Elements of Business Skills
Chapter 5
Aspects of Marketing
Objectives
• State the steps in the marketing process (Pg 98)• List the different marketing activities and explain its
purpose (Pg 98)• Understand the differences between goods and services
(Pg 104)• Explain the importance and use of brands (Pg 106-108)• Explain the importance and the use of packaging (Pg 111)• Explain how pricing is used to market a product or
service ( Pg 114-118)• Explain how to promote and advertise a product or
service (Pg 122-125)
What is Marketing?
It is a process of:
• Identifying the needs and wants of the chosen customers
• Satisfying them in ways that are better than other competitors (E.g Coca-Cola versus Pepsi) (MacDonalds versus Burger King, versus Kentucky Fried Chicken)
Which Burgers Are Yummier?
Burger King? MacDonalds? KFC?
• Discuss with your partner why you feel one brand of burgers are better than the others
• Give reasons that are valid. For example: Say I like xxx burgers because their portions are bigger and they are value-for- money! Don’t say things like ‘I just like lor!’
• Why? What needs did it satisfy for you?
Can You Tell Me Why?
The Marketing Process…
Let’s see…I want my business to be better than the others! But, how do I win the competition?
Mr Suresh wants to make his first million selling roti-pratas.
Let me give you an advice: Start with knowing 1)who are your
potential customers!
Donald Trump, Billionaire, Marketing Guru of ‘The Apprentice’
The Marketing Process Cont…
2) Understand your customers’ needs and wants
3)Apply the 4Ps of Marketing
4) To be better than your competitors in satisfying customers’ needs and wants!
Do all these 4 steps and you WILL earn your million!
1) Your Potential Customers (Target)
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Geography: Where they live or work?
Age: How old are they?
Gender: Male or Female?
Income: How much they earn?
Profession: What their jobs are?
Lifestyle: What their areas and attitudes are?
Social group: Who they Mix With?
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Remember!
Different groups = Different needs and wants
goods = customers
Eg. A mother who has just given birth will not have the same needs as a woman who is getting married.
The 4 Ps of Marketing
Question: How to know the needs and wants of the customers?
Answer: Use the 4 Ps in Marketing to help you draw up a marketing plan
The 4 Ps• Price: -How much does it cost?
-How much will customers pay?
• Product: -What is it? -What needs/wants does it satisfy?
• Promotion: -How to tell customers about our products? - What will you tell the customers?
• Place: - Where do customers prefer to shop? - How will we make the product available?
4Ps- ProductQs: What is a product?
Ans: A product is anything that a business can offer to satisfy customers’ needs and wants
Eg. I need to drink now because I am very thirsty. I will drink either coke or even Guardian Pharmacy distilled bottled water!
or
What makes a good product?• Good quality
• Right features, functions and design
• Familiar name or brand
• Attractive packaging
• Excellent customer service
• Support services such as warranty and on-site repair Eg: Do you think Sony
has all these characteristics?
What’s the difference?
• 100% Good – Dresses, sports shoes, costume jewellery
• Combination of Good and Service - Car repair and restaurant meals
• 100% Service - Hair Styling, Facial and Spa
In general, the term ‘product’ refers to both goods and services.
Goods ‘vs’ ServicesGoods
• Physical, can touch and feel
• Produced in factory• Can be stored• Can be standardised, can
be of the same standards• Can be counted• Can own the goods after
buying
Services• Cannot be felt but can
‘experience’• Provided and
experienced at the same time
• Can be tailor-made or customised but may not be experienced in the same way
• Cannot be counted• Cannot own and bring
back
Branding…
QS: What is branding?Ans: It is the use of a name, term, symbol or
design or the combination of all four things to identify a product.
E.g: Disneyland: ‘Share the Magic, Where Dreams Come Alive,
Adventure Abounds’Qs: What is the first thing that comes to your
mind when someone says I am going to Disneyland for a holiday?
Brand Loyalty
If you had a good experience in Disneyland, and should you go on another trip, do you think you will still choose Disneyland or other amusement parks?
If Yes: It means you are Brand Loyal
If No: It means that brand has not given you that level of expectation that you were promised. You will not be Brand Loyal
Why is Branding Important?1) Many businesses offer similar products and
services
2) To stand out, your brand must be outstanding!
3) Marketing the product is more efficient and effective
4) Customers will recognise your ‘style’ and the products that are sold
5) Build customer loyalty= $$$
6) Improve image
7) Easier to introduce new product range
What is Packaging?
It can be:
1) The Container or Wrapper for the product
2) Labels
3) Instructions
4) Printed Description
Packaging
Container/Wrapper
Packaging
Labels
Packaging
Product description
Packaging
Instructions
Functions of Packaging…
1) Protects and Contains2) Prevents Shoplifting3) Saves Space and is easier to handle4) Promotes image of brand5) Prevents Spoilage6) Is easier and safer to use
7) QS: Now turn to your partner and give one example of how each function helps in the packaging of the product…
Support Services
Why?
Ans: When we provide excellent support services…
1) Our customers will remember us.
2)Improves image of business
3) = More $$$
Types of Support Services
• Loyalty card
• Customer Service
• Fast and Reliable Delivery
• Financing and Hire Purchase
• Warranty
• Friendly After-Sales Service
• Product and Technical Information
• On-Site Repair Service
• Free Installation
ASPECTS OF MARKETING
PRODUCTPLACEPRICE
PROMOTION
SUPPORT SERVICES... are services and benefits offered to customers in addition to the main
product.make our customers DELIVERY SERVICES remember us >> improve sales
& business image
LOYALTY CARDS
DELIVERYCUSTOMER SERVICE
What other SUPPORT SERVICES are there?
(brainstorm 5 other services) 113
PRODUCTPLACEPRICE
PROMOTION
PRICING
• … setting the PRICE of the product• PRICE is the amount of money that has to be
paid for a product • very important decision because it affects $$$
REVENUE $$$
PRODUCTPLACEPRICE
PROMOTION
Too high…
airfares
loansrent
room rates
… customers may not buy
Too low…
… you will lose $$$ money $$$
3Cs of Pricing
COSTSCOMPETITORS’
PRICECUSTOMER’S
WILLINGNESS TO PAY
• expenses paid to buy & produce product
• lowest limit on price of its product
• sets the upper limit onprice of similar product
• should price a productaccording to how much
customer is willing to pay
PRODUCTPLACEPRICE
PROMOTION
PRICING TECHNIQUES 117-118
Odd-even pricing
Optional-product pricing Product-bundle pricing
Promotional pricing
Product-line pricing
PRICINGTECHNIQUES
PRODUCTPLACEPRICE
PROMOTION
PRICING TECHNIQUES 117-118
• … involves setting different prices for different versions of the same product
• the pricing reflect the benefits of parts of the range • example: car wash (basic package vs. premium
package)
Product-line pricing
PRODUCTPLACEPRICE
PROMOTION
PRICING TECHNIQUES 117-118
• ..setting prices of optional or accessory products along with the main product
• optional 'extras' increase the overall price
of the product or service • example: pizza restaurant menus
Optional-product pricing
PRODUCTPLACEPRICE
PROMOTION
PRICING TECHNIQUES 117-118
• … pricing a few items of related products into a bundle
• bundle of products offered at reduced price
• example: set meals / combo meals
Product-bundle pricing
PRODUCTPLACEPRICE
PROMOTION
PRICING TECHNIQUES 117-118
• … involves temporarily pricing products below the listed prices in order to increase short-term sales
• examples: up to 50-70% SALE, discounts, Buy One Get One Free
Promotional pricing
PRODUCTPLACEPRICE
PROMOTION
PRICING TECHNIQUES 117-118
• … involves setting prices at values just below an even amount
• customers respond better to these prices
Odd-even pricing
PRODUCTPLACEPRICE
PROMOTION
PLACE 119
• … refers to how to the right product gets to the target customers
LOCATION TYPES OF OUTLETS
PRODUCTPLACEPRICE
PROMOTION
CONSIDER
LOCATION DECISION• Shop location can determine
whether the business will be successful.
• When deciding on the location, consider:
PRODUCTPLACEPRICE
PROMOTION
Convenient location
Target customers
Competition
Accessibility
Volume of human traffic
PROMOTION• … to influence the attitudes and behavior
of target customers so that they will buy our product
• to inform customers of
Product, Place & Price• each promotion technique has its
advantages and disadvantages. Therefore, we use a combination of techniques to create a more effective promotion
PRODUCTPLACEPRICE
PROMOTION
• … refers to attracting public attention to a product/business
• can be published in print media (newspaper, magazines, etc.), broadcast media (radio) or electronic media (internet)
PRODUCTPLACEPRICE
PROMOTION
• … refers to short term incentives offered
to encourage target customers to buy a product
• … refer to activities that communicate messages to the public to create goodwill towards a business
PRODUCTPLACEPRICE
PROMOTION
special events
sponsorship
corporate identity materials
websites
news
PR TOOLS
• … involves interpersonal communication with the potential customers with the aim of making sales and building customer relations
• example: insurance selling
PRODUCTPLACEPRICE
PROMOTION
• … a promotion method that sends
customised messages directly to the
target customers • tools: telephones, e-mail, Internet
CREDITS…
• http://www.courts.com.sg/guestcard/popup.html• http://www.ikea.com.sg/store_services/home_delivery.asp• www.asi.com.au• http://www.kfc.com.sg/latestpromo/familyfeast.asp• http://www.dnrfoods.com/sub.php?p=campaigns • http://vagrantrider.com/catalog/images/buy2_1free.jpg • http://touchstoneclimbing.com/images/graphics/0701_sale_clothing.png• http://mobaydp.blogspot.com/2007/09/street-vendor.html • http://www.pacificcoastvending.net/images/
combo_snack_and_pop_vending_machine_53_k0j1.jpg • http://www.targettiusa.com/applications/Mango/100_2951x.jpg• http://www.postercheckout.com/PrintImages/EUR/jpgs/2300-8346.jpg• http://wanster.blogspot.com/2006/09/wan-yean-wears-darnest-thing.html • Elements of Business Skills Textbook• Microsoft Clipart