4 P’s. Product, Pricing, Place/Distribution, Promotion. Products. Goods, Services, and Events. Invention or Innovation. A new idea must always start by solving a problem or meeting a consumer need. Invention. New devices, methods, or processes developed from study and experimentation.
Product, Pricing, Place/Distribution, Promotion
Goods, Services, and Events
A new idea must always start by solving a
problem or meeting a consumer need
New devices, methods, or processes developed from study and experimentation
Improves on existing products, processes, or distribution methods.
Visit the following hyperlink and complete the chart below http://www.worldofmarketing.nelson.com/studactivities.html
→ Chapter 5 → Canadian Inventors → Use the 2nd and 3rd link in number 2
What do consumers want?
Is this financially feasible?
What features does the target market want?
Target market will test the product and provide feedback
Design a prototype
The product enters the product life cycle
Identify target market, and create marketing plan.
Test consumer reaction and competitive situation.
Describes the change in consumer demand over time.
Based on the knowledge that no product can be in demand forever.
Celebrities go through a lifecycle just as products do. Your task is to create a
celebrity life cycle that includes a picture of a celebrity at each stage of the lifecycle. You must also include a paragraph explaining why you included a particular celebrity at a certain stage.
Identify possible competitive advantages ( Recall…)
Selecting the right competitive advantage
Effectively communicating and delivering the chosen position to the market
Go to the following link and complete the chart below
that provide economical rooms for budget conscious travellers; this position requires charging a low price.
(Ford, GM, Chrysler) getting beaten down by Foreign autos (Honda,
Toyota) offer employee pricing to all consumers.
The more products a company makes, the
lower the cost of production for each item.
•The more product a company buys, the
lower the cost to purchase each item.
• Example, WalMart buys in such large
quantity that they can force a supply to
lower their price
Penetration Pricing – initially setting a low price for a product to attract consumers
Market Skimming – initially setting a high price for a product before competitors enter the market.
Use a high price where there is a unique brand. This approach is used where a substantial competitive advantage exists. Such high prices are charged for luxuries.
This is a very low price. The costs of marketing and promoting a product are kept to a minimum.
This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis.
Pricing to promote a product is a very common application. (ex. BOGOF)
Visit 3 company websites of your choice.
Prepare a table showing the company, a pricing strategy it uses, and an explanation for the strategy.
Your table headings should look like this:
Manufacturer: Produces the product
Wholesaler: Sells the product in bulk
Retailer: 3rd channel of distribution. Buys from the wholesaler!
1. Conventional Marketing Channel
Example: Kellogg’s selling
their product at Metro
2. Direct Marketing Channel
Example: Dell computers
sold directly to
consumers by their
website or over the phone.
3. Vertical Marketing System (VMS)
with their huge buying power has a
Example: WalMart with their huge buying power has major influence over the distribution channel
The process of designing and managing a supply chain.
How to get the product from the manufacturer to the consumer.
Complete the legalities activity to investigate the legalities of logistics.
Public Relations & Publicity
– Inform target market about the brand’s name, availability, benefits, and appearance
– Offering a coupon or free sample of a product to entice purchase
– Try to convince consumers that their product is preferred by most purchasers
– Remind consumers that the brand is still available
- Changing the target market to reflect new trends and technology
Attention – Attract the consumers’
Interest – Get their interest
Desire – Build their desire for the product
Action – Provide a method for the
consumer to take action
Check out 3 past Super Bowl ads at http://superbowl-ads.com/article_archive
Briefly describe the commercial (ie. brand, what happens, goal of ad). Then explain how and when each step of the AIDA formula is used in the advertisement
Amazon.com target market of one
AND1 Mix Tape Tour
Bumvertising – UW student uses Bum’s at
busy intersections to hold up signs advertising his gambling website
Levi’s Silvertab jeans – Painted historic Queen St. Silver
Celebration, Florida – Entirely branded
town, a Disney creation
Go to http://www.entrepreneur.com/slideshows/index.html
-View “Top 10 Successful Marketing Stunts” and “Marketing Stunts Gone Wrong” .... Search for them with the “find” function
1. Choose two successful marketing stunts and two unsuccessful stunts.
2. Explain why you think these stunts were successful or unsuccessful.
3. Create an innovative marketing stunt for a Product Concept you know of or one you have in mind.