The Role and Functions of Marketing. By PresenterMedia.com

Transcription

1 The Role and Functions of By PresenterMedia.com

2 The Role and Importance of Brand Management: The Product Life Cycle Product Introduction Growth Maturity Decline Decision Point

3 and what it means: is the term used to describe all the activities involved in getting goods and services from the businesses that produce them to the consumers who wish to purchase them. includes: Research Development Sales Distribution Advertising Promotion MARKETING = SALES

4 ON TARGET The Product life cycle REVIEW Businesses need to effectively mark a brand. Where does the product or BRAND is in terms of the product life cycle. The traditional product life cycle consists of five parts: growth, maturity, decline, maturity, decline and decision point. Almost all products are popular over time and then popularity declines.

5 Here is the Section Header PRODUCT INTRODUCTION

6 Production introduction Step 1 Step 2 To market a product the first thing that must happen is an introduction. First consumers are called EARLY ADOPTERS. These are usually celebrities, or people that are looked up to. They set the trend. LAUCH: Most likely, prior to a launch people do not know that the product (or service) exists. The business INTRODUCES the product many ways (region, city, etc). The launch informs the public about the product and the business HOW TO GET TO THE EARLY CONSUMERS: Parties, galas, openings, award ceremonies, charity events. They are photographed with the product and then everyone wants one!

7 GROWTH Once early adopters find and use a new product, others soon try it and the sales start to increase and usually rapidly. This is the GROWTH stage in the product life cycle. During this phase, sometimes a product goes through some changes to meet the needs of the consumers. Colour, adding features, etc.

8 MATURITY The growth of the product or the sales of the product are FLAT. It does not decline or grow. It remains steady and consistent. Companies keep products at this level through regular advertising. The advertising keeps the brand awareness up and people are reminded that the product is available to them. The COSTs associated with developing the product or making the product is low. The companies can make a LARGE profit at this stage. Businesses can use income generated by their products (CASH COWS) to develop and fund new products.

9 DECLINE Towards the end of the life cycle comes decline. This is where consumers decide that the product no longer has the same appeal. No longer meets its needs. So, sales decline. Usually the business will look at ways to find different costumers or change the product completely. Sometimes, just a sale or a new way of advertising can change the way people think or if they will buy the product.

10 The Decision Point Marketers must make some decisions about the product. The management involves new promotion and repricing. An advertising agency might develop a campaign to target a new segment of the market. If sales increase = success If sales decrease = discontinues the product and it disappears from the market

11 Here is the Section Header NON-TRADITIONAL PRODUCT LIFE CYCLES

12 Non-traditional product life cycles FADS: popular for a very short period of time. For example, Tamagotchis. Businesses can get rich or die trying! KNOCKOFFS: imitators who create a cheaper version in order to cash in on the market. Usually based on a fad. NICHES: a section of the market. High tech, ethnics, etc. SEASONAL: certain products can only be sold during specific times of year. Christmas. Let s discuss! Jewelry boxes, mothers day gifts, religious gifts.

13 Here is the Section Header BRAND MANAGEMENT STRATEGIES

14 BRAND MANAGEMENT STRATEGIES The PUSH STRATEGY: Channel of distribution, push strategy (special deals are offered to retailers), specials in helping to advertise the product. Text book: Jones, and SHELF ALLOWANCE. Read page 209 for the marketing strategy. The PULL STRATEGY: appealing to the consumer instead of the retailer. Consumers begin looking for the product and that means the stores want to carry it. THE PUSH PULL mixture is probably the best

15 Smart Art Page Layout research is the collection AND analysis of information that is relevant to the marketing strategy. There are several different types of marketing research: Consumer Market Motivation Pricing Competitive Product Advertising research. Consumer Research (primary data, secondary data, focus group) Market Research (specific groups) Motivation Research (reason for purchasing) Pricing Research (at what costs) Competitive Research (who else has this product and at what price) Product Research (does it need changes) Advertising Research (most effective way of reaching the most people)

16 Product Development Product Design Packaging Branding What it looks like What does it do Decide on the look of the product FORM and FUNCTION Packaging protects the product Packages identify the product LABELLING Through marketing, people need to KNOW the product. Like KLEENEX!

17 Here is the Section Header SALES AND DISTRIBUTION

18 Distribution importers Wholesalers Retailers Vending machines Telemarketing Catalogue sales E-commerce Door-to-door DIRECT CHANNELS INDIRECT CHANNELS SPECIALITY CHANNELS

19 ADVERTISING AND PROMOTION Purpose of Advertising Types of Advertising Sales Promotions Branding Direct to home Out of home Radio Television Newspapers magazines Coupons Contests Premiums (loyalty cards) Samples Special events See chart on page 223