marketing unit 2. marketing objectives - the purpose of marketing marketing objectives are the goals...
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Marketing
Unit 2
Marketing objectives - the purpose of marketing
Marketing objectives are the goals that the firm sets to allow it to achieve its corporate objectives (overall aims of the business).
Market segmentation – who is the target market?
Market share – what is the market size and
what share is your firm aiming for?
Marketing mix: Product – what type and range of products will you sell? Pricing strategy – what price will you set for your products? Place – where will you sell and how will you distribute your product? Promotion – how will you effectively target your market?
The Marketing Mix
What is this?
The Marketing Mix
This has 4 key areas:ProductPricePlacePromotion….
The marketing mix – the 7Ps
Influences on the marketing mix
However, the extended marketing mix takes into account other important variables that particularly affect services to make the 7Ps:
PeopleProcessPhysical evidence
What is a Product?
There are 4 general categories of ‘products’:
GoodServicePlacePerson
Can you think of an example for each category?
Goods
Services
Place
Person
Tangible & Intangible!
What is the difference between
TANGIBLE & INTANGIBLE?
Tangible & Intangible Products
Tangible
Is more quantitative…
Can be measured specifically & see the actual results
E.g. Car speed, safety standards, efficiency (mpg)
Intangible
Is more qualitative…
Cannot be scientifically measured.
Focuses on how people feel or the image or pleasure gained…
The Product Life Cycle
Product Life Cycle…..No of sales
Time lineResearch & Development (R&D)
Launch / Introduction
Growth
MaturitySaturation
Decline
Where would you place these products on the life cycle?
No of sales
Time line
Today & next lesson focuses on PRODUCT…
Product Life Cycle….
Read through handout
Copy typical ‘Product Life Cycle Diagram’
More info in
textbook.
Product Life Cycle…..No of sales
Time lineResearch & Development (R&D)
Launch / Introduction
Growth
MaturitySaturation
Decline
Back to handout…. Apply Life cycle
Draw the Product life cycles for the products on your handout…..
You will be called out to draw your interpretation….
Note the gradient of the cycle
is IMPORTANT….
Be prepared to
explain your
interpretation!
An enlightening video????
Explain why the standard 100 watt light bulb is being phased out by leading retailers
Why are customers prepared to pay a higher price for energy-saving light bulbs?
How does this link to the Product Life Cycle?
Typical products at different life stages.
R & D Introduction Growth Maturity Saturation Decline
For each product decide what life stage
it belongs to!
R & D - Tesla
Tesla – sponsored by Founder of Paypal – an electric sports car capable of 250 miles on 1 charge, 3 hour recharge, 0-60 in 4 sec & top speed 130mph & only £50,000
Initial design – R&D
Launch model….
Roll up TV Screen
A pioneering Teesside research facility aiming to make a paper-thin roll-up TV screen become a reality, has received backing from a major international player.
The then make-believe subject of flexible roll-up computer and TV screens featured in the Tom Cruise film Minority Report in 2002. But thanks to Teesside expertise that fiction could soon become a reality.
Apple Mac future plans
Identify the implications of each life cycle stage….
R&D INTRODUCTIONGROWT
H MATURITY DECLINE
Salesnone Low
Cost per unit Very High Falling Very Low
Competitors Very Few Lots
Product Prototype
remove weaker items
Promotion focus
raise media curiosity…
target new segments
Distribution None Limited
Price not for sale!
Skimming or penteration
Penetration or push up
price
Competitive price
Increase to exploit loyal customers?
Or Discount
Identify the implications of each life cycle stage….
R&D INTRODUCTIONGROWT
H MATURITY DECLINE
Salesnone Low
speeding up
At highest Falling
Cost per unit Very High Falling Falling At lowesr Low
Competitors Very Few few growing Lots Falling
Product
Prototype One basic model
Product modification
& improvemen
ts
New models, diversified
remove weaker items
Promotion focus
raise media curiosity…
Build awareness target new segments
Stress differences with
competitors
Lower budget to keep costs down
Distribution None Limited
Growing no of outlets
High levels of distribution
Reduce unprofitable
channels
Price not for sale!
Skimming or penteration
Penetration or push up
price
Competitive price
Increase to exploit loyal customers?
Or Discount
ANSWERS
Extension Strategies
These are ways to re-invigorate sales of a product after sales have hit maturity!
New uses for product Enter new markets Develop product range Change packaging Encourage more frequent usage!
Can you think of any
recent products that have
used any of these
extension strategies?
Product Life Cycle…..No of sales
Time lineResearch & Development (R&D)
Launch / Introduction
Growth
MaturitySaturation
Decline
The Product Mix
Is where a company phases out old products and introduce new ones.
The company tries not to have a ‘vacuum’ of sales – i.e. a gap
When one product is declining another is growing while a third might just be about to be launched.
What would this look like?
Why use the Product Life Cycle?
Identify trends /possible revenue to be earned
Identify ‘times’ in future where a company should INVEST in R&D
Identify when extension strategies should be used
Identify when to ‘end’ the life of a product.
Another video clip
New technology…. In development
You will need access to the internet to watch this video clip.
The future of Keyboards:
Homework
Design your own product life cycle diagram using images of your own choice…
Plenary – what are the stages of the PLC diagram
Any volunteer to Draw the shape?
Then 7 other volunteers to plot the labels for each section.
Product Life Cycle…..No of sales
Time lineResearch & Development (R&D)
Launch / Introduction
Growth
MaturitySaturation
Decline
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