Elements of business skills chapter 5 slides


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Elements of business skills chapter 5 slides

  1. 1. Elements of Business Skills Chapter 5 Aspects of Marketing
  2. 2. Objectives <ul><li>State the steps in the marketing process (Pg 98) </li></ul><ul><li>List the different marketing activities and explain its purpose (Pg 98) </li></ul><ul><li>Understand the differences between goods and services (Pg 104) </li></ul><ul><li>Explain the importance and use of brands (Pg 106-108) </li></ul><ul><li>Explain the importance and the use of packaging </li></ul><ul><li>(Pg 111) </li></ul><ul><li>Explain how pricing is used to market a product or service ( Pg 114-118) </li></ul><ul><li>Explain how to promote and advertise a product or service (Pg 122-125) </li></ul>
  3. 3. What is Marketing? <ul><li>It is a process of: </li></ul><ul><li>Identifying the needs and wants of the chosen customers </li></ul><ul><li>Satisfying them in ways that are better than other competitors (E.g Coca-Cola versus Pepsi) (MacDonalds versus Burger King, versus Kentucky Fried Chicken) </li></ul>
  4. 4. Which Burgers Are Yummier? Burger King? MacDonalds ? KFC ?
  5. 5. <ul><li>Discuss with your partner why you feel one brand of burgers are better than the others </li></ul><ul><li>Give reasons that are valid. For example: Say I like xxx burgers because their portions are bigger and they are value-for- money! Don’t say things like ‘I just like lor!’ </li></ul><ul><li>Why? What needs did it satisfy for you? </li></ul>Can You Tell Me Why?
  6. 6. The Marketing Process… Let’s see…I want my business to be better than the others! But, how do I win the competition? Mr Suresh wants to make his first million selling roti-pratas. Let me give you an advice: Start with knowing 1) who are your potential customers ! Donald Trump, Billionaire, Marketing Guru of ‘The Apprentice’
  7. 7. The Marketing Process Cont… 2) Understand your customers’ needs and wants 3)Apply the 4Ps of Marketing 4) To be better than your competitors in satisfying customers’ needs and wants! Do all these 4 steps and you WILL earn your million!
  8. 8. 1) Your Potential Customers (Target) Customers can be grouped in different ways Geography: Where they live or work? Age: How old are they? Gender: Male or Female? Income: How much they earn? Profession: What their jobs are? Lifestyle : What their areas and attitudes are? Social group: Who they Mix With? Customers can be grouped in different ways
  9. 9. Remember! Different groups = Different needs and wants goods = customers Eg. A mother who has just given birth will not have the same needs as a woman who is getting married.
  10. 10. The 4 Ps of Marketing <ul><li>Question: How to know the needs and wants of the customers? </li></ul><ul><li>Answer: Use the 4 Ps in Marketing to help you draw up a marketing plan </li></ul>
  11. 11. The 4 Ps <ul><li>Price: -How much does it cost? </li></ul><ul><li> -How much will customers pay? </li></ul><ul><li>Product: -What is it? </li></ul><ul><ul><ul><ul><ul><li>-What needs/wants does it satisfy? </li></ul></ul></ul></ul></ul><ul><li>Promotion: -How to tell customers about </li></ul><ul><li> our products? </li></ul><ul><li> - What will you tell the customers? </li></ul><ul><li>Place: - Where do customers prefer to shop? </li></ul><ul><li> - How will we make the product available? </li></ul>
  12. 12. 4Ps- Product <ul><li>Qs: What is a product? </li></ul><ul><li>Ans: A product is anything that a business can offer to satisfy customers’ needs and wants </li></ul><ul><li>Eg. I need to drink now because I am very thirsty. I will drink either coke or even Guardian Pharmacy distilled bottled water ! </li></ul>or
  13. 13. What makes a good product? <ul><li>Good quality </li></ul><ul><li>Right features, functions and design </li></ul><ul><li>Familiar name or brand </li></ul><ul><li>Attractive packaging </li></ul><ul><li>Excellent customer service </li></ul><ul><li>Support services such as warranty and on-site repair </li></ul>Eg: Do you think Sony has all these characteristics?
  14. 14. What’s the difference? <ul><li>100% Good – Dresses, sports shoes, costume jewellery </li></ul><ul><li>Combination of Good and Service - Car repair and restaurant meals </li></ul><ul><li>100% Service - Hair Styling, Facial and Spa </li></ul><ul><li>In general, the term ‘product’ refers to both goods and services. </li></ul>
  15. 15. Goods ‘vs’ Services <ul><li>Goods </li></ul><ul><li>Physical, can touch and feel </li></ul><ul><li>Produced in factory </li></ul><ul><li>Can be stored </li></ul><ul><li>Can be standardised, can be of the same standards </li></ul><ul><li>Can be counted </li></ul><ul><li>Can own the goods after buying </li></ul><ul><li>Services </li></ul><ul><li>Cannot be felt but can ‘experience’ </li></ul><ul><li>Provided and experienced at the same time </li></ul><ul><li>Can be tailor-made or customised but may not be experienced in the same way </li></ul><ul><li>Cannot be counted </li></ul><ul><li>Cannot own and bring back </li></ul>
  16. 16. Branding… <ul><li>QS: What is branding? </li></ul><ul><li>Ans: It is the use of a name , term , symbol or design or the combination of all four things to identify a product. </li></ul><ul><li>E.g: Disneyland: </li></ul><ul><li>‘ Share the Magic, Where Dreams Come Alive, Adventure Abounds’ </li></ul><ul><li>Qs: What is the first thing that comes to your mind when someone says I am going to Disneyland for a holiday? </li></ul>
  17. 17. Brand Loyalty <ul><li>If you had a good experience in Disneyland, and should you go on another trip, do you think you will still choose Disneyland or other amusement parks? </li></ul><ul><li>If Yes : It means you are Brand Loyal </li></ul><ul><li>If No : It means that brand has not given you that level of expectation that you were promised. You will not be Brand Loyal </li></ul>
  18. 18. Why is Branding Important? <ul><li>Many businesses offer similar products and services </li></ul><ul><li>To stand out, your brand must be outstanding! </li></ul><ul><li>Marketing the product is more efficient and effective </li></ul><ul><li>Customers will recognise your ‘style’ and the products that are sold </li></ul><ul><li>Build customer loyalty= $$$ </li></ul><ul><li>Improve image </li></ul><ul><li>Easier to introduce new product range </li></ul>
  19. 19. What is Packaging? <ul><li>It can be: </li></ul><ul><li>The Container or Wrapper for the product </li></ul><ul><li>Labels </li></ul><ul><li>Instructions </li></ul><ul><li>Printed Description </li></ul>
  20. 20. Packaging Container/Wrapper
  21. 21. Packaging Labels
  22. 22. Packaging Product description
  23. 23. Packaging Instructions
  24. 24. Functions of Packaging… <ul><li>Protects and Contains </li></ul><ul><li>Prevents Shoplifting </li></ul><ul><li>Saves Space and is easier to handle </li></ul><ul><li>Promotes image of brand </li></ul><ul><li>Prevents Spoilage </li></ul><ul><li>Is easier and safer to use </li></ul><ul><li>QS: Now turn to your partner and give one example of how each function helps in the packaging of the product… </li></ul>
  25. 25. Support Services <ul><li>Why? </li></ul><ul><li>Ans: When we provide excellent support services… </li></ul><ul><li>1) Our customers will remember us. </li></ul><ul><li>2)Improves image of business </li></ul><ul><li>3) = More $$$ </li></ul>
  26. 26. Types of Support Services <ul><li>Loyalty card </li></ul><ul><li>Customer Service </li></ul><ul><li>Fast and Reliable Delivery </li></ul><ul><li>Financing and Hire Purchase </li></ul><ul><li>Warranty </li></ul><ul><li>Friendly After-Sales Service </li></ul><ul><li>Product and Technical Information </li></ul><ul><li>On-Site Repair Service </li></ul><ul><li>Free Installation </li></ul>
  28. 28. SUPPORT SERVICES <ul><li>... are services and benefits offered to customers in addition to the main product. </li></ul><ul><li>make our customers DELIVERY SERVICES remember us >> improve sales & business image </li></ul>LOYALTY CARDS DELIVERY CUSTOMER SERVICE What other SUPPORT SERVICES are there? (brainstorm 5 other services) 113 why? PRODUCT PLACE PRICE PROMOTION 4 P s
  29. 29. PRICING <ul><li>… setting the PRICE of the product </li></ul><ul><li>PRICE is the amount of money that has to be paid for a product </li></ul><ul><li>very important decision because it affects $$$ REVENUE $$$ </li></ul>Too high… airfares loans rent room rates … customers may not buy Too low… … you will lose $$$ money $$$ PRODUCT PLACE PRICE PROMOTION 4 P s
  30. 30. 3Cs of Pricing C OSTS C OMPETITORS’ PRICE C USTOMER’S WILLINGNESS TO PAY <ul><li>expenses paid to buy </li></ul><ul><li>& produce product </li></ul><ul><li>lowest limit on price </li></ul><ul><li>of its product </li></ul><ul><li>sets the upper limit on </li></ul><ul><li>price of similar product </li></ul><ul><li>should price a product </li></ul><ul><li>according to how much </li></ul><ul><li>customer is willing to pay </li></ul>PRODUCT PLACE PRICE PROMOTION 4 P s
  31. 31. PRICING TECHNIQUES 117-118 Odd-even pricing Optional-product pricing Product-bundle pricing Promotional pricing Product-line pricing PRICING TECHNIQUES PRODUCT PLACE PRICE PROMOTION 4 P s
  32. 32. PRICING TECHNIQUES 117-118 <ul><li>… involves setting different prices for different versions of the same product </li></ul><ul><li>the pricing reflect the benefits of parts of the range </li></ul><ul><li>example: car wash (basic package vs. premium package) </li></ul>Product-line pricing discuss PRODUCT PLACE PRICE PROMOTION 4 P s
  33. 33. PRICING TECHNIQUES 117-118 <ul><li>..setting prices of optional or accessory products along with the main product </li></ul><ul><li>optional 'extras' increase the overall price </li></ul><ul><li>of the product or service </li></ul><ul><li>example: pizza restaurant menus </li></ul>Optional-product pricing discuss PRODUCT PLACE PRICE PROMOTION 4 P s
  34. 34. PRICING TECHNIQUES 117-118 <ul><li>… pricing a few items of related products into a bundle </li></ul><ul><li>bundle of products offered at reduced price </li></ul><ul><li>example: set meals / combo meals </li></ul>Product-bundle pricing PRODUCT PLACE PRICE PROMOTION 4 P s
  35. 35. PRICING TECHNIQUES 117-118 <ul><li>… involves temporarily pricing products below the listed prices in order to increase short-term sales </li></ul><ul><li>examples: up to 50-70% SALE, discounts, Buy One Get One Free </li></ul>Promotional pricing PRODUCT PLACE PRICE PROMOTION 4 P s
  36. 36. PRICING TECHNIQUES 117-118 <ul><li>… involves setting prices at values just below an even amount </li></ul><ul><li>customers respond better to these prices </li></ul>Odd-even pricing $1.99 $29.99 $79.90 PRODUCT PLACE PRICE PROMOTION 4 P s
  37. 37. PLACE 119 <ul><li>… refers to how to the right product gets to the target customers </li></ul>LOCATION TYPES OF OUTLETS CONSIDER PRODUCT PLACE PRICE PROMOTION 4 P s
  38. 38. LOCATION DECISION <ul><li>Shop location can determine whether the business will be successful. </li></ul><ul><li>When deciding on the location, consider: </li></ul>Convenient location Target customers Competition Accessibility Volume of human traffic PRODUCT PLACE PRICE PROMOTION 4 P s
  39. 39. PROMOTION <ul><li>… to influence the attitudes and behavior of target customers so that they will buy our product </li></ul><ul><li>to inform customers of </li></ul><ul><li>Product , Place & Price </li></ul><ul><li>each promotion technique has its advantages and disadvantages . Therefore, we use a combination of techniques to create a more effective promotion </li></ul>PRODUCT PLACE PRICE PROMOTION 4 P s
  40. 40. <ul><li>… refers to attracting public attention to a product/business </li></ul><ul><li>can be published in print media (newspaper, magazines, etc.), broadcast media (radio) or electronic media (internet) </li></ul>Advertising Sales promotion <ul><li>… refers to short term incentives offered </li></ul><ul><li>to encourage target customers to buy a product </li></ul>PRODUCT PLACE PRICE PROMOTION 4 P s
  41. 41. <ul><li>… refer to activities that communicate messages to the public to create goodwill towards a business </li></ul>Public relations (PR) PRODUCT PLACE PRICE PROMOTION 4 P s special events sponsorship corporate identity materials websites news PR TOOLS
  42. 42. <ul><li>… involves interpersonal communication with the potential customers with the aim of making sales and building customer relations </li></ul><ul><li>example: insurance selling </li></ul>Personal selling advantages?? Direct marketing <ul><li>… a promotion method that sends </li></ul><ul><li>customised messages directly to the </li></ul><ul><li>target customers </li></ul><ul><li>tools: telephones, e-mail, Internet </li></ul>PRODUCT PLACE PRICE PROMOTION 4 P s
  43. 43. CREDITS… <ul><li>http:// www.courts.com.sg/guestcard/popup.html </li></ul><ul><li>http:// www.ikea.com.sg/store_services/home_delivery.asp </li></ul><ul><li>www.asi.com.au </li></ul><ul><li>http://www.kfc.com.sg/latestpromo/familyfeast.asp </li></ul><ul><li>http://www.dnrfoods.com/sub.php?p=campaigns </li></ul><ul><li>http://vagrantrider.com/catalog/images/buy2_1free.jpg </li></ul><ul><li>http://touchstoneclimbing.com/images/graphics/0701_sale_clothing.png </li></ul><ul><li>http://mobaydp.blogspot.com/2007/09/street-vendor.html </li></ul><ul><li>http://www.pacificcoastvending.net/images/combo_snack_and_pop_vending_machine_53_k0j1.jpg </li></ul><ul><li>http://www.targettiusa.com/applications/Mango/100_2951x.jpg </li></ul><ul><li>http://www.postercheckout.com/PrintImages/EUR/jpgs/2300-8346.jpg </li></ul><ul><li>http://wanster.blogspot.com/2006/09/wan-yean-wears-darnest-thing.html </li></ul><ul><li>Elements of Business Skills Textbook </li></ul><ul><li>Microsoft Clipart </li></ul>