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Marketing
1.Purpose and Roles of Marketing
2.The Product Life Cycle
3.The Four P’s of Marketing
4.The Two C’s of Marketing
Purpose of Marketing
1. To sell what a business produces (goods)
and/ or offers (services).
2. To manage a business’s brand and
brands
Marketing
•
Marketing involves all the activities
involved in getting the goods and services
from the business that produces them into
the hands of consumers.
Roles of Marketing
1. To sell what a business produces (goods) and/
or offers (services).
2. To manage a business’s brand and brands
Sales
Research
Product
Development
Pricing and
Distributing
Promotion and
Advertising
Branding
Branding
 Usually represented by a name (brand
name), a logo and/or a trademark and/or
a slogan.
Purpose of Branding
 Branding is used to help a company
distinguish itself and its products from
competitors’ products – thus helping to
creating an image for the company.
Brand Names
Brand names should:
1. be distinctive and stand out
from the competition.
2. be easy to pronounce
3. easy to remember
Brand Names
Examples:
Bib-Label Lithiated Lemon-Lime Soda
(1929 product name)
vs.
7’Up
Logo or Trademark
A symbol or that is associated with a
company and/or product.
It helps promote awareness and brand
recognition of a company and/or product.
Logo or Trademarks
Three possible forms of logos:
1.
2.
3.
Monogram
Visual Symbol
Abstract symbol
Logos or Trademarks
Monogram
 A stylized rendering of the company’s
initials or a combination of initials and
numbers
 Sometimes used to update an image that
has become outdated.
Logos or Trademarks
Visual Symbols
 Usually line drawings of people, animals,
or things
 When seen the logo becomes directly
associated with the brand name.
Logos or Trademarks
Abstract Symbol
Shapes that carry a visual message
but are not representative of actual
things.
Slogans
Slogans
 A short, catchy phrase that is usually
attached to the company’s name and logo.
Examples:
1. I’m lovin it.
2. Priceless
3. It’s in you to give
Measuring Marketing Effectiveness
Effective marketing will:
1. Increase Brand Equity
 Increases value of the brand in the
marketplace

For example, Coca-cola’s brand equity is
valued at $39 billion. The brand name
itself is worth $39 billion.
Measuring Marketing Effectiveness
Good marketing will develop brand awareness where
consumers can identify what type of product or service
the brand represents.
Better marketing will develop brand loyalty where
customers prefer and support a particular brand.
Best marketing will develop brand insistence where the
customer will not accept any other substitutes over a
particular brand name.
The greater the brand insistence, the greater the brand
equity.
Product Life Cycle
The progress of a brand can be charted on a Product Life Cycle Chart.
Marketers use the product life cycle to determine what type of marketing efforts
they should use on a brand.
The Product Life Cycle
1.
Product Introduction Stage Characteristics

Product enters the market through a product
introduction, often called a launch.
The introduction may be national, international, or by
city, region, or province.
Marketing efforts are focused on informing consumers
about the product’s features, availability, package,
design, and brand identification.
Initial customers, known as early adopters, are
usually curious or adventurous or those who like to be
the first to won a new product and/or can afford the
higher price that new products often carry.
Few, if any, competitors.
Profitability is uncertain
Risk of success is high






The Product Life Cycle
2. Growth Stage Characteristics
 As popularity increases, competition increases
 Competitors modify the original product either by
adding features and improving the quality or by
making a cheaper model and offering it at a
lower price.
 Promotions and advertisements increase
amongst competitors and consumers may want
to see what all the fuss is about and sales
increase.
 The more competitors there are, the cheaper the
items becomes and more sales may be made.
The Product Life Cycle
3. Maturity Stage Characteristics

Profitable companies survive while others drop out of
the race, thus leaving a few top competitors.

Growth is flat. New consumers replace those who
leave to purchase a competing product.

Brand equity is at its highest

Advertising generally serves as a reminder to
consumers

Company costs of sales and distribution are low
thereby allowing for large profits.

Mature products which become cash cows allow for
the companies to research and develop new products.
The Product Life Cycle
4. Decline Stage Characteristics
 Seasonal changes or new competition may
cause a temporary sales decline.
 If sales decline continues, businesses use
market research to determine whether and why
consumers are actually rejecting the brand.
 A small change in price or a new advertising
campaign may reverse a temporary decline.
 If brand equity drops, the company must make
some decisions.
The Product Life Cycle
5. Decline and Decision Making Time
 If consumers are rejecting the brand, possible marketing strategies
may be used to reverse the decline and increase or brand equity.
1.
2.
3.
4.
5.


Price change
Re package and re-introduce a “new and improved” product.
New promotions
Target new group of consumers
Advertise new product uses
If new marketing strategies are not successful, the company may
discontinue producing the brand.
New technology also makes products obsolete such as DVD’s
versus VHS, cassette walkman versus MP3 Players.
Non-Traditional Product Life Cycles
Includes:
1. Fad products
2. Niche Products
3. Seasonal products
Fads
 Products that are extremely popular for a short period of time and
target a select target market – usually 14 and under.
Niches
 A section of the market in which a particular company’s product
dominates into which very few competitors enter due to barriers to
entry.
Barriers To Entry
Factors that make it difficult for
competitors to enter the market
with a similar product of a
competitor

Such factors may include:







the small size of the market (not very many people
who would purchase the product);
the cost of research and development;
advertising expenses;
factory and equipment costs;
design costs;
lack of distribution channels, and;
the cost of raw materials.
Non-Traditional Product Life Cycles
Seasonal
 Seasonal items will sell only during a particular season,
such as Christmas ornaments, Halloween costumes, ice
cream cones.

Styles and items may change from one year to the next
so businesses must be careful with the amount of
inventory they bring in for each season. If it does not
sell, it may be out of style for the next season.
Inventory Management
 The act of balancing the quantity of goods in inventory
with the projected sales.
Sources
Wilson, Jack et al. The World of Business., 5
Ed., Nelson Education Ltd., Canada, 2007