Marketing

Tuesday, July 3, 12

Lesson ObjectivesState the steps in the marketing process

list the different marketing activities and explain the purpose of each activity

understand the differences between goods and services

explain the importance and use of brands

explain the importance and use of packaging

explain how pricing is used to market a product or service

explain how to promote and advertise a product or service

Tuesday, July 3, 12

What is Marketing exactly?A process that involves

identifying the needs and wants of chosen customers

satisfying these customers’ needs and wants in ways that are better than the competitors

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4-step model of marketing

Identify potential

customers

Understandcustomers’needs and

wants

Applying the 4Ps

Satisfy customersbetter thancompetitors

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the Marketing MixA marketing plan is a combination of the tools of marketing called the marketing mix or the 4Ps

Product

Price

Place

Promotion

Price

PromotionPlace

Product

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Product (Goods/Services or both)

In marketing, a product may include the following

Good quality

Right features, functions and design

Familiar name/ brand

Attractive packaging

Excellent customer service

Support services such as warranty / on-site repair

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Differences between Goods & Services

Goods Services

Physical things that can be felt and seen

Intangible, can only be experienced

Usually produced in a factory Provided and experienced at the same time

Good produced can be standardized

Can be customized. Quality & consistency may differ

Countable Uncountable, count experience as one

experienceOwn goods after purchase Cannot own services experienced

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BrandingUse of a name, term, symbol or design or a combination of the four to identify a product

A brand is a promise by the business to deliver all the benefits and values that are linked to the brand

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Brand loyaltyIf brand meets customers’ needs all the time

Customers will be willing to pay higher price for their preferred brand and remain loyal to it

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Importance of brandingMakes marketing of product more efficient

Helps customers to clearly recognise a product/ service from their competitors

help to build customer loyalty

improve image of business

easier to introduce new products. Customers are more willing to accept new products under the same brand name

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What is packaging?The container/ wrapper of a product

Usually include a label, printed description of the product and instructions of use

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Functions of PackagingProtects and contains the products/ or include accessories

Prevents shoplifting

Saves space and easier to handle

Promotes image of brand

Prevents spoilage

Easier or safer to use

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Support ServicesServices and benefits offered to customers in addition to the product

customer rewards programme

customer service

fast and reliable delivery

financing and hire purchase

warranty

friendly after-sales service

product and technical information

on-site repair services

free installation

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PricingRefers to the setting of a price for a product

Affects revenue of a business

Different names for price

Rent

Interest

Room rates

Fees

Airfares

How much is it?Ikura Desu Ka?

Berapa harganya ini?这个多少钱?இது எவ்வளவு

Tuesday, July 3, 12

How to price (3Cs)Costs

Competitors’ prices

Customer’s willingness to pay

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Pricing TechniquesProduct-line pricing

Optional product pricing

Product-bundle pricing

Promotional pricing

Odd-even pricing

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Product line pricingSetting of different prices for different versions of the same product

Example

Airtickets - Priced according to economy, business and first class

Ipod - Priced according to disk capacity of gadget

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Optional-product pricingInvolves setting prices of optional or accessory products along with the main product

Example

Choice of adding toppings to ice cream/ pizza

Choice of paying extra for guided tours/ additional meals or hotel upgrades in tour packages

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Product-bundle pricingInvolves pricing of a few items of related products into a bundle and offered at a reduced price

Example:

Set meals at restaurant

Sale of desktops/ laptops

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Promotional pricingTemporarily pricing below usual listed prices in order to increase short-term sales

Can be in the form of a percentage off, cash discount or a quantity discount

Example:

Special discounts during CNY, Christmas.

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Odd-even pricingInvolves setting of prices below an even amount

Believed that customers respond better to such prices

Example:

A product sold at $19.95 or $19.99 instead of $20

A product sold at $99.99 instead of $100

Tuesday, July 3, 12

PlaceRefers to how the right product gets to the target customers

Possible location of outlets

Neighbourhood town centre

Shopping centre in neighbourhood/ city

Types of outlets

Retail shop outlet

Pushcart

Vending machine

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LocationFactors to consider

Who are our target customers

Who are our competitors in the area

Volume of human traffic area has

Whether site is centrally located to reach target customers

Whether location is easily accessible by public transport

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PromotionRefers to telling the target customers the right product is available at the right place at the right time and the right price

Purpose is to influence buying attitudes and behavior

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Promotion TechniquesRefers to methods/ tools to inform customers about the 3Ps

Each technique has its advantages and disadvantages

Possible to use more than one technique at one time (combination of two or more)

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Different types of promotion techniques

Advertising

Sales promotion

Personal Selling

Direct marketing

Public Relations (PR)

news

websites

special events

corporate identity materials

sponsorships

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Lesson SummaryState the steps in the marketing process

list the different marketing activities and explain the purpose of each activity

understand the differences between goods and services

explain the importance and use of brands

explain the importance and use of packaging

explain how pricing is used to market a product or service

explain how to promote and advertise a product or service

Tuesday, July 3, 12