ADV 205 Lecture 7 Outline of Last Lecture I II Marketing and Exchange Segment the Market III Targeting Outline of Current Lecture I Product II Brand and Products III Price IV Place Current Lecture Product Marketing begins with questions about the product from the consumer s perspective Managers must translate product characteristics into concrete attributes with demonstrable benefits Product life cycle o Growth market expansion o Maturity Sales Plateau maximum profitability Competition increases Selective demand o Saturation Market if full Most people have Better and cheaper competitors o Decline Sales Falling Position lost Die or brand extension Obsolete Changing tastes Launch Introduction Primary Demand These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Pull vs Push strategies Early adopters The marketing concept and relationship marketing Marketing Concept Philosophy that marketing should focus on the needs and wants of consumers rather than finding ways to sell products that may or may not meet consumer needs o Most companies did not embrace this idea until the 1980s Relationship Marketing o Identifies customers and potential customers and bonds them to the brand through personal attention o Brands and Products What a brand does o Differentiates a product from its competitors o Makes a promise to consumers o Serves as the driving unifying force directing all functional areas including IMC 3 key steps for branding o Determining the desired brand position o Developing brand identification o Creating brand image o The brand identity consists of o Name o Logo o Symbols o Design o Packaging o Image of associations held by consumers Product Differentiation o Name o Own a word o Benefits o The people who use the product o The way people classify the products Product differentiation o Perceptible difference o Hidden Difference o Induced differences Positioning Can be accomplished using o Attributes o Price o Ability to surpass the competition o Application o Product User o Product class Retailers are creating their own brands o Store Brands house brand or private label A brand used to exclusively by one chain of stores for a line of products made to a store s specification Product Packaging o Identification o Containment protection convenience o Consumer appeal o Economy Price Price o Dictated by supply and demand o Influenced by production distribution costs o Should convey value relative to other products o Should meet a company s objectives o Should match with product s positioning Psychological Pricing Price lining Place Must be consistent with brand image o Direct vs indirect distribution o Intensive sell everywhere low profit high value M M s o Selective Limit number of sales outlets Purses o Exclusive Used to maintain prestige Airlines Auto BMW Companies want to control the price through its dealers also wants to build a reputable positioning Marketing Communications Factors important for advertising success o Strong primary demand o Chance for product differentiation o Hidden qualities of high importance to consumers o Opportunity to use strong emotional appeals o Substantial sums available to support advertising Advertising o Personal Selling o Enhance a company s image through publicity news conferences sponsored events open houses donations Direct Marketing o Aims to generate immediate sales for limited time Public relations o Face to face contact Sales promotion o Reaches large audience but has less ability to prompt an immediate change Telemarketing etc Point of sale Packaging o POS and packaging try to drive sales where the product is sold