Today’s Response Journal What is your favourite advertisement? Why is it your favourite? What type...

Today’s Response Journal What is your favourite advertisement?

Why is it your favourite?What type of medium (TV, magazine, Internet, radio, etc.) is your favourite

ad created in?

***Save as Nov. 14 in your Response Journal Folder***

Knorr Sidekicks TV Commercial

Introduction to Marketing_____________ includes all the activities involved

with getting goods and services from the _____________ that produces them to the _____________ that want to buy them

Marketing has two fundamental roles; 1. To sell what a business makes2. To manage a business’s brands

Marketing includes; research, development, pricing, sales, distribution, advertising and promotion

Production of goods and services is not part of Marketing

Marketing Business

Consumers

MarketingWithout marketing, ___________________________

Consumers wouldn’t know what goods and services are available

Manufacturers wouldn’t know what to makeThere would be no channels of distribution to

get products into the hands of consumers all over the world

Non-profit businesses also use marketing to promote their cause and the services they provide

Read paragraph 1 on page 229

not much would be sold

Branding____________ is the process of creating a unique

image for a product or service in the consumers' mind, mainly done through advertising campaigns 

Some businesses spend hundreds of thousands of dollars to create an image for their product or service, while others spend very little

In either case, the following make up an image; 1. Brand Name2. Logo or Trademark3. Slogan

Branding

Branding1. Brand NameA _________________ is a word or group of

words used by a business to distinguish its products from the competition

Most important part of a product or a company’s image because it is how they’re identified

Should be distinctive, easy to remember and stand out from the competition

Read the Roots example in paragraph 3 on page 230

Brand Name

Branding2. Logo or TrademarkA _________________________ is a special

symbol that is associated with a product or company

The logo or trademark helps the product compete for consumer awareness

Logo or Trademark

Branding3. SloganA _____________ is a short, catchy phrase that is

usually attached to the company’s name and logo

Examples:Skittles: Taste the RainbowMaxwell House Coffee: Good to the Last Drop

McDonalds: I’m Loving It!Canadian Blood Services: It’s in You to Give

Slogan

Brand Identification Once a company develops a name, slogan, and

logo for a product everything associated with that product should carry the identification, this includes; Font styleColoursPackage design

No consumer should ever have to guess whether this is the product they want

Competition is so fierce that no company wants its product to get lost on a store shelf

Day 1 Assigned Work Students please complete the

following;Complete the Activity: Slogans

(posted on ClassNet under Tasks)

Today’s Response Journal What is a Fad?

Provide a definition and a minimum of 4 products and/or services that you

believe were or are fads.

***Save as Nov. 17 in your Response Journal Folder***

The Impact of MarketingThe impact of marketing can be measured in 2 ways; 1. A Sales AnalysisHave sales increased? Have we sold more than our competition? 2. Measure consumer reaction to the brandEffective marketing increases ________________: the value of the brand in the marketplaceGood marketing develops _______________________: customers can name your brand and recognize it as part of a specific categoryBetter marketing develops ___________________: customers prefer your brand and support itThe Best marketing develops _____________________: the customer will accept no substitutes

E.g. some people will only drink Coca-Cola, some people will only use a BlackBerry as their smart phone, etc.

Brand Equity

Brand Awareness

Brand Loyalty

Brand Insistence

Product Life CycleThe Product Life Cycle, is the

______________ that a product goes through during its life

Marketers use the product life cycle to determine what type of marketing efforts to use

Phases

1. IntroductionThe product enters the marketplace through a

product introduction, often called a _____________Consumers need to know the product’s …

FeaturesAvailabilityPackage designBrand identification

Marketers sometimes use celebrities to introduce their new product

Initially, marketers usually focus their selling efforts on _____________________Consumers who like to be the first to own a new

product

Launch

Early Adopters

2. GrowthOnce early adopters find and use a new product,

others soon try it and popularity and sales _______________

This is the stage where competitors start entering the market

Competitors modify the original product by adding features and increasing quality or by making a similar product and offering it at a cheaper price E.g. Crystal Light first introduced individual serving

size packages to mix with water – Nestea and Kool-Aid have since followed – who will be next?

Increase

3. MaturityDuring this stage, growth is ______; no increase

or decreaseCompanies manage their mature products by

continuing to advertise; this keeps the product in the public eye and reminds consumers of its advantages over the competition

Cost of sales and distribution are lowProducts in this category usually make large

profits and are often referred to as ____________; mature products that generate high profits for a companyE.g. Kellogg’s Corn Flakes, Coca-Cola and Tide

detergent

Cash Cows

Flat

4. DeclineAt some point, most products fail to

attract new customers to replace those who leave to buy other brands, therefore, sales of the product ___________

Sometimes a small change in price or a new ad campaign can reverse a temporary decline, but not alwaysE.g. VCRs – did not make a come back

Decrease

5. Decision PointAt the final point in the life cycle, marketers make

some important brand management decisionsOften they use what brand equity they have left and

try to reposition the product, this could involve …ReformulatingRepackagingRe-introducing a “new and improved” product

E.g. an old brand of liquid detergent could re-enter the market with a convenient new pour spout

However, decision point management usually involves new promotion and repricing

Often new technology makes old products obsolete, and then no amount of marketing can help E.g. Flat screen TVs have replaced the picture tube TV

Non-Traditional Product CyclesSome products do not follow the

traditional product life cycle, including …1. Fads2. Niches3. Seasonal

FadA Fad is a product that is _____________ popular for

a ___________ period of timeNot a trend (they last longer)

Fads appear in a very select target market (usually under 14 age group) and last less than a year Old Fads: Pogoballs and Tamagotchis

You may still be able to find these products but they are no longer as popular

When a fad dies, it dies very quicklyCompanies can make lots of money on fads if they

get out of the market when it reaches it peakNewer Fad: Silly Bands

ExtremelyShort

NicheSome products have a very short growth

stage that leads to a solid, but not financially spectacular, maturity stage – these products have what is called a __________; A product that has a section of the market that

they dominate and where few competitors enterNiche products are usually invented and

companies hold exclusive patents or formulas, therefore, by the time other companies can create a competing product it’s too lateE.g. manufacturing specialized computer parts

Niche

SeasonalSeasonal products are products

that are only popular during a specific ___________ or ______________

The difficulty with selling a seasonal product is knowing how much ________________ to carryDon’t want to run out but don’t

want to have extra as it’s expensive to store

E.g. Christmas trees, snowboards, ice cream, etc.

TimeSeason

Inventory

Day 2 Assigned Work Students please complete the following;Play the Logos and Slogans Quiz Game

as a classAnswer Review Question #4 on page

238

4 Ps of MarketingRead paragraph 2 on page 238 A good marketing campaign considers the 4 P’s

of Marketing; 1. Product2. Price3. Place4. Promotion

These 4 P’s are referred to as the ____________________, and they must be properly combined for an effective marketing campaign

Marketing Mix

1. Product Good product and service development takes into account …Quality

If you improve the quality of your product, you will attract more customers. E.g. vacuum cleaners that pick up more dirt, movie theatres with moving seats, etc.

Low quality is part of product development as well. If a product can meet consumer need and be less expensive because of lower quality, that product has a good chance of success as well. E.g. Food Basics, no-name products, etc.

Design We often buy one product over another because we like the

way it looksA package design should consider function, make it easy for

consumer use and make the product easy to identify Services have design features as well

Read paragraph 2 on page 241

1. Product ContinuedFeatures

Product features includes the materials used in construction, the scent, the size, or the taste Read paragraph 3 on page 241

Service providers outline what they do Read paragraph 4 on page 241

BenefitsPeople buy most products and services for a particular

purpose - towels for drying, microwaves to cook food quickly, etc.

Consumers must recognize the benefits of a product/service in order to interested enough to buy

1. Product ContinuedThe Product/Service MixMany business sell a _____________ of both

products and servicesE.g. stores such as Ikea adds extras to the

products they sell such as delivery, installation and product warranties

E.g. a service business such as a movie theatre also sells products that compliment the service they provide such as soft drinks, popcorn, fries, etc.

Mixture

2. PricePricing decisions can make the difference

between a successful product and a failureBusinesses need to decide how much to charge

for the product or service they provide Consumers are very aware of price and often

compare different brands and stores before buying

Marketers need to know if consumers are ___________________; how much sales will go up or down based on changes in price

Price Sensitive

3. PlaceAlso known as ___________________________, are

paths of ownership that goods follow as they pass from producer to consumer

Businesses use different methods to sell and distribute its products to consumers

A marketer can use 3 types of distribution channels; A. Direct B. Indirect C. Specialty

Channels of Distribution

3. PlaceA. Direct ChannelSelling directly to the consumer

E.g. farmer’s market, bakery, etc.

With a direct channel, there is no _________________ (middle person) to increase the cost to the consumer

Also known as a __________________________ because consumers can inform businesses about their needs and they may feel more confident because they know the actual source of the products they are buying

Intermediary

Maker-User Relationship

3. PlaceB. Indirect ChannelHave one or more intermediariesCould be an importer, wholesaler or retailer

An ______________ is someone who searches for foreign businesses that want to sell their product to Canadian consumers

A _______________ buys goods from producers or importers and then resells to retailers

A ______________ doesn’t make their own product, but sells other business’s product’s to the consumer E.g. Canadian Tire

Importer

Wholesaler

Retailer

3. PlaceC. Specialty ChannelsA specialty channel is an indirect channel of

distribution that does not involve a retail store

Examples include …Vending machinesTelemarketingCatalogue salesE-commerceDoor-to-door sales

4. PromotionPromotion is any attempt to ______ a product

or service___________________ encourages consumers

to buy products using any of the following methods; A. CouponsB. ContestsC. PremiumsD. SamplesE. Special events

Sell

Sales Promotion

4. PromotionA. CouponsCoupons offer consumers money off the price of a

productCoupons are presented at the point of purchase

and treated like cashCanadian consumers are exposed to more than

1200 coupons a year, and therefore most coupons end up in the garbage

Advertisers measures the effectiveness of a coupon by looking at the ____________________; the percentage of coupons actually used by consumers

The average redemption rate is approximately ____

Redemption Rate

5%

4. PromotionB. ContestsContests are an exciting way to increase

brand recognition and salesBy law, businesses must organize contests

so that anyone can enter and they must require people to demonstrate a skill or answer a skill-testing questionRead the Tim Hortons Roll Up the Rim

example in paragraph 4 on page 247

4. PromotionC. PremiumsPremiums are _______________; something a

consumer gets for free when purchasing a productE.g. a toy in a cereal box

Many businesses encourage brand loyalty by giving free products to regular customers, through the use of __________________________ These cards are stamped each time the

consumer makes a purchaseE.g. TCBY – buy 10 Shivers, get the 11th one free

Giveaways

Customer Loyalty Cards

4. PromotionD. SamplesSamples encourage consumers to ______ a

productOften samples are small “trial” sizes of the

productSamples are usually distributed door-to-door,

at a retail outlet (mall, supermarket, etc.) or through the mail

Samples are an effective way to _______________ but are also very ___________

Try

Increase Sales Expensive

4. PromotionE. Special EventsSpecial events are organized to attract

consumers and increase product salesE.g. book signings, celebrities visiting stores that

sell their brand of shoes, etc.The main purpose of a special event is to excite

consumers, encourage their participation, and ultimately get them to buy

Consumers are ________ likely to buy if they are having _______

MoreFun

Day 3 Assigned Work Students please complete the following;Complete the 4 Ps of Marketing worksheet

(posted on ClassNet under Tasks)

Two Cs of MarketingIn order to put together a marketing mix,

the marketing department must consider the following two major external factors, also called the 2 Cs of Marketing …

1.The Competition Market 2.The Consumer Market

1. Competition Market The Competitive Market consists of all the

___________ of a specific productOften expressed in terms of the dollar value

spent annually on a specific productRead paragraph 2 on page 249

___________________ is the percentage of the market that a company or brand hasRead paragraphs 3 & 4 on page 249See Table 8.1 on page 250

Sellers

Market Share

1. Competition Market A ___________________ is a part of the

overall market that has similar characteristicsFor example the Soft Drink Market can be

further divided into a flavoured segment, a diet segment and an energy drink segment

Market Segment

1. Competition Market Competition Among ProductsProducts that are very similar to one another

are in ______________________The consumer chooses between products in

direct competition because of minor differencesE.g. Ritz crackers vs. Premium Plus

crackers

Direct Competition

1. Competition Market Competition among Products__________________________ is competition

between products or services that are not directly related to each otherE.g. movies and pizza – read the example found in

paragraph 3 on page 251

Indirect Competition

1. Competition Market - Income_______________________ is used to pay for

basic necessities, and is the money a person makes after taxes have been paid

___________________________ is the income that you have that is not already committed to paying for necessities (food, clothing, shelter) and can be used to buy items for comfort and pleasure

Discretionary Income

Disposable Income

2. Consumer MarketCompanies study the types of consumers

that buy their productsThese consumers can be identified in at

least two ways; 1. Demographics2. Lifestyle

2. Consumer MarketDemographicsDemographics is the study of obvious

characteristics that categorize people, such as …AgeGenderFamily life cycleIncome levelEthnicity and culture

Businesses use demographics to target specific consumers

2. Consumer MarketLifestyleLifestyle is the way people ________, which

includes their _________, __________ and _______________

Less obvious than demographics, but just as important

A person’s beliefs influence what he or she buysE.g. an environmentally conscious person

would not buy an SUV

LiveValues Beliefs

Motivations

Day 4 Assigned Work Students please complete the following; Complete the Demographics Worksheet

provided to youReview Questions #5 – 8 on page 254

AdvertisingThe goal of advertising is …to encourage consumers

to remember the product.

Rules for a Good AdAttentionInterestDesireAction

Attract AttentionPrint AdsA good headline that mentions the brandRarely more than 7 wordsBroadcast AdsAttract attention using sound, unusual

visuals, a celebrity or attractive personWant to hold attention for 60 seconds

Gain InterestPrint AdsShould be simple and easy to readConsistent fontMessage should be clear and to the

pointBroadcast AdsShould try to get to the main message

as soon as possible

Build DesireThe sales message should be connected

to the visual messageGoal is to get the consumer to want

your productUseful to set up a problem that your

product solvesRead Sprite example – paragraph 3 page

256

Get ActionAlways ask for the saleSummarize the reasons to buyPrint AdWant logo, slogan, brand name and

contact information in the bottom right-hand corner

Print and Broadcast AdsShould repeat a phone number and

web address

TerminologyAdvertisingThe paid-for promotion of a business’s

goods and services over a variety of mass media to a target market of consumers

PublicityMedia information about a business

that the business doesn’t pay forCan be positive or negative

Types of AdvertisingMost often, advertising is classified according to the type of medium used to carry the message, such as …Direct-to-homeOut-of-homeRadioTVNewspapersMagazinesInternet

Direct-to-HomeAn advertising message that comes

to your homeE.g. flyer or catalogue that is delivered to

your homeConsumers do not ask or pay for this

type of advertisingAds on the Internet can also fall into

this category

Out-of-HomeAny advertising message that the

consumer receives when not at homeE.g. billboards, bus and subway ads, etc.

RadioThe “go anywhere” mediumAn effective ad uses words and sounds

to gain interest

Coke Radio Ad

TVCombines words, sounds and imagesAn extremely effective mediumVery expensiveAudience is potentially millions

NewspaperHave a choice about distribution

Local or nationalSmall companies might choose a local

paperLarge companies could be local or

nationalExpensive to place a large ad, but

inexpensive to place a small ad

MagazinesMany advantages over newspapers

including; Use of colour adsUse of specialty magazines to

target specific groups of consumers (using demographics)

E.g. women, new parents, young people, retired people, etc.

InternetThere are 3 Types of Internet Advertising; Company websites

Attracts consumers who are interested in the company in the first place

Can convert interest into salesBanner advertising on other websites

Target consumers on one site and directs them to another

E-mail advertisingIf a consumer subscribes to a specific site and are

expecting updates, offers and ads, then this form can be effective

Can be annoying to get messages from companies you don’t know

Day 5 Assigned WorkStudents please complete the following; Complete the Comparing Types of

Advertising Worksheet provided to you

Review Question #14 on page 262

Overview___________________ is the collection and

analysis of information that is relevant to the marketing strategy

Types of Market Research include; ConsumerMarketMotivationPricingCompetitiveProductAdvertising

Market Research

Types of DataMarketing research relies on 2 types of

data …1.Primary

Current information that researchers collect and analyze for a specific purpose

Collected in a number of ways including test marketing, internal information sources, surveys, observation and focus groups

Types of Data continued…2. Secondary

Information that has been collected by othersSources include websites, books,

professionally prepared research reportsIt is freeDisadvantage is that data wasn’t collected

specifically for you so it may not meet all your needs E.g. Statistics Canada

Sources of Primary DataResearchers can collect Primary Data in the

following ways; 1.Test MarketingIntroducing a product to a specific area in small

quantitiesArea is usually selected based on demographicsVery expensive so must be done carefully if

results are to be used E.g. Scotiabank tested the chip card in this area before

making it available to all bank customers E.g. Tim Hortons tested the ice cappuccino in this area

before making it available at all their locations

Sources of Primary Data2. Internal Information Sources Using information generated by the

business (sales records, inventory data, advertising and promo results) and analyzing it

Can help identify who purchases what and when

Can also be shared with suppliersE.g. Air Miles can track where you buy and can

partner with other companies to send you coupons and information

Sources of Primary Data3. Surveys A set of carefully planned questions that

are used to gather dataMost surveys use __________________________

Questions that require the respondent to select an answer from two or more choices

E.g. Yes/No, Agree/Disagree, Select a, b, c, d These types of questions are easy to answer and

easy to scoreOpen-Ended Questions

More complicated Require respondents to develop their own answers Difficult to answer and analyze

Closed-Ended Questions

Sources of Primary Data4. Observation Watching the

behaviour of others without them knowing

E.g. using two-way mirrors, cameras, etc.

The goal is to observe how people react in certain situations

Sources of Primary Data5. Focus Group A company-arranged

meeting of potential consumers

One of the most popular forms for consumer research

The company usually offers an incentive to consumers for participate in the focus group such as: Free meal, money, samples of

product, etc.

Day 6 Assigned Work Students please complete the following; Working with a partner, create a

minimum of 10 survey questions that you could ask your fellow schoolmates before putting on the next school dance. The questions should provide you with information on theme ideas, price, dates and time, etc.

Read the about the 7 Types of Market Research on page 263 and write the definition of each in your notes