Marketing and Business Management Semester Recap

Today…

• Marketing Summary:

– Marketing Mix– Product Life Cycle– Packaging– STP– Market Research– Sales Promotions

Today…

• Business Management Summary:

– Management Skills– Staff Involvement– Change Management– Leadership Styles– Management theories– Ethics

Marketing Mix (4Ps)

Product

• Products are the goods and services that your business provides for sale to your target market. When developing a product you should consider quality, design, features, packaging, customer service and any subsequent after-sales service.

Price

• Price concerns the amount of money that customers must pay in order to purchase your products. There are a number of considerations in relation to price including price setting, discounting, credit and cash purchases as well as credit collection.

• Promotion refers to the act of communicating the benefits and value of your product to consumers. It then involves persuading general consumers to become customers of your business using methods such as advertising, direct marketing, personal selling and sales promotion.

Promotion

• Promotion refers to the act of communicating the benefits and value of your product to consumers. It then involves persuading general consumers to become customers of your business using methods such as advertising, direct marketing, personal selling and sales promotion.

Place

• Place is in regards to distribution, location and methods of getting the product to the customer. This includes the location of your business, shop front, distributors, logistics and the potential use of the internet to sell products directly to consumers.

Product Life Cycle

Product Life Cycle

Introduction stage:• The business tries to increase consumer awareness

and build a market share for the new product.• Product brand and reliability are established.• Price is often noticeably lower than competitors’

prices in order to gain a market foothold.• Promotion directed at early buyers and users occurs,

and communications seek to educate potential customers about the merits of the new product.

• Distribution is selective, which enables consumers to gradually form an acceptance of the product.

Product Life Cycle

Growth stage:• Brand acceptance and market share are actively

pursued by the producers of the product.• Product quality is maintained and improved and

support services may be added.• Price per unit of production is maintained as the firm

enjoys increased consumer demand and a growing market share.

• Promotion now seeks a wider audience.• Distribution channels are increased as the product

becomes more popular.

Product Life Cycle

Maturity phase:• Sales plateau as the market becomes saturated:• Product features and packaging try to differentiate

the product from those of competitors.• Price may need to be adjusted downwards to hold off

competitors and maintain market share.• Promotion continues to suggest the product is tried

and true — it’s still the best.• Distribution incentives may need to be offered to

encourage preference over rival products.

Product Life Cycle

Decline stage:• Sales begin to decline as the business faces several

options:• Product maintained with some improvements or

rejuvenation. Cut the losses by selling it to another business.

• Price is reduced to sell the remaining stock.• Promotion discontinued.• Distribution channels reduced and product offered to

a loyal segment of the market only.

Packaging

Physical protection: – The objects enclosed in the package may require

protection from, mechanical shock, vibration, electrostatic discharge, compression, temperature, etc.

Packaging

Information transmission:– Packages and labels communicate how to use,

transport, recycle, or dispose of the package or product. With pharmaceuticals, food, medical, and chemical products, some types of information are required by governments. Some packages and labels also are used for track and trace purposes.

Packaging

Marketing: – The packaging and labels can be used by

marketers to encourage potential buyers to purchase the product. Package graphic design and physical design have been important and constantly evolving phenomenon for several decades. Marketing communications and graphic design are applied to the surface of the package and (in many cases) the point of sale display.

Packaging

Convenience: – Packages can have features that add convenience

in distribution, handling, stacking, display, sale, opening, re-closing, use, dispensing, reuse, recycling, and ease of disposal.

Packaging

Barrier protection: – A barrier from oxygen, water vapor, dust, etc., is

often required. Permeation is a critical factor in design. Some packages contain desiccants or oxygen absorbency to help extend shelf life. Modified atmospheres or controlled atmospheres are also maintained in some food packages. Keeping the contents clean, fresh, sterile and safe for the intended shelf life is a primary function.

Packaging

Security: – Packaging can play an important role in reducing

the security risks of shipment. Packages can be made with improved tamper resistance to deter tampering and also can have tamper-evident features to help indicate tampering. Packages can be engineered to help reduce the risks of package pilferage.

STP

STP- Segmentation

STP- Targeting

STP- Positioning

Market Research

Primary Market Research:• Is market research which is done by the business or

company itself with the objective of gathering information that can be used to improve the products, services, and functions.

• Primary market research is also known as field research since it is research done from scratch, without using any information that is already made available through other sources.

• Primary market research is the most common type of a market research method and is also the most valuable type.

Market Research

Secondary market research: • Is a research technique that does not aim to gather

information from scratch but relies on already available information from multiple sources. This research focuses on data or information that was collected by other people and is available for either free or paid use for others.

• Secondary market research takes into account many different sources for collection of information including government data, office data, newspapers, magazines, the internet, etc.

Sales Promotions

Short term incentives to encourage the sale of a product. For example:

• Coupons• Deals• Contests• Sweepstakes• Samples• Loyalty Programs• Pop Displays• Rebates• Product Placement

Management Skills

• Interpersonal• Communication• Strategic thinking• Vision• Problem-solving• Decision-making• Flexibility• Adaptability to change• Reconciling the conflicting interests of stakeholders

Staff Involvement

• Innovation• Motivation• Mentoring• Training

Think Tesco!

Change Management

Sources of Change- External:– Changing nature of markets– Economic– Financial– Geographic– Social– Legal– Political– Technological

Change Management

Sources of Change- Internal:– Accelerating technology– E-commerce– New systems and procedures– New business cultures

Change Management

Transformational Change:– Some business respond to changes in a major way.

The result is often a complete restructure of the business.

Incremental Change:– Other businesses may respond to forces of change

in a smaller way which results in minor changes, usually involving only a few employees.

Change Management

In recent years, the main structural changes introduced in Australian businesses have included:

– Outsourcing– Flatter organisational structures– Work Teams

Leadership Styles

Autocratic:• In the autocratic style, the leader takes decisions without

consulting with others. The decision is made without any form of consultation. In Lewin’s experiments, he found that this caused the most level of discontent.

• An autocratic style works when there is no need for input on the decision, where the decision would not change as a result of input, and where the motivation of people to carry out subsequent actions would not be affected whether they were or were not involved in the decision-making.

Leadership Styles

Democratic:• In the democratic style, the leader involves the people in

the decision-making, although the process for the final decision may vary from the leader having the final say to them facilitating consensus in the group.

• Democratic decision-making is usually appreciated by the people, especially if they have been used to autocratic decisions with which they disagreed. It can be problematic when there are a wide range of opinions and there is no clear way of reaching an equitable final decision.

Leadership Styles

Laissez-Faire:• The laissez-faire style is to minimize the leader’s

involvement in decision-making, and hence allowing people to make their own decisions, although they may still be responsible for the outcome.

• Laissez-faire works best when people are capable and motivated in making their own decisions, and where there is no requirement for a central coordination, for example in sharing resources across a range of different people and groups.

Management TheoriesClassical approach:• management as planning, organising and controlling• hierarchical organisational structure• autocratic leadership style

Behavioural approach:• management as leading, motivating, communicating• teams• participative/democratic leadership style

Systems approach:• Organizations are made up of interconnected systems

Contingency approach:• adapting to changing circumstances

Ethics

– Ethics are a set of moral standards that are relied upon to reach conclusions and make decisions. In a business environment, ethics are a key factor in responsible decision making. Maintaining a high ethical standpoint when operating your business can provide benefits to both the internal and external stakeholders of your business.

Today we covered ...

• Marketing Summary:

– Marketing Mix– Product Life Cycle– Packaging– STP– Market Research– Sales Promotions

Today we covered …

• Business Management Summary:

– Management Skills– Staff Involvement– Change Management– Leadership Styles– Management theories– Ethics