Okay management, Technology, ethics, capital, globalization.docx

>> Okay management, Technology, ethics, capital,
globalization, free
market, strategy, branding, promotion, innovation. I'm Miguel
Garcia
and this is Fundamentals of Management and Marketing for
Non-Business
Majors.
Let's talk about the first P, products.
[ Music ]
When we talk about products, we are not referring only to
physical
products. Product is everything one receives in an exchange
including
all tangible and intangible attributes and expected benefits. That
means that a product can be a good.
>> This is iPhone 6S. Not much has changed.

>> It can be a service.
>> With Uber it's all possible.
>> Or even can be an idea. And we're talking about physical
products,
it's not just the product itself, but it can be the brand, it can be
the packaging, it can be the labeling.
>> Tropicana dropped its well known carton that we've seen for
years.
The one showing an orange with a straw in it. And instead opted
for a
more understated look. It was just a simple glass of OJ. But
apparently many consumers hated it and Tropicana's feeling the
squeeze. Will Ogonki [phonetic] has more this morning.
>> It bombed royally with customers. They voiced their opinion
on the
Internet. One fan wrote, "I would never buy the new
packaging".
Tropicana released a statement yesterday. They said we heard
our

consumers and we listened. We appreciate their love and
passion for
Tropicana. And when they told us they miss the look of their
Tropicana, we responded and we're bringing back the original.
[ Music ]
>> When we buy a product, it's not just the physical part that
we
value. In the case that we just heard about Tropicana, the juice
is
absolutely or was absolutely the same independently of the
packaging.
But it make a huge difference in the consumers because they are
not
buying just the juice. They are buying everything that comes
with it.
The packaging, the labels, the logos, and everything is
considered
when deciding to buy or not the product.
[ Music ]
The truth is that not all products are born the same way. This

product
offerings can be distinguished among different criterias. But the
one
we're going to use is the following. For example, we have
convenience
offerings which are products and services that consumers
generally
don't want to put too much effort in something. Because there
are very
few, very little differences among them. Bread, cereal, fuel,
milk.
[ Music ]
>> Wait a minute. Where am I?
>> Got milk?
>> We can take this to a higher level whether we talk about
shopping
offerings in which consumers develop quite a strong preference
for one

brand over the other. To the point that sometimes if you go to a
supermarket and you don't find the toothpaste brand that you
want,
some people will go even somewhere else to try to find it.
>> I don't care what everybody's using, you're using a fluoride
paste
to fight cavities.
>> But, mom, I need this gel for fresh breath.
>> Pardon me. My family used double protection Aqua Fresh.
>> Aqua Fresh gives you all the cavity-fighting fluoride.
>> Another higher level of that is what we call specialty
offerings.
When are brands that are more exclusive and people will go a
long way
to get those. Let's say you want to find an Rolex watch. So
those are
not available everywhere. And some people will go a long way
to try to
get it if that's what they want.

>> The first Rolex with two time zones and an annual calendar
that
discreetly marks the passage of the months. At the heart of the
movement.
>> And above the characteristics of a product or a service, we
have
the brand. And when we find the brand as a name, term, symbol,
design,
or any combination that identifies a seller's product or service
as
distant from those of other sellers.
[ Music ]
>> Branding is the foundation to every successful business
endeavor.
Branding is you with intent and clarity at every customer
contact
point. It is the purpose that drives your business.
>> If consumers have a favorable experience with a product, it
builds

brand equity. It means that the brand has value. If consumers
are
loyal to it over time, it enjoys brand loyalty. And as you all
know,
there are certain people who only buy, for example, Honda cars.
>> This is what a Honda feels like.
>> That experience has been very positive, and they don't see
the need
to change brands.
[ Music ]
>> Apple has long been maligned for its pricing. There is what's
been
called an Apple tax. So let me introduce you to a little simple
concept called supply and demand. Apple can charge a premium
for the
products, people will pay them. If people didn't want to pay that
premium product, then the price would go down or the demand

would go
down and Apple's profits would, in turn, also go down with it.
But
people are buying these things in droves. The iPad is selling
millions. It's like 11 per hour. IPhones, Mac Books, Mac Book
Pros,
iMacs. These things are flying off the shelves. Apple is not a
charity.
>> That was John Rettinger from Revision3. He was talking
about Apple
pricing. And that's what we call demand-based pricing. The
price is
set up by the company thinking of how much consumers are
willing to
pay. But that's not the only way of pricing the product as we're
going
to see in the next few examples.
>> An interesting question to ask is how do people actually set
prices
in real life? And you ask your, let's say, restaurant uncle, he
obviously, I take the cost, and I add something on top so there

is
some money. And this is what we call mark up pricing. Is he
earning
profits? Of course. The maximum, well, you may not be very
sure.
>> Cost-based or market pricing models works very well in
restaurants
as we can hear about. But also it works very well in custom
products
or custom services that are built upon request. Rather than
having
them on stock. It's not probably the most profitable system, but
it
works very well. It's very different from what we just hear
before
about the Apple products where the price is not set up by how
much it
costs to produce but rather how much people are willing to pay.
Having
said that, there are other ways of fixing prices. For example, the
odd/even pricing model which plays a lot more with our
psychology and
how we react to certain prices verses to another.

>> Always go in with an odd price to the customer. Now here's
why. You
go in with an even price and let's just use this example, $1,000.
But
if you go in with a price of $997.47, what does that make. Well,
first
of all, it's not 1,000. Okay, we know that trick. But here's what
it
is. Anytime I go in with an odd number, it makes it feel as if
I've
done more thinking, more processing. That this truly is a price
that
is what it is. And it's not just some smoke and mirrors.
>> There are a lot of ways that you can use to set up the price
for
your product or service. Some work better in certain industries
than
others. But in any case, all of them have pros and cons. The
important
thing to remember is that price is the only part of the marketing

mix
that brings revenue.
[ Music ]
>> A 14 acre warehouse is swarming with robotic carts and
forklifts.
>> Every day the stores send our orders in, we select that
product,
ship it out to the stores, and in the produce world, we basically
empty the building every day.
[ Music ]
>> Just take their top-selling item, bananas, 90,000 pounds of
them
arrive at their warehouse every day from Central America. A
full two
weeks before they'll reach store shelves.
>> We're trying to orchestrate it so that we work right on what
the
customer wants. Because bringing in product they don't need or

aren't
going to buy, that doesn't help anybody.
>> And what doesn't sell, doesn't go to waste. The supply chain
process is so streamlined today that only a tiny percentage ends
up in
food banks or the trash.
[ Music ]
>> Just listen an example of another one of the Ps in the
marketing
mix. This one is the P for placing the product or distribution. As
you
can imagine, producers cannot afford most of the time to deliver
the
product themselves to every single supermarket, for example.
That's
why we have distribution companies, retailers that get the
products
from multiple producers and put them in one spot where I go
and buy
them. Let's think about the example of a supermarket. I can go
there,

find multiple products that have been produced by multiple
companies.
To get that done, we need distribution companies. And that
requires
physical distributions, you have to move the items from one
place to
the other. But that means to have in storage warehouses, trucks
to
deliver, material handling. So it becomes a major operation.
That's
why there are companies dedicated to supply chains which is,
that's
what it means. Getting things, move around at the right time, at
the
right place, at the right cost. Most of us buy our products
through
retailers. Companies who make available to us in one single
place
products from different manufacturing companies or different
producers.
>> Amazon Prime Now. Free two hour delivery on thousands of

items.
Shop for daily essentials like home.
>> It's so convenient, it has become the most common way of
buying
things. But it is not the only one. You can find situations where
producers sell directly to consumers. And here in Madison, we
have a
very good example of that. The farmer's market at the square.
>> Well, the farmer's market here started in 1972. There were
certainly other farmer's markets in the area before that time, but
we
started in '72 and been going continuously since then.
>> Dane County Farmer's Market manager Larry Johnson says
the
organization's humble beginnings hale to what's now become
the largest
producer only farmer's market in the country.
>> Hot and spicy cheese, bread!

>> Meaning everything you see on the table.
>> If you're going to try them. Why not? Go all out.
>> Must be produced by the person behind the table.
[ Music ]
>> Promotion is the last P of the marketing mix. Using
billboards to
let potential customers about a particular product or service is a
promotional tool. Studying the patterns of traffic of both people
and
cars was really helpful when deciding where to locate
billboards. And
consequently getting the best return of their investment.
>> Commonly referred to as traffic. Traffic is the necessary and
fundamental function of a population that composes a market.
Without
such traffic movement, there could be no market. Composite
traffic
flows or streams of various classes of traffic make definite and

stable patterns in any community. These patterns are a
necessary
element in the scientific planning of outdoor advertising
locations.
Outdoor advertising companies have the definitely
responsibility of
guaranteeing potential consumer circulation of specific market
locations. The general outdoor.
>> That was in the 1940s. And, yes, the world has changed a lot
since
then. But some of the basic principals remain the same. To
promote a
product, marketers use the promotion mix. Which is the way
that they
use to communicate with customers. And that can include many
tools but
all of them try to persuade potential customers to buy products.
[ Music ]
Advertising on TV, advertising on radio, posting ads in
magazines or

in newspapers, using sales promotions or personal sales. They
are all
tools that we use to promote products or services.
[ Music ]
Today, thanks to new technologies, we can promote our
products or
services in new ways. New ways that permit a lot more
customization or
personalization of our message. But also ways that allow us to
track
in a much more accurate way the impact of our investment.
>> If you really want to use social media right, you need to
understand the particular culture of the particular platforms.
And if
companies need to choose which platform fits best for their
particular
objective which can be anything from awareness to
consideration
preference, action, or loyalty, they need to figure out which
platform

fits best. Facebook has a very different culture from Twitter.
Twitter
has a very different culture from Pinterest. So if you do not
understand these differences between these platforms, it will be
difficult for you to use the social media. Companies need to
make
clear decisions about what are my particular objectives? And
how does
my company culture maybe also fit well with a particular
culture of
these different platforms?
>> New technologies are providing us with new challenge in
which to
promote our products or services. Despite those, the purpose of
promotion remains the same. We want people to know about our
products
or services with the idea that eventually they will become
customers.
With promotion, we have completely the last element of the
marketing
mix. Let's recapitulate.

[ Music ]
The marketing mix is a series of tools that we use to develop
and
implement a marketing program. A marketing mix is composed
of four
elements. Product, price, placements or distribution, and
promotion.
An important thing to remember is that you need to do a good
job in
all four elements of the marketing mix. You have the right
product,
but it doesn't have the right price, or it's not located at the right
place at the right time, or doesn't have a good promotion, it will
not
succeed. You need to make sure that you work on all the four
elements
of the marketing mix.
[ Music ]
>> This course was made possible by the Wisconsin School of
Business
Innovation Fund.

>> Okay management, Technology, ethics, capital,
globalization, free
market, strategy, branding, promotion, innovation. I'm Miguel
Garcia
and this is Fundamentals of Management and Marketing for
Non-Business
Majors.
>> Like a good neighbor --
>> I am stuck on Band-Aid brand because Band-Aid's stuck on
me.
>> Oh, I'd love to be an Oscar Mayer Wiener --
>> I don't want to grow up. I'm a Toys R Us kid.
>> McDonald's --
>> Ba-da-pop-pop-pa, I'm loving it.
[ Music ]

To someone not familiar with marketing sometimes the term has
pejorative connotations. Some people think marketing is all
about lies
while others think that it just pretends to trick people to buy
things
they don't need. Marketing is a much wider concept and it has a
lot of
meaning. Marketing is a set of processes for creating,
communicating
and delivering values to customers as well as for improving
customer
relationships. Basically it includes everything an organization
does
to satisfy customer needs and that's why organizations who do
not sell
products like NGOs or even government agencies they also do
marketing
because they want to communicate the value to their customers.
>> -- that core value. A lot of things have changed. The market
is in
a totally different place than it was a decade ago and Apple is
totally different and Apple's place in it is totally different. And

believe me the products and distribution strategies and the
manufacturing are totally different and we understand that. But
values
and core values those things shouldn't change. We wanted to
find a way
to communicate this and what we have is something that I am
very moved
by. It honors those people who have changed the world. Some
of them
are living. Some of them are not but the ones that aren't you
know
that if they'd ever used a computer it would have been a Mac.
[ Laughter and applause ]
And the theme of the campaign is just think different. It's the
people
honoring the people who think different and who move this
world
forward. It is what we are about. It touches the soul of this
company.
>> That was Steve Jobs in 1997 when he had just came back as
CEO after

being forced out in 1985. The philosophy of satisfying customer
needs
while meeting organizational profit goals is called the
marketing
concept and guides all of the organizational marketing
activities.
Steve Jobs was someone who had that very clearly in his mind
and
guided all the company movements towards achieving that goal.
To apply
this philosophy of satisfying customer needs we need to do one
thing,
marketing strategy. A plan for doing just two things selecting a
target market and then implement the strategies to create the
right
product or service at the right price with the right promotion
and
with the right distribution so you can satisfy those customer
needs.
>> In order to make their products relevant to a variety of
consumers

companies use target marketing. Marketers identify specific
segments
of the population and position their products to appeal
specifically
to that segment. At McDonald's segmenting is central to their
marketing strategy.
>> At McDonald's instead of having a brand manager on big
Mac and a
brand manager on french fries what we have are segment
managers. And
so at McDonald's you will find a director of young adults, a
director
of women, moms, a director of African American consumers, a
director
of Hispanic consumers, etcetera.
>> McDonald's uses segment insights. Insights are information
about
consumer behavior that are developed through market research.
>> We're constantly every day all week long collecting
information and
data that help us understand how to describe our products in a

way
that will be most compelling for the particular segment.
>> As you have just listened a target market is a specific group
of
consumers who are particularly interested in a product or
service who
have access to it and are able to buy it if they wish to. To come
up
with these target market we need to segment the market which
means
dividing the market in groups of customers with common
characteristics
that influence their buying decisions and this can be done
according
to multiple variables age, gender, income, where do they live in
which
region? What is the climate? Do they live in a rural setup or in
an
urban setup? Lifestyles, are these people who practice sports?
Are
these people who go a lot to the movies? Are these people who
are very
interested in cultural activities? When market segmentation is

done
properly it is very effective helping organizations to really
focus
their resources where they need it and not targeting their market
in
general. That's a waste of money and resources. I remember a
few years
ago showing to some people three different commercials that
McDonald's
had prepared for different parts of the country. One was
targeting
mostly Hispanic population located in the southwest of the
United
States. Another commercial was targeting the Asian population
that
lived in the northwest of the United States and the other was
targeting states located in the Mid-West. I remember one
person, this
person was from the Mid-West raising his hand and saying these
two
other commercials are not real. They never were on TV. I never
seen

them. That's when I say that's exactly what market segmentation
does.
You were only targeted with the Mid-West commercial because
that's the
profile you fit into.
>> Real strawberries. [Music]
>> Real lemonade. [Music]
>> Blended.
>> Once you have completed your market segmentation and
have come up
with whatever target segment or segments you want to work
with you
have to develop and implement a marketing program. That
involves
basically a combination of tools that we refer as the marketing
mix in
which we defined four parameters: products, price, placement
and
promotion. This is many times referred to as the four Ps. So
when we

talk about marketing mix we are talking about the four Ps.
Remember
product, price, placement and promotion.
>> This course was made possible by the Wisconsin School of
Business
Innovation Fund.
This assignment is part of Module #4 (Marketing). Please listen
to the podcasts, watch the videos and read the session suggested
materials before attempting to complete this assignment.
The objective of this assignment is being able to apply a
marketing mix and then design and develop a whole marketing
strategy for a product or service.
To start pick one either the product or the service:
· Pedego Stretch e-cargo bike (for additional information about
this particular product start visiting Pedego Electric Bikes
(Links to an external site.)Links to an external site. website.
· One of the food carts located at the Library Mall in Madison,
WI
For the product/service chosen please design a marketing
strategy. Please make sure you cover and explain your ideas and
decisions regarding the following topics:
Select Target Market:
· Identify Market

· Segment Market
· Develop your marketing mix:
Developing a product/service that meets the needs of the target
market:
· Setting a price for the product/service
· Distributing the product/service – getting it to where the
customers can get it
· Promoting the product/service – inform potential buyers about
it
As you know each of the steps mentioned above is the result of
a number of other steps. Please make sure you cover those too.
Do not hesitate to ask questions about the process as you go
along. Questions and answers will be posted publicly for
everybody.
It is not a matter of delivering a long document but a well
researched and explained document. In any case, and in order to
be able to cover all aspects of it, you will need no less than
2,500 words. Graphics, references or images should be added at
the back and referenced in the text although they will not count
for the minimum of 2,500 words.
Assignment Requirements:
· Please make sure you use the terminology of the learning
materials provided (readings, podcasts, etc.).
· Make sure you cover all relevant aspects. Perform additional
research as needed.
Assignment Submission Instructions:
1. This assignment requires a document with a minimum of
2,500 words That’s really the minimum to be able to cover all

components required for this assignment.
2. This module and assignments are longer because you most
likely will have to do some additional research to get to know
better the product or service you choose.
3. Your document with your assignment will be uploaded either
in Word or in PDF format although PDF is strongly preferred.
Please include a cover page where you indicate the title, your
name, your wisc email address and word count.
4. Include references at the end as needed (those do not count
towards the word minimum).
5. Example of what we are looking for. Please don't copy and
paste anything from here in your own assignment.
References:
http://saylordotorg.github.io/text_exploring-business-v2.0/s13-
marketing-providing-value-to-c.html
https://ecorner.stanford.edu/video/if-it-costs-more-its-worth-
more/
https://www.forbes.com/sites/kashmirhill/2012/02/16/how-
target-figured-out-a-teen-girl-was-pregnant-before-her-father-
did/#391fc04c6668

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