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Unit 3 Investigating Marketing
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Introduction to marketing
If you want investment from the Dragons what wouldyou have to do
Now you are going to do the same!
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Choose a product from the bag
You have 10 minutes to plan a sales pitch to
the class for investment into your company
selling the product
What sort of things will you need to consider?
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Team Product
description
Where to buy How
much
to pay
What makes it
different/better/wh
y would customers
need it
Creativity
A
B
C
D
E
F
G
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Objective
To understand what business objectives are
set when carrying out marketing activities
(how do you get customers to buy your
products)
To understand what market segmentation is
(how can you put them in groups)
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What are these pictures telling you?
What does/would encourage Apple to develop the Ipods further?
http://images.google.co.uk/imgres?imgurl=http://skattertech.com/media/2007/09/new-ipod-family.jpg&imgrefurl=http://skattertech.com/2007/09/new-ipod-nano-classic-touch/&usg=__h99F8UiNPchr7ngQdE8jpzm3KWI=&h=403&w=950&sz=207&hl=en&start=1&sig2=QdqBKdjAaXceF-JGcl5cew&um=1&tbnid=sr2pOlnvv_D8mM:&tbnh=63&tbnw=148&prev=/images?q=new+ipod+touch&hl=en&sa=N&um=1&ei=hvpBS9mIKsWu-gbflpSvCg -
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Think about
Shampoo
1. Write down 3 different brands or types of theproduct that meet different customers needs
2. Where will this be sold? Why?
3. How and where will this product be advertised?
4. How will the price differ for these 3 brands ortypes?
5. Are there any external factors that will affecthow the product is advertised/sold/developed?
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What do you want/expect from
Shampoo? write 10 things
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Top Trump
HistoryProduct range, new products, product reviews, design
changes
Target Market who are they aiming at, how do you
know?Price how much do they charge, how does this
compare to other brands
Customer Expectations what do you/customers expect
from the shampoo, can you find any reviews on the
product?
Place where can you buy it?
Statistics
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You are required to produce an appropriate
marketing mix for a new or existing product
or service.
Learners must choose a product with a range
of users, across market segments e.g.
shampoo, yoghurt or chocolate come in a
range of qualities and prices and have a rangeof image and brand identifiers.
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A. Identification of the objectives and segmentation
A business will use different marketing activitiesdepending on the objectives it is aiming to achieve.These objectives are:
Understanding customer wants and needs
Developing new products Improving market share (market penetration)
Diversification
Re-launch of product (market development)
Improving profitability
Increasing brand awareness
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How to do it well
Explain what is meant in detail by each of these objectives
Discuss why each objective may be appropriate for acompany to set themselves
Apply the objective to YOUR chosen shampoo brand or
explain how it would use it. You will need to conductresearch. Feel free to email the company, use their websiteand show this evidence in your portfolio (thats whatappendices are for)
Use pictures/print screens to explain what you mean
For Mark Band 3 you need to provide a comprehensiveexplanation relating to all the bullet points for a thismeans lots of detail that makes sense and are your ownwords!!
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Complete the table
Complete the table in the shared area/on the
sheet that shows the key terms you need to
be aware of and use for part A of this task
Use your text book or the internet to help you
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Ansoff Matrix
Objective:
By the end of this lesson you will understandwhat the categories are of the Ansoff Matrix
You will be able to group company productsinto the relevant categories
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New design GHD
straighteners
Dove recently began
targeting older ladies
with their shampoo
Herbal Essence
launched hair dye
LOreal Elvive
extended their
range to Anti
Dandruff for
men because
theyre worth
it?
Shampoo
developed by
GHD to
complimentthe
straighteners
http://www.loreal-paris.co.uk/haircare/men/elvive-anti-dandruff/anti-dandruff-intensive-greasy-hair.aspxhttp://www.loreal-paris.co.uk/haircare/men/elvive-anti-dandruff/anti-dandruff-intensive-greasy-hair.aspxhttp://www.loreal-paris.co.uk/haircare/men/elvive-anti-dandruff/anti-dandruff-intensive-greasy-hair.aspxhttp://www.loreal-paris.co.uk/haircare/men/elvive-anti-dandruff/anti-dandruff-intensive-greasy-hair.aspx -
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Ansoff Matrix helps form marketing
objectivesAre you trying to remind your customers that
your product is still available?
Are you trying to sell your same product to a
different group of customers (age,
geographically, gender?)
Have you developed a new product
that you think will impress yourexisting customers? (developing and
improving products)
Are you taking the plunge
and selling a new product
to a lot of new customers?
(risk taking, moving away
from the market?)
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Product Life cycle helps set objectives
depending on where the product is
1) Introduction little growth, low sales. High
costs on research, development and
marketing to test the market (e.g BOGOF)
2) Growth if businesses begin to grow this leads
to higher sales and profits. Business have thepower to lower prices and invest in promoting
the product
3)Maturity Most common stage for companies,
high competition as companies want to maintain
market share. Competitors may copy significantmoves. Money more likely to be spent on
developing product improvements
4)Decline The market is beginning to shrink so
businesses spent costs. If the product isnt
profitable the company may end it
Which stage is your product at?
Which objectives will this link into?
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Boston Matrix helps with product re-
launch in assessing where product is
Products at the
decline stage of the
product life cycle
Products that have
just been launched
will/wont they be
successful?
At the maturity stage high market
share in market that is not growing
rapidly. Only need to be re-launched to
bring new life to the product not a lot
of cash needed to survive
Reached the
growth stage
of the product
life cycle
good potential
and willrequire high
cash support
to keep
succeeding
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Questions to ask yourself when
looking at Boston Matrix
Is the amount of people going to buy the
product get any bigger? Eg is the amount of
people who buy shampoo in the UK going to
expand rapidly in the future?
Do a lot of people currently buy your product?
Eg is your shampoo one of the more popular
brands?
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Quote of the day.
Dont just throw pies and hope they hit your
targetbecause you will waste a lot of pies
Instead look at who you want to hit and do everything you can tomake sure you get them so there are some left over for you
If you design and advert or marketing campaign without thinking about who you
want to target it may not hit the people you need. Look at them instead and find a
way to get there attention before you hit them
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Watch the clip and write a note to
describe what you see in each one
1. http://www.youtube.com/watch?v=biAFjjQp
GSo
2. http://www.youtube.com/watch?v=nTKibzQ
qZoI&feature=related
3. http://www.youtube.com/watch?v=00hbgaE
AZAM&feature=related
4. http://www.youtube.com/watch?v=77MH42
xsqVs
http://www.youtube.com/watch?v=biAFjjQpGSohttp://www.youtube.com/watch?v=biAFjjQpGSohttp://www.youtube.com/watch?v=nTKibzQqZoI&feature=relatedhttp://www.youtube.com/watch?v=nTKibzQqZoI&feature=relatedhttp://www.youtube.com/watch?v=00hbgaEAZAM&feature=relatedhttp://www.youtube.com/watch?v=00hbgaEAZAM&feature=relatedhttp://www.youtube.com/watch?v=77MH42xsqVshttp://www.youtube.com/watch?v=77MH42xsqVshttp://www.youtube.com/watch?v=77MH42xsqVshttp://www.youtube.com/watch?v=77MH42xsqVshttp://www.youtube.com/watch?v=00hbgaEAZAM&feature=relatedhttp://www.youtube.com/watch?v=00hbgaEAZAM&feature=relatedhttp://www.youtube.com/watch?v=nTKibzQqZoI&feature=relatedhttp://www.youtube.com/watch?v=nTKibzQqZoI&feature=relatedhttp://www.youtube.com/watch?v=biAFjjQpGSohttp://www.youtube.com/watch?v=biAFjjQpGSo -
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Market Segmentation
Marketing and its related activities should be
designed to suit the customer.
In the past organisations created adverts for the
mass marketbut now recognise different groupsof people have different wants and needs
Market segmentation is a process of separating atotal market into parts so that different strategies
can be used for different customers
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What do the following mean/or give
an example
Geographic
Demographic Segmentation by age
Other ethnicity
Geodemographic Psychographic/behavioural
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Market Segmentation
1. Read the article in the shared area UK Hair
care market stagnant
2. Summarise in 5 sentences what this article is
telling you
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Companies build a profile of customers based
on data available to them. It helps them select a
target market and design products to fit theprofile of those customers
Geographic people in different regions may have differentincomes, attitudes, buying habits, language
Demographic family size/singles for different size products,identify trends in age, gender in particular areas
Segmentation by age widely applied shampoo now offeringproducts aimed at older generations, shampoo for kids
Other ethnicity
Geodemographic combines geo and demo principles (rememberwhen you used upmystreet.com
Psychographic/behavioural divide up by social class, life style orpersonality eg sports shampoos, aiming a head and shoulders atbusiness market
Quick quiz what type of
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Quick quiz what type of
segmentations are represented here
you must be able to point it outFive countries China, Venezuela, Peru,Colombia, and France climbed three or more
in best countries to live from the previous year,
driven by greater earnings and longer life
expectancy.
http://upload.wikimedia.org/wikipedia/commons/d/d5/Man-and-woman-icon.svg -
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Structural advice
For your assignment (marked important onthe task sheet)
Discuss the different ways in which markets aresegmented and why segmentation is necessary
Apply this to your shampoo (how does yourshampoo do this how have they tweaked theirmarketing mix to cater for the different segments)
Does your company use Niche or Mass marketingtechniques or is it a combination of both?
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Mass Marketing
Selling a product to a general market and not differentiatingbetween groups
Works for generic products eg washing machines
SO what is Niche Marketing?
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Niche Marketing
A corporate strategy based on identifying and filling relatively smallmarket segments. This can enable small firms to operate profitably
in markets dominated by large corporations. It can also be astrategy pursued by a large firm that prefers to have five brandsselling 50 000 units in each of five niches, rather than one brandselling 250 000 in the mass market.
Pros:
the first company to identify a niche market can often secure a
solid market position as consumers see the original product assuperior
consumers are willing to pay a price premium for a more
exclusive product
Cons: lack of economies of scale may make costs too high to achieve
satisfactory profit margins
the firms production system must be flexible enough to copewith relatively small quantities of several products
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Market research part C You need to understand the purpose of market
research You need to be able to carry out appropriate market
research using primary research - questionnaires, observations, test marketing,
focus groups
Secondary research internal business data in terms of customerinformation and financial records
External sources commercial research reports, governmentstatistics, trade journals, media sources
The difference between qualitative and quantitative
data How useful is the data? How is it interpreted and how
is it used to make valid choices on how to and to whomto market these products.
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Write down 3 reasons why a business
conducts market research
1. ..
2. ..
3. ..
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Purpose of market research
Define the market
Understand customer requirements
Who is our target market
What strategies are used by our competitors
A way to move ahead in front of competitors(proactive)
A way to keep up with competitors (reactive)
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You need to be able to carry out appropriatemarket research using
primary research - questionnaires, observations, testmarketing, focus groups
Questionnaire
Observation
Test marketingProctor and Gamble give out samples to employees totest and to friends to gain initial feedback (from former employee)
Focus groups
Write a brief description of what you think eachone is
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In a very short sentence research will
normally take one of the following
Qualitative peoples opinions, behaviours,
preferred choices
Quantitative data, statistics eg incomes,
population in an area, ages
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In your groups write a question to
include on a questionnaire then pass
to the next person you CANNOT
repeat the question that has beenasked previously
try to think about the purpose ofmarket research discussed earlier
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You should have included
Age Gender
Residential area
Factors that affect buying habits
Price Who buys in household
Memorable advertisement
Where bought
Where notice adverts What promotions
Do they buy your product
Where would you put each of
these within the marketing
mix?
Remember you alter the
marketing mix to find the
perfect combination for your
product
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What have you learnt?
http://tutor2u.net/business/quizzes/as/marke
ting_research/quizmaker.htm
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Recap primary research
Focus group
Test marketing
Questionnaire
Observation
Employees of Proctor and Gamble are
given shampoo to share with their friendsand family to gather feedback before
trialling in a larger area ahead of
launching nationally
A group of people representative of their
target market will come in and will testthe product they will give feedback on this
Buyers in supermarkets and shops will be
watched as to how they buy the product
and what they do eg do they smell before
they put it In their basket, do they checkthe price etc
A sample is asked a series of questions
relating to the product. The questions will
relate specifically to what they need to
know
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Primary research
Cost, time to do, done for specific purpose, do as needed
Advantages Disadvantages
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Secondary Research what is it?
Information gathered by other sources not byyourself
Includes-
Media
Government statistics Trade Journals
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Secondary research Cost, Reliability, Time, Not conducted for that purpose,
Advantages Disadvantages
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Teens' and Tweens' Beauty and Personal Care - UK - June 2009
Interest in cosmetics and toiletries starts from a young age, with the under-13s using
products to give them confidence and make them appear older than their years. Few beauty
and grooming brands specifically target tweens/teenagers, although they have considerable
purchasing power with many using a wide repertoire of products. The tween/teenage
demographic could be just the right target for beauty brands looking for growth during these
recessionary times.
Key themes
Tweens/teenagers are part of the digital revolution and are at ease with modern technology.
This impacts the way in which they are influenced to try to buy new products.
The influence of parents on their childrens purchasing/usage of cosmetics and toiletries.
Toiletries and cosmetics compete with a wide range of other items on which
tweens/teenagers are expected to spend their pocket money/allowance.
Growth in teen-targeted skincare brands.
Tween/teenage brands are strong in some sectors (eg cosmetics) but lacking in toiletries
categories.
Teens and tweens are less affected by the economic slowdown than other demographicgroups and this presents strong opportunities for growth.
Todays teens and tweens have grown up in a multimedia society where products are not
only sold in-store. Evaluate successful distribution strategies to target this demographic.
http://oxygen.mintel.com/sinatra/oxygen/display/id=394187/display/id=465530&list=wh_ite
ms/display/id=394187/display/id=394229 accessed 2/02/2010
Secondary research
http://oxygen.mintel.com/sinatra/oxygen/display/id=394187/display/id=465530&list=wh_items/display/id=394187/display/id=394229http://oxygen.mintel.com/sinatra/oxygen/display/id=394187/display/id=465530&list=wh_items/display/id=394187/display/id=394229http://oxygen.mintel.com/sinatra/oxygen/display/id=394187/display/id=465530&list=wh_items/display/id=394187/display/id=394229http://oxygen.mintel.com/sinatra/oxygen/display/id=394187/display/id=465530&list=wh_items/display/id=394187/display/id=394229 -
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Secondary research
http://news.bbc.co.uk/1/hi/business/4417725.stm - ethnic hair care market
http://tutor2u.net/business/marketing/casestudy_%20products_haircare.asp market
share
http://www.in-cosmetics.com/page.cfm/link=303
http://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-
but-niches-thrive - segmentation of shampoo market
http://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-
upmarket-shampoos-dont-wash-599646.html - price/value
Also research the mintel report on the shared area as evidence of a publication not a news
story
d h l d h
http://news.bbc.co.uk/1/hi/business/4417725.stmhttp://tutor2u.net/business/marketing/casestudy_%20products_haircare.asphttp://www.in-cosmetics.com/page.cfm/link=303http://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.in-cosmetics.com/page.cfm/link=303http://www.in-cosmetics.com/page.cfm/link=303http://www.in-cosmetics.com/page.cfm/link=303http://tutor2u.net/business/marketing/casestudy_%20products_haircare.asphttp://news.bbc.co.uk/1/hi/business/4417725.stm 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Read the article and answer the
following:
1. What is it telling you?
2. Why would this affect your shampoo
company
3. What information / key statistics are relevant
to you
4. What part of the marketing mix would the
shampoo company tweak with this
information?
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3.3 Choosing an appropriate marketing mix
The marketing mix refers to the combination of elements within a
businesss marketing strategy, designed to meet/influence the
needs/wants of customers to generate sales. You will need to useelements of your research to support your mix.
The choice of marketing mix aims to target products towards a group of
potential customers. The marketing mix will vary according to the
objectives you are trying to achieve and the results of your market research. For example, the mix chosen for the launch of a new product of
a small business will be different to the launch of a product by a large
business.
You need to develop an understanding of the factors that go towards
determining:
price
product
place, (including web-based)
promotion.
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1. Product - what your product offers that your customers value,
and whether/how you should change your product to meetcustomer needs.
2. Pricing - for example, you might aim simply to match thecompetition, or charge a premium price for a quality productand service. You might have to choose either to make relativelyfew high margin sales, or sell more but with lower unit profits.
Remember that some customers may seek a low price to meettheir budgets, while others may view a low price as an indicationof quality levels.
3. Place - how and where you sell. This may include using differentdistribution channels. For example, you might sell over theinternet or sell through retailers.
4. Promotion - how you reach your customers and potentialcustomers. For example, you might use advertising, PR, directmail and personal selling.
Part C Create a marketing mix for your product
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Pricing by the end of this lesson
What affects the decisions on the price?
What price will you charge?
Why?
L k h i h ld
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Look at these items how would you
group these?
Essentials, luxury
items
http://images.google.co.uk/imgres?imgurl=http://www.cardsunlimited.com/largeimage/Champagne.jpg&imgrefurl=http://www.cardsunlimited.com/viewmixed.php?id=18&usg=__fY4sq9UySDZeSQl9vtRuPP4zXbI=&h=383&w=383&sz=12&hl=en&start=2&itbs=1&tbnid=vthxk2kYe6Lc8M:&tbnh=123&tbnw=123&prev=/images?q=champagne&hl=en&gbv=2&tbs=isch:1http://images.google.co.uk/imgres?imgurl=http://www.dreamstime.com/red-lobster-thumb2949487.jpg&imgrefurl=http://www.dreamstime.com/royalty-free-stock-photography-red-lobster-image2949487&usg=__Qde7TLIr1BHHgo6_gGD_xp3ppOs=&h=300&w=300&sz=45&hl=en&start=2&itbs=1&tbnid=0Zt3cJ3npEqeRM:&tbnh=116&tbnw=116&prev=/images?q=lobster&hl=en&gbv=2&tbs=isch:1http://images.google.co.uk/imgres?imgurl=http://www.experiencechocolate.com/images/index_chocolate.gif&imgrefurl=http://www.experiencechocolate.com/&usg=__HiRUVJvkT5ZxXeyh62RAwaanyU4=&h=350&w=350&sz=47&hl=en&start=4&itbs=1&tbnid=c0dZsDQVrP2zHM:&tbnh=120&tbnw=120&prev=/images?q=chocolate&hl=en&gbv=2&tbs=isch:1http://images.google.co.uk/imgres?imgurl=http://school.discoveryeducation.com/clipart/images/milk.gif&imgrefurl=http://school.discoveryeducation.com/clipart/clip/milk.html&usg=__UIFYQE-Jm_qUzN7ghkL7pU5GT-s=&h=393&w=375&sz=7&hl=en&start=3&itbs=1&tbnid=rWENLuYsdioxSM:&tbnh=124&tbnw=118&prev=/images?q=milk&hl=en&gbv=2&tbs=isch:1http://images.google.co.uk/imgres?imgurl=http://www.rrsd.mb.ca/ResourcesandProjects/grade6/images/electricity.gif&imgrefurl=http://www.rrsd.mb.ca/ResourcesandProjects/grade6/grade6.html&usg=__Jf7kJYnI2nquqX1QQpR2Az84urU=&h=500&w=550&sz=31&hl=en&start=2&itbs=1&tbnid=rESrye1eU8O4EM:&tbnh=121&tbnw=133&prev=/images?q=electricity&hl=en&gbv=2&tbs=isch:1http://images.google.co.uk/imgres?imgurl=http://warrumbungle.local-e.nsw.gov.au/environment/2012/Image/water.jpg&imgrefurl=http://warrumbungle.local-e.nsw.gov.au/environment/2012.html&usg=__d9AiK0qq9pC8aFYduitnVdAuirI=&h=482&w=307&sz=75&hl=en&start=9&itbs=1&tbnid=jtldbTrG35M34M:&tbnh=129&tbnw=82&prev=/images?q=water&hl=en&gbv=2&tbs=isch:1 -
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What affects price of goods
Quality Where sold
Exchange rate
Competition
If bought in bulk Demand
Fashion
Brand
How new the product is
Avaliability
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Price
Price is the only part of the marketing mix thatgenerates an income all others cost money
For high fashion items eg Superdry coat/iPhone
price is less relevant because they are one-offpurchases than items that are bought en-mass egpaint where there is lots of competition
Some things are essential (eg water, shampoo!)
and will need to be bought regardless of the pricebut consumers may go to competitors if theyoffer a better deal
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Elasticity of demand
The graph shows that thehigher the price the lesslikely people will want tobuy something.
It also illustrates thatconsumers may buy lessfrom that particular
company if there is a lotof choice eg a competitivemarket
It can also illustrate howconsumers may buy moreof a product if the pricefell
This is known as elasticityof demand ie theamountrequired/bought/wantedalters with the price
Price
Quantity demanded
(bought from that
company)
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What type of pricing are these?
The PS3 was selling for over 300 when it was
first launched it can now be purchased for less
than 200
When Bounty re-launched as Plenty it was onsale for 1 cheaper than usual
Petrol prices at supermarkets are usually very
similar. If one drops so does another
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Types of pricing-which is which
A - Deliberately lowering prices to get a competitor out of the market eg a price war
B - Because of low competition eg a new product/market leader is able to charge an
initially high price such as iPhone/PS3 once the initial customers are reached the pricewill be lowered to attract the next level
C - Beginning with a low price to attract the customers effective in a market where
demand is elastic. Helps to penetrate the market and gain market share
D - Matching price very closely to that of competitors common in a market whereproducts are almost identical
E - Adding a specific amount to the unit price eg 20%
1 - Penetration pricing 2
Skimming 3 - Cost plus pricing 4 - Competition based pricing5 - Destroyer pricing
What type of pricing is most likely to
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What type of pricing is most likely to
apply to shampoo?
Questions to consider/answer
Is it a generic product?
Is there lots of competition?
What is the elasticity of demand will the price
affect how many people want it?
Where is the product made and where is it sold?Will this have an impact (consider exchange rates)
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against $
How might this affect shampoo prices if being exported/imported to UK?
Product what makes a product a
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Product what makes a product a
product?
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Packaging
Smell
Colour and
texture
Hair type
Frequency
of wash
Quality of
shampoo
H ll H d ti
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Hello Hydration
Moisture & Shine shampoo
Get drenched, quenched and revive that shine!
Luscious shine starts with deep hydration, so
take a deep dive into high shine. Replenishyour prettyparchedhead with my rich formula
with orchid and coconut extracts.
Want an even more blinding blast of shine?
Splash out on my Conditioner and treat
yourself to my high-gloss Intensive Mask.
use me: Lather up. Rinse and repeat. Your
hair'll lap it up and you'll be good to glow
Used to have Vidal Sassoon on
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the bottle but was taken off after
the company realised that wash
and go didnt fit the image that
they were which was a high
quality one.
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Volume & body
Shampoo
Pantene Volume & body Shampoo helps your
hair live large and stand tall. It's the first step
to gorgeous, glamorous hair that's full of
volume, body and movement. The formula
works by effectively removing the dirt andresidue that can weigh hair down.
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http://www.loreal-paris.co.uk/haircare/women/elvive-damage-care/shampoo.aspxhttp://www.herbal-essences.co.uk/collections/Hello_Hydration/Shampoo.php?id=100036 -
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Promotion - lesson
View the innocent advertisement how do they wantto be perceived
Look at the pictures around the room
Write on there what evidence there is that they wantto be perceived in this way
With your partner and your props stick the pictureinto the middle and identify key AIDA points
What media would be used to convey these messages
Which method will get this across better? Did any of
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Lesson objectives - Promotion
To be able to identify different types of
promotional media used by companies
To be able to analyse a piece of promotional
media and say who the target audience is,what the message is, how good it is based on
what you have learnt so far
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Watch the advert
Describe the story in each one
What phrases/descriptive words do they use
What do they want us to think
Who do you think it is aimed at
Which do you prefer
How do the approaches differ for each
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http://www.youtube.com/watch?v=XQcVllWp
wGs
http://www.youtube.com/watch?v=4ZRgX2xt
wLg
http://www.youtube.com/watch?v=XQcVllWpwGshttp://www.youtube.com/watch?v=XQcVllWpwGshttp://www.youtube.com/watch?v=4ZRgX2xtwLghttp://www.youtube.com/watch?v=4ZRgX2xtwLghttp://www.youtube.com/watch?v=4ZRgX2xtwLghttp://www.youtube.com/watch?v=4ZRgX2xtwLghttp://www.youtube.com/watch?v=XQcVllWpwGshttp://www.youtube.com/watch?v=XQcVllWpwGs -
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Promotion is based around the need to
effectively communicate with customers
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Promotiona
l tool
Company Message Target
audience
How would
you
measure
success
Good/bad
points
Improvemen
t
TV advert
How else do companies let us know about their products?
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Which is the odd one out?
Leaflet
Local newspaper
Company website
Where the product is sold
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Other ways to promote products?
The message in an advertisement
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The message in an advertisement
should be
A. What makes this product different
B. What makes it better than a competitors
C. The price of the product
D. Where you can buy it
An promotional material has to ensure
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An promotional material has to ensure
it
A. Reaches target audience
B. Clearly describes the product
C. Has the price on it
D. Is on television to reach a wide audience
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How will you use this?
Write down 5 things you will look for/assess inyour shampoo advertisement
You need to search for an advertisement ofyour chosen companies shampoo and assess it
like you have today. For MB3 you will suggest and justify
improvements
In pairs look at the piece of promotional media in
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In pairs look at the piece of promotional media in
front of you discuss it and complete the table
Promotional
tool
Company Message Target
audience
How would
you measure
success
Good/bad
points
Improvement
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During the design of promotional
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material the style is most
represented by Language
Colours
People featured in the advertisement
Distribution (Place) why is this
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Distribution (Place) why is this
information on the website?
l
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Place
Think back to the Chinese Head and Shouldersadvert what was the difference between
that and an advertisement for the same
product being shown in England?
What other changes might there be?
Distribution is how the product gets
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Distribution is how the product gets
to
Manufacturer wholesaler retailerconsumer
Manufacturer retailer consumer
Manufacturer consumer
Which one would you prefer as a consumer?
As a manufacturer?
What is most appropriate for shampoo?
P.E.S.T How will these affect your
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P.E.S.T How will these affect your
company and the marketing mix?
Political and legal changes such as newregulations
Economic factors such as interest rates,
exchange rates and consumer confidence
Social factors such as changing attitudes and
lifestyles, and the ageing population
Technological factors such as new materialsand growing use of the internet
P li i l d l l f
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Political and legal factors
Consumer Protection Act products must be
safe
Sale of Goods Act - Correct labelling of products
and doing what they say!
Britain to Burn Trash for Energy June 11, 2008
Government policy to help companies avoid
landfill tax by turning waste into electricity!
Health and safety issues
Economic factors
http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/ -
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FALLING RATES
8 October 2008: 4.5%
6 November 2008: 3.0%
4 December 2008: 2.0%8 January 2009: 1.5%
5 February 2009: 1.0%
5 March 2009: 0.5%
Social Factors
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Social Factors
BBC News - Population to hit 65m by 2016,
23rd October 2007
The average age of Britons is
expected to rise to from 39.6 years
in 2006 to 40.6 years in 2016 and to
42.6 years by 2031. The number ofunder-16s in Britain is projected to
rise from 11.5 million in 2006 to
12.1 million by 2016 and nearly 13
million by 2031. The number of
pensioners is expected to exceed
the under-16s by 400,000 in 2016
and by over 2 million in 2031.
Technological factors
http://news.bbc.co.uk/1/hi/uk/7057765.stmhttp://news.bbc.co.uk/1/hi/uk/7057765.stmhttp://news.bbc.co.uk/1/hi/uk/7057765.stmhttp://news.bbc.co.uk/1/hi/uk/7057765.stmhttp://news.bbc.co.uk/1/hi/uk/7057765.stmhttp://news.bbc.co.uk/1/hi/uk/7057765.stmhttp://news.bbc.co.uk/1/hi/uk/7057765.stm -
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Technological factors
E i t l
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Environmental
Government Waste Strategy - Businesses are
being asked to take greater responsibility for
the environmental impact of their products
and operations
Britain to Burn Trash for Energy June 11, 2008
reduce landfill and turn waste
http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/http://images.google.co.uk/imgres?imgurl=http://www.stmichaelsyork.org/cps/images/stories/socialaction/recycle.jpg&imgrefurl=http://www.stmichaelsyork.org/cps/what_we_do/social_action/environment.htm&usg=__ko0uMckWs95ziSC1ZqRC-RSxNrc=&h=693&w=693&sz=182&hl=en&start=2&itbs=1&tbnid=oPzFDPxY109P5M:&tbnh=139&tbnw=139&prev=/images?q=recycle&hl=en&gbv=2&tbs=isch:1http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/