MARKETING

• Product


  Tangible objects that a company sells to customers for their use or consumption
• Services


  Intangible offerings sold by a company to a set of customers, directly delivered by the company's employees
• E. Jerome McCarthy


  Introduced the 4Ps of marketing
• 4Ps of marketing


  • Product
  • Price
  • Placement
  • Promotion
• Core Product


  • Benefit that a consumer can gain from using a product
• Actual Product


  • Tangible characteristics of the product, including its features and packaging
• Augmented Product


  • Service-based add-ons that customers are entitled to upon purchasing the product
• Packaging


  Serves to contain and protect and sometimes identify and promote the product
• Labeling


  Display of information about a product on its container, packaging or on the product itself
• Consumer Goods


  Products and services purchased by customers for their own use and are thus frequently purchased
• Industrial Goods


  Purchased by businesses and are used in the creation of new product which shall be eventually sold to others
• New Product Development (NPD)

  Process that involves the conceptualization and creation of innovative products that will catch the attention of customers and ensure their loyalty to a particular brand
• Rationale behind NPD


  • To defend its market share
  • To position ahead of competition in a market segment
  • To establish a foothold in a future market in the future
  • To take advantage of strengths in product distribution
• Product Line


  Group of similar products offered by the same company under the same brand
• Product Life Cycle Stages

  • Introduction
  • Growth
  • Maturity
  • Decline
• Price


  Answers the question "how much?" - the amount of money the customer must pay to get the products or services they want
• Pricing Strategy


  The method of pricing that an entrepreneur uses to determine how much to sell their products or services
• Pricing Strategies


  • Market Penetration Pricing
  • Market Skimming Pricing
  • Competitive Pricing
  • Premium Pricing
  • Cost Based Pricing
  • Psychological Pricing
  • Bundling
  • Value Based Pricing
  • Product Line Pricing
• Place/Channel of Distribution


  The third P in marketing mix - establishing an excellent channel of distribution ensures the product will reach the target customers
• Marketing Intermediaries


  Individuals or groups of individuals who link the producers/manufactures to consumers
• Supply Chain


  Network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product
• Value Chain


  Process in which businesses receive raw materials, add value to them through production, manufacturing, and other processes to create a finished product, and then sell the finished product to consumers
• Product Distribution Types


  • Intensive
  • Selective
  • Exclusive
• Wholesaling


  Includes all activities involved in selling products to merchandisers or producers for business use
• Retailing


  Buying goods from wholesalers and then reselling those to customers
• Types of Wholesalers


  • Merchant
  • Full-Service Wholesalers
• Types of Full-Service Wholesalers

  • General Merchandise Wholesalers
  • Limited Line Wholesalers
  • Specialty Line Wholesalers
  • Brokers and Agents
• Retailing


  Refers to all activities involving the sale of goods or services directly to the final consumers
• Retailers


  Individuals engaged in retailing
• Promotion


  The last P in marketing mix, also called marketing communication - activities or a series of activities that are intended to boost the sales of a product or service usually short-term
• Types of Sales Promotion

  • Consumer Promotions
  • Trade Promotions
• Intermediary Website


  Acts as gateway to different content
• Destination Site


  Provides information on specific subjects, products and services
• Advertising


  A non personal form of communication, meant to bring a product or service to the attention of potential or current customers
• Objectives of Advertising


  • To Inform
  • To Persuade
  • To Compare/Build Awareness
  • To Remind
• Brand Awareness


  The extent to which consumers are familiar with the distinctive qualities or image of a particular brand of goods or services
• Advantages of Achieving High Brand Awareness

  • Learning Advantages
  • Consideration Advantages
  • Choice Advantages
• Advertising Campaigns


  1. Identifying the Target Market

  2. Establishing Advertising Objectives

  3. Determining Advertising Objectives
• Advertising Message Styles


  • Functional
  • Symbolic
  • Experimental
• Advertising campaign


  If the purpose is to create awareness, the desired level of awareness should be identified. Targets with the high level of awareness require multiple advertising placements with greater frequency of exposures.