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Market Research and Product Life Cycles

Market Research and Product Life Cycles

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Marketing product Marketing product Presentation Transcript

  • MARKETING UNIT 4
  • The definition of marketing
    • Marketing is the management process which is responsible for identifying profitable products and then selling them to the customers.
  • WE WANT TO SELL A PRODUCT
    • WE NEED TO THINK ABOUT:-
    • Packaging
  • The need for Marketing
    • Each year millions of new products are launched onto the market.
    • If a product is to be successful then people need to be told about it
    • They need to be persuaded to buy YOUR product
    • Marketing allows you to do this.
  • MARKET SEGMENTATION – who are we aiming at?
    • Playstation
    • Trainers
    • Fur Coat
    • Ford Ka
    • Woolly Jumper
    • Daily Record
    • Financial Times
  • THE MARKET SEGMENTS
    • Age – people of a different age will appreciate different things in a product
    • Gender – male and female customers buy different products
    • Income – people who have more money (disposable income) will buy luxury products
    • Area – people who live in Scotland have different needs to those who live in the South of England
    • Socio-Economic Groupings have been done by the Government:-
  • SOCIO-ECONOMIC GROUPINGS
    • Upper-middle class – high income – professional (doctor)
    • Middle class- managers, teachers, professional
    • Lower Middle Class – clerical, police, shop assistant
    • Skilled manual – carpenter, cook
    • Semi-skilled - shop keeper, street sweeper
    • Long term unemployed
    A B C1 C2 D E
  • HOW DO WE FIND OUT… WHAT PEOPLE WANT TO BUY WHAT THEY THINK OF OUR PRODUCT?
  • MARKET RESEARCH PRODUCT X
  • WHAT CAN A COMPANY RESEARCH? The Market Competition Promotion Product Distribution Pricing
  • Market Segmentation for Product X What segment will buy it Why? What should we consider? How do we find out what they think?
  • What is market research
    • Carrying out market research is the first step in any effective marketing campaign.
    • Provides information on which managers base their decisions.
  • THE TYPES OF MARKET RESEARCH
    • DESK RESEARCH - INTERNAL
    • Looking at information that is already available within the company
      • Sales records
      • Financial information
  • DESK RESEARCH - EXTERNAL
    • Next step is to consult other sources of information which has already been published
      • Government statistics
      • Media reports
      • Newspapers
      • Journals
      • The internet
  • FIELD RESEARCH
    • Once all the desk research has been done there may still be gaps in the information.
    • We use FIELD RESEARCH to fill these gaps.
    • This is information that does not exist already – we must gather it ourselves.
  • Forms of Field Research
    • Gathering information directly from people within your target market – using
    • Questionnaires
    • Interviews – personal and telephone
    • Postal surveys
    • Observations
    • Technology - EPOS and video
    • Focus groups
    • Consumer panels
  • THE QUESTIONNAIRE
    • How do we construct a QUESTIONNAIRE? Follow the rules on the checklist.
    • IT IS IMPORTANT THAT THE RULES ON THE LIST ARE FOLLOWED
    • THIS WILL MEAN YOUR PRODUCT HAS MORE CHANCE OF SUCCESS
  • 2 main approaches to marketing Market orientated Product orientated
    • PRODUCT ORIENTATION
    • More common in the past
    • Business focuses on the product
    • Technical organisations tend to concentrate on the product
    • MARKET ORIENTATION
    • Led by the market – tries to analyse the needs of the consumer
    • Responds quickly to changes in the market
    • Strong position to meet the challenge of new competition
    • Any business with a large product range
  • What makes a firm choose product or market orientation?
    • The Product - firms operating in new areas will be product
    • Policy - if safety and quality are the main objectives the firm will be product
    • Management -background of management will determine choice
    • Competition - a firm in a competitive market is likely to be market
  • WHAT IS MARKETING The anticipation, identification and fulfilment of consumer needs
  • To have a successful marketing campaign we can use a model called the 4 P’s PRODUCT PRICE PLACE PROMOTION
  • PRODUCT
  • PRODUCT
    • The product is the most important part of the marketing mix
    • Firms spend a great deal of time trying to get the right product – they use market research to find out what the consumer wants
  • PRODUCT MIX
    • Many organisations produce more than one product.
    • A product mix is a complete range of times made by an organisation:
  • Tea and Coffee Milk Products Prepared dishes - Findus Chocolate and Confectionary Nestle Product Range
  • THE KIT KAT
    • 4 finger bar
    • 2 finger bar
    • Chunky and mini chunky
    • Orange
    • Midnight mint
    • Packs of 6, 8 and 12
    • Ice cream
    • Mini kit kat
    • Easter egg
  • THE BRAND NAME
  • What is a brand?
    • A unique identity that the company creates for a product or service.
    • It encourages customers to buy the product again and again – this is called brand loyalty
  • IS IT WORTHWHILE?….
  • What makes a successful brand? Distinctive Shaped bottle Well-known Name and logo Familiar red And white colours Recognisable font Catchphrase – The real thing
  • 3 types of branding
    • MULTIPLE BRANDING
      • One firm has many brand names ie Mr Kipling, Bisto, Hovis (Rank Hovis McDougall)
    • MULTIPLE PRODUCT BRANDING
      • One brand name is used for a range of products Kelloggs, Cadbury’s, Sony
    • RETAILERS OWN BRAND
      • Branded with the name of the retailer, Tesco, Boots, St Michael
  • PACKAGING              
  • The importance of packaging:-
    • Goods should be delivered to the consumer in a safe, hygienic fashion.
    • It can be used for other purposes:-
  • The way that goods and services are presented to the customer
    • PROTECTION
    • INFORMATIVE
    • PROMOTION
    • COLOURFUL
    • ATTRACTIVE DESIGN
    • FRESHNESS
    • SAFE
    • STACKABLE
  • Problems of packaging:-
    • COST – it is expensive in many cases
    • Excessive packaging can be a source of complaint from customers – environmental issues
    • RECYCLING IS IMPORTANT
  • Features of good packaging
    • Stability for stacking on shelf
    • Bulky packaging will add to the cost of delivery
    • Children’s products should be colourful and attractive
    • Certain items should be difficult to open
  • THE PRODUCT LIFE CYCLE
    • Businesses aiming to achieve objectives must be aware of the life cycle of products
    • The PLC shows the different stages that a product passes through and the sales that can be expected at each stage
    • Every product will have its own individual PLC
    • Most products will pass through 5 stages in their lives:
    Development Introduction Growth Maturity Decline
  • The PRODUCT LIFE CYCLE TIME – years or months?? Sales units Development Introduction Growth Maturity Decline Saturation
  • Different products have different life cycles:
    • Land Rover Discovery
    • 4 year development stage, rapid increase in sales, no rapid decline
    • Dell 2.53 Ghz Pentium 4 personal computer
    • Short development, rapid sales for 6-12 months then rapid decline as higher spec machine is launched
  • There are many different types of PLC:- Long introductory period Straw on fire with leftovers No introduction Flops
  • Straw on fire Continuing success Periodic injections False Start
  • Relaunch Fashion You must be able to compose a product life cycle from case study information. Remember to put in as much detail as you can including dates and any other specific information eg new advertising campaign, etc
  • USES OF THE PLC
    • It will illustrate the broad trends in revenue that a product might earn
    • It will identify points at which the business may need to consider launching a new product
    • It will identify where and when spending is required
    • It will identify points at which a business should no longer sell a product
    • It will help a business manage its range of products
    • It will help a business to manage its cash flow
  • Extending the life of a product
    • Companies want to keep products in the maturity stage for as long as possible
    • There are many different ways of injecting new life into a product
  • Produce a new or improved version of the product
    • Washing Powder companies often add ingredients or try to improve their products
  • Find new uses for a product
    • Candles used to be for power cuts ……
    • Now they are an essential accessory on most homes for decoration or perfume
  • Find new markets for a product…
    • JnJ have tried to encourage parents to use the products they make for babies
    • Companies can run a promotional campaign
    • Famous Grouse
    • have a famous set
    • of promotional
    • adverts:-
  • A – product has reached maturity B – introduction of 1 st ext strategy C – use of 2 nd ext strategy a b c