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Lakeland College Japan
Week 9 Lesson 1
Introduction to Business
Week 9
Marketing mix, product and pricing
Core Concepts
Product
What is a product?
A product is a set of tangible and intangible attributes including packaging, colour, price, quality and
brand, plus the services and reputation of the seller
Branding
A brand name is a term, sign and/or special design that is intended to identify the goods or services of
one seller and distinguish them from all others.
Packaging
Defined as all the activities of designing and producing the container or wrapping for a product.
Packaging performs several marketing functions: protection of the product and the people handling and
using it; providing information; helping promote the product.
Product warranty
Protects the buyer and gives essential information about the product
Confirms the quality or performance of a good or service
Product innovation
Product innovation is becoming increasingly important owing to rapid advancements in technology and
successful product copying by competitors.
The importance of product innovation
Need for growth—products, like people, go through life cycles.
Increased consumer selectivity—not spending as freely.
Resources and environmental considerations—environmental factors will influence product decisions.
The product life cycle
Characteristics of 4 stages in Product Life Cycle (PLC)
Introductory Stage
Full-scale launch into marketplace
Marketing and production costs high
Growth is relatively slow
Growth Stage
Sales grow at an increasing rate,
Maturity Stage
Sales increase at a decreasing rate
Decline Stage
Long run drop in sales
Lakeland College Japan
Introduction to Business
Week 9
Multi-brand strategy
Multi-branding—firm using more than one brand name for similar products in its range in an attempt to
reach different market segments
Co-Branding
Two companies use their brand names on the same product
Brand extension
Using a successful brand name on products in different product categories
Sony Vaio Laptop
Price
Price is what we pay for what we get! It is the amount of money needed to acquire a product.
Two common mistakes in pricing
Companies are quick to reduce prices to keep the sales volume
Instead we may convince customers that the offer is worth a higher price (increasing customer value)
Companies pricing is too cost-oriented
Instead we focus on value-oriented pricing
Pricing Strategies
Cost-based pricing
Competition-based pricing
Value-based pricing
Lakeland College Japan
Introduction to Business
Week 9
Advertising Slogans
Advertising slogans are claimed to be, and often are proven to be, the most effective means of drawing attention
to one or more aspects of a product or products. Typically they make claims about being the best quality, the
tastiest, cheapest, most nutritious, providing an important benefit or solution, or being most suitable for the
potential customer.
What makes an effective slogan?
Advertising slogans often play a large part in the interplay between rival companies. An effective slogan usually:
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states the main benefits of the product or brand for the potential user or buyer
implies a distinction between it and other firms' products - of course, within the usual legal constraints
makes a simple, direct, concise, crisp, and apt statement
is often witty
adopts a distinct "personality" of its own
gives a credible impression of a brand or product
makes the consumer feel "good"
makes the consumer feel a desire or need
is hard to forget - it adheres to one's memory (whether one likes it or not), especially if it is accompanied
by mnemonic devices, such as jingles, ditties, pictures or film sequences on televised commercials
sounds good
The following is a short listing of a few advertising slogans.
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"Nothing Runs Like a Deere" Deere & Company equipment manufacturer
"I Am Canadian" Molson brewing company
"Think different." - Apple
"Because you're worth it" - L'Oréal
"Connecting people" - Nokia
"Empowering People" - Acer
"FAN-TASTIC" National Basketball Association 1982, Margaret Dickey Roeder, TMC
"Ideas for Life." - Panasonic
Source: http://www.answers.com/topic/advertising-slogan
Question 1. Explain why each of these companies has chosen the following advertising slogans:
"Business made simple"
"Make the most of now"
"Yes you can."
"Your World. Delivered."
"And you're done."
"Broadcast Yourself"
Nortel
Vodafone
Sprint
AT&T
Amazon.com
YouTube
"Buy it. Sell it. Love it."
"Think different"
"Connecting people."
"Designed for life"
"It's a Sony"
"It's so simple"
2. Suggest a good advertising slogan for the following businesses/products:
(a) fast-food restaurant, offering healthy products;
(b) University (any of your choice);
(c) Travel company (any of your choice)
eBay
Apple Computer
Nokia
Siemens Mobile
Sony
Polaroid
Lakeland College Japan
Introduction to Business
Week 9
Week 9 Lesson 2
Marketing mix, distribution and promotion
Core Concepts
Role of distribution
A distribution channel is a set of people and firms involved in carrying out the distribution function
A channel involves:
A producer.
Ultimate consumers.
Business users.
Intermediaries.
Distribution Channel
When looking at direct versus indirect, it often comes down to cost versus control.
Direct distribution allows producer to retain complete control.
Producer will have to fund and organise all of the infrastructure and operations of the channel.
Direct Distribution
What are the advantages and disadvantages of direct distribution?
Advantages: reducing overall costs (margins), closer to customers, control, availability of good lists
Disadvantages: higher advertising/contact costs, assumes inelasticity to some service reductions,
shipping times, item availability
Indirect distribution
A channel involving a producer, final customer and at least one level of intermediary is known as indirect
distribution.
What is a promotion?
Promotion is the element in an organisation’s marketing mix that serves to inform, persuade and remind
the market about the organisation and/or its products.
Developing effective communication follows 5 steps
Integrated marketing communications
Step 1: Identifying the Target Audience
Step 2: Determining Communication
Step 3: Designing a Message
Step 4: Choosing Media
Step 5: Collecting Feedback
Personal selling—the presentation of a product to a prospective customer by a firm’s sales executive.
Lakeland College Japan
Introduction to Business
Week 9
Advertising
Sales promotion
Direct Marketing connecting directly with the customers
Public relations—a planned communication effort by an organisation to contribute to generally
favourable attitudes and opinions toward an organisation and its products.
Slogan – To help position the product in customer’s mind and distinguish it from competitors’ offerings,
advertisements will contain a word or phrase that is repeated across several different messages and
different media outlets
Which medium should we choose?
Newspaper
Magazine
Direct Mail
Radio
Television
Internet
Outdoor
Sponsorships
Celebrity Endorsement
Personal Selling
Direct Marketing
Public Relations
Sales Promotion