Download MARKETING - qacblogs.org

MARKETING
WHAT IS MARKETING?
The process of creating, promoting, and
presenting a product to meet the wants and
needs of consumers.
HOW DO COMPANIES KNOW WHICH
GROUP OF PEOPLE TO TARGET
THEIR PRODUCT TO?
They do detailed research on potential
customers. This research is called
TARGET MARKETING.
Target Marketing is used by
companies to help:
(1) find potential customers for a
product already created and
(2) analyze the customers to create
advertising that will influence them.
There are many careers
that involve marketing, i.e.
Market Researcher
Average Earnings $60,260
Market researchers collect, analyze and
interpret data on consumer preferences
and public attitudes towards issues.
Promotions Manager
Average Earnings $62,260
Promotions managers are commonly found at
radio stations. At small stations, like college
radio stations, they may handle all the station
publicity, publish the programming guides
and manage the giveaways. At larger
stations, they handle promotions on a much
larger scale, but they may have assistants
and writers who support their efforts.
Customer Service Rep
Average Earnings $24,960
A customer service representative is a
vital link between the customer and the
company or organization. Many don’t
work in stores or for companies and can
be very stressful at times.
Marketing involves more than just
creating advertisements or researching
consumer demographics.
*************
Before a product is sold, companies have
to consider several questions. These
questions involve the four elements of
marketing which is known as the
MARKETING MIX
THE MARKETING MIX
aka
(The Four P’s of Marketing)
1. Product
2. Place
3. Price
4. Promotion
PRODUCT
• The first process involved in marketing is
deciding whether or not there is a
demand for a product.
• If there is a demand for the product,
marketers have to decide how to package
the product and present the product in
the most appealing way.
MARKET
RESEARCH
Market research is the process of gathering and
studying information about the buying habits of
consumers to determine
WHAT GOODS
AND
SERVICES
TO PRODUCE.
Market Research involves
analyzing facts about
consumers. These facts
include age, gender,
location, income, and
education. This information
is called DEMOGRAPHICS.
If Hollister wanted to design and sell a new
product, they would first decide what
group of people they want to design a
product for by evaluating the
demographics of their consumers.

Which demographic are these
products aimed at?
Before producers decided exactly what to
design and sell, they would gather focus
groups together to get their opinion.
FOCUS GROUPS
are a group of people gathered together to
answer questions and offer their opinions
about a product.
If a company wanted teenager’s opinions
they would have a focus group full of teens.
The Merchants of Cool
• http://www.pbs.org/wgbh/pages/frontline/sh
ows/cool/view/
Participating in a
focus group may go
something like this:
Which design would be more popular?
Hoodie
Jacket
Which design would be more popular?
T Shirt
Dressy Top
Which design would be more popular?
Long Sleeved Blouse
Long Sleeved T Shirt
Which design would be more popular?
Plain T Shirt
Design on T Shirt
Which design would be more popular?
Solid Color Polo Shirt
Striped Polo Shirt
Which design would be more popular?
Scoop Neck
Straight Neck
Which design would be more popular?
Tie
No Tie
Which design would be more popular?
Camo Shorts
Plaid Shorts
Which design would be more popular?
Pants
Shorts
Which design would be more popular?
Dark Jeans
Light Jeans
Which design would be more popular?
Jeans with holes
No Holes in Jeans
Which design would be more popular?
Wide Leg Jeans
Skinny Jeans
Which design would be more popular?
Scarf
Necklace
Which design would be more popular?
Baseball Hat
Beanie
Which design would be more popular?
Worn Hat
New Hat
Which design would be more popular?
Casual Flip Flops
Leather Flip Flops
Which design would be more popular?
High Heels
Flats
Which design would be more popular?
Basketball Shoes
Skater Shoes
Which design would be more popular?
Sandals
Sneakers
What’s After Market Research &
Designing a Product?
(Well, it’s back to the Marketing Mix or the 4
P’s of Marketing.)
1. Product
2. Place
3. Price
4. Promotion
PLACE
After a company decides on a product they
want to sell, they have to decide where they
want to sell it, i.e.
• Would you sell snowshoes in Hawaii or Alaska?
• Would you sell lawn mowers in the Sahara Desert
or in Utah?
PLACE
(cont.)
Once companies decide where to sell their
product they have to decide how to get their
product to the consumers. This is called a
CHANNEL OF DISTRIBUTION.
Companies make a product in a factory
somewhere, but how do they get it from the
factory to the consumer?
TWO TYPES OF CHANNELS OF
DISTRIBUTION
• Direct Distribution: When goods are sold
directly from the producer/manufacturer to
the customer.
• Indirect Distribution: When goods are
sent to intermediaries before getting to the
customer.
Intermediaries
Intermediaries are people who help
distribute the product to the consumers.
There are several different kinds of
intermediaries but we are going to focus
on three types.
3 Types of Intermediaries
1. Manufactures/
Producers
2. Wholesalers
3. Retailers
Manufactures/Producers
via the Internet
Manufactures/Producers sometimes
decide to sell the product they produce
themselves.
This usually doesn’t involve an
Intermediary except when the
Manufacturer/Producer uses the
Internet to help get the product to the
consumers.
The Internet then becomes the
Intermediary.
It can save the consumer money to buy a
product off the Internet.
***************
However, sometimes it is costly for a
company to hire people to take Internet
orders, ship products, collect money, etc.
***************
So instead they hire someone else to get
their product to the consumer. The
people they hire are called Wholesalers.
Wholesalers
Receive large shipments of products from
many producers/manufacturers.
They divide the shipment up and send the
products to stores/retailers so they can sell
the products.
Retailers
Sell goods directly to the public like grocery
stores or department stores.
Retailers can get goods from either the
producers/manufacturers or from wholesalers.
Intermediary Activity
Which Place Would Be Best?
• Welcome to Newtown. It sits 25 miles from
Commerce Town, 10 miles away from Friesner
Airport, and 35 miles away from Poshbury.
• Floor-Mart are considering where to put their new
store. Their store will sell groceries and provisions
24 hours a day (at a premium price of course). They
have three options, each one is considered on the
next slides. You need to recommend a place for the
position of the new store.
Here is a map of the area……
SITE #1
• This site is next to Commerce Town. It has
very few inhabitants. However 7,000 people
travel there everyday to go to work. It
already has a competing store (C). There are
plans to build low cost housing in the area.
SITE #2
• This site is very close to the exclusive
Poshbury. It has 1,000 very exclusive,
wealthy inhabitants. There is no competition
in the locality.
SITE #3
• This site is close to Newtown. However the
7,000 of the 10,000 citizens of Newtown
work in Commerce Town and spend little
time at home during the working week. This
site is some 5 miles away from Newtown and
4 miles away from the growing Friesner
Airport. It is situated on the only road
between Friesner airport and Newtown.
One more look at the map……
SOLUTION
• Commerce Town has very few houses. Most of the people that
visit it are working. However this could be an advantage if
people went shopping during their lunch or after work. There is
a competitor in the locality. The future will see a new low cost
housing, so there is potential for the long-term.
• If Floor-Mart were to locate here there would be no competition.
The problem with this location is the lack of inhabitants. With
Poshbury being so exclusive, further building is unlikely.
• The final location is has a large population. It is also on the main
route between Newtwon and the growing Friesner Airport.
People could shop on their return from work since Floor-Mart is
open for 24 hours every day.
Option 3
is the preferred
option, followed
closely by option 1.
What’s After Deciding on the PLACE
to Sell Your Product?
(Well, it’s back to the Marketing Mix or the 4
P’s of Marketing.)
1. Product
2. Place
3. Price
4. Promotion
PRICE
After a company
decides what product
to create and where
they are going to sell
it (place), they have
to decide what price
they are going to sell
the product for.
Setting the price of
a product is critical.
If the price is too
high, no one will
buy it. If the price
is too low, the
company won’t
make any money.
3 Questions to Determine the
Price of the Product
1. How much are customers willing
to pay?
2. Is the price competitive with
other similar products?
3. Can the company make a profit?
Is the
Price
Right?
http://pbskids.org/dontbuyit/buyingsmart/price_flash.html
Just because something costs more,
does it mean it is a better product?
• NO!!!!!!!!!
• Many companies charge more
for a product just because they
have a popular name brand.
• Bottled water for Dasani, a
Coca-Cola product, costs more
than buying a generic brand of
water.
The
Cost of
Cool
http://pbskids.org/dontbuyit/buyingsmart/costofcool.html
What’s After Deciding on the PRICE
For Your Product?
(Well, it’s back to the Marketing Mix or the 4
P’s of Marketing.)
1. Product
2. Place
3. Price
4. Promotion
PROMOTION
Promotion is making
consumers aware of a
product.
Some Types of Promotion
• Personal Selling
• Sales Promotion
• Advertising
–Direct Mail
• Public Relations
• Publicity
Personal Selling
• One-on-one interaction between a representative
of a company and a customer.
• Involves a salesperson selling the product on
behalf of the company.
• Salespeople are trained on how to approach
potential customers and the techniques of making
a sale.
• Salespeople are expensive so companies only use
them if they are going to make a large profit on
the sale.
• Examples: Car Salesman
& Avon Lady
Sales Promotion
• Any promotion offering a special deal.
• Companies have to decide if it is worth offering a
special deal or instead use the money to pay for
advertising.
• Examples include
–
–
–
–
–
Buy one get one free
Coupons
10% off
Free blade replacements with purchase of a razor
Free Shipping
Advertising
• Communication with consumers that is paid for.
It is used to develop attitude, create awareness, and transmit
information to consumers.
• Places companies can buy ad space include:
– Newspapers
– Magazines
– Television
– Billboards
– Radio
– Sides of Buses
– During Movie Previews
– Direct Mail
Advertising
Direct Mail
• Involves sending out mail to specific groups
of people.
• Companies keep databases of people and
their information like addresses and phone
numbers. They use the database to find
people with similar characteristics and
choose to mail flyers/information to them.
• For example: Residents of Kaysville may
get “Our Town” ads which are ads for
stores in the surrounding area. If you are a
medical school student you would get flyers
or catalogs about medical supplies.
Public Relations
• Public Relations (sponsorship) is when an company
pays to be associated with a specific event.
• For example:
– Reebok will pay professional basketball players to
wear their products when they play.
– Cheerios sponsors a NASCAR race car.
Publicity
•
•
•
•
Does not cost the company anything.
Can be positive or negative for the company.
The company has no control over content.
Companies often use Public Relations experts
to control publicity for their
company/product.
Advertising Tricks
• Companies use many
tricks to convince
people to buy their
product.
• Sometime they work,
sometimes they
don’t!
Hot or Snot
Did it Sell?
http://pbskids.org/dontbuyit/buyingsmart/hotorsnot.html
Music & Advertising
• Music is very effective in making
advertisements more memorable.
• Many slogans are set to music so people
are more likely to remember them
• For example:
– Plop, Plop, Fizz, Fizz
– Two all beef patties, special sauce, lettuce,
cheese, pickles, onions on a sesame seed
bun. (One of McDonalds old slogans)
Money &
Music
http://pbskids.org/dontbuyit/entertainment/makingmusic.html
• http://www.iceagemovie.com/index.html