Unit 3 Marketing[1]

8/4/2019 Unit 3 Marketing[1]

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Unit 3 Investigating Marketing


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Introduction to marketing

If you want investment from the Dragons what wouldyou have to do

Now you are going to do the same!


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Choose a product from the bag

You have 10 minutes to plan a sales pitch to

the class for investment into your company

selling the product

What sort of things will you need to consider?


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Team Product

description

Where to buy How

much

to pay

What makes it

different/better/wh

y would customers

need it

Creativity

A

B

C

D

E

F

G


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Objective

To understand what business objectives are

set when carrying out marketing activities

(how do you get customers to buy your

products)

To understand what market segmentation is

(how can you put them in groups)


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What are these pictures telling you?

What does/would encourage Apple to develop the Ipods further?
http://images.google.co.uk/imgres?imgurl=http://skattertech.com/media/2007/09/new-ipod-family.jpg&imgrefurl=http://skattertech.com/2007/09/new-ipod-nano-classic-touch/&usg=__h99F8UiNPchr7ngQdE8jpzm3KWI=&h=403&w=950&sz=207&hl=en&start=1&sig2=QdqBKdjAaXceF-JGcl5cew&um=1&tbnid=sr2pOlnvv_D8mM:&tbnh=63&tbnw=148&prev=/images?q=new+ipod+touch&hl=en&sa=N&um=1&ei=hvpBS9mIKsWu-gbflpSvCg


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Think about

Shampoo

1. Write down 3 different brands or types of theproduct that meet different customers needs

2. Where will this be sold? Why?

3. How and where will this product be advertised?

4. How will the price differ for these 3 brands ortypes?

5. Are there any external factors that will affecthow the product is advertised/sold/developed?


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What do you want/expect from

Shampoo? write 10 things


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Top Trump

HistoryProduct range, new products, product reviews, design

changes

Target Market who are they aiming at, how do you

know?Price how much do they charge, how does this

compare to other brands

Customer Expectations what do you/customers expect

from the shampoo, can you find any reviews on the

product?

Place where can you buy it?

Statistics


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You are required to produce an appropriate

marketing mix for a new or existing product

or service.

Learners must choose a product with a range

of users, across market segments e.g.

shampoo, yoghurt or chocolate come in a

range of qualities and prices and have a rangeof image and brand identifiers.


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A. Identification of the objectives and segmentation

A business will use different marketing activitiesdepending on the objectives it is aiming to achieve.These objectives are:

Understanding customer wants and needs

Developing new products Improving market share (market penetration)

Diversification

Re-launch of product (market development)

Improving profitability

Increasing brand awareness


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How to do it well

Explain what is meant in detail by each of these objectives

Discuss why each objective may be appropriate for acompany to set themselves

Apply the objective to YOUR chosen shampoo brand or

explain how it would use it. You will need to conductresearch. Feel free to email the company, use their websiteand show this evidence in your portfolio (thats whatappendices are for)

Use pictures/print screens to explain what you mean

For Mark Band 3 you need to provide a comprehensiveexplanation relating to all the bullet points for a thismeans lots of detail that makes sense and are your ownwords!!


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Complete the table

Complete the table in the shared area/on the

sheet that shows the key terms you need to

be aware of and use for part A of this task

Use your text book or the internet to help you


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Ansoff Matrix

Objective:

By the end of this lesson you will understandwhat the categories are of the Ansoff Matrix

You will be able to group company productsinto the relevant categories


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New design GHD

straighteners

Dove recently began

targeting older ladies

with their shampoo

Herbal Essence

launched hair dye

LOreal Elvive

extended their

range to Anti

Dandruff for

men because

theyre worth

it?

Shampoo

developed by

GHD to

complimentthe

straighteners
http://www.loreal-paris.co.uk/haircare/men/elvive-anti-dandruff/anti-dandruff-intensive-greasy-hair.aspxhttp://www.loreal-paris.co.uk/haircare/men/elvive-anti-dandruff/anti-dandruff-intensive-greasy-hair.aspxhttp://www.loreal-paris.co.uk/haircare/men/elvive-anti-dandruff/anti-dandruff-intensive-greasy-hair.aspxhttp://www.loreal-paris.co.uk/haircare/men/elvive-anti-dandruff/anti-dandruff-intensive-greasy-hair.aspx


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Ansoff Matrix helps form marketing

objectivesAre you trying to remind your customers that

your product is still available?

Are you trying to sell your same product to a

different group of customers (age,

geographically, gender?)

Have you developed a new product

that you think will impress yourexisting customers? (developing and

improving products)

Are you taking the plunge

and selling a new product

to a lot of new customers?

(risk taking, moving away

from the market?)


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Product Life cycle helps set objectives

depending on where the product is

1) Introduction little growth, low sales. High

costs on research, development and

marketing to test the market (e.g BOGOF)

2) Growth if businesses begin to grow this leads

to higher sales and profits. Business have thepower to lower prices and invest in promoting

the product

3)Maturity Most common stage for companies,

high competition as companies want to maintain

market share. Competitors may copy significantmoves. Money more likely to be spent on

developing product improvements

4)Decline The market is beginning to shrink so

businesses spent costs. If the product isnt

profitable the company may end it

Which stage is your product at?

Which objectives will this link into?


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Boston Matrix helps with product re-

launch in assessing where product is

Products at the

decline stage of the

product life cycle

Products that have

just been launched

will/wont they be

successful?

At the maturity stage high market

share in market that is not growing

rapidly. Only need to be re-launched to

bring new life to the product not a lot

of cash needed to survive

Reached the

growth stage

of the product

life cycle

good potential

and willrequire high

cash support

to keep

succeeding


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Questions to ask yourself when

looking at Boston Matrix

Is the amount of people going to buy the

product get any bigger? Eg is the amount of

people who buy shampoo in the UK going to

expand rapidly in the future?

Do a lot of people currently buy your product?

Eg is your shampoo one of the more popular

brands?


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Quote of the day.

Dont just throw pies and hope they hit your

targetbecause you will waste a lot of pies

Instead look at who you want to hit and do everything you can tomake sure you get them so there are some left over for you

If you design and advert or marketing campaign without thinking about who you

want to target it may not hit the people you need. Look at them instead and find a

way to get there attention before you hit them


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Watch the clip and write a note to

describe what you see in each one

1. http://www.youtube.com/watch?v=biAFjjQp

GSo

2. http://www.youtube.com/watch?v=nTKibzQ

qZoI&feature=related

3. http://www.youtube.com/watch?v=00hbgaE

AZAM&feature=related

4. http://www.youtube.com/watch?v=77MH42

xsqVs
http://www.youtube.com/watch?v=biAFjjQpGSohttp://www.youtube.com/watch?v=biAFjjQpGSohttp://www.youtube.com/watch?v=nTKibzQqZoI&feature=relatedhttp://www.youtube.com/watch?v=nTKibzQqZoI&feature=relatedhttp://www.youtube.com/watch?v=00hbgaEAZAM&feature=relatedhttp://www.youtube.com/watch?v=00hbgaEAZAM&feature=relatedhttp://www.youtube.com/watch?v=77MH42xsqVshttp://www.youtube.com/watch?v=77MH42xsqVshttp://www.youtube.com/watch?v=77MH42xsqVshttp://www.youtube.com/watch?v=77MH42xsqVshttp://www.youtube.com/watch?v=00hbgaEAZAM&feature=relatedhttp://www.youtube.com/watch?v=00hbgaEAZAM&feature=relatedhttp://www.youtube.com/watch?v=nTKibzQqZoI&feature=relatedhttp://www.youtube.com/watch?v=nTKibzQqZoI&feature=relatedhttp://www.youtube.com/watch?v=biAFjjQpGSohttp://www.youtube.com/watch?v=biAFjjQpGSo


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Market Segmentation

Marketing and its related activities should be

designed to suit the customer.

In the past organisations created adverts for the

mass marketbut now recognise different groupsof people have different wants and needs

Market segmentation is a process of separating atotal market into parts so that different strategies

can be used for different customers


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What do the following mean/or give

an example

Geographic

Demographic Segmentation by age

Other ethnicity

Geodemographic Psychographic/behavioural


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Market Segmentation

1. Read the article in the shared area UK Hair

care market stagnant

2. Summarise in 5 sentences what this article is

telling you


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Companies build a profile of customers based

on data available to them. It helps them select a

target market and design products to fit theprofile of those customers

Geographic people in different regions may have differentincomes, attitudes, buying habits, language

Demographic family size/singles for different size products,identify trends in age, gender in particular areas

Segmentation by age widely applied shampoo now offeringproducts aimed at older generations, shampoo for kids

Other ethnicity

Geodemographic combines geo and demo principles (rememberwhen you used upmystreet.com

Psychographic/behavioural divide up by social class, life style orpersonality eg sports shampoos, aiming a head and shoulders atbusiness market

Quick quiz what type of


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Quick quiz what type of

segmentations are represented here

you must be able to point it outFive countries China, Venezuela, Peru,Colombia, and France climbed three or more

in best countries to live from the previous year,

driven by greater earnings and longer life

expectancy.
http://upload.wikimedia.org/wikipedia/commons/d/d5/Man-and-woman-icon.svg


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Structural advice

For your assignment (marked important onthe task sheet)

Discuss the different ways in which markets aresegmented and why segmentation is necessary

Apply this to your shampoo (how does yourshampoo do this how have they tweaked theirmarketing mix to cater for the different segments)

Does your company use Niche or Mass marketingtechniques or is it a combination of both?


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Mass Marketing

Selling a product to a general market and not differentiatingbetween groups

Works for generic products eg washing machines

SO what is Niche Marketing?


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Niche Marketing

A corporate strategy based on identifying and filling relatively smallmarket segments. This can enable small firms to operate profitably

in markets dominated by large corporations. It can also be astrategy pursued by a large firm that prefers to have five brandsselling 50 000 units in each of five niches, rather than one brandselling 250 000 in the mass market.

Pros:

the first company to identify a niche market can often secure a

solid market position as consumers see the original product assuperior

consumers are willing to pay a price premium for a more

exclusive product

Cons: lack of economies of scale may make costs too high to achieve

satisfactory profit margins

the firms production system must be flexible enough to copewith relatively small quantities of several products


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Market research part C You need to understand the purpose of market

research You need to be able to carry out appropriate market

research using primary research - questionnaires, observations, test marketing,

focus groups

Secondary research internal business data in terms of customerinformation and financial records

External sources commercial research reports, governmentstatistics, trade journals, media sources

The difference between qualitative and quantitative

data How useful is the data? How is it interpreted and how

is it used to make valid choices on how to and to whomto market these products.


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Write down 3 reasons why a business

conducts market research

1. ..

2. ..

3. ..


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Purpose of market research

Define the market

Understand customer requirements

Who is our target market

What strategies are used by our competitors

A way to move ahead in front of competitors(proactive)

A way to keep up with competitors (reactive)


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You need to be able to carry out appropriatemarket research using

primary research - questionnaires, observations, testmarketing, focus groups

Questionnaire

Observation

Test marketingProctor and Gamble give out samples to employees totest and to friends to gain initial feedback (from former employee)

Focus groups

Write a brief description of what you think eachone is


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In a very short sentence research will

normally take one of the following

Qualitative peoples opinions, behaviours,

preferred choices

Quantitative data, statistics eg incomes,

population in an area, ages


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In your groups write a question to

include on a questionnaire then pass

to the next person you CANNOT

repeat the question that has beenasked previously

try to think about the purpose ofmarket research discussed earlier


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You should have included

Age Gender

Residential area

Factors that affect buying habits

Price Who buys in household

Memorable advertisement

Where bought

Where notice adverts What promotions

Do they buy your product

Where would you put each of

these within the marketing

mix?

Remember you alter the

marketing mix to find the

perfect combination for your

product


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What have you learnt?

http://tutor2u.net/business/quizzes/as/marke

ting_research/quizmaker.htm


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Recap primary research

Focus group

Test marketing

Questionnaire

Observation

Employees of Proctor and Gamble are

given shampoo to share with their friendsand family to gather feedback before

trialling in a larger area ahead of

launching nationally

A group of people representative of their

target market will come in and will testthe product they will give feedback on this

Buyers in supermarkets and shops will be

watched as to how they buy the product

and what they do eg do they smell before

they put it In their basket, do they checkthe price etc

A sample is asked a series of questions

relating to the product. The questions will

relate specifically to what they need to

know


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Primary research

Cost, time to do, done for specific purpose, do as needed

Advantages Disadvantages


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Secondary Research what is it?

Information gathered by other sources not byyourself

Includes-

Media

Government statistics Trade Journals


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Secondary research Cost, Reliability, Time, Not conducted for that purpose,

Advantages Disadvantages


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Teens' and Tweens' Beauty and Personal Care - UK - June 2009

Interest in cosmetics and toiletries starts from a young age, with the under-13s using

products to give them confidence and make them appear older than their years. Few beauty

and grooming brands specifically target tweens/teenagers, although they have considerable

purchasing power with many using a wide repertoire of products. The tween/teenage

demographic could be just the right target for beauty brands looking for growth during these

recessionary times.

Key themes

Tweens/teenagers are part of the digital revolution and are at ease with modern technology.

This impacts the way in which they are influenced to try to buy new products.

The influence of parents on their childrens purchasing/usage of cosmetics and toiletries.

Toiletries and cosmetics compete with a wide range of other items on which

tweens/teenagers are expected to spend their pocket money/allowance.

Growth in teen-targeted skincare brands.

Tween/teenage brands are strong in some sectors (eg cosmetics) but lacking in toiletries

categories.

Teens and tweens are less affected by the economic slowdown than other demographicgroups and this presents strong opportunities for growth.

Todays teens and tweens have grown up in a multimedia society where products are not

only sold in-store. Evaluate successful distribution strategies to target this demographic.

http://oxygen.mintel.com/sinatra/oxygen/display/id=394187/display/id=465530&list=wh_ite

ms/display/id=394187/display/id=394229 accessed 2/02/2010

Secondary research
http://oxygen.mintel.com/sinatra/oxygen/display/id=394187/display/id=465530&list=wh_items/display/id=394187/display/id=394229http://oxygen.mintel.com/sinatra/oxygen/display/id=394187/display/id=465530&list=wh_items/display/id=394187/display/id=394229http://oxygen.mintel.com/sinatra/oxygen/display/id=394187/display/id=465530&list=wh_items/display/id=394187/display/id=394229http://oxygen.mintel.com/sinatra/oxygen/display/id=394187/display/id=465530&list=wh_items/display/id=394187/display/id=394229


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Secondary research

http://news.bbc.co.uk/1/hi/business/4417725.stm - ethnic hair care market

http://tutor2u.net/business/marketing/casestudy_%20products_haircare.asp market

share

http://www.in-cosmetics.com/page.cfm/link=303

http://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-

but-niches-thrive - segmentation of shampoo market

http://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-

upmarket-shampoos-dont-wash-599646.html - price/value

Also research the mintel report on the shared area as evidence of a publication not a news

story

d h l d h
http://news.bbc.co.uk/1/hi/business/4417725.stmhttp://tutor2u.net/business/marketing/casestudy_%20products_haircare.asphttp://www.in-cosmetics.com/page.cfm/link=303http://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.independent.co.uk/life-style/health-and-wellbeing/health-news/claims-by-upmarket-shampoos-dont-wash-599646.htmlhttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.cosmeticsdesign-europe.com/Products-Markets/UK-Hair-care-market-stagnant-but-niches-thrivehttp://www.in-cosmetics.com/page.cfm/link=303http://www.in-cosmetics.com/page.cfm/link=303http://www.in-cosmetics.com/page.cfm/link=303http://tutor2u.net/business/marketing/casestudy_%20products_haircare.asphttp://news.bbc.co.uk/1/hi/business/4417725.stm


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Read the article and answer the

following:

1. What is it telling you?

2. Why would this affect your shampoo

company

3. What information / key statistics are relevant

to you

4. What part of the marketing mix would the

shampoo company tweak with this

information?


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3.3 Choosing an appropriate marketing mix

The marketing mix refers to the combination of elements within a

businesss marketing strategy, designed to meet/influence the

needs/wants of customers to generate sales. You will need to useelements of your research to support your mix.

The choice of marketing mix aims to target products towards a group of

potential customers. The marketing mix will vary according to the

objectives you are trying to achieve and the results of your market research. For example, the mix chosen for the launch of a new product of

a small business will be different to the launch of a product by a large

business.

You need to develop an understanding of the factors that go towards

determining:

price

product

place, (including web-based)

promotion.


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1. Product - what your product offers that your customers value,

and whether/how you should change your product to meetcustomer needs.

2. Pricing - for example, you might aim simply to match thecompetition, or charge a premium price for a quality productand service. You might have to choose either to make relativelyfew high margin sales, or sell more but with lower unit profits.

Remember that some customers may seek a low price to meettheir budgets, while others may view a low price as an indicationof quality levels.

3. Place - how and where you sell. This may include using differentdistribution channels. For example, you might sell over theinternet or sell through retailers.

4. Promotion - how you reach your customers and potentialcustomers. For example, you might use advertising, PR, directmail and personal selling.

Part C Create a marketing mix for your product


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Pricing by the end of this lesson

What affects the decisions on the price?

What price will you charge?

Why?

L k h i h ld


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Look at these items how would you

group these?

Essentials, luxury

items
http://images.google.co.uk/imgres?imgurl=http://www.cardsunlimited.com/largeimage/Champagne.jpg&imgrefurl=http://www.cardsunlimited.com/viewmixed.php?id=18&usg=__fY4sq9UySDZeSQl9vtRuPP4zXbI=&h=383&w=383&sz=12&hl=en&start=2&itbs=1&tbnid=vthxk2kYe6Lc8M:&tbnh=123&tbnw=123&prev=/images?q=champagne&hl=en&gbv=2&tbs=isch:1http://images.google.co.uk/imgres?imgurl=http://www.dreamstime.com/red-lobster-thumb2949487.jpg&imgrefurl=http://www.dreamstime.com/royalty-free-stock-photography-red-lobster-image2949487&usg=__Qde7TLIr1BHHgo6_gGD_xp3ppOs=&h=300&w=300&sz=45&hl=en&start=2&itbs=1&tbnid=0Zt3cJ3npEqeRM:&tbnh=116&tbnw=116&prev=/images?q=lobster&hl=en&gbv=2&tbs=isch:1http://images.google.co.uk/imgres?imgurl=http://www.experiencechocolate.com/images/index_chocolate.gif&imgrefurl=http://www.experiencechocolate.com/&usg=__HiRUVJvkT5ZxXeyh62RAwaanyU4=&h=350&w=350&sz=47&hl=en&start=4&itbs=1&tbnid=c0dZsDQVrP2zHM:&tbnh=120&tbnw=120&prev=/images?q=chocolate&hl=en&gbv=2&tbs=isch:1http://images.google.co.uk/imgres?imgurl=http://school.discoveryeducation.com/clipart/images/milk.gif&imgrefurl=http://school.discoveryeducation.com/clipart/clip/milk.html&usg=__UIFYQE-Jm_qUzN7ghkL7pU5GT-s=&h=393&w=375&sz=7&hl=en&start=3&itbs=1&tbnid=rWENLuYsdioxSM:&tbnh=124&tbnw=118&prev=/images?q=milk&hl=en&gbv=2&tbs=isch:1http://images.google.co.uk/imgres?imgurl=http://www.rrsd.mb.ca/ResourcesandProjects/grade6/images/electricity.gif&imgrefurl=http://www.rrsd.mb.ca/ResourcesandProjects/grade6/grade6.html&usg=__Jf7kJYnI2nquqX1QQpR2Az84urU=&h=500&w=550&sz=31&hl=en&start=2&itbs=1&tbnid=rESrye1eU8O4EM:&tbnh=121&tbnw=133&prev=/images?q=electricity&hl=en&gbv=2&tbs=isch:1http://images.google.co.uk/imgres?imgurl=http://warrumbungle.local-e.nsw.gov.au/environment/2012/Image/water.jpg&imgrefurl=http://warrumbungle.local-e.nsw.gov.au/environment/2012.html&usg=__d9AiK0qq9pC8aFYduitnVdAuirI=&h=482&w=307&sz=75&hl=en&start=9&itbs=1&tbnid=jtldbTrG35M34M:&tbnh=129&tbnw=82&prev=/images?q=water&hl=en&gbv=2&tbs=isch:1


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What affects price of goods

Quality Where sold

Exchange rate

Competition

If bought in bulk Demand

Fashion

Brand

How new the product is

Avaliability


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Price

Price is the only part of the marketing mix thatgenerates an income all others cost money

For high fashion items eg Superdry coat/iPhone

price is less relevant because they are one-offpurchases than items that are bought en-mass egpaint where there is lots of competition

Some things are essential (eg water, shampoo!)

and will need to be bought regardless of the pricebut consumers may go to competitors if theyoffer a better deal


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Elasticity of demand

The graph shows that thehigher the price the lesslikely people will want tobuy something.

It also illustrates thatconsumers may buy lessfrom that particular

company if there is a lotof choice eg a competitivemarket

It can also illustrate howconsumers may buy moreof a product if the pricefell

This is known as elasticityof demand ie theamountrequired/bought/wantedalters with the price

Price

Quantity demanded

(bought from that

company)


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What type of pricing are these?

The PS3 was selling for over 300 when it was

first launched it can now be purchased for less

than 200

When Bounty re-launched as Plenty it was onsale for 1 cheaper than usual

Petrol prices at supermarkets are usually very

similar. If one drops so does another


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Types of pricing-which is which

A - Deliberately lowering prices to get a competitor out of the market eg a price war

B - Because of low competition eg a new product/market leader is able to charge an

initially high price such as iPhone/PS3 once the initial customers are reached the pricewill be lowered to attract the next level

C - Beginning with a low price to attract the customers effective in a market where

demand is elastic. Helps to penetrate the market and gain market share

D - Matching price very closely to that of competitors common in a market whereproducts are almost identical

E - Adding a specific amount to the unit price eg 20%

1 - Penetration pricing 2

Skimming 3 - Cost plus pricing 4 - Competition based pricing5 - Destroyer pricing

What type of pricing is most likely to


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What type of pricing is most likely to

apply to shampoo?

Questions to consider/answer

Is it a generic product?

Is there lots of competition?

What is the elasticity of demand will the price

affect how many people want it?

Where is the product made and where is it sold?Will this have an impact (consider exchange rates)


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against $

How might this affect shampoo prices if being exported/imported to UK?

Product what makes a product a


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Product what makes a product a

product?


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Packaging

Smell

Colour and

texture

Hair type

Frequency

of wash

Quality of

shampoo

H ll H d ti
http://www.herbal-essences.co.uk/collections/Hello_Hydration/Shampoo.php?id=100036


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Hello Hydration

Moisture & Shine shampoo

Get drenched, quenched and revive that shine!

Luscious shine starts with deep hydration, so

take a deep dive into high shine. Replenishyour prettyparchedhead with my rich formula

with orchid and coconut extracts.

Want an even more blinding blast of shine?

Splash out on my Conditioner and treat

yourself to my high-gloss Intensive Mask.

use me: Lather up. Rinse and repeat. Your

hair'll lap it up and you'll be good to glow

Used to have Vidal Sassoon on


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the bottle but was taken off after

the company realised that wash

and go didnt fit the image that

they were which was a high

quality one.


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Volume & body

Shampoo

Pantene Volume & body Shampoo helps your

hair live large and stand tall. It's the first step

to gorgeous, glamorous hair that's full of

volume, body and movement. The formula

works by effectively removing the dirt andresidue that can weigh hair down.


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http://www.loreal-paris.co.uk/haircare/women/elvive-damage-care/shampoo.aspxhttp://www.herbal-essences.co.uk/collections/Hello_Hydration/Shampoo.php?id=100036


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Promotion - lesson

View the innocent advertisement how do they wantto be perceived

Look at the pictures around the room

Write on there what evidence there is that they wantto be perceived in this way

With your partner and your props stick the pictureinto the middle and identify key AIDA points

What media would be used to convey these messages

Which method will get this across better? Did any of


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Lesson objectives - Promotion

To be able to identify different types of

promotional media used by companies

To be able to analyse a piece of promotional

media and say who the target audience is,what the message is, how good it is based on

what you have learnt so far


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Watch the advert

Describe the story in each one

What phrases/descriptive words do they use

What do they want us to think

Who do you think it is aimed at

Which do you prefer

How do the approaches differ for each


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

wGs

http://www.youtube.com/watch?v=4ZRgX2xt

wLg
http://www.youtube.com/watch?v=XQcVllWpwGshttp://www.youtube.com/watch?v=XQcVllWpwGshttp://www.youtube.com/watch?v=4ZRgX2xtwLghttp://www.youtube.com/watch?v=4ZRgX2xtwLghttp://www.youtube.com/watch?v=4ZRgX2xtwLghttp://www.youtube.com/watch?v=4ZRgX2xtwLghttp://www.youtube.com/watch?v=XQcVllWpwGshttp://www.youtube.com/watch?v=XQcVllWpwGs


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Promotion is based around the need to

effectively communicate with customers


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Promotiona

l tool

Company Message Target

audience

How would

you

measure

success

Good/bad

points

Improvemen

t

TV advert

How else do companies let us know about their products?


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Which is the odd one out?

Leaflet

Local newspaper

Company website

Where the product is sold


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Other ways to promote products?

The message in an advertisement


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The message in an advertisement

should be

A. What makes this product different

B. What makes it better than a competitors

C. The price of the product

D. Where you can buy it

An promotional material has to ensure


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An promotional material has to ensure

it

A. Reaches target audience

B. Clearly describes the product

C. Has the price on it

D. Is on television to reach a wide audience


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How will you use this?

Write down 5 things you will look for/assess inyour shampoo advertisement

You need to search for an advertisement ofyour chosen companies shampoo and assess it

like you have today. For MB3 you will suggest and justify

improvements

In pairs look at the piece of promotional media in


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In pairs look at the piece of promotional media in

front of you discuss it and complete the table

Promotional

tool

Company Message Target

audience

How would

you measure

success

Good/bad

points

Improvement


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During the design of promotional


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material the style is most

represented by Language

Colours

People featured in the advertisement

Distribution (Place) why is this


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Distribution (Place) why is this

information on the website?

l


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Place

Think back to the Chinese Head and Shouldersadvert what was the difference between

that and an advertisement for the same

product being shown in England?

What other changes might there be?

Distribution is how the product gets


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Distribution is how the product gets

to

Manufacturer wholesaler retailerconsumer

Manufacturer retailer consumer

Manufacturer consumer

Which one would you prefer as a consumer?

As a manufacturer?

What is most appropriate for shampoo?

P.E.S.T How will these affect your


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P.E.S.T How will these affect your

company and the marketing mix?

Political and legal changes such as newregulations

Economic factors such as interest rates,

exchange rates and consumer confidence

Social factors such as changing attitudes and

lifestyles, and the ageing population

Technological factors such as new materialsand growing use of the internet

P li i l d l l f


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Political and legal factors

Consumer Protection Act products must be

safe

Sale of Goods Act - Correct labelling of products

and doing what they say!

Britain to Burn Trash for Energy June 11, 2008

Government policy to help companies avoid

landfill tax by turning waste into electricity!

Health and safety issues

Economic factors
http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/


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FALLING RATES

8 October 2008: 4.5%

6 November 2008: 3.0%

4 December 2008: 2.0%8 January 2009: 1.5%

5 February 2009: 1.0%

5 March 2009: 0.5%

Social Factors


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Social Factors

BBC News - Population to hit 65m by 2016,

23rd October 2007

The average age of Britons is

expected to rise to from 39.6 years

in 2006 to 40.6 years in 2016 and to

42.6 years by 2031. The number ofunder-16s in Britain is projected to

rise from 11.5 million in 2006 to

12.1 million by 2016 and nearly 13

million by 2031. The number of

pensioners is expected to exceed

the under-16s by 400,000 in 2016

and by over 2 million in 2031.

Technological factors
http://news.bbc.co.uk/1/hi/uk/7057765.stmhttp://news.bbc.co.uk/1/hi/uk/7057765.stmhttp://news.bbc.co.uk/1/hi/uk/7057765.stmhttp://news.bbc.co.uk/1/hi/uk/7057765.stmhttp://news.bbc.co.uk/1/hi/uk/7057765.stmhttp://news.bbc.co.uk/1/hi/uk/7057765.stmhttp://news.bbc.co.uk/1/hi/uk/7057765.stm


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Technological factors

E i t l


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Environmental

Government Waste Strategy - Businesses are

being asked to take greater responsibility for

the environmental impact of their products

and operations

Britain to Burn Trash for Energy June 11, 2008

reduce landfill and turn waste
http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/http://images.google.co.uk/imgres?imgurl=http://www.stmichaelsyork.org/cps/images/stories/socialaction/recycle.jpg&imgrefurl=http://www.stmichaelsyork.org/cps/what_we_do/social_action/environment.htm&usg=__ko0uMckWs95ziSC1ZqRC-RSxNrc=&h=693&w=693&sz=182&hl=en&start=2&itbs=1&tbnid=oPzFDPxY109P5M:&tbnh=139&tbnw=139&prev=/images?q=recycle&hl=en&gbv=2&tbs=isch:1http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/http://verdavivo.wordpress.com/2008/06/11/britain-to-burn-trash-for-energy/

Documents

Unit 3 Marketing[1]