sell the goods in smaller quantities to consumers C OBrien Chanel College
  • 31. Advantages to producer Disadvantages to producer1. Producers sell off stock in large 1. Wholesalers will mark-up thequantities & pass off responsibility price of goods. May make productsof ‘breaking bulk’ uncompetitive.2. Cost of transport & storagebecomes wholesaler & Retailersresponsibility C OBrien Chanel College
  • 32. BStep 1: Large retailers purchase directly from manufacturersStep 2: Retailers sell goods at cheaper price to consumersOwn brand products are also produced for these retailers and online retailers C OBrien Chanel College
  • 33. Advantages to producer Disadvantages to producer1. Distribution simplified 1. Large retailers expect largebecause wholesaler is discounts for selling thebypassed producers stock reducing their profit margin2. Using large retailers meansproducers can reach a massmarket C OBrien Chanel College
  • 34. CStep 1: Agents receive goods and sell them on behalf of the producersStep 2: The agent earns commission on goods sold C OBrien Chanel College
  • 35. Advantages to producer Disadvantages to producer1. Wholesaler and retailer 1. Difficult to reach massare bypassed so profit marketmargin increased C OBrien Chanel College
  • 36. D Producers sell directly to their customersAdvantages to producer Disadvantages to producer1. Bypass other intermediaries 1. High focus on attractingallowing for increased profit customers instead of mainmargins focus on product itself2.Develop good customerrelationship C OBrien Chanel College
  • 37. Target marketEase of transport Factors influencing Distribution Payment Product Image methods C OBrien Chanel College
  • 38. PromotionThe way a business influences the target market to purchase their products` How? C OBrien Chanel College
  • 39. AdvertisingAdvertising is the science of creating and placingmedia that Interrupts the consumer and then gets him or her to take some Action. C OBrien Chanel College
  • 40. Functions of AdvertisingInformative:Providing information about thefunction of the product/service.Persuasive:Convincing consumers of thedesirability and the benefits that set aparticular product apart from thecompetition. C OBrien Chanel College
  • 41. Generic:Promote the sale of a product but not aparticular brandCompetitive:Comparing brands with each othershowing why their product/service is betterE.G. Supervalu v Lidl & AldiReminder:General adverts showing brands C OBrien Chanel College
  • 42. Informative or Persuasive or Generic? C OBrien Chanel College
  • 43. Informative or Persuasive or Generic? C OBrien Chanel College
  • 44. Reminder or Persuasive or Generic? C OBrien Chanel College
  • 45. Informative or Persuasive or Generic? C OBrien Chanel College
  • 46. Informative or Persuasive or Generic? C OBrien Chanel College
  • 47. Informative or Persuasive or Generic? C OBrien Chanel College
  • 48. Informative or Persuasive or Generic? C OBrien Chanel College
  • 49. Target marketAdverting budget Factors influencing choice of advertising medium Aim of advert C OBrien Chanel College
  • 50. Mediums of advertisingINTERNET C OBrien Chanel College
  • 51. E-commerce:•Selling goods or services over the internet iscalled e-commerce or e-business.•The ‘e’ stands for ‘electronic’•B2C is used to identify sales from a businessdirectly to consumers.• B2B indicates sales from one business toanother. C OBrien Chanel College
  • 52. Websites C OBrien Chanel College
  • 53. Social Media C OBrien Chanel College
  • 54. Social media:•Also known as social networking and refers to arange of internet technologies that enable peopleto communicate and socialise online.• Users can combine text, video and audio tocreate online messages, podcasts and statusupdates.•E.G.S Facebook, Twitter and their increasingpopularity in providing businesses with anopportunity to reach members of their targetmarket. C OBrien Chanel College
  • 55. C OBrien Chanel College
  • 56. HomeworkPage 309Q.3 Q.6 Q. 7 C OBrien Chanel College
  • 57. Answers Question 31. Identity: Makes the product more recognisable2. Differentiation: Shows the differences that exists compared to competitors products3. Loyalty: Brand satisfaction develops trust in consumers and they become loyal to that brand4. New products: An established brand makes It easier for the business to introduce new products Into the marketQuestion 61. Target market: This will influence whether the price will be set high or low taking into consideration their characteristics e.g age, income levels2. Cost of production: A price must be set to cover the costs of producing the goods3. Demand: The higher the demand for the product the higher the selling price4. Product positioning: The image that the business are trying to C OBrien Chanel College portray to the public will effect pricing strategy. E.g. premium pricing.
  • 58. Question 7:In the channel of distribution there can be two intermediariesbetween the producer and the consumer. These are thewholesaler and the retailer.Benefits of intermediaries:• The wholesaler/ Retailer buys in bulk from the producer so theybecome the ones responsible for ‘breaking bulk’.• They incur the costs of transport and advertising to the consumer•Allows distribution of products to a mass market. Increasingsales, increasing profitsBenefits of selling directly to consumer:• Earns extra profit for the producer because they can chargehigher price to the consumer as wholesaler and retailer are nottaking a cut•Consumers can custom order goods to their specifications•Develop positive relationship with the consumers increasingcustomer loyalty C OBrien Chanel College
  • 59. How to execute an advertising campaignStep 1: Analyse•Collect & analyse market researchof market segments and targetmarketStep 2: Plan•Identify aims of advert•Decide budget of adverting•Decide on media mix to be used•Evaluate cost effectiveness C OBrien Chanel College
  • 60. Step 3: Implement• Design adverts• Produce adverts• Book advert slots• Decide on timing to showcase adverts to maximiseimpactStep 4: Review• Effects on sales levels• Effects on consumer attitudes – market research• Make improvements C OBrien Chanel College
  • 61. Laws in AdvertisingASAI- Advertising Standards Authorityin IrelandAds must be: Legal Decent Honest Truthful C OBrien Chanel College
  • 62. Office of Director of Consumer Affairs Withdraws false / misleading ads Prosecutes sellers who use false/misleading ads C OBrien Chanel College
  • 63. Sales Promotion• Offers consumers an incentive to buy product/ service• Used at Introduction, maturity saturation and decline phases• Aim: Switch brands – build loyalty C OBrien Chanel College
  • 64. Merchandising• Point-of-sales displays: Attract attention• E.G. Free samples• Encourages ‘Impulse buying’ C OBrien Chanel College
  • 65. Direct Marketing• Identifies list of potential customer• Sends them promotional material & special offers by email/ letters• ‘Junk mail’ C OBrien Chanel College
  • 66. Aim: To create and maintain agood image of the firm & itsproductsPRO: Public relations officer C OBrien Chanel College
  • 67. How?Press Relations: News items about thecompanyPress conference: Meetings arranged bythe company, reporters can ask questionsSponsorships: Arrangement where thecompany pays money so that theircompany name/ logo can be associatedwith that event/ team C OBrien Chanel College
  • 68. Charity donations: Good for image of the business. C OBrien Chanel College
  • 69. Question Evaluate the elements of the marketing mix, using a product or service of your choice. (30 Marks)Solution:Choose productStep 1: Define Marketing Mix & benefit of planning it.Step 2: Product - Core/ augmented/ USP - Design - Brand – benefits of brand name - Product life cycle –Maturity stageStep 3: Price - What will price effect - Price strategy – why choose thisStep 4: Place - Define Chanel of Distribution - Choose channel; Id benefits of itStep 5: Promotion - Define - Benefits of PR C OBrien Chanel College - Choose medium – Link to target market

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