4 P’s

1. 4 P’s Product, Pricing, Place/Distribution, Promotion

2. Products Goods, Services, and Events

3. Invention or Innovation A new idea must always start by solving a problem or meeting a consumer need

4. Invention New devices, methods, or processes developed from study and experimentation

5. Innovation Improves on existing products, processes, or distribution methods.

6. 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

7. 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.

8. The Product Life Cycle Describes the change in consumer demand over time. Based on the knowledge that no product can be in demand forever.

9. 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.

10. Product Decisions Product Attributes Branding Packaging Labelling Product-Support Services

11. 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

12. 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

13. Examples of Positioning Strategy Best quality Best service Lowest price Best value Best technology

14. Fads Go to the following link and complete the chart below http://www.crazyfads.com

15. Pricing

16. 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

17. 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.

18. 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.

19. 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

20. 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.

21. 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.

23. 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)

24. “Cost Plus” Pricing: • A very common strategy. • Ex. Cost ($10) plus … $5 (desired profit margin) = $15

25. 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:

26. Place a.k.a Distribution

27. Defining Key Terms: Manufacturer: Produces the product Wholesaler: Sells the product in bulk Retailer: 3rd channel of distribution. Buys from the wholesaler!

28. Distribution Strategies 1. Conventional Marketing Channel Example: Kellogg’s selling their product at Metro grocery stores.

29. Distribution Strategies Manufacturer Consumer 2. Direct Marketing Channel Example: Dell computers sold directly to consumers by their website or over the phone.

30. 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

31. Logistics The process of designing and managing a supply chain. How to get the product from the manufacturer to the consumer.

32. http://www.youtube.com/watch?v=95EeUAvAba4 http://www.youtube.com/watch?v=mRAHa_Po0Kg

33. Legalities Complete the legalities activity to investigate the legalities of logistics.

34. Promotion

35. Promotion Includes Advertising Sales Promotion Public Relations & Publicity Personal Selling

36. 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

37. 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

38. 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

39. 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

40. 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

41. More Innovative Promotions Levi’s Silvertab jeans – Painted historic Queen St. Silver Celebration, Florida – Entirely branded town, a Disney creation

42. 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.

43. Promotion