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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.

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4 p s

4 P’s

Product, Pricing, Place/Distribution, Promotion


Products

Products

Goods, Services, and Events


Invention or innovation

Invention or Innovation

A new idea must always start by solving a

problem or meeting a consumer need


Invention

Invention

New devices, methods, or processes developed from study and experimentation


Innovation

Innovation

Improves on existing products, processes, or distribution methods.


Canadian inventions e activity

Canadian Inventions E-Activity

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


The stages of product development

The Stages of Product Development

Idea Generation

What do consumers want?

Feasibility Study

Is this financially feasible?

Product Design

What features does the target market want?

Test Marketing

Target market will test the product and provide feedback

Concept Development

Design a prototype

Market Entry

The product enters the product life cycle

Market Strategy

Identify target market, and create marketing plan.

Idea Screening

Test consumer reaction and competitive situation.


The product life cycle

The Product Life Cycle

Describes the change in consumer demand over time.

Based on the knowledge that no product can be in demand forever.


Celebrity life cycle activity

Celebrity Life Cycle Activity

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.


Product decisions

Product Decisions

Product Attributes

Branding

Packaging

Labelling

Product-Support Services


Product positioning

Product Positioning

  • The way the product is defined by consumers on important attributes.

  • The place the product occupies in the consumers’ minds relative to competing products.

  • Examples…

    • BMW positioned on performance

    • Honda on economy

    • VW on safety


Steps in positioning a product

Steps in Positioning a Product

Identify possible competitive advantages ( Recall…)

Selecting the right competitive advantage

Effectively communicating and delivering the chosen position to the market


Examples of positioning strategy

Examples of Positioning Strategy

Best quality

Best service

Lowest price

Best value

Best technology


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Fads

Go to the following link and complete the chart below

http://www.crazyfads.com


Pricing

Pricing


Factors involved in pricing

Factors involved in Pricing

  • External Factors

    • Nature of Market and Demand

    • Competition

    • Other environmental factors (economy, gov., resellers

  • Internal Factors

    • Marketing Objectives

    • Marketing Mix Strategy

    • Costs

    • Organizational Considerations


Examples of pricing decisions

Examples of Pricing Decisions

  • Internal Factors an example:

    • Days Inn have positioned themselves as motels

      that provide economical rooms for budget conscious travellers; this position requires charging a low price.


Examples of pricing decisions1

Examples of Pricing Decisions

  • External Factors an example:

    • Summer 2005 N. American automakers

      (Ford, GM, Chrysler) getting beaten down by Foreign autos (Honda,

      Toyota) offer employee pricing to all consumers.


Economies of scale

Economies of scale

The more products a company makes, the

lower the cost of production for each item.

OR

•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


Pricing strategies

Pricing Strategies

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.


4 p s

Premium Pricing.

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.

Economy Pricing.

This is a very low price. The costs of marketing and promoting a product are kept to a minimum.


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Psychological Pricing.

This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis.

Promotional Pricing.

Pricing to promote a product is a very common application. (ex. BOGOF)


4 p s

  • “Cost Plus” Pricing:

    • A very common strategy.

    • Ex. Cost ($10) plus … $5 (desired profit margin) = $15


Pricing activity

Pricing Activity

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:


Place

Place

a.k.a Distribution


Defining key terms

Defining Key Terms:

Manufacturer: Produces the product

Wholesaler: Sells the product in bulk

Retailer: 3rd channel of distribution. Buys from the wholesaler!


Distribution strategies

Distribution Strategies

1. Conventional Marketing Channel

Example: Kellogg’s selling

their product at Metro

grocery stores.


Distribution strategies1

Distribution Strategies

Manufacturer

Consumer

2. Direct Marketing Channel

Example: Dell computers

sold directly to

consumers by their

website or over the phone.


Distribution

Distribution

3. Vertical Marketing System (VMS)

Example: WalMart

with their huge buying power has a

Example: WalMart with their huge buying power has major influence over the distribution channel


Logistics

Logistics

The process of designing and managing a supply chain.

How to get the product from the manufacturer to the consumer.


4 p s

http://www.youtube.com/watch?v=95EeUAvAba4

http://www.youtube.com/watch?v=mRAHa_Po0Kg


Legalities

Legalities

Complete the legalities activity to investigate the legalities of logistics.


Promotion

Promotion


Promotion includes

Promotion Includes

Advertising

Sales Promotion

Public Relations & Publicity

Personal Selling


Goals of advertising

Goals of Advertising

  • Brand Awareness & Positioning

    – Inform target market about the brand’s name, availability, benefits, and appearance

  • Brand Trial

    – Offering a coupon or free sample of a product to entice purchase

  • Brand Preference

    – Try to convince consumers that their product is preferred by most purchasers


Goals of advertising1

Goals of Advertising

Brand Reminder

– Remind consumers that the brand is still available

Brand Repositioning

- Changing the target market to reflect new trends and technology


4 p s

AIDA

Attention – Attract the consumers’

attention

Interest – Get their interest

Desire – Build their desire for the product

Action – Provide a method for the

consumer to take action


Do these ads follow aida

Do These Ads Follow AIDA?

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


Innovative promotions

Innovative Promotions

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


More innovative promotions

More Innovative Promotions

Levi’s Silvertab jeans – Painted historic Queen St. Silver

Celebration, Florida – Entirely branded

town, a Disney creation


Marketing stunts

Marketing Stunts

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

Task:

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.


Promotion1

Promotion


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