MAYNARD – INTERNET MARKETING
TOPIC
Marketing & New Product Basics
Essential Question
How can I satisfy customers?
How can I be successful?
DATE
NAME
Do Now 1:
Read the article Never Trust the Experts.
Remember these the next time someone says your idea won't work.
1. I think there is a world market for… maybe five computers
2. there is no reason anyone would want... a computer in their home
3. this telephone has too many shortcomings to be seriously considered as a means
of communication device is inherently... of no value to us
4. the concept of Fed ex is interesting and well formed, but in order to earn better
than a CE. The idea must be... feasible
5. the concept of a Post-it note, if I had thought about it I wouldn't have done the
experiment the literature was full of examples that said... you can't do this
6. everything that can be invented... has been invented
read the Did You Know section
7. UPS was founded by Jim Casey. He was... 19 at the time
AIM:
Competencies
MKTG8125.044 Explain the marketing concept and its application to an Internet Presence
MKTG8125.45 Explain the marketing mix
MKTG8125.046 Explain the functions of marketing and their relationship to Internet
Marketing
MKTG8125.047 Distinguish between market segmentation and target marketing
MKTG8125.048 Describe the importance of positioning in marketing
MKTG8125.049 Describe the importance of developing new products/services
MKTG8125.050 Describe the importance of branding in marketing
Related
SOL’s
English 10.4 the student will read and interpret a variety of informational materials.
English 11.4 the student will read and analyze a variety of informational materials.
English 12.4 the student will read & analyze a variety of informational materials incl.
electronic resources.
Govt.14 The student will demonstrate knowledge of economic systems
Govt. 15 The student will demonstrate knowledge of the US market economy
Govt.17 The student will demonstrate knowledge of personal character traits that facilitate
thoughtful and effective participation in civic life
1
Class Discussion
Term
Marketing
Definition/Details
Process of developing, promoting, and distributing products or services to
SATISFY customers needs and wants
Marketing concept**
Satisfy customers
Satisfy Customers
On your own, describe what it means for a customer to be satisfied:
Think Pair Share
Discuss your description with a partner, be prepared to share with the class
Market
All potential customers to share warrants and willingness to buy product
customer
Buys the product
consumer
Uses the product
Customer vs. Consumer
On your own think of an example of a customer who is also a consumer (be
Think Share
prepared to share with the class)
industrial
Makes products to resell to consumers
Goods
Tangible products, ex. Sports equipment
Services
Intangible products, ex. Live concert
Goods & Services
On your own think of an example of a company who sells both goods and services
Think Share
(be prepare to share with the class)
Approaches to sell
Market segmentation
1. Demographics – age, gender, income, job, ethnic background, education
2. Psychographics – attitudes, lifestyles, behaviors
3. Geographics – local, regional, national, global
4. Product benefits – ex. Shampoo for those with color treated hair vs. dry hair
Mass marketing
Appeal to all audiences for basic products
ex. Soda, chewing gum
Alike and Different
On your own, describe yourself in the following categories
2
Age:
Gender:
Ethnicity:
Hobbies:
Music Style:
Create a list of your 10 favorite products
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
With a partner create the T chart below comparing how you are alike and how you
are different
ALIKE
DIFFERENT
Create a list of 5 products that you both like and could be “mass marketed” to both
of you
1.
2.
3.
4.
5.
3
Target Market**
Focus all mktg decisions on a specific market of customers
Target Market
With a partner, discuss
Pair Share
Who do you think the target market is for following companies?
Food Lion –
Harris Teeter –
Game Stop –
Best Buy –
Taco Bell –
McDonalds –
What clues can we find to help us?
Marketing Mix**
4 P’s – Product, Place, Price, Promotion
Positioning
Get people to think of a product in a certain way ex. Axe body spray – cool,
attractive
Positioning Pair Share 1
Discuss with a partner:
How is Gatorade trying to position its product?
What clues can you find?
Positioning Pair Share 2
Discuss with a partner:
How is Dentine Ice trying to position its product?
What clues can you find?
Needs
Basic necessities such as food, clothing, shelter
Wants
Things people desire, such as Gatorade (rather than just water)
4
Levels of Needs
With a partner, come up with 2 – 3 products that meet the needs of each level of
Pair Share
the pyramid:
Self actualization –
Esteem –
Love/Belonging –
Safety –
Physiological -
Buying motives
The reasons you buy a product or service
Emotional motives
Buying a product for reasons such as feelings and social status
Rational motives
Buying a product based on factual information and data
Trends in Marketing
Impact of technology
Social responsibility
REVIEW:
Faster distribution
Ecommerce
Green products
Identify the components of the marketing mix –
P
P
P
P
Describe the marketing concept –
S
C
Explain the concept of target marketing –
G
C
F
D
ESSENTIAL QUESTION –
How can I satisfy customers?
1. Target market – know _________________________
2. Marketing Mix/4 P’s
a. Product - _______________
b. Price - _______________
c. Promotion - ________________
d. Place - _____________________
5
6
Marketing Concept
 Label each box with one of the 4 P’s of the Marketing Mix
 Label the circle with the definition for the Marketing Concept
 Write words, draw pictures, or find pictures on the computer that – describe ways you
could satisfy the customer with each of the 4 P’s – PASTE THESE IN EACH BOX
*Hint – Review the essential question review in your lecture notes
7
8
Explain the concept of Target Marketing
Choose a company of your choice and describe its target market
COMPANY ________________________________
Who do you think the target market for this company is? (circle your answers)
Demographics
Age range:
Under 6 6-11 12-19 20-34 35-49 50-64 65+
Gender:
Male Female
Family Size:
1-2 3-4 5+
Family Lifecycle:
young, single;
young married, no kids;
young, married w/ kids Older, married w/ kids;
older, married, no kids under 18
older, single
Income Level: High Middle Low
Job:
professional managers sales technical office farmer student retired homemaker unemployed
Ethnicity:
Caucasian
African American
Hispanic Asian Other__________
Education:
High School
Some College
Bachelors Masters +
Psychographics
Socail Class:
lower class working class middle class upper middle upper upper
Personality:
Happy
Critical Detailed Organized Artistic Other__________
Lifestyles:
Athlete
Gardener
Shopper Music Lover Other_________
Geographics
Location:
Continent________ Country_________
Region ________ City __________
Climate: cold
warm hot
dry
wet
Density: urban suburban
rural
Product Benefits
Occasions:
regular special
Benefits:
quality service cheap convenient
User Status:
non user ex-user potential user first-time user regular user
Usage rate:
light user
medium user heavy user
Loyalty status: none medium strong absolute
Options:
 Write a detailed target market description
 Create a collage of pictures describing the company’s target market
 Perform a song that describes the company’s target market
 Act out a short play that describes the company’s target market
 Create an acrostic device that describes the target market
 Create a mathematical formula or equation that describes the target market
Criteria –
Pts
Pts Possible
Includes all 4 categories
20
Appropriate for company chosen
4
Creative and unique
1
TOTAL
25
9
TERMS/TOPICS
DEFINITIONS/DETAILS
CLASS LECTURE & DISCUSSION – NEW PRODUCT DEVELOPMENT
Product item
A specific good service or idea
ex. Rockband3
Product line
A group of products closely related
ex. Video Games & Gadgets
Product mix
All product lines in a company
ex. Best Buy producs & services
SKU
Stock keeping unit
ex. Nintendo Wii Rockband 3
Durable goods
Last more than 1 use
ex. Clothing, cars
Non-durable goods
Last one or very few uses
ex. Gum, food
Consumer goods
Used by the ultimate consumer
ex. laptop

Convenience goods
Purchase frequently w/ little effort
ex. Milk, toilet paper

Shopping goods
Compare several alternatives
ex. Clothing, shoes

Specialty goods
Make a special effort to research
ex. House, car, furniture

Unsought goods
Doesn’t know about or initially want
ex. Disability insurance, burial plot, new
Industrial goods
Used in production of products
ex. Harddrive
Production goods
Items used to make final product
ex. memory chips
Support goods
Items used in support of production
ex. Office supplies, building, equip, tools
Product life cycle
Sales over time in a product lifecycle
1. Introduction
Slow sales, high prices, few choices
ex. Hybrid cars
2. Growth
Sales increase, price lowers, more choices
ex. Portable DVD players
3. Maturity
Sales level off, price levels off, generic choices
ex. Cell phones
4. Decline
Sales drop off, price decreases, limited choices
ex. VCR’s
Product development process
1. Idea generation
2. Analysis
3. Create Prototype
Reasons new products fail
1. no significant point of difference 2. poor craftsmanship
Consumer Electronics Show
List some of the ideas that you like:
4. Test Market
5. Sell
3. small market
10
NOTES DAY 1
8.1 E-Commerce Revenue Models page 158 -160
Revenue model
Describes how your company generates income
Consumer goods
Physical items that people buy for personal or household use
As such, Salon’s revenue
1. the articles which it sells to its readers
model covers 3 distinct
2. its readership base which it markets to advertisers
products:
3. its books which it sells directly to consumers and to book stores
Product sales
The most basic revenue model involves selling one product or related product line to
customers who use your web site as they would a print catalog
There are 2 types of products
1. products you make which you should sell at a high price than they cost to make
you can sell
2. products you buy, which you should sell at a higher price than you paid for them
Wholesalers
Are businesses that sell products in large quantities to stores or distributors at discounted
prices, rather than directly to the public
NOTES DAY 2
pages 160 - 161
Ad sales
Websites can sell advertising space as a source of revenue
Although Yahoo! Search
It does not charge for its service
provides a valuable service to
Internet users,
Instead, it sells
Advertising on its site
Companies also pay Yahoo!
prominent placement on Yahoo!’s search results
for
When you start an online
Your web site will be virtually unknown
business,
Although your business may
From other small businesses that sell similar products or appeal to similar audiences.
be small, it is possible to
attract advertising revenue
Once you’ve built up a large
You can begin selling ad space on your own
customer base
NOTES DAY 3
Page 161
e-zines
May allow subscribers unlimited access to its site or regularly deliver its content to
subscribers by email
The New York Times offers
special services such as access to the paper’s rich archives
most of its daily articles for
free but requires subscribers
to pay for
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Some online news and
Require uses to register with their sites
information services don’t’
charge a subscription fee but
Then they generate income by Subscriber lists to other Web sites that want to reach the same types of customers
selling their
A blog is a
Public online journal kept by a writer or blogger whose views or activities might be of
interst to readers
One of the first and most
Matt Drudge’s Drudge Report
successful blogs is
NOTES DAY 4
Page 161
An affiliate program is
A partnership in which you deliver your websit’e’s customers to other online businesses
In exchange for bringing
You receive a commission, or a percentage of the sales they make on that business
business to your affiliates,
Amazon lets smaller stores
For a fee
sell on its site
And pays a fee to smaller
That send customers to amazon
sites
Licensing
The granting of permission to use intellectual property such as music, photos, software
programs, and inventions
No one can legally copy
Your material without paying for it
To protect yourself, you can
Copywriting your material and keeping track of anyone who visits your site
do this by
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1.
2.
3.
4.
5.
6.
7.
Marketing
Concept
Distribution
Financing
Marketing Info Mgt
Pricing
Product/Service Mgt
Promotion
Selling
Marketing
Functions
Consumer
Market
Customer
Industrial
Goods
Services
Approaches to Sell
Market
Segmentation
1.
2.
3.
4.
Mass Marketing
Demographics
Psychographics
Geographics
Product Benefits
Target Market
Market Mix –
4 P’s
Product
Place
Price
Promotion
13
Product Planning Web
Product
Mix
Product
Line
Product
___Service___
____Product______
___Non-Durable__
___Durable_______
Consumer Goods
1.Convenience
2.Shopping
3.Specialty
4.Unsought
Industrial Goods
1.Production
2.Support
Product Life Cycle
3. Maturity
SALES
2. Growth
4. Decline
1. Intro
TIME
Product Development Process
1. Idea Generation
2. Analysis
3. Create Prototype
4. Test Market
5. Sell
Reasons New Products Fail
#1. no significant point of difference
2. poor craftsmanship
3. small market
14
Brainstorming, Screening, Analysis
& Selection of New Product Ideas
1. Brainstorm for a new product
2. Screen ideas
3. Evaluate alternatives
4. Business analysis
5. Selection
1. Brainstorm for a new product (MINIMUM 25 PRODUCTS)
a. Rules
i. DON’T JUDGE
ii. RAPID FIRE
iii. FORGET ASSUMPTIONS!!
b. Techniques
Free association
First thing that comes to mind
Reverse
Exact opposite of the ordinary
Different perspectives
Child vs. adult, male vs. female, athlete vs. non athlete
Connect
Two unrelated objects
Minimal group method
Scavenger hunt
Connect
Reverse
Different
Perspectives
Minimal Group
Method
Free Association
1.
2.
3.
4.
5.
6.
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25.
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2. Screen ideas (NARROW DOWN TO 8-10)
- get rid of al definite no’s
- combine ideas if needed or desired
List best 8-10 below:
1.
2.
3.
6.
7.
4.
5.
8.
3. Evaluate Alternatives (NARROW DOWN TO 4-6)
- analyze advantages & disadvantages from the top 8-10
- pick best 4-6 and list below:
1.
2.
3.
4.
4. Business Analysis (NARROW DOWN TO 2-3)
- Answer the following questions for each
New Product Idea
Questions
1.
a. is there a significant point of difference between this products
and other on the market?
b. can I make a prototype of this product?
2.
a. is there a significant point of difference between this products
and other on the market?
b. can I make a prototype of this product?
3.
a. is there a significant point of difference between this products
and other on the market?
b. can I make a prototype of this product?
YES
NO
5. Select New Product
NEW PRODUCT IDEA CHOSEN –
REASONS FOR SELECTION
1.
2.
****Mrs. Maynard’s approval
BEFORE moving on _____________________________
16
NAME:
THE BEST NEW PRODUCT
FOCUS GROUP RECORD SHEET
Member Names
Age or
Grade
Occupation
Recommendations/Comments
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
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New Product Development Project
MKTG8125.048 Describe the importance of positioning in marketing
MKTG8125.049 Describe the importance of developing new products/services
MKTG8125.050 Describe the importance of branding in marketing
STEP
CRITERIA
DUE
Type 1-5 in a Word document:
1. Determine Target
Market
Demographics
Age range:
Under 6 6-11 12-19 20-34 35-49 50-64 65+
Gender:
Male Female
Family Size: 1-2 3-4 5+
Family Lifecycle:
young, single;
young married, no kids; young, married w/ kids Older, married w/ kids;
older, married, no kids under 18 older, single
Income Level: High Middle Low
Job:
professional managers sales technical office farmer student retired homemaker
unemployed
Ethnicity:
Caucasian
African American
Hispanic Asian
Other__________
Education:
High School Some College Bachelors Masters +
Psychographics
Socail Class: lower class working class middle class upper middle upper upper
Personality: Happy
Critical Detailed Organized Artistic Other__________
Lifestyles:
Athlete
Gardener
Shopper
Music Lover Other_________
Geographics
Location:
Continent________ Country_________
Region ________ City __________
Climate:
cold warm hot
dry
wet
Density:
urban suburban
rural
Product Benefits
Occasions:
regular special
Benefits:
quality service cheap convenient
User Status: non user ex-user potential user first-time user regular user
Usage rate: light user medium user heavy user
Loyalty status: none medium strong absolute
18
a. durable/nondurable
2. Classify Product
b. consumer/industrial
c. convenience/shopping/specialty/unsought
d. intro/growth/maturity/decline
a. key selling benefit of product – the point of difference (ONLY 1)
3. Describe Product
Characteristics
b. features of the product (at least 3)
c. describe color and style options (at least 3)
d. describe size ranges (at least 3)
e. describe accessories (at least 3)
a. Write a slogan for your product
4. Positioning &
Branding
b. Describe people, images and symbols you would use to position this product with your target market.
c. Explain your rationale for these choices.
d. What colors would you use in marketing and packaging this product?
e. Why?
5. Plan Design of
Prototype
List all steps that will be involved (ex. First glue, then paint, etc.)
List all materials needs:
List all materials needed to bring from home:
1. DRAW PROFESSIONALLY on plain white or graphing paper or DESIGN on COMPUTER
2. must include labels for ALL features
Draft Design of
Prototype
3. must use lines/arrows to label
must specify materials used in PROTOTYPE
19
FINAL PRODUCT AND PRESENTATION
Create Prototype
Must be made with quality craftsmanship
1. name, title, product idea, date
2. classify product
3. target market
Create Presentation
Slides:
4. key selling benefit – point of difference
5. product features
6. color/style options
7. accessories available
8. positioning and branding strategy
9. conclusion
Present
DRESS PROFESSIONAL or creative based on your product
(ex. If you have a new sunscreen wear a Hawaiian shirt and sunglasses)
20
TEST MARKETING
New Product Idea
If
YOU WERE
a member of
management
for this company,
would YOU
recommend
production
of this new product?
If
YOU ARE
a member of the
target market for
this product, would
YOU buy this
product?
List your recommendations
to improve this product
(must list at least 1)
(yes or no)
(yes or no)
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