Functions of a Business:
Marketing
Chapter 8
1
Opening Activity
• Describe your favourite
advertisiement
• Why you like it?
• What is your favourite store?
• Why do you prefer it to others?
• What is your favourite soft
drink? Why?
2
Chapter 8: Marketing
The Role and Impact of Marketing
Marketing is all activities involved in getting goods and
services from the businesses that produce them to the
consumer.
Marketing has two fundamental roles:
1) to sell what a business makes (for example:
2) to manage the brand (for example:
)
)
4
Chapter 8: Marketing
The Role and Impact of Marketing
• Marketing activities include:
•
•
•
•
•
•
research
development
sales
distribution
advertising
promotion
5
Chapter 8: Marketing
The Role and Impact of Marketing
Branding
Businesses can spend millions of dollars creating an
image for products and services with a
 brand name,
 logo or trademark,
 a slogan.
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Chapter 8: Marketing
The Role and Impact of Marketing
Branding
Brand Name
A brand name is a word or group of words a business
uses to distinguish its products from that of the
competition.
Brand names should be
distinctive,
stand out, and
memorable.
Activity Link
7
Chapter 8: Marketing
The Role and Impact of Marketing
Logo or Trademark
A logo is a symbol that is associated with the company or product.
It can take the following forms:
Monogram,
visual symbol,
abstract symbol.
A trademark is a word, symbol, design, or a combination of all
three that a business uses to distinguish its goods or services from
others.
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Chapter 8: Marketing
The Role and Impact of Marketing
Slogan
A slogan is a short or catchy advertising phrase associated with a
company or product.
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Chapter 8: Marketing
The Role and Impact
of Marketing
Jingles
 A jingle is a slogan or vocal line set to an engaging melody mainly
used as an advertisement
 Jingles are designed to be memorable and stick in the mind of the
listener. Jingles can be used on TV, Radio and Internet and can be
as simple as a singer with a voiceover or a complex customized
written piece of music depending on its intended result.
History Will Be Made East Side Mario's shortened.flv
im loving it.flv
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Chapter 8: Marketing
The Role and Impact
of Marketing
Brand Identification
Everything associated with a product, such as the slogan,
name, and logo, must be used consistently to ensure that
the brand is always identifiable to the consumer.
APPRENTICE CHALLENGE
Apprentice Challenge Link
Every team needs a sheet of lined paper
Place numbers 1-40 along the side
Only one sheet per team
GOOD LUCK!!!
11
Chapter 8: Marketing
The Role and Impact
of Marketing
The Product Life Cycle
Marketing efforts pay off in the form of consumer reaction
to the brand.
Successful marketing efforts increase brand equity or the
value of the brand in the marketplace.
The changes in popularity or sales volume of a product
over time can be graphed on the product life cycle or style
curve.
12
Chapter 8: Marketing
The Role and Impact
of Marketing
Traditional Product Life Cyle
13
Chapter 8: Marketing
The Role and Impact
of Marketing
Go to page 232 in the text to fill in the
chart after the diagram in your notes.
14
Chapter 8: Marketing
The Role and Impact
of Marketing
Non-traditional Product Life Cycles
Fads
•A fad is a product that is extremely popular with a
select market for a short time, usually less than a year.
•Examples:
15
Chapter 8: Marketing
The Role and Impact
of Marketing
Non-traditional Product Life Cycles
Niches
•A niche is a section of the market in which a product
dominates and into which few competitors enter.
•Niche marketers are often left alone because of barriers to
entry—the factors that prevent competition from being
profitable in a given market.
Examples:
16
Chapter 8: Marketing
The Role and Impact
of Marketing
Non-traditional Product Life Cycles
Seasonal
•Some products are popular during a specific time or season.
• Balancing product quantity with seasonal sales is called
inventory management. To be left with little seasonal
inventory, businesses calculate the amount of product to
keep on hand.
Examples:
17
Chapter 8: Marketing
REVIEW:
The Role and Impact of Marketing
1) Definition of Marketing
Marketing is all activities (research, development, sales, distribution,
advertising, promotion) involved in getting goods and services
from the businesses that produce them to the consumer.
2) Two Fundamental Roles
to sell what a business makes, to manage the brand
3) Branding
brand name, logo or trademark, slogan & jingle.
4) Product Life Cycle
 traditional – introduction, growth, maturity, decline
 non traditional – fads, niche, seasonal
18
Chapter 8: Marketing
Marketing Concepts
Marketing can be divided into two major concepts:
1) The Product Concept which involves the 4 P’s of
marketing and
2) The Market Concept which involves the 2 C’s of
marketing.
Today we will focus on the 4P’s
Note the orange and green
19
Chapter 8: Marketing
Marketing Concepts
The Four P’s of Marketing
Product
Price
Place
Promotion
A good combination of all four elements, called the
marketing mix, translates into an effective campaign.
NOTE:
I will need to see these concepts put into action in preparing
for and actually running your table on business day.
20
Chapter 8: Marketing
Marketing Concepts
1. Products and Services
The two reasons businesses develop products are because
they can and they see a need.
The development of good products and services considers
a) quality,
b) design,
c) features,
d) benefits and
e) product/service mix.
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Chapter 8: Marketing
Marketing Concepts
1. Products and Services (cont’d)
a) Quality
Improvements made to the quality of a product attracts more
customers.
For example:
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Chapter 8: Marketing
Marketing Concepts
1.Products and Services (cont’d)
b) Design
Every product and service has a design component.
Consumers will often buy one product over another because
of the way it looks.
For example:
23
Chapter 8: Marketing
Marketing Concepts
1.Products and Services continued
c) Features
Product developers consider the features used, such as the
materials, scent, size, or the taste, when constructing a new
product. Service providers outline or detail what they do best.
For example:
24
Chapter 8: Marketing
Marketing Concepts
1. Product and Service (cont’d)
d) Benefits
Consumers buy products and services for a particular
purpose. Businesses need to make consumers aware of
the advantages of a product to be motivated to buy it.
For example:
Bounty absorbs more liquid
than its competitors.
This is emphasized in its
promotions.
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Chapter 8: Marketing
Marketing Concepts
1. Product and Service (cont’d)
e) The Product/Service Mix
A retail store provides services and a service business
sells a product. The resulting product/service mix can
increase sales to existing customers and attract new
ones.
For example:
26
Your Turn
You have 10 minutes to compare
RIM’s Blackberry Bold and
Apple’s iPhone with a partner
a)
b)
c)
d)
e)
Quality
Design
Features
Benefits
Product/service mix
Chapter 8: Marketing
Marketing Concepts
2. Price
Prices for products must be set with care to ensure their
success.
Today consumers are very price conscious and look for
competitive prices at other stores or on the Internet.
Businesses need to be price sensitive and look at their
competitors’ prices for the same products.
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Chapter 8: Marketing
Marketing Concepts
3. Place (Channels of Distribution)
Channels of distribution are the paths of ownership that
goods follow as they pass from the producer or manufacturer
to the consumer.
The three types of channels of distribution are
1) direct,
2) indirect,
3) specialty.
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Chapter 8: Marketing
Marketing Concepts
3.Place (Channels of Distribution) cont’d
Direct Channels
Direct channels of distribution connect the consumers to the
producers of the goods or services.
This is also referred to as the maker-user relationship.
For example:
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Chapter 8: Marketing
Marketing Concepts
3.Place (Channels of Distribution) cont’d
Indirect Channels
Indirect channels of distribution have one or more
intermediaries who import products (importers), wholesale
goods (wholesalers), or retail products (retailers).
For example:
Importers
Wholesalers
Retailers
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Chapter 8: Marketing
Marketing Concepts
3. Place (Channels of Distribution) cont’d
Specialty Channels
A specialty channel of distribution is an indirect way to
distribute products by using vending machines,
telemarketing, catalogue sales, e-commerce, and
door-to-door sales.
No retail store is involved.
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Chapter 8: Marketing
Marketing Concepts
4. Promotion
Promotion is an attempt to sell a product.
Sales promotion encourages consumers to buy products by
using:
 coupons
 contests
 premiums
 samples
 special events
Your Turn: Fill in the chart in your notes using pages 247-8
Can you bring in some actual examples tomorrow? (no computer
generated copies) for BB’s.
33
Chapter 8: Marketing
Marketing Concepts
The Two C’s of Marketing
The marketing department must consider two major external
factors:
1) the competition and
2) the consumer.
Open text to page 249 and let’s read pages 249-251
“The Competitive Market”
Continue with next note
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Chapter 8: Marketing
Marketing Concepts
The Competitive Market
The competitive market refers to the sellers of a specific
product, and is often expressed in terms of the total dollars
spent annually on the product.
The percentage of the market that a company or brand has
is called its market share.
A market segment is a part of the overall market with
similar characteristics.
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Chapter 8: Marketing
Marketing Concepts
Competition among Products
Indirect competition means products or services are not
directly related to each other.
For example:
Products that are similar to one another are called direct
competition.
For example:
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Chapter 8: Marketing
Marketing Concepts
The Consumer Market
In their effort to be competitive, businesses study and
target the consumer market, the potential users of a
product or service.
These consumers can be identified by demographics
and lifestyle.
.
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Chapter 8: Marketing
Marketing Concepts
The Consumer Market cont’d
Demographics
Demographics is the study of obvious characteristics that
categorize human beings. Some examples of demographics
include the following:
• age
• gender
• family lifestyle
• income level
• ethnicity and culture
Lifestyle
Lifestyle is the way people live, including their values,
beliefs, and motivations.
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Chapter 8: Marketing
Marketing Concepts
1) Go to pages 247-248 to fill in the Promotion chart
examples in your notes
2) Go to pages 252-254 to fill in the demographics
chart
3) Show me your completed work.
4) Work on marketing project with your group
39
Chapter 8: Marketing
Advertising
Creating Good Advertising
Good advertisements sell products by making the consumer remember
the brand name of their products or services.
The four standard rules for creating good advertising are summarized
as follows:
1. Attract attention – develop a good headline
2. Gain interest – make people want to read, watch, or listen
3. Build desire – help the customer want your product
4. Get action – always ask for the sale
AIDA - Magazine advertisement assignment
40
Chapter 8: Marketing
Advertising
Types of Advertising
Advertising is the paid-for promotion of a
businesses’ goods and services using a
variety of mass media to target a market.
Common advertising
classifications include p.258
•
•
•
•
direct-to-home
out-of-home
radio
television
• newspapers
• magazines
• Internet
41
Chapter 8: Marketing
Advertising
Comparing Types of
Advertising
Advertisers use the following categories
to help them select which media to use
for a certain product promotion. These
eight categories are
•
•
•
•
reach
frequency
selectivity
durability
•
•
•
•
lead-time
mechanical requirements
clutter
cost
42
Chapter 8: Marketing
Marketing Research
Market research is the collection and analysis of information that
identifies specific groups of consumers who would use a particular
product or service.
Types of Marketing Research
Marketers use different types of research depending on what
information is needed, how it will be collected, and what will be done
with the final information after it is analyzed. The following is a list of the
most common types of research used by marketers:
• consumer research
• competitive research
• market research
• product research
• motivation research
• advertising research
• pricing research
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Chapter 8: Marketing
Marketing Research
Marketing Research Tools
Marketing research relies on secondary and primary data.
Secondary Data
Secondary data is information collected by others. Secondary data can
be collected from Web sites, databases, periodicals, indexes, and
professionally prepared marketing research reports.
Primary Data
Primary data refers to current information that is collected and analyzed
for a specific purpose. Methods include
• observation
• test marketing
• focus groups
• internal information sources
• surveys
44
Grade 11
• Consider taking
Marketing in
grade 11, BMI3C
• The course
focuses on 4 P’s
of marketing
• It will be a
combination
hands-on and
text learning
45