This document provides an overview of key marketing concepts. It defines marketing as identifying profitable products and selling them to customers. Several factors that influence product success are discussed, including packaging, promotion, and understanding customer wants. The document also covers market segmentation, using socioeconomic groups to target different audiences. Market research methods like surveys and focus groups are explained for understanding customer preferences. Finally, the document discusses the product life cycle and strategies for extending a product's maturity stage through new versions, uses, markets or promotions.

1. MARKETING
UNIT 4

2. The definition of marketing
• Marketing is the management process
which is responsible for identifying
profitable products and then selling
them to the customers.

3. WE WANT TO SELL A PRODUCT
• WE NEED TO THINK ABOUT:-
• Packaging
•
•
•
•
•

4. The need for Marketing
• Each year millions of new products are
launched onto the market.
• If a product is to be successful then
people need to be told about it
• They need to be persuaded to buy
YOUR product
• Marketing allows you to do this.

5. MARKET SEGMENTATION – who are
we aiming at?
• Playstation
• Trainers
• Fur Coat
• Ford Ka
• Woolly Jumper
• Daily Record
• Financial Times

6. THE MARKET SEGMENTS
• Age – people of a different age will appreciate
different things in a product
• Gender – male and female customers buy
different products
• Income – people who have more money
(disposable income) will buy luxury products
• Area – people who live in Scotland have
different needs to those who live in the South
of England
• Socio-Economic Groupings have been done
by the Government:-

7. SOCIO-ECONOMIC GROUPINGS
• Upper-middle class – high income –
professional (doctor)
• Middle class- managers, teachers,
professional
• Lower Middle Class – clerical,
police, shop assistant
• Skilled manual – carpenter, cook
• Semi-skilled - shop keeper, street
sweeper
• Long term unemployed

8. HOW DO WE FIND OUT…
WHAT PEOPLE WANT TO
BUY
WHAT THEY THINK OF
OUR PRODUCT?

10. WHAT CAN A COMPANYWHAT CAN A COMPANY
RESEARCH?RESEARCH?

11. Market Segmentation for Product X
What segment
will buy it
Why?
What should we
consider?
How do we find
out what they think?

12. What is market research
• Carrying out market research is the first
step in any effective marketing
campaign.
• Provides information on which
managers base their decisions.

13. THE TYPES OF MARKET
RESEARCH
• DESK RESEARCH - INTERNAL
• Looking at information that is already
available within the company
– Sales records
– Financial information

14. DESK RESEARCH - EXTERNAL
• Next step is to consult other sources of
information which has already been
published
– Government statistics
– Media reports
– Newspapers
– Journals
– The internet

15. FIELD RESEARCH
• Once all the desk research has been
done there may still be gaps in the
information.
• We use FIELD RESEARCH to fill these
gaps.
• This is information that does not exist
already – we must gather it ourselves.

16. Forms of Field Research
• Gathering information directly from people
within your target market – using
• Questionnaires
• Interviews – personal and telephone
• Postal surveys
• Observations
• Technology - EPOS and video
• Focus groups
• Consumer panels

17. THE QUESTIONNAIRE
How do we construct a QUESTIONNAIRE?
Follow the rules on the checklist.
• IT IS IMPORTANT THAT THE RULESIT IS IMPORTANT THAT THE RULES
ON THE LIST ARE FOLLOWEDON THE LIST ARE FOLLOWED
• THIS WILL MEAN YOUR PRODUCT
HAS MORE CHANCE OF SUCCESS

18. 2 main approaches to marketing
Market
orientated
Product
orientated

19. PRODUCTPRODUCT
ORIENTATIONORIENTATION
• More common in the
past
• Business focuses on
the product
• Technical
organisations tend
to concentrate on
the product
MARKET ORIENTATIONMARKET ORIENTATION
• Led by the market –
tries to analyse the
needs of the consumer
• Responds quickly to
changes in the market
• Strong position to meet
the challenge of new
competition
• Any business with a
large product range

20. What makes a firm choose product or
market orientation?
• The Product - firms operating in new
areas will be product
• Policy - if safety and quality are the
main objectives the firm will be product
• Management -background of
management will determine choice
• Competition - a firm in a competitive
market is likely to be market

21. WHAT IS MARKETING
The anticipation, identification and
fulfilment of consumer needs

22. To have a successful marketing
campaign we can use a model
called the 4 P’s
PRODUCT PRICE
PLACE PROMOTION

24. PRODUCT
• The product is the most important part
of the marketing mix
• Firms spend a great deal of time trying
to get the right product – they use
market research to find out what the
consumer wants

25. PRODUCT MIX
• Many organisations produce more than
one product.
• A product mix is a complete range of
times made by an organisation:

26. Tea and Coffee Milk Products
Prepared dishes - Findus
Chocolate and
Confectionary
Nestle
Product Range

27. THE KIT KAT
• 4 finger bar
• 2 finger bar
• Chunky and mini chunky
• Orange
• Midnight mint
• Packs of 6, 8 and 12
• Ice cream
• Mini kit kat
• Easter egg

28. THE BRAND NAME

29. What is a brand?
• A unique identity that the company
creates for a product or service.
• It encourages customers to buy the
product again and again – this is called
brand loyalty

30. IS IT WORTHWHILE?….
BRAND VALUE ($BN)
0 10 20 30 40 50 60
1
Budweiser
Gillette
Intel
Kodak
Sony
Disney
McDonalds
IBM
Marlboro
Coca cola

31. What makes a successful brand?
Distinctive
Shaped
bottle
Well-known
Name and
logo
Familiar red
And white
colours
Recognisable
font
Catchphrase –
The real thing

32. 3 types of branding
1. MULTIPLE BRANDING
One firm has many brand names ie Mr
Kipling, Bisto, Hovis (Rank Hovis
McDougall)
2. MULTIPLE PRODUCT BRANDING
One brand name is used for a range of
products Kelloggs, Cadbury’s, Sony
3. RETAILERS OWN BRAND
Branded with the name of the retailer, Tesco,
Boots, St Michael

33. PACKAGING

34. The importance of packaging:-
• Goods should be delivered to the
consumer in a safe, hygienic fashion.
• It can be used for other purposes:-

35. The way that goods and services are
presented to the customer
• PROTECTION
• INFORMATIVE
• PROMOTION
• COLOURFUL
• ATTRACTIVE
DESIGN
• FRESHNESS
• SAFE
• STACKABLE

36. Problems of packaging:-
• COST – it is expensive in many cases
• Excessive packaging can be a source
of complaint from customers –
environmental issues
• RECYCLING IS IMPORTANT

37. Features of good packaging
• Stability for stacking on shelf
• Bulky packaging will add to the cost of
delivery
• Children’s products should be colourful
and attractive
• Certain items should be difficult to open

38. THE PRODUCT LIFE CYCLE
• Businesses aiming to achieve objectives must be
aware of the life cycle of products
• The PLC shows the different stages that a product
passes through and the sales that can be expected at
each stage
• Every product will have its own individual PLC
• Most products will pass through 5 stages in their
lives:

39. The PRODUCT LIFE CYCLE
TIME – years or months??
Sales
units
Development
Introduction
Growth
Maturity
Decline
Saturation

40. Different products have different life
cycles:
• Land Rover
Discovery
• 4 year development
stage, rapid
increase in sales, no
rapid decline

41. • Dell 2.53 Ghz
Pentium 4 personal
computer
• Short development,
rapid sales for 6-12
months then rapid
decline as higher
spec machine is
launched

42. There are many different types of PLC:-
Long introductory period Straw on fire with leftovers
No introduction Flops

43. Straw on fire Continuing success
Periodic injections False Start

44. Relaunch Fashion
You must be able to compose a product life cycle from case
study information. Remember to put in as much detail as you
can including dates and any other specific information eg
new advertising campaign, etc

45. USES OF THE PLC
• It will illustrate the broad trends in revenue that a
product might earn
• It will identify points at which the business may need
to consider launching a new product
• It will identify where and when spending is required
• It will identify points at which a business should no
longer sell a product
• It will help a business manage its range of products
• It will help a business to manage its cash flow

46. Extending the life of a product
• Companies want to keep products in
the maturity stage for as long as
possible
• There are many different ways of
injecting new life into a product

47. Produce a new or improved version of
the product
• Washing Powder
companies often add
ingredients or try to
improve their products

48. Find new uses for a product
• Candles used to be for
power cuts ……
• Now they are an essential
accessory on most homes
for decoration or perfume

49. Find new markets for a product…
• JnJ have tried to
encourage parents
to use the
products they
make for babies

50. • Companies can run a promotional
campaign
• Famous Grouse
have a famous set
of promotional
adverts:-

51. A – product has reached
maturity
B – introduction of 1st
ext
strategy
C – use of 2nd
ext strategy