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Chapter 9
The Role and Functions of
Marketing
Product Life Cycle
(Fads and Seasonal look different)
Brand Management Strategies
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Push Strategy
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Goods flow through the channels of distribution where
they pass from producer to consumer via importers,
wholesalers and retailers
Main goal is to sell to retailer who sells to consumer
Push to obtain good sales space (reasonable
compared to established brands already carried?)
May offer deals: cheaper cost prices, cooler to store
drinks in (doesn’t take up shelf space), store contests,
pay for advertising (shelf allowance)
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Pull Strategy
Goes straight to consumers instead of
through retailers
 They attempt to convince consumers who, in
turn, convince retailers to carry products by
going into stores to look for the product. This
convinces the retailer that they should carry it.
 Often do this through advertising
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Marketing Research
1.
Consumer Research
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2.
Market Research
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3.
What type of products do consumers want?
Surveys and interviews
Focus groups (get potential consumers together to
talk about an idea for a product)
Identify who would use certain products using
demographics and psychographics
Motivation Research
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Why do we buy?
Analyze emotional and rational motives that
determine consumer behavior
4.
Pricing Research
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5.
Competitive Research
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6.
Similar products are studied to see where there
have been mistakes made and where there is room
for a new market
Product Research
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7.
Helps marketer determine the price that can be
assigned to products so they are competitive and
still make a profit
Examines details of products (color, packaging,
flavor, size, texture, scent design, sound) and how
they have an impact on the market; maybe it can be
made easier for consumers to use
Advertising Research

Provide information on most effective way to get the
message across to customers
Product Development
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Product Design
Form – what product looks like, shape, color/
patterns, material
 Function – what product is designed to do

Packaging – protection, easy to use,
shape (identification), label
 Branding – identifies product

Channels of Distribution
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1.
Product does not change along the way
If it has changed, it is at the end of the
current chain and at the beginning of a
new one (example: wheat into bread)
Direct Channel – sell directly to
consumers (costs less money because
you don’t have to give up some profit to
intermediaries along the way). Provides
direct feedback to businesses and
people know where their products are
coming from (farmer’s market).
2.
Indirect Channels – product goes through
different businesses along the way
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3.
Importers – products are brought into Canada from
another country and sold
Wholesalers – buy products in large volumes and
then resell them to businesses
Retailers – buy products and sell to consumers
Specialty Channels – indirect channel that
does not use a retailer
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Vending machines
Telemarketing (sales pitch)
Catalogue sales
E-commerce
Door-to-door sales
Types of Advertising
Direct-to-home – any ads that come to
your home (flyer, internet ad, catalogue)
 Out-of-home – any advertising message
that the consumer is supposed to receive
while not at home (billboard, buses,
subways, transit shelters)
 Radio
 Television
 Newspapers
 Magazines

Sales Promotions
Coupons (redemption rate = % of coupons
distributed that actually get used by
consumers; average = 5%)
 Contests
 Premiums - get something free with
product (customer loyalty cards)
 Samples
 Special Events
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Activity
1.
2.
3.
4.
5.
6.
Design a product
Choose one type of research that you will do to
make sure the product will sell. What do you
feel will be the results of the research?
(hypothetical)
Will you use the pull or push strategy?
Describe how.
Product Development: describe one feature
from each category.
What channel will you sell it through and why?
Choose one type of advertising you will use
and one type of sales promotion (describe).