Marketing

Marketing

C O'Brien Chanel College

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 in
advertising?


Definition:

Marketing is the process of identifying
Human needs and producing products
And services to satisfy them


Marketing Strategy

A plan setting out how a
business will identify and
satisfy customer needs


Marketing Strategy

Gap in market/ Product
Target Market Marketing Mix
Market Segments positioning


Marketing Strategy
Analysing the market
1. Market Segmentation
o Market Segment/ Niche: Group of people
in which the product satisfies a similar
need.
o Different needs require different
marketing approaches
o Demographic segmentation – age/
income/ sex/ social class
o Psychological segmentation – attitudes
/tastes C O'Brien Chanel College

Outline the Market Segments
For the following products


2. Target Market
o Target Market – Group of customers at
which to aim a specific product
o Characteristics – Age
Gender
Income level
Lifestyle needs


3. Research – Product Positioning
o Product Positioning- Creating an image
of the product in the customers mind.


Explain the advantages for a business
Of adopting the marketing concept

Name: Cost Effective
Explain: Having an effective marketing concept in
place saves a business money in the long term
because instead of spending huge amounts of
money on what they can make they identify
consumer needs first and then develop the product
Example: ipad

Name: Time Management
Explain: Instead of spending time developing
products businesses use their time more
effectively by researching consumer needs and
then develop the products
Example: PepsiO'Brien Chanel College
C
Max

What is a niche market
Niche Market: A niche market is a small
market segment in which a specific product or
service meets a small group of consumer
needs.
Example: Bridal shoes

What is product positioning
Product positioning: This is when a business
creates an image of the product in the
consumer’s mind.
Example: Pepsi Max – Male segment ‘macho’
image C O'Brien Chanel College

Product
Core Product – Main Function

Augmented Product-
Extras to help sell it. e.g.
packaging/ guarantee

USP - Feature distinguishing
it from competitors


Product Design and quality

Function: Product must do what is supposed
to do to satisfy target market core needs.

Form: Product must satisfy augmented needs
In terms of extras. E.g. Image/ Style


Product life cycle


1. Introduction: Product is launched.
Sales are slow.
Focus on distribution – widespread availability
Advertising is key

2. 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


4. Saturation: Sales have levelled off.
Target markets are already buying the product
Can only increase sales by taking competitor’s
customers
New sales promotion techniques/ advertising/ R&D
needed

5. Decline: Supply of product is greater then the demand of it
Attempts to minimise costs by reducing spending on
advertsing to earn as much profit as possible.


Packaging
Protection – from damage during distribution

Presentation- Attractive to purchase

Information- Contains info about the product

Identity- Easily recognisable by consumers


Brand

Definition: is a product name which has
been registered with the controller of
Patents, Designs and Trade Marks and is
protected against copying by competitors.


Patent:
o Is legal protection for a product
or process.
o Must register product with
patent office.
o The patent holder has
exclusive rights to their product
for 10 years

Trade mark:
o A sign representing a product/
service and can be recognised
every where.
o Name/ Slogan/ Logo/ Colour/
Sound


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 brand

4. New products: An established brand makes
It easier for the business to introduce new products
Into the market

Own Brands
Definition: Brands registered by retailers


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.


Price
Characteristics:

•Profit: Price must be set high enough to cover
costs but make a profit

•Sales/ Demand: Lower the price = Higher the
sales = higher profits

•Image: High price – good quality ; Low price –
lower quality


Pricing strategies
1. Mark-up pricing: adding a
% (mark-up) to the cost of
the product and sell it at that
price

2.Premium pricing: High
price reflecting high quality,
Give impression of superior
quality

3. Price Skimming: High price
to cover high costs of
developing new product.

4. Penetration pricing: Low price to
enter highly competitive market to
gain market share

5. 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.
O'Brien Chanel College

Demand
Profit

Stage in
Vat Factors influencing
product life
Price
cycle

Product
Competitors
Positioning
price

Place
• Getting products to consumers!

• Channels of distribution: route involved in getting
product from producer to consumer.


A
Step 1: Wholesalers buy in bulk from
the producer
Step 2: They store goods in
warehouses and sell them on to
retailers
Step 3: Retailers sell the goods in
smaller quantities to consumers


Advantages to producer Disadvantages to producer

1. Producers sell off stock in large 1. Wholesalers will mark-up the
quantities & pass off responsibility price of goods. May make products
of ‘breaking bulk’ uncompetitive.
2. Cost of transport & storage
becomes wholesaler & Retailers
responsibility


B
Step 1: Large retailers purchase
directly from manufacturers
Step 2: Retailers sell goods at cheaper
price to consumers

Own brand products are also produced
for these retailers and online retailers



1. Distribution simplified 1. Large retailers expect large
because wholesaler is discounts for selling the
bypassed producers stock reducing their
profit margin

2. Using large retailers means
producers can reach a mass
market


C
Step 1: Agents receive goods and sell
them on behalf of the producers

Step 2: The agent earns commission
on goods sold



1. Wholesaler and retailer 1. Difficult to reach mass
are bypassed so profit market
margin increased


D
Producers sell directly to their customers

1. Bypass other intermediaries 1. High focus on attracting
allowing for increased profit customers instead of main
margins focus on product itself
2.Develop good customer
relationship


Target market
Ease of transport

Factors influencing
Distribution

Payment Product Image
methods

Promotion
The way a business influences the target market
to purchase their products

` How?


Advertising
Advertising is the science of creating and placing
media that Interrupts the consumer and then gets
him or her to take some Action.


Functions of Advertising

Informative:
Providing information about the
function of the product/service.

Persuasive:
Convincing consumers of the
desirability and the benefits that set a
particular product apart from the
competition.

Generic:
Promote the sale of a product but not a
particular brand

Competitive:
Comparing brands with each other
showing why their product/service is better

E.G. Supervalu v Lidl & Aldi

Reminder:
General adverts showing brands


Informative or Persuasive or Generic?


Reminder or Persuasive or Generic?


Target market
Adverting budget

Factors influencing
choice of advertising
medium

Aim of advert

Mediums of advertising
INTERNET


E-commerce:

•Selling goods or services over the internet is
called e-commerce or e-business.

•The ‘e’ stands for ‘electronic’

•B2C is used to identify sales from a business
directly to consumers.

• B2B indicates sales from one business to
another.


Websites


Social Media


Social media:
•Also known as social networking and refers to a
range of internet technologies that enable people
to communicate and socialise online.

• Users can combine text, video and audio to
create online messages, podcasts and status
updates.

•E.G.S Facebook, Twitter and their increasing
popularity in providing businesses with an
opportunity to reach members of their target
market.


Homework

Page 309

Q.3 Q.6 Q. 7


Answers

Question 3
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 brand
4. New products: An established brand makes It easier for the
business to introduce new products Into the market

Question 6

1. Target market: This will influence whether the price will be set high
or low taking into consideration their characteristics e.g age, income
levels
2. Cost of production: A price must be set to cover the costs of
producing the goods
3. Demand: The higher the demand for the product the higher the
selling price
4. Product positioning: The image that the business are trying to
portray to the public will effect pricing strategy. E.g. premium pricing.

Question 7:

In the channel of distribution there can be two intermediaries
between the producer and the consumer. These are the
wholesaler and the retailer.

Benefits of intermediaries:

• The wholesaler/ Retailer buys in bulk from the producer so they
become 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. Increasing
sales, increasing profits

Benefits of selling directly to consumer:
• Earns extra profit for the producer because they can charge
higher price to the consumer as wholesaler and retailer are not
taking a cut
•Consumers can custom order goods to their specifications
•Develop positive relationship with the consumers increasing
customer loyalty

How to execute an advertising campaign

Step 1: Analyse
•Collect & analyse market research
of market segments and target
market

Step 2: Plan
•Identify aims of advert
•Decide budget of adverting
•Decide on media mix to be used
•Evaluate cost effectiveness


Step 3: Implement
• Design adverts
• Produce adverts
• Book advert slots
• Decide on timing to showcase adverts to maximise
impact

Step 4: Review
• Effects on sales levels
• Effects on consumer attitudes – market research
• Make improvements


Laws in Advertising

ASAI- Advertising Standards Authority
in Ireland
Ads must be:

Legal Decent

Honest Truthful


Office of Director of Consumer Affairs

 Withdraws false / misleading ads

 Prosecutes sellers who use false/
misleading ads


Sales Promotion

• Offers consumers an incentive to
buy product/ service

• Used at Introduction, maturity
saturation and decline phases

• Aim: Switch brands – build loyalty

Merchandising

• Point-of-sales displays: Attract attention

• E.G. Free samples

• Encourages ‘Impulse buying’


Direct Marketing

• Identifies list of potential customer

• Sends them promotional material &
special offers by email/ letters

• ‘Junk mail’


Aim: To create and maintain a
good image of the firm & its
products

PRO: Public relations officer


How?

Press Relations: News items about the
company

Press conference: Meetings arranged by
the company, reporters can ask questions

Sponsorships: Arrangement where the
company pays money so that their
company name/ logo can be associated
with that event/ team

Charity donations: Good for image of the business.


Question
Evaluate the elements of the marketing mix, using a product or
service of your choice. (30 Marks)

Solution:
Choose product
Step 1: Define Marketing Mix & benefit of planning it.
Step 2: Product
- Core/ augmented/ USP
- Design
- Brand – benefits of brand name
- Product life cycle –Maturity stage
Step 3: Price
- What will price effect
- Price strategy – why choose this
Step 4: Place
- Define Chanel of Distribution
- Choose channel; Id benefits of it
Step 5: Promotion
- Define
- Benefits of PR
- Choose medium – Link to target market

Marketing

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (15)

Similar to Marketing

Similar to Marketing (20)

More from BSTAI

More from BSTAI (15)

Marketing