Marketing and Business Management
Semester Recap
Today…
• Marketing Summary:
– Marketing Mix
– Product Life Cycle
– Packaging
– STP
– Market Research
– Sales Promotions
Today…
• Business Management Summary:
– Management Skills
– Staff Involvement
– Change Management
– Leadership Styles
– Management theories
– Ethics
Marketing Mix (4Ps)
Product
• Products are the goods and services that your
business provides for sale to your target market.
When developing a product you should consider
quality, design, features, packaging, customer service
and any subsequent after-sales service.
Price
• Price concerns the amount of money that customers
must pay in order to purchase your products. There
are a number of considerations in relation to price
including price setting, discounting, credit and cash
purchases as well as credit collection.
• Promotion refers to the act of communicating the
benefits and value of your product to consumers. It
then involves persuading general consumers to
become customers of your business using methods
such as advertising, direct marketing, personal selling
and sales promotion.
Promotion
• Promotion refers to the act of communicating the
benefits and value of your product to consumers. It
then involves persuading general consumers to
become customers of your business using methods
such as advertising, direct marketing, personal selling
and sales promotion.
Place
• Place is in regards to distribution, location and
methods of getting the product to the customer. This
includes the location of your business, shop front,
distributors, logistics and the potential use of the
internet to sell products directly to consumers.
Product Life Cycle
Product Life Cycle
Introduction stage:
• The business tries to increase consumer awareness
and build a market share for the new product.
• Product brand and reliability are established.
• Price is often noticeably lower than competitors’
prices in order to gain a market foothold.
• Promotion directed at early buyers and users occurs,
and communications seek to educate potential
customers about the merits of the new product.
• Distribution is selective, which enables consumers to
gradually form an acceptance of the product.
Product Life Cycle
Growth stage:
• Brand acceptance and market share are actively
pursued by the producers of the product.
• Product quality is maintained and improved and
support services may be added.
• Price per unit of production is maintained as the firm
enjoys increased consumer demand and a growing
market share.
• Promotion now seeks a wider audience.
• Distribution channels are increased as the product
becomes more popular.
Product Life Cycle
Maturity phase:
• Sales plateau as the market becomes saturated:
• Product features and packaging try to differentiate
the product from those of competitors.
• Price may need to be adjusted downwards to hold off
competitors and maintain market share.
• Promotion continues to suggest the product is tried
and true — it’s still the best.
• Distribution incentives may need to be offered to
encourage preference over rival products.
Product Life Cycle
Decline stage:
• Sales begin to decline as the business faces several
options:
• Product maintained with some improvements or
rejuvenation. Cut the losses by selling it to another
business.
• Price is reduced to sell the remaining stock.
• Promotion discontinued.
• Distribution channels reduced and product offered to
a loyal segment of the market only.
Packaging
Physical protection:
– The objects enclosed in the package may require
protection from, mechanical shock, vibration,
electrostatic discharge, compression,
temperature, etc.
Packaging
Information transmission:
– Packages and labels communicate how to use,
transport, recycle, or dispose of the package or
product. With pharmaceuticals, food, medical,
and chemical products, some types of information
are required by governments. Some packages and
labels also are used for track and trace purposes.
Packaging
Marketing:
– The packaging and labels can be used by
marketers to encourage potential buyers to
purchase the product. Package graphic design and
physical design have been important and
constantly evolving phenomenon for several
decades. Marketing communications and graphic
design are applied to the surface of the package
and (in many cases) the point of sale display.
Packaging
Convenience:
– Packages can have features that add convenience
in distribution, handling, stacking, display, sale,
opening, re-closing, use, dispensing, reuse,
recycling, and ease of disposal.
Packaging
Barrier protection:
– A barrier from oxygen, water vapor, dust, etc., is
often required. Permeation is a critical factor in
design. Some packages contain desiccants or
oxygen absorbency to help extend shelf life.
Modified atmospheres or controlled atmospheres
are also maintained in some food packages.
Keeping the contents clean, fresh, sterile and safe
for the intended shelf life is a primary function.
Packaging
Security:
– Packaging can play an important role in reducing
the security risks of shipment. Packages can be
made with improved tamper resistance to deter
tampering and also can have tamper-evident
features to help indicate tampering. Packages can
be engineered to help reduce the risks of package
pilferage.
STP
STP- Segmentation
STP- Targeting
STP- Positioning
Market Research
Primary Market Research:
• Is market research which is done by the business or
company itself with the objective of gathering information
that can be used to improve the products, services, and
functions.
• Primary market research is also known as field research
since it is research done from scratch, without using any
information that is already made available through other
sources.
• Primary market research is the most common type of a
market research method and is also the most valuable type.
Market Research
Secondary market research:
• Is a research technique that does not aim to gather
information from scratch but relies on already available
information from multiple sources. This research focuses on
data or information that was collected by other people and
is available for either free or paid use for others.
• Secondary market research takes into account many
different sources for collection of information including
government data, office data, newspapers, magazines, the
internet, etc.
Sales Promotions
Short term incentives to encourage the sale of a
product. For example:
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Coupons
Deals
Contests
Sweepstakes
Samples
Loyalty Programs
Pop Displays
Rebates
Product Placement
Management Skills
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Interpersonal
Communication
Strategic thinking
Vision
Problem-solving
Decision-making
Flexibility
Adaptability to change
Reconciling the conflicting interests of stakeholders
Staff Involvement
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Innovation
Motivation
Mentoring
Training
Think Tesco!
Change Management
Sources of Change- External:
– Changing nature of markets
– Economic
– Financial
– Geographic
– Social
– Legal
– Political
– Technological
Change Management
Sources of Change- Internal:
– Accelerating technology
– E-commerce
– New systems and procedures
– New business cultures
Change Management
Transformational Change:
– Some business respond to changes in a major way.
The result is often a complete restructure of the
business.
Incremental Change:
– Other businesses may respond to forces of change
in a smaller way which results in minor changes,
usually involving only a few employees.
Change Management
In recent years, the main structural changes
introduced in Australian businesses have included:
– Outsourcing
– Flatter organisational structures
– Work Teams
Leadership Styles
Autocratic:
• In the autocratic style, the leader takes decisions
without consulting with others. The decision is made
without any form of consultation. In Lewin’s
experiments, he found that this caused the most level
of discontent.
• An autocratic style works when there is no need for
input on the decision, where the decision would not
change as a result of input, and where the motivation
of people to carry out subsequent actions would not
be affected whether they were or were not involved in
the decision-making.
Leadership Styles
Democratic:
• In the democratic style, the leader involves the people
in the decision-making, although the process for the
final decision may vary from the leader having the final
say to them facilitating consensus in the group.
• Democratic decision-making is usually appreciated by
the people, especially if they have been used to
autocratic decisions with which they disagreed. It can
be problematic when there are a wide range of
opinions and there is no clear way of reaching an
equitable final decision.
Leadership Styles
Laissez-Faire:
• The laissez-faire style is to minimize the leader’s
involvement in decision-making, and hence
allowing people to make their own decisions,
although they may still be responsible for the
outcome.
• Laissez-faire works best when people are capable
and motivated in making their own decisions, and
where there is no requirement for a central
coordination, for example in sharing resources
across a range of different people and groups.
Management Theories
Classical approach:
• management as planning, organising and controlling
• hierarchical organisational structure
• autocratic leadership style
Behavioural approach:
• management as leading, motivating, communicating
• teams
• participative/democratic leadership style
Systems approach:
• Organizations are made up of interconnected systems
Contingency approach:
• adapting to changing circumstances
Ethics
– Ethics are a set of moral standards that are relied
upon to reach conclusions and make decisions. In
a business environment, ethics are a key factor in
responsible decision making. Maintaining a high
ethical standpoint when operating your business
can provide benefits to both the internal and
external stakeholders of your business.
Today we covered ...
• Marketing Summary:
– Marketing Mix
– Product Life Cycle
– Packaging
– STP
– Market Research
– Sales Promotions
Today we covered …
• Business Management Summary:
– Management Skills
– Staff Involvement
– Change Management
– Leadership Styles
– Management theories
– Ethics