BEP20 Launching and Leading a Business Chapter 8 Marketing Notes PDF

**BEP20-- Launching and Leading a Business** Chapter Eight -- Marketing  **Marketing** -- The process of promoting, selling, and distributing a product or service to meet consumer needs and business goals.  **Brand name** -- A unique name given to a product or company to distinguish it from com...

**BEP20-- Launching and Leading a Business** Chapter Eight -- Marketing  **Marketing** -- The process of promoting, selling, and distributing a product or service to meet consumer needs and business goals.  **Brand name** -- A unique name given to a product or company to distinguish it from competitors and create a recognizable identity.  **Logo/trademark** -- A visual symbol, design, or insignia that represents a brand and is legally protected from unauthorized use.  **Slogan** -- A short, memorable phrase used in advertising to convey a brand's message and create recognition.  **Brand equity** -- The value and strength of a brand in the marketplace, based on customer perceptions, loyalty, and overall reputation.  **Product life cycle** -- The stages a product goes through from introduction to growth, maturity, and eventual decline in the market.  **Style curve** -- A graphical representation of the rise, peak, and decline of a product's popularity or market trend.  **Fad** -- A short-lived trend or product that gains rapid popularity but quickly fades out.  **Knock-off** -- A cheaper imitation of a well-known brand or product, often of lower quality and sometimes infringing on intellectual property rights.  **Niche** -- A specialized segment of the market with specific consumer needs and limited competition.  **Direct channel of distribution** -- A method of selling products directly from the manufacturer to the consumer without intermediaries.  **Indirect channel of distribution** -- A distribution method involving intermediaries such as wholesalers or retailers to deliver products to consumers.  **Importer** -- A business or individual that brings goods from other countries into a domestic market for sale or distribution.  **Wholesaler** -- A business that buys products in bulk from manufacturers and sells them to retailers or other businesses.  **Retailer** -- A business that sells goods directly to consumers, typically in smaller quantities.  **Specialty channel of distribution** -- A non-traditional retail channel such as online sales, vending machines, or direct sales, used to distribute products.  **Demographics** -- Statistical data about a population, including age, gender, income, education, and other characteristics that influence consumer behavior.  **Advertising** -- Paid promotional efforts through various media to create awareness and encourage purchases of a product or service.  **Publicity** -- Free media coverage or exposure that promotes a product, brand, or event, often through news articles, reviews, or social media.  **Closed-ended questions** -- Survey or interview questions that have specific, predetermined answers, such as "yes" or "no."  **Open-ended questions** -- Questions that allow respondents to provide detailed, free-form answers rather than selecting from preset choices.  **Focus group** -- A small, diverse group of people gathered to discuss a product, brand, or idea, providing feedback and insights for market research. **Chapter Eight -- Marketing** Slogans -- how many do you know? **Lesson One -- The Role of Marketing** **The Role + Impact of Marketing** - Marketing has [two] fundamental roles: 1. Sell what it makes 2. Manage its brand - Marketing includes: research, development, sales, distribution, advertising, and promotion **Without Marketing** - Without Marketing, not much would be sold - Consumer: wouldn't know what was available - Manufacturers: wouldn't have research to know what to make - Importers, **wholesalers** + retailers: wouldn't have channels of distribution **Branding** - Some businesses spend hundreds of thousands of dollars to create an image - This image includes 3 things: **brand name**, **logo** or **trademark** and a **slogan** - A brand name is a word of group of words that a business uses to distinguish its products from competitors' products - Logo or trademark is the special symbol associated with the product or company - The third method of brand identification is the **slogan** -- a short, catchy phrase is usually attached to the company's name and logo. **The Product Life Cycle** - The impact of marketing can be measured in two ways: most obvious -- sales analysis - Measure the consumer's reaction to the brand -- marketing efforts - Effective marketing increases the brand equity: the value of the brand in the marketplace - Better marketing, will result in greater brand loyalty - *Example*: Coca-Cola - A brand's equity develops in a predictable way: - **1. Introduction 2. Growth 3. Maturity 4. Decline 5. Decision Point** - This is also called a style cycle: this illustrates sales over time - Marketers use the product life cycle to determine what is needed to market this brand and product **Lesson Two -- Marketing Concepts** **[4 P's of Marketing ]{.smallcaps}** - Marketers that work on the *product concept,* deal with questions about a firm's internal operations - Marketers that work on the *market concept*, deal with external operations, such as with the competitive and consumer markets - A good overall marketing campaign involves all 4 elements (or P's) of marketing: ***product, price, place, and promotion.*** **[Products and Services]{.smallcaps}** -- using pg. 239 -241 in your textbook - When business create/provide good products and services, they must consider 5 aspects: - **Quality** -- The standard of the product or service, including durability, reliability, and consistency. High quality builds customer trust and loyalty. - **Design** -- The aesthetic appeal, usability, and functionality of the product or service. A well-designed offering enhances customer satisfaction and brand perception. - **Features** -- The specific characteristics and attributes that differentiate the product or service from competitors. Features should align with customer needs and market trends. - **Benefits** -- The value that the customer gains from using the product or service. This could include convenience, efficiency, cost savings, or emotional satisfaction. - **The Product/Service Mix** -- The combination of various products and services a business offers to meet diverse customer needs. A well-balanced mix ensures market competitiveness and revenue growth. **[PRICE -- using pg. 242]{.smallcaps}** **[ Businesses must choose a price that will stimulate demand and generate a profit. This can make the difference between a successful product and a failure.\ Consumers are very price-aware -- they can easily look up competing prices online.]{.smallcaps}** **[ Marketers need to know how price sensitive their products are:]{.smallcaps}** - **[Price must be similar to the price of competitive products.]{.smallcaps}** - **[If a product carries a much higher price, promotions should ensure that consumers know why they are paying more.]{.smallcaps}** **[PLACE -- using pg. 242 - 246]{.smallcaps}** **[ This concept refers to the methods that a business uses to sell and distribute its products, or the channels of distribution.\ Channels of distribution are the paths that goods follow as they pass from the producer to the consumer.\ There are 3 types of channels: Direct, Indirect, and Specialty.]{.smallcaps}** **[Direct Channels]{.smallcaps}** - **[Products are sold directly to the consumer, eliminating the costs of intermediaries.]{.smallcaps}** - **[The maker-user relationship allows consumers to inform businesses about their needs and may increase consumer confidence.]{.smallcaps}** **[Indirect Channels]{.smallcaps}** - **[IMPORTERS - search for foreign products, negotiate deals with foreign manufacturers, buy and store the merchandise, and sell it.]{.smallcaps}** - **[WHOLESALERS -- buy goods in volume from producers and resell them to retailers in smaller quantities.]{.smallcaps}** - **[RETAILERS -- linked directly to consumers; they buy the products that consumers want, keep them in stock, and display the merchandise so that consumers can examine it.]{.smallcaps}** **[Specialty Channels]{.smallcaps}** - **[Vending Machines -- placed where consumers work, study, shop, or travel]{.smallcaps}** - **[Telemarketing -- involves a sales pitch to consumers over the phone; may lead to negative reaction]{.smallcaps}** - **[Catalog Sales -- provide information about merchandise that consumers can purchase online, by mail, by phone, or at the store]{.smallcaps}** - **[E-commerce -- offers convenience and competitive prices, cuts out the intermediaries, and allows even small entrepreneurs to compete globally]{.smallcaps}** **[PROMOTION -- using pg. 247 - 248]{.smallcaps}** **[ Any attempt to sell a product; advertising and promotion are created to boost sales.]{.smallcaps}** **[Types of Promotion:]{.smallcaps}** - **[Coupons -- offer discounts to encourage purchases.]{.smallcaps}** - **[Contests -- engage consumers and encourage participation.]{.smallcaps}** - **[Premiums -- free items or incentives included with a purchase.]{.smallcaps}** - **[Samples -- free trials of a product to encourage future purchases.]{.smallcaps}** - **[Special Events -- promotional activities designed to attract consumer attention.]{.smallcaps}** **Lesson Three -- Market Research** **Types of Market Research** ** Marketing research is the collection and analysis of information that is relevant to the marketing strategy.\ There are six types of research that are conducted.** **Consumer Research** ** Discovers what type of products consumers want and evaluates the overall appeal of the product.\ EX: Surveys, product testing, customer feedback** **Market Research** ** Identifies specific groups of consumers who would use the particular product or service.\ EX: create profile groups using demographics.** **Motivation Research** ** Examines both the rational and the emotional motives that influence our buying decisions.** **Pricing Research** ** Helps determine if the company can sell the product for a profitable price and still make a profit.** **Competitive Research** ** Looks for opportunities in areas where competition is low or non-existent.** **Product Research** ** Examines each detail of a product or service and predicts the impact these details might have on the consumer.** **Advertising Research** ** Provides information on the most effective ways to get a message about a product to potential consumers.** **Marketing Research Tools** **Secondary Data** ** Secondary research is information that others have collected.\ It is collected from: books, websites, databases, and professionally prepared market research reports.\ It is usually cheaper to collect.\ Access to some databases, however, can be expensive (sometimes thousands of dollars).\ The questions this data cannot answer become the basis for the marketing research plan -- this involves primary research.** **Primary Data** ** Primary data is the original information that researchers collect and analyze for a specific purpose.\ Researchers collect this data in many ways:** - **Test marketing** - **Surveys, interviews, questionnaires** - **Experiments** - **Observation** - **Focus groups** **Test Marketing** ** Test marketing is very expensive.\ Companies will sometimes produce a limited quantity of a new product and introduce it into one specific area.\ Specific area -- selected based on demographics.\ A business can analyze:** - **Its own sales records,** - **Inventory, advertising + consumer results (internal information sources).\ This is called data mining.\ Businesses use this information to determine the relationship between personal information and purchasing habits.** **Survey** **A survey is a research method used to gather information from a large group of people using structured questions.** **Observation** ** Focus group: A focus group is an in-depth form of an interview.\ A panel of consumers (typically 6-10 people) in a controlled environment discuss their opinions about a topic or try products or services under the guidance of a moderator.** **Lesson Four -- Advertising** ** Advertising is a paid-for promotion of a business's goods and services over a variety of mass media to a target market of consumers.\ Publicity is media information about a business that the business does not pay for. As a result, it is more believable than advertising.** **Types of Advertising** **Advertisement Type** **Details -- What does it include?** ------------------------ -------------------------------------------------------------- **Direct-to-home** **Flyers, brochures, catalogs mailed to homes** **Out-of-home** **Billboards, transit ads (bus, subway)** **Radio** **Audio commercials, sponsorships on radio stations** **Television** **TV commercials, infomercials** **Newspapers** **Printed ads in local or national newspapers** **Magazines** **Printed ads in lifestyle, fashion, or business magazines** **Internet** **Social media ads, Google ads, website banners** **What forms of advertising do you believe are the most important/valuable NOW?** - **Internet advertising -- Digital marketing through social media and search engines is highly targeted and cost-effective.** - **Television advertising -- Still effective for mass audiences, especially during prime-time events.** - **Influencer marketing -- Social media influencers promote products to engaged followers.** - **Out-of-home advertising -- Billboards and transit ads reach commuters daily.**