Download U2W09_SU10_Lesson_2 - U2W09-2010

Business English Upper Intermediate
U2W09
John Silberstein
[email protected]
Agenda
•The 4 Ps
Marketing
What is Marketing?
Marketing
Marketing is the social process by which individuals
and groups obtain what they need and want through
creating and exchanging products and value with
others.
Marketing is the management process that identifies,
anticipates and satisfies customer requirements
profitably.
Marketing is essentially about marshalling the
resources of an organization so that they meet the
changing needs of the customer on whom the
organization depends.
Marketing
What are the key components of Marketing?
The 4 P’s of Marketing:
Product
Price
Place
Promotion
This is also known as the
Marketing Mix
Marketing
The 4 Ps of Marketing: Product
Why is the Product important?
What are the key aspects you
need to be aware of concerning
your Product?
Marketing
The 4 Ps of Marketing: Product
Brand name,
Functionality,
Styling,
Quality,
Safety,
Packaging,
Support,
Warranty,
Accessories/Add-ons
Marketing
The 4 Ps of Marketing: Price
What is important about the Price?
Pricing strategy,
Suggested Retail Price,
Volume discounting,
Cash and Early Payment Discounts,
Bundling,
Price Flexibility,
Price Discrimination.
Marketing
The 4 Ps of Marketing: Place
Place
(also known as distribution)
Distribution is about getting the product to the
customer.
Distribution Channels
Market Coverage
Specific Channel Members
Inventory Management
Warehousing/Distribution Centers
Order Processing
Transportation
Reverse Logistics
Marketing
The 4 Ps of Marketing: Promotion
Promotion
In the context of the marketing mix, promotion
represents the various aspects of marketing
communication; the communication about the
product with the goal of generation a positive
customer response.
Promotional Strategy (push, pull),
Advertising,
Personal Selling,
Public Relations & Publicity,
Marketing Communication budget.
Marketing: The 4 Ps
Product: Brand Name
Brand name, Functionality, Styling,
Quality, Safety, Packaging, Support,
Warranty, Accessories/Add-ons
Do all products use all of these
attributes?
Which of these attributes do you
consider to be the most important?
Marketing: The 4 Ps
Product: Brand Name
Of the 9 attributes of a Product, Brand
Name is the most important!
What are some Famous brands and what
makes them famous?
Marketing: The 4 Ps
Product
Brand name: iPhone
Functionality: Lots of functionality: Unique, first in market user
interface, Phone, calendar, MP3 player, games, internet, chat and many
more.
Styling: Unique styling.
Quality: High quality, great screen, metal body, feels good in your hand.
Safety: overall, not a huge issue, but it has outlet for Hands free/Blue
tooth headset, battery will not explode.
Packaging: Interesting in store packaging.
Support: lots of on-line help and Apple toll free number, plus store
support from phone carrier.
Warranty: available warranty
Accessories/Add-ons: Tons of accessories!
Marketing: The 4 Ps
Product
Break into groups of 3
Choose a Product
Identify the 9 attributes of the
product and be prepared to
discuss what decisions may
have been made about the
attributes as they relate to the
product.
Marketing: The 4 Ps
Product
Brand name,
Functionality,
Styling,
Quality,
Safety,
Packaging,
Support,
Warranty,
Accessories/Add-ons
Marketing Research
What is the difference between Market Research
and Marketing Research?
Market Research is the research of the Market
Environment and is a part of Marketing Research.
Marketing Research
What is Market Research?
Market Research is a systematic, objective collection and
analysis of data about a particular target market,
competition, and/or environment. It always incorporates
some form of data collection whether it be secondary
research (often referred to as desk research) or primary
research which is collected direct from a respondent.
The purpose of any market research project is to achieve
an increased understanding of the subject matter. With
markets throughout the world becoming increasingly more
competitive, market research is now on the agenda of
many organisations, whether they be large or small.
Marketing Research
Definition
Market research:
Identification of a
specific market and measurement of its size and
other characteristics.
Product research: identification of
a need or want and the characteristic of the good
or service that will satisfy it.
Consumer research: identification of the preferences,
motivations, and buying behavior of the
targeted customer.
Marketing Research
Methods of Research
There are two primary Methodologies:
Research based on questioning,
Research based on observations.
Marketing Research
Methods of Research
Methods based on questioning:
Qualitative marketing research:
generally used for qualitative purposes – small sample –
can not be applied to larger populations. Not statistically
significant. Methods – Focus Groups, in-depth interviews.
Quantitative marketing research:
generally used to draw conclusions. Used to test a
hypothesis. Uses random sampling to make inferences
about a large population. Methods – Surveys,
questionnaires.
Marketing Research
Group Presentation
Break in to Groups of three
Choose a product.
Write 10 questions specifically about the product.
Ask the questions to at least 50 people.
You will then compile the data and then present in
class
Marketing Research
Group Presentation
June 17th: Due date for product name.
July 6th: Due date for questionnaire.
August 5th, 10th & 12th: Presentations.
Marketing: 4 Ps
Planning Tools: SWOT
Strength
attributes of the person or company that are helpful to achieving the
objective.
Weaknesses
attributes of the person or company that are harmful to achieving the
objective.
Opportunities
external conditions that are helpful to achieving the objective.
Threats
external conditions which could do damage to the objective.
Marketing: 4 Ps
Planning Tools: SWOT
Strength
attributes of the person or company that are helpful to achieving the
objective.
Weaknesses
attributes of the person or company that are harmful to achieving the
objective.
Opportunities
external conditions that are helpful to achieving the objective.
Threats
external conditions which could do damage to the objective.
Marketing: 4 Ps
Products: SWOT
Strength
A strength could be:
Your specialist marketing expertise.
A new, innovative product or service.
Location of your business.
Quality processes and procedures.
Any other aspect of your business that adds value to
your product or service.
Marketing: 4 Ps
Products: SWOT
Weakness
A Weakness could be:
Lack of marketing expertise.
Undifferentiated products or services (i.e. in relation
to your competitors).
Location of your business.
Poor quality goods or services.
Damaged reputation.
Marketing: 4 Ps
Products: SWOT
Opportunity
An Opportunity could be:
A developing market such as the Internet.
Mergers, joint ventures or strategic alliances.
Moving into new market segments that offer improved
profits.
A new international market.
A market vacated by an ineffective competitor.
Marketing: 4 Ps
Products: SWOT
Simple rules for successful SWOT analysis.
Be realistic about the strengths and weaknesses of your
organization when conducting SWOT analysis.
SWOT analysis should distinguish between where your
organization is today, and where it could be in the future.
SWOT should always be specific. Avoid grey areas.
Always apply SWOT in relation to your competition i.e. better than
or worse than your competition.
Keep your SWOT short and simple. Avoid complexity and over
analysis.
SWOT is subjective.
Marketing: 4 Ps
Products: SWOT
Example: Starbucks
Strengths:
Starbucks Corporation is a very profitable organization, earning in
excess of $600 million in 2004.
Weaknesses:
Starbucks has a reputation for new product development and
creativity.
Opportunities:
New products and services that can be retailed in their cafes, such
as Fair Trade products.
Threats:
Starbucks are exposed to rises in the cost of coffee and dairy
products.
Marketing: 4 Ps
Products: SWOT
Example: Nike
Strengths:
Nike is a very competitive organization. Phil Knight
(Founder and CEO) is often quoted as saying that
'Business is war without bullets.
Weaknesses:
The organization does have a diversified range of sports
products.
Opportunities:
Product development offers Nike many opportunities.
Threats:
Nike is exposed to the international nature of trade.
Marketing: 4 Ps
Products: SWOT
Group Exercise
Break into groups of 3 or 4
As a group, choose a product
or company and complete a
SWOT Analysis.