Chapter 3: Introduction to Marketing PDF

Chapter 3: Introduction to Marketing Lesson 4: Marketing Mix- Product Learning Outcomes: 1. Define Product. 2. Identify the product strategy and apply it to a product. Marketing Mix  The marketing mix definition is simple. It is about putting the right product or a combination...

Chapter 3: Introduction to Marketing Lesson 4: Marketing Mix- Product Learning Outcomes: 1. Define Product. 2. Identify the product strategy and apply it to a product. Marketing Mix  The marketing mix definition is simple. It is about putting the right product or a combination thereof in the place, at the right time, and at the right price. The difficult part is doing this well, as you need to know every aspect of your business plan. https://www.youtube.com/watch?v=MoQz3SaWY9s What is Product? ‘Product’refers to the functions and features of a good or service.  What do people want?  What services should be included with the sale of a product? https://www.youtube.com/watch?v=7SSu0KtXI2c Product Strategy Four development strategies They are identified as follows: 1. Product Improvement: It is the modification of the existing product, so that an improved or repacked product may be re-launched. Example: new edition of Ferrari products 2. Market Development: It concentrates on finding new markets for existing products. Example: franchising Ferrari products – new locations 3. Product Development: It is the introduction of new products into established markets. Example: the introduction of Ferrari SUV 4. Product Diversification :It is the development of new products for new markets Example: the development of Ferrari World Lesson 5: Marketing Mix- Place Learning Outcomes: 1. Define Place 2. Identify the channels/ levels of distribution. 3. determine the intensity levels of distribution https://www.youtube.com/watch?v=uZEa9RXRAzI What is Place? To make products available in the right place at the right time in the right quantities. The use of e-commerce (promoting and selling on the internet) has grown massively over the last few years Channels of distribution How to Determine Distribution? Ex. COCA-COLA, Chewing gum Ex. Sports equipment, electronics, VOX CINEMA. Example: Al-Futtaim is the sole distributor of TOYOTA AND Lexus in UAE Complete the worksheet available on learn online. Lesson 5: Marketing Mix- Price Learning Outcomes: 1. Define Price 2. Explain the role of demand in price determination. 3. Demonstrate the meaning of and the different types of demand-based pricing https://www.youtube.com/watch?v=2tzd7XivFqk  The Importance of Price To the seller To the consumer Price is the cost Price is revenue What is Price? of something and profit source What are the conditions that price of a product will depend on? Importance of Price-Practice “Which of the following would make you switch supermarket” (% of respondents) Lower price 75% Wider range 66% Closer to home 60% Convenient hours 45% Car parking 44%  Basic Strategies of Price Market Skimming Pricing Launching with a high price when there is little competition, then reducing the price later. Often used with technology. Market Penetration Pricing Low price charged initially to penetrate the market and build brand loyalty; price is then increased e.g. introductory offers on magazines. Neutral Pricing/Competitive A similar price is charged to that of competitors’ products. pricing Premium Pricing Is when a company sets high prices for high end products that never changes. Full-cost pricing A price-setting method under which you add together the direct material cost, direct labor cost, selling and administrative costs, and overhead costs for a product, and add to it a markup percentage (to create a profit margin) in order to derive the price of the product. Psychological Pricing A price is set which customers perceive as lower than it is e.g. AED39.99 instead of AED 40. Lesson 5: Marketing Mix- Promotion Learning Outcomes: 1. Define Promotional activity 2. Able to analyse the different methods of promoting a product 3. Able to evaluate the most suitable method of promotion for a given product https://www.youtube.com/watch?v=ZBKWqdAS7nA&t=38s What is Promotion?  ThePromotion Mix refers to the blend of several promotional tools used by the business to create, maintain and increase the demand for goods and services. What are the aims of Promotion? Advertising Messages can be delivered by: Television Radio Newspapers Magazines Direct mail Outdoor advertisements Directories The Internet The Elements of the Promotional Mix personal Advertising selling Promotional Internet Marketing Mix Publicity sales promotion