today’s response journal what is your favourite advertisement? why is it your favourite? what type...
TRANSCRIPT
Today’s Response Journal What is your favourite advertisement?
Why is it your favourite?What type of medium (TV, magazine, Internet, radio, etc.) is your favourite
ad created in?
***Save as Nov. 14 in your Response Journal Folder***
Knorr Sidekicks TV Commercial
Introduction to Marketing_____________ includes all the activities involved
with getting goods and services from the _____________ that produces them to the _____________ that want to buy them
Marketing has two fundamental roles; 1. To sell what a business makes2. To manage a business’s brands
Marketing includes; research, development, pricing, sales, distribution, advertising and promotion
Production of goods and services is not part of Marketing
Marketing Business
Consumers
MarketingWithout marketing, ___________________________
Consumers wouldn’t know what goods and services are available
Manufacturers wouldn’t know what to makeThere would be no channels of distribution to
get products into the hands of consumers all over the world
Non-profit businesses also use marketing to promote their cause and the services they provide
Read paragraph 1 on page 229
not much would be sold
Branding____________ is the process of creating a unique
image for a product or service in the consumers' mind, mainly done through advertising campaigns
Some businesses spend hundreds of thousands of dollars to create an image for their product or service, while others spend very little
In either case, the following make up an image; 1. Brand Name2. Logo or Trademark3. Slogan
Branding
Branding1. Brand NameA _________________ is a word or group of
words used by a business to distinguish its products from the competition
Most important part of a product or a company’s image because it is how they’re identified
Should be distinctive, easy to remember and stand out from the competition
Read the Roots example in paragraph 3 on page 230
Brand Name
Branding2. Logo or TrademarkA _________________________ is a special
symbol that is associated with a product or company
The logo or trademark helps the product compete for consumer awareness
Logo or Trademark
Branding3. SloganA _____________ is a short, catchy phrase that is
usually attached to the company’s name and logo
Examples:Skittles: Taste the RainbowMaxwell House Coffee: Good to the Last Drop
McDonalds: I’m Loving It!Canadian Blood Services: It’s in You to Give
Slogan
Brand Identification Once a company develops a name, slogan, and
logo for a product everything associated with that product should carry the identification, this includes; Font styleColoursPackage design
No consumer should ever have to guess whether this is the product they want
Competition is so fierce that no company wants its product to get lost on a store shelf
Day 1 Assigned Work Students please complete the
following;Complete the Activity: Slogans
(posted on ClassNet under Tasks)
Today’s Response Journal What is a Fad?
Provide a definition and a minimum of 4 products and/or services that you
believe were or are fads.
***Save as Nov. 17 in your Response Journal Folder***
The Impact of MarketingThe impact of marketing can be measured in 2 ways; 1. A Sales AnalysisHave sales increased? Have we sold more than our competition? 2. Measure consumer reaction to the brandEffective marketing increases ________________: the value of the brand in the marketplaceGood marketing develops _______________________: customers can name your brand and recognize it as part of a specific categoryBetter marketing develops ___________________: customers prefer your brand and support itThe Best marketing develops _____________________: the customer will accept no substitutes
E.g. some people will only drink Coca-Cola, some people will only use a BlackBerry as their smart phone, etc.
Brand Equity
Brand Awareness
Brand Loyalty
Brand Insistence
Product Life CycleThe Product Life Cycle, is the
______________ that a product goes through during its life
Marketers use the product life cycle to determine what type of marketing efforts to use
Phases
1. IntroductionThe product enters the marketplace through a
product introduction, often called a _____________Consumers need to know the product’s …
FeaturesAvailabilityPackage designBrand identification
Marketers sometimes use celebrities to introduce their new product
Initially, marketers usually focus their selling efforts on _____________________Consumers who like to be the first to own a new
product
Launch
Early Adopters
2. GrowthOnce early adopters find and use a new product,
others soon try it and popularity and sales _______________
This is the stage where competitors start entering the market
Competitors modify the original product by adding features and increasing quality or by making a similar product and offering it at a cheaper price E.g. Crystal Light first introduced individual serving
size packages to mix with water – Nestea and Kool-Aid have since followed – who will be next?
Increase
3. MaturityDuring this stage, growth is ______; no increase
or decreaseCompanies manage their mature products by
continuing to advertise; this keeps the product in the public eye and reminds consumers of its advantages over the competition
Cost of sales and distribution are lowProducts in this category usually make large
profits and are often referred to as ____________; mature products that generate high profits for a companyE.g. Kellogg’s Corn Flakes, Coca-Cola and Tide
detergent
Cash Cows
Flat
4. DeclineAt some point, most products fail to
attract new customers to replace those who leave to buy other brands, therefore, sales of the product ___________
Sometimes a small change in price or a new ad campaign can reverse a temporary decline, but not alwaysE.g. VCRs – did not make a come back
Decrease
5. Decision PointAt the final point in the life cycle, marketers make
some important brand management decisionsOften they use what brand equity they have left and
try to reposition the product, this could involve …ReformulatingRepackagingRe-introducing a “new and improved” product
E.g. an old brand of liquid detergent could re-enter the market with a convenient new pour spout
However, decision point management usually involves new promotion and repricing
Often new technology makes old products obsolete, and then no amount of marketing can help E.g. Flat screen TVs have replaced the picture tube TV
Non-Traditional Product CyclesSome products do not follow the
traditional product life cycle, including …1. Fads2. Niches3. Seasonal
FadA Fad is a product that is _____________ popular for
a ___________ period of timeNot a trend (they last longer)
Fads appear in a very select target market (usually under 14 age group) and last less than a year Old Fads: Pogoballs and Tamagotchis
You may still be able to find these products but they are no longer as popular
When a fad dies, it dies very quicklyCompanies can make lots of money on fads if they
get out of the market when it reaches it peakNewer Fad: Silly Bands
ExtremelyShort
NicheSome products have a very short growth
stage that leads to a solid, but not financially spectacular, maturity stage – these products have what is called a __________; A product that has a section of the market that
they dominate and where few competitors enterNiche products are usually invented and
companies hold exclusive patents or formulas, therefore, by the time other companies can create a competing product it’s too lateE.g. manufacturing specialized computer parts
Niche
SeasonalSeasonal products are products
that are only popular during a specific ___________ or ______________
The difficulty with selling a seasonal product is knowing how much ________________ to carryDon’t want to run out but don’t
want to have extra as it’s expensive to store
E.g. Christmas trees, snowboards, ice cream, etc.
TimeSeason
Inventory
Day 2 Assigned Work Students please complete the following;Play the Logos and Slogans Quiz Game
as a classAnswer Review Question #4 on page
238
4 Ps of MarketingRead paragraph 2 on page 238 A good marketing campaign considers the 4 P’s
of Marketing; 1. Product2. Price3. Place4. Promotion
These 4 P’s are referred to as the ____________________, and they must be properly combined for an effective marketing campaign
Marketing Mix
1. Product Good product and service development takes into account …Quality
If you improve the quality of your product, you will attract more customers. E.g. vacuum cleaners that pick up more dirt, movie theatres with moving seats, etc.
Low quality is part of product development as well. If a product can meet consumer need and be less expensive because of lower quality, that product has a good chance of success as well. E.g. Food Basics, no-name products, etc.
Design We often buy one product over another because we like the
way it looksA package design should consider function, make it easy for
consumer use and make the product easy to identify Services have design features as well
Read paragraph 2 on page 241
1. Product ContinuedFeatures
Product features includes the materials used in construction, the scent, the size, or the taste Read paragraph 3 on page 241
Service providers outline what they do Read paragraph 4 on page 241
BenefitsPeople buy most products and services for a particular
purpose - towels for drying, microwaves to cook food quickly, etc.
Consumers must recognize the benefits of a product/service in order to interested enough to buy
1. Product ContinuedThe Product/Service MixMany business sell a _____________ of both
products and servicesE.g. stores such as Ikea adds extras to the
products they sell such as delivery, installation and product warranties
E.g. a service business such as a movie theatre also sells products that compliment the service they provide such as soft drinks, popcorn, fries, etc.
Mixture
2. PricePricing decisions can make the difference
between a successful product and a failureBusinesses need to decide how much to charge
for the product or service they provide Consumers are very aware of price and often
compare different brands and stores before buying
Marketers need to know if consumers are ___________________; how much sales will go up or down based on changes in price
Price Sensitive
3. PlaceAlso known as ___________________________, are
paths of ownership that goods follow as they pass from producer to consumer
Businesses use different methods to sell and distribute its products to consumers
A marketer can use 3 types of distribution channels; A. Direct B. Indirect C. Specialty
Channels of Distribution
3. PlaceA. Direct ChannelSelling directly to the consumer
E.g. farmer’s market, bakery, etc.
With a direct channel, there is no _________________ (middle person) to increase the cost to the consumer
Also known as a __________________________ because consumers can inform businesses about their needs and they may feel more confident because they know the actual source of the products they are buying
Intermediary
Maker-User Relationship
3. PlaceB. Indirect ChannelHave one or more intermediariesCould be an importer, wholesaler or retailer
An ______________ is someone who searches for foreign businesses that want to sell their product to Canadian consumers
A _______________ buys goods from producers or importers and then resells to retailers
A ______________ doesn’t make their own product, but sells other business’s product’s to the consumer E.g. Canadian Tire
Importer
Wholesaler
Retailer
3. PlaceC. Specialty ChannelsA specialty channel is an indirect channel of
distribution that does not involve a retail store
Examples include …Vending machinesTelemarketingCatalogue salesE-commerceDoor-to-door sales
4. PromotionPromotion is any attempt to ______ a product
or service___________________ encourages consumers
to buy products using any of the following methods; A. CouponsB. ContestsC. PremiumsD. SamplesE. Special events
Sell
Sales Promotion
4. PromotionA. CouponsCoupons offer consumers money off the price of a
productCoupons are presented at the point of purchase
and treated like cashCanadian consumers are exposed to more than
1200 coupons a year, and therefore most coupons end up in the garbage
Advertisers measures the effectiveness of a coupon by looking at the ____________________; the percentage of coupons actually used by consumers
The average redemption rate is approximately ____
Redemption Rate
5%
4. PromotionB. ContestsContests are an exciting way to increase
brand recognition and salesBy law, businesses must organize contests
so that anyone can enter and they must require people to demonstrate a skill or answer a skill-testing questionRead the Tim Hortons Roll Up the Rim
example in paragraph 4 on page 247
4. PromotionC. PremiumsPremiums are _______________; something a
consumer gets for free when purchasing a productE.g. a toy in a cereal box
Many businesses encourage brand loyalty by giving free products to regular customers, through the use of __________________________ These cards are stamped each time the
consumer makes a purchaseE.g. TCBY – buy 10 Shivers, get the 11th one free
Giveaways
Customer Loyalty Cards
4. PromotionD. SamplesSamples encourage consumers to ______ a
productOften samples are small “trial” sizes of the
productSamples are usually distributed door-to-door,
at a retail outlet (mall, supermarket, etc.) or through the mail
Samples are an effective way to _______________ but are also very ___________
Try
Increase Sales Expensive
4. PromotionE. Special EventsSpecial events are organized to attract
consumers and increase product salesE.g. book signings, celebrities visiting stores that
sell their brand of shoes, etc.The main purpose of a special event is to excite
consumers, encourage their participation, and ultimately get them to buy
Consumers are ________ likely to buy if they are having _______
MoreFun
Day 3 Assigned Work Students please complete the following;Complete the 4 Ps of Marketing worksheet
(posted on ClassNet under Tasks)
Two Cs of MarketingIn order to put together a marketing mix,
the marketing department must consider the following two major external factors, also called the 2 Cs of Marketing …
1.The Competition Market 2.The Consumer Market
1. Competition Market The Competitive Market consists of all the
___________ of a specific productOften expressed in terms of the dollar value
spent annually on a specific productRead paragraph 2 on page 249
___________________ is the percentage of the market that a company or brand hasRead paragraphs 3 & 4 on page 249See Table 8.1 on page 250
Sellers
Market Share
1. Competition Market A ___________________ is a part of the
overall market that has similar characteristicsFor example the Soft Drink Market can be
further divided into a flavoured segment, a diet segment and an energy drink segment
Market Segment
1. Competition Market Competition Among ProductsProducts that are very similar to one another
are in ______________________The consumer chooses between products in
direct competition because of minor differencesE.g. Ritz crackers vs. Premium Plus
crackers
Direct Competition
1. Competition Market Competition among Products__________________________ is competition
between products or services that are not directly related to each otherE.g. movies and pizza – read the example found in
paragraph 3 on page 251
Indirect Competition
1. Competition Market - Income_______________________ is used to pay for
basic necessities, and is the money a person makes after taxes have been paid
___________________________ is the income that you have that is not already committed to paying for necessities (food, clothing, shelter) and can be used to buy items for comfort and pleasure
Discretionary Income
Disposable Income
2. Consumer MarketCompanies study the types of consumers
that buy their productsThese consumers can be identified in at
least two ways; 1. Demographics2. Lifestyle
2. Consumer MarketDemographicsDemographics is the study of obvious
characteristics that categorize people, such as …AgeGenderFamily life cycleIncome levelEthnicity and culture
Businesses use demographics to target specific consumers
2. Consumer MarketLifestyleLifestyle is the way people ________, which
includes their _________, __________ and _______________
Less obvious than demographics, but just as important
A person’s beliefs influence what he or she buysE.g. an environmentally conscious person
would not buy an SUV
LiveValues Beliefs
Motivations
Day 4 Assigned Work Students please complete the following; Complete the Demographics Worksheet
provided to youReview Questions #5 – 8 on page 254
AdvertisingThe goal of advertising is …to encourage consumers
to remember the product.
Rules for a Good AdAttentionInterestDesireAction
Attract AttentionPrint AdsA good headline that mentions the brandRarely more than 7 wordsBroadcast AdsAttract attention using sound, unusual
visuals, a celebrity or attractive personWant to hold attention for 60 seconds
Gain InterestPrint AdsShould be simple and easy to readConsistent fontMessage should be clear and to the
pointBroadcast AdsShould try to get to the main message
as soon as possible
Build DesireThe sales message should be connected
to the visual messageGoal is to get the consumer to want
your productUseful to set up a problem that your
product solvesRead Sprite example – paragraph 3 page
256
Get ActionAlways ask for the saleSummarize the reasons to buyPrint AdWant logo, slogan, brand name and
contact information in the bottom right-hand corner
Print and Broadcast AdsShould repeat a phone number and
web address
TerminologyAdvertisingThe paid-for promotion of a business’s
goods and services over a variety of mass media to a target market of consumers
PublicityMedia information about a business
that the business doesn’t pay forCan be positive or negative
Types of AdvertisingMost often, advertising is classified according to the type of medium used to carry the message, such as …Direct-to-homeOut-of-homeRadioTVNewspapersMagazinesInternet
Direct-to-HomeAn advertising message that comes
to your homeE.g. flyer or catalogue that is delivered to
your homeConsumers do not ask or pay for this
type of advertisingAds on the Internet can also fall into
this category
Out-of-HomeAny advertising message that the
consumer receives when not at homeE.g. billboards, bus and subway ads, etc.
RadioThe “go anywhere” mediumAn effective ad uses words and sounds
to gain interest
Coke Radio Ad
TVCombines words, sounds and imagesAn extremely effective mediumVery expensiveAudience is potentially millions
NewspaperHave a choice about distribution
Local or nationalSmall companies might choose a local
paperLarge companies could be local or
nationalExpensive to place a large ad, but
inexpensive to place a small ad
MagazinesMany advantages over newspapers
including; Use of colour adsUse of specialty magazines to
target specific groups of consumers (using demographics)
E.g. women, new parents, young people, retired people, etc.
InternetThere are 3 Types of Internet Advertising; Company websites
Attracts consumers who are interested in the company in the first place
Can convert interest into salesBanner advertising on other websites
Target consumers on one site and directs them to another
E-mail advertisingIf a consumer subscribes to a specific site and are
expecting updates, offers and ads, then this form can be effective
Can be annoying to get messages from companies you don’t know
Day 5 Assigned WorkStudents please complete the following; Complete the Comparing Types of
Advertising Worksheet provided to you
Review Question #14 on page 262
Overview___________________ is the collection and
analysis of information that is relevant to the marketing strategy
Types of Market Research include; ConsumerMarketMotivationPricingCompetitiveProductAdvertising
Market Research
Types of DataMarketing research relies on 2 types of
data …1.Primary
Current information that researchers collect and analyze for a specific purpose
Collected in a number of ways including test marketing, internal information sources, surveys, observation and focus groups
Types of Data continued…2. Secondary
Information that has been collected by othersSources include websites, books,
professionally prepared research reportsIt is freeDisadvantage is that data wasn’t collected
specifically for you so it may not meet all your needs E.g. Statistics Canada
Sources of Primary DataResearchers can collect Primary Data in the
following ways; 1.Test MarketingIntroducing a product to a specific area in small
quantitiesArea is usually selected based on demographicsVery expensive so must be done carefully if
results are to be used E.g. Scotiabank tested the chip card in this area before
making it available to all bank customers E.g. Tim Hortons tested the ice cappuccino in this area
before making it available at all their locations
Sources of Primary Data2. Internal Information Sources Using information generated by the
business (sales records, inventory data, advertising and promo results) and analyzing it
Can help identify who purchases what and when
Can also be shared with suppliersE.g. Air Miles can track where you buy and can
partner with other companies to send you coupons and information
Sources of Primary Data3. Surveys A set of carefully planned questions that
are used to gather dataMost surveys use __________________________
Questions that require the respondent to select an answer from two or more choices
E.g. Yes/No, Agree/Disagree, Select a, b, c, d These types of questions are easy to answer and
easy to scoreOpen-Ended Questions
More complicated Require respondents to develop their own answers Difficult to answer and analyze
Closed-Ended Questions
Sources of Primary Data4. Observation Watching the
behaviour of others without them knowing
E.g. using two-way mirrors, cameras, etc.
The goal is to observe how people react in certain situations
Sources of Primary Data5. Focus Group A company-arranged
meeting of potential consumers
One of the most popular forms for consumer research
The company usually offers an incentive to consumers for participate in the focus group such as: Free meal, money, samples of
product, etc.
Day 6 Assigned Work Students please complete the following; Working with a partner, create a
minimum of 10 survey questions that you could ask your fellow schoolmates before putting on the next school dance. The questions should provide you with information on theme ideas, price, dates and time, etc.
Read the about the 7 Types of Market Research on page 263 and write the definition of each in your notes