1. The Role of Marketing

2. Class Objectives Describe the role of marketing in creating satisfying exchanges Describe the elements of the marketing mix and the role of advertising in the mix Explain the role of advertising in communicating a product’s utility Explain the purpose and importance of branding

3. The Role of Marketing Brand Package Social Media Slogan Photo: hubagency.co.uk

4. The Role of Marketing Marketing is the arm of an organization dedicated to finding and retaining customers willing to pay for their products. Marketing facilitates satisfying exchanges, a transaction in which a person or organization trades something of value for something else of value. Ford Photo: prsno.com

5. The Marketing Mix Product Price Place Promotion 1. Select a target market (markets) from the market segments identified 2. Use the 4Ps of the marketing mix to shape a product concept for the market

6. The Product Element The product concept is the consumer’s perception of a product as utilitarian and symbolic values that satisfy needs and wants.

7. The Product Life Cycle

8. Introductory Stage Promote new product to early adopters, consumers willing to try new things. Stimulate primary demand for entire product category through marketing, advertising. Growing demand pulls product from manufacturing to retail (pull strategy). Give retailers incentives, promotions to push product (push strategy). iPhone photo: iab.net Droid photo: androidauthority.com

9. Growth Stage Sales volume increases rapidly. Period is characterized by market expansion as more consumers make more purchases. Advertising expenditures decrease. Competitors enter the market.

10. Maturity Stage Marketplace is saturated with competitors. New customers dwindle, and sales plateau. Companies drive selective demand to impress customers with advantages of their brand. Market segmentation, product positioning, and price promotion become important. Photo: orgcolonial.com

11. Decline Stage Obsolescence, new technology or changing customer tastes cause sales to decline. Production of the brand ceases. Oldsmobile Pontiac Oldsmobile photo: carreview.com Pontiac photo: autosguides.com

12. Product Classifications

13. Product Classifications See Exhibit 4-9 on p. 111 of your textbook for full details. Charmin photo: neenmachine.com sofa photo: pearlstreetdesign.com

14. Product Positioning Positioning: association of product with specific consumer needs Differentiation: creating a product difference that appeals to a market segment

15. Product Positioning Each of these national pizza chains positions itself as the best.

16. Product Positioning Papa John’s: http://www.youtube.com/watch?v=Y0Sn49S5Ins Domino’s: http://www.youtube.com/watch?v=t23sgF4Bl7c Pizza Hut: http://www.youtube.com/watch?v=hWZfb4V_bmA

17. Product Differentiation Nissan Juke Perceptible differences: those that are easily apparent to the consumer Hidden differences: imperceptible variations that may enhance product desirability Induced differences: Differences created by marketing and advertising Ford Escape Hybrid Cadillac Escalade Car photos: automotive.com

18. Branding

19. Branding World’s most valuable brands, 2010 Source: Interbrand “Best Global Brands,” September 2010

20. Branding Brand: the combination of name, words, symbols, or design that identifies the product (and its source) and distinguishes it from competing products. Great Value photo: brandkillers.com Unilever photo: badlani.com

21. Branding Individual brand: Each product, even of the same product type, has a different brand National brand: Individual brands manufactured and sold nationally, such as these Unilever brands Unilever photo: badlani.com

22. Branding Family brand: Multiple products sold under a single brand name Private label brand: Products manufactured nationally and sold to resellers who put their own brand name on the product. Great Value photo: brandkillers.com Heinz photo: images.businessweek.com

23. Branding Licensed brand: a brand that can be used by another company if the company pays a fee to do so Caterpillar: cat.com Coca-Cola: amazon.co.uk Dexter: findamug.com Visa: businessweek.com

24. Branding’s Goal Brandt & Johnson Brand Equity Model The goal of creating a brand is brand equity, the totality of what consumers, retailers, and competitors feel & think about a brand over time. Source: Brandchannel.com

25. The Product Element

27. Containment, protection, convenience

28. Consumer appeal

29. EconomySource: Packagingdigest.com

30. Packaging: Good or Bad? Banana: good.is Terror: chicagonow.com Excedrin: underconsideration.com

31. The Price Element Price Factor: Demand Graphic Source: Masterclassmanagement.com

32. The Price Element Price Factor: Corporate Goals & Strategies Price Factor: Production & Distribution Psychological pricing: setting a product’s price based on the perceived value of a product Price Factor: Competition LGTV: Amazon.com, Haagen-Dazs: bloomingtonneeds.com, Escalade: automotive.com

33. The Place (Distribution) Element As is true for price, the distribution model of a product must be consistent with its brand image. Chart source: static.flatworldknowledge.com

34. The Place (Distribution) Element Direct distribution is when companies sell directly to end users. The internet has become the ultimate direct distribution channel.

35. The Place (Distribution) Element Indirect distribution is when companies market their products through a distribution channel, made up of all the firms and individuals responsible for a product between the producer to the consumer. Resellers are companies who operates between the producer and the consumer or purchaser. Resellers can be retailers or wholesalers. Photo: brickelsracing.com

36. The Place (Distribution) Element Intensive distribution is placement of a product in a large number of retail locations where consumers can purchase it with minimal effort. These items are usually high volume, low profit.

37. The Place (Distribution) Element Selective distribution is placement of a product in a limited number of retail locations to save distribution and promotion costs. Exclusive distribution is when a producer gives rights to just one wholesaler or retailer in a geographic region. Ryobi: oneprojectcloser.com

38. The Promotion Element DirectMarketing Product Advertising Sales Promotion Personal Selling Public Relations Marketing Communication Types Advertising is just one type of promotion (communication) companies can use in marketing. It communicates a product’s utility to drive satisfying exchanges.

40. Chance for significant product differentiation

41. Hidden qualities highly important to consumers

42. Opportunity for strong emotional appeals

43. Substantial budget available for advertising