Marketing product

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Market Research and Product Life Cycles

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Marketing product

  1. 1. MARKETING UNIT 4
  2. 2. The definition of marketing • Marketing is the management process which is responsible for identifying profitable products and then selling them to the customers.
  3. 3. WE WANT TO SELL A PRODUCT • WE NEED TO THINK ABOUT:- • Packaging • • • • •
  4. 4. 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.
  5. 5. MARKET SEGMENTATION – who are we aiming at? • Playstation • Trainers • Fur Coat • Ford Ka • Woolly Jumper • Daily Record • Financial Times
  6. 6. 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:-
  7. 7. 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
  8. 8. HOW DO WE FIND OUT… WHAT PEOPLE WANT TO BUY WHAT THEY THINK OF OUR PRODUCT?
  9. 9. WHAT CAN A COMPANYWHAT CAN A COMPANY RESEARCH?RESEARCH?
  10. 10. Market Segmentation for Product X What segment will buy it Why? What should we consider? How do we find out what they think?
  11. 11. 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.
  12. 12. THE TYPES OF MARKET RESEARCH • DESK RESEARCH - INTERNAL • Looking at information that is already available within the company – Sales records – Financial information
  13. 13. 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
  14. 14. 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.
  15. 15. 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
  16. 16. THE QUESTIONNAIRE How do we construct a QUESTIONNAIRE? Follow the rules on the checklist. • IT IS IMPORTANT THAT THE RULESIT IS IMPORTANT THAT THE RULES ON THE LIST ARE FOLLOWEDON THE LIST ARE FOLLOWED • THIS WILL MEAN YOUR PRODUCT HAS MORE CHANCE OF SUCCESS
  17. 17. 2 main approaches to marketing Market orientated Product orientated
  18. 18. PRODUCTPRODUCT ORIENTATIONORIENTATION • More common in the past • Business focuses on the product • Technical organisations tend to concentrate on the product MARKET ORIENTATIONMARKET 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
  19. 19. 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
  20. 20. WHAT IS MARKETING The anticipation, identification and fulfilment of consumer needs
  21. 21. To have a successful marketing campaign we can use a model called the 4 P’s PRODUCT PRICE PLACE PROMOTION
  22. 22. 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
  23. 23. PRODUCT MIX • Many organisations produce more than one product. • A product mix is a complete range of times made by an organisation:
  24. 24. Tea and Coffee Milk Products Prepared dishes - Findus Chocolate and Confectionary Nestle Product Range
  25. 25. 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
  26. 26. THE BRAND NAME
  27. 27. 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
  28. 28. IS IT WORTHWHILE?…. BRAND VALUE ($BN) 0 10 20 30 40 50 60 1 Budweiser Gillette Intel Kodak Sony Disney McDonalds IBM Marlboro Coca cola
  29. 29. What makes a successful brand? Distinctive Shaped bottle Well-known Name and logo Familiar red And white colours Recognisable font Catchphrase – The real thing
  30. 30. 3 types of branding 1. MULTIPLE BRANDING One firm has many brand names ie Mr Kipling, Bisto, Hovis (Rank Hovis McDougall) 2. MULTIPLE PRODUCT BRANDING One brand name is used for a range of products Kelloggs, Cadbury’s, Sony 3. RETAILERS OWN BRAND Branded with the name of the retailer, Tesco, Boots, St Michael
  31. 31. PACKAGING
  32. 32. The importance of packaging:- • Goods should be delivered to the consumer in a safe, hygienic fashion. • It can be used for other purposes:-
  33. 33. The way that goods and services are presented to the customer • PROTECTION • INFORMATIVE • PROMOTION • COLOURFUL • ATTRACTIVE DESIGN • FRESHNESS • SAFE • STACKABLE
  34. 34. 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
  35. 35. 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
  36. 36. 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:
  37. 37. The PRODUCT LIFE CYCLE TIME – years or months?? Sales units Development Introduction Growth Maturity Decline Saturation
  38. 38. Different products have different life cycles: • Land Rover Discovery • 4 year development stage, rapid increase in sales, no rapid decline
  39. 39. • 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
  40. 40. There are many different types of PLC:- Long introductory period Straw on fire with leftovers No introduction Flops
  41. 41. Straw on fire Continuing success Periodic injections False Start
  42. 42. 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
  43. 43. 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
  44. 44. 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
  45. 45. Produce a new or improved version of the product • Washing Powder companies often add ingredients or try to improve their products
  46. 46. 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
  47. 47. Find new markets for a product… • JnJ have tried to encourage parents to use the products they make for babies
  48. 48. • Companies can run a promotional campaign • Famous Grouse have a famous set of promotional adverts:-
  49. 49. A – product has reached maturity B – introduction of 1st ext strategy C – use of 2nd ext strategy

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