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: Product Price Place Promotion.

The marketing mix the 7Ps

Product

Price

Promotion

Physical evidence

Marketing Mix the 7Ps

Place

Process

People

Influences on the marketing mix

However, the extended marketing mix takes into account other important variables that particularly affect services to make the 7Ps:

People Process Physical evidence

What is a Product?
There are 4 general categories of products:

Good Service Place Person

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

Saturation Maturity

Decline

Growth Launch / Introduction

Research & Development (R&D)

Time line

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

More info in textbook.

Copy typical Product Life Cycle Diagram

Product Life Cycle..

No of sales

Saturation Maturity

Decline

Growth Launch / Introduction

Research & Development (R&D)

Time line

Back to handout. Apply Life cycle

Draw the Product life cycles for the products on your handout..
Be prepared to explain your interpretatio n!

You will be called out to draw your interpretation. Note the gradient of the cycle is IMPORTANT.

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
Sales none

INTRODUCTION
Low

GROWTH

MATURITY

DECLINE

Cost per unit

Very High

Falling

Very Low

Competitors

Very Few

Lots

Product

Prototype

remove weaker items target new segments

Promotion focus

raise media curiosity

Distribution

None

Limited Penetration or push up price Increase to exploit loyal customers? Or Discount

Price

not for sale!

Skimming or penteration

Competitive price

Identify the implications of each life cycle ANSWERS stage.

R&D
Sales none

INTRODUCTION
Low

GROWTH
speeding up

MATURITY
At highest

DECLINE
Falling

Cost per unit

Very High

Falling

Falling

At lowesr

Low

Competitors

Very Few

few

growing Product modification & improvements target new segments Growing no of outlets Penetration or push up price

Lots

Falling

Prototype Product raise media curiosity

One basic model

New models, diversified Stress differences with competitors High levels of distribution

remove weaker items Lower budget to keep costs down Reduce unprofitable channels Increase to exploit loyal customers? Or Discount

Promotion focus

Build awareness

Distribution

None

Limited

Price

not for sale!

Skimming or penteration

Competitive price

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

Saturation Maturity

Decline

Growth Launch / Introduction

Research & Development (R&D)

Time line

The Product Mix

Is where a company phases out old products and introduce new ones. The companyWhat would have a vacuum tries not to of sales i.e. a gap like? this look When one product is declining another is growing while a third might just be about to be launched.

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

The future of Keyboards:

You will need access to the internet to watch this video clip.

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

Saturation Maturity

Decline

Growth Launch / Introduction

Research & Development (R&D)

Time line