Marketing Fundamentals

1
MarketingFundamentals
2

• What is Marketing??
• Marketing is the sum of all the activities
  involved in planning, pricing, promoting,
  distributing, and selling of goods and services
  to satisfy consumers needs and wants.

3

• Marketing seeks to
• discover the needs and wants of prospective
  customers
• and
• satisfy them.

4

• The key to achieving these two objectives is the
  idea of exchange the trade of things of value
  between buyer and seller so that each is better
  off after the trade.
• Example
• ME Hungry
• McDs Needs to sell food
• ME Buy food
• McDs Makes money

5
Requirements for Marketing to Occur

• 1. Two or more parties with unsatisfied needs
• I need of food, McD was in need of selling food
  in order to make money
• 2. Desire and ability to satisfy those needs
• I want to curb my hunger and have money, McD has
  food and a way for me to purchase it from them
• 3. A way for the parties to communicate
• I watch TV, McD advertises its products on TV
• I receive mail, McD sends out coupons
• 4. Something to exchange
• I have money, McD has food

6
The Marketing Mix

• In order to achieve your marketing objectives and
  successfully put the right product in the right
  place, at the right price, at the right time, you
  need to create a plan
• In marketing, this plan revolves around the 4 Ps
  and 2 Cs.
• Each P and C or element must be taken into
  consideration in order to effectively market your
  business to your customer
• These elements are interrelated and must be
  planned in combination with each other there is
  no order as to when each is done

7
The 4 Ps are
8

• Product
• Tangible object or service
• Do market research to find out who customer is
  and what they want
• Results will tell you what to make, how to
  package it, brand name ideas, image to portray,
  etc.

9

• Price
• The process of
• determining what to charge for the product or
  service
• Needs to reflect what the customers are willing
  and able to pay

10

• To set your price, you need to look at many
  variables such as
• - production costs (materials, labour,
  packaging, advertising, etc)
• - state of supply and demand
• - competition

11

• Place
• Essentially asks
• Where is your product or service going to
  be?
• You need to figure out how to make it easy for
  your customer to find and buy your product or
  service
• Look at
• Place retail (display, where on shelf cereal
  low)
• Direct sales, internet, etc..
• Timing all time (ie cereal) vs seasonal (Xmas)

12

• Promotion
• Actual marketing of product or servicemake
  customer aware of it and how to get it
• Advertising (newspaper, radio, TV,
• internet), Public Relations, sales forceetc,

13

• To promote you need to decide on the message
  you want to get across
• In order to accomplish this, you need to focus
  on the 5 Ws
• Where, When, Why, What, Who
• If you can get the 5 Ws across, you will be
  successful

14
Joke Break

• What did one snowman say to the other?
• A Do you smell carrots??

15

• The 2 Cs
• In order to perform an effective Marketing Mix
  assessment, a marketer must also consider the 2
  Cs of marketing
• Customer
• Competition
• By understanding who we are selling to and who
  were competing against, we are more likely to be
  successful in selling our product or service

16

• Customer
• Who is your customer??
• A successful marketer must do their homework and
  find out the demographics of their customer
• Who they are, what they look like, where they
  are, etc.
• By researching your customer, a marketer will be
  able to find out your target market and their
  characteristics
• Ie - buying habits, interests, gender, age and
  ethnicity, geographic range.
• If we have a differentiated product that provides
  a benefit to a customer we know, we are well on
  our way to success !!!

17

• Competition

• there is a common phrase in business that
  states
• you need to know your competition better than
  yourself
• although this is impossible, the intention is
  critical to your success
• you must understand what it is you do better or
  different than your competition.and make sure
  this is the focus of everything you do !!!

18

• Conclusion
• Although much research has been done on
  marketing, it is not a science you need to
  try things out, re-evaluate, make changes
• Its a calculated risk vs blind risk

19
Famous Marketing Blunders

• 1. Scandinavian vacuum manufacturer Electrolux
  used the following in an American campaign
  "Nothing sucks like an Electrolux."
• 2. Coors put its slogan, "Turn It Loose," into
  Spanish where its translation was read as "Suffer
  From Diarrhea."
• 3. Clairol introduced the "Mist Stick", a curling
  iron, into German only to find out that "mist" is
  slang for manure. Not too many people had use for
  the "manure stick."
• 4. When Gerber started selling baby food in
  Africa, they used the same packaging as they did
  in the U.S., with the beautiful Caucasian baby on
  the label. Later they learned that in Africa,
  companies routinely put pictures on the label of
  what's inside, since most people can't read.
  Yikes!
• 5. Pepsi's "Come alive with the Pepsi Generation"
  translated into "Pepsi brings your ancestors back
  from the grave", in Chinese.
• 6. The Coca-Cola name in China was first read as
  "Ke-kou-ke-la", meaning "Bite the wax tadpole" or
  "female horse stuffed with wax", depending on the
  dialect. Coke then researched 40,000 characters
  to find a phonetic equivalent "ko-kou-ko-le",
  translating into "happiness in the mouth."
• 7. When Parker Pen marketed a ball-point pen in
  Mexico, its ads were supposed to have read, "It
  won't leak in your pocket and embarrass you."
  Instead, the company thought that the word
  "embarazar" (to impregnate) meant to embarrass,
  so the ad read "It won't leak in your pocket and
  make you pregnant."

20

• Lets look at some examples of a companys
  marketing mix analysis

21

• Porsche

22
Porsche Porsche
PRODUCT describe in detail what services/products/ideas they sell Porsche sell high performance automobiles that are perceived as being elite Only the highest end parts / equipment / engineering are used to create these automobiles Cars are engineered for speed and comfort
PRICE describe the price range (i.e. Very Expensive 5000 gold watch) (i.e. Low price Dollarama) 50,000 - 500,000 Canadian Very expensive, price creates image of high quality / status
23
PLACE in general, where are they located? Busy area, convenience, high traffic, etc. Porsche dealerships Dealerships are very clean and portray an image of high quality and status Customers pull these cars through the distribution chain, therefore location is not critical
PROMOTION what forms of advertising do they use? what types of promotions and/or sponsorships do they use? Porsche use a variety of media to promote their cars (TV, magazines, internet, auto shows) In each case, they will portray an image of high end performance and status Media are focused on high income customers their interests
24
CONSUMER describe who their typical customer is i.e. Think of their age, gender, income level, where they come from, interests, education, type of employment... male, 35-60, high income, post-secondary education, professional career, price insensitivity
COMPETITION who is their direct competition? who is their indirect competition? how do they differ from their competition? Direct Other high end auto manufacturers (Lamborghini, Mercedes, Roll-Royce, Aston Martin, etc.) Indirect Any other high priced toy (i.e. TVs, boats, plane, etc.) Porsche differ from their competition through reputation and strengthening their brand equity within the marketplace
25
Apple
26
Apple Apple
PRODUCT describe in detail what services / products / ideas they sell Portable Computers including Mac products such as Mac Book Pro, iMac, MacBook Air, Mac Mini, Xserve Servers including Xserve, Xsan, MacOS X Ser, MobleMe. AppleTV Accessories including MagicMouse, Keyboard, Led Cinema Display. Wi-fi Based Stations - including Airport Express, Airport Extreme, Time Capsule. Developer including Developer Connection, Mac Program, iPhone Program. iPod including iPod Shuffle, iPod Nano, ipod Classic. iPhone including iPhone3GS, iPhone3G, iPad. iTunes including movies, TV shows, audio books, games. Periphal products including Printers, Storage devices, digital videos cameras
27
PRICE describe the price range (i.e. Very Expensive 5000 gold watch) (i.e. Low price Dollarama)
Apple is a premium brand computer that does not
attempt to compete on price. The company has
reduced prices after some initial product
launches. It uses skimming and preimuim pricing
strategies. The AppleiPad is priced at a minimum
of 499. The Apple iPhone costs begin at 99.
The Apple iPod Classic is priced starting at
249. The Apple iPod Nano costs 149. The Apple
Mac Book costs 999. The Apple MacBook Pro is
priced at 1199. The Apple Quicktime Pro for
Windows costs 29.99 Apples iPad pricing
strategy includes the flexibility to lower the
prices if consumer response dictates such action.
In 2009 Apple announced a reduced cost pricing
structure for iTunes - songs will cost 69 cents,
99 cents or 1.29. Changes are said to be a
response to a slower pace of music downloads.
28
PLACE in general, where are they located? Busy area, convenience, high traffic, etc.
Apple, Inc Headquarters are located at is located
at 1 Infinite Loop, Cupertino, California.
Apple service providers are certified
technicians, who complete regular Apple training
and assessments, and offer repair services, and
exclusive access to genuine Apple parts. They
are located in Asia/Pacific, Africa, the Middle
East Europe and Latin America. Apple has over
200 retail stores worldwide including the US, UK
and Canada. Apple recently opened a new retail
store in Shanghai China. Apple also sells
through numerous on-line and Bick and Mortar
retailers.
29
PROMOTION what forms of advertising do they use? what types of promotions and/or sponsorships do they use?
Apple uses a variety of media to promote their
cars (TV, magazines, internet) In each case, they
will portray an image of high quality, ease of
use and style Media casts a wide net on the tech
savvy and the those who know nothing about tech,
but want to be in style. Apple offers special
discounts on refurbished MacIntosh computers,
iPod Nanos, and the iPod Touch. The online
Apple Store offers free shipping for orders over
50. Apple sometimes provides rebates when you
purchase a specific product. Apple has packaged
back-to-school offers, including some aimed at
college students.
30
CONSUMER describe who their typical customer is i.e. Think of their age, gender, income level, where they come from, interests, education, type of employment... Huge worldwide market with target consumers aged 12. Specific markets that are targeted include those who are willing to pay more for Apple products even though there are plenty of cheaper options. People who are really interested in being up to date with the latest technology, and who want to be connected to the internet all the time to keep up with the latest news. Music fans. Professionals who need to be able to connect to the internet any time anywhere
COMPETITION who is their direct competition? who is their indirect competition? how do they differ from their competition? Direct and Indirect Other high end electronics / computer / cell phone / Music player / music service providers and manufacturers (Samsung, HTC, Nokia, RIM, Sony, etc.) Apple differs from their competition through a reputation of style, functionality and quality.