3.1 Chapter 16: The market and marketing. . Make me a product. Rules – . 15 minutes (you will keep the time). You will present your idea to the class (you will choose who). Someone will be the team leader (you will choose them). ID: 598358
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Unit 3 Marketing 3.1 Chapter 16: The market and marketingSlide2
Make me a product
15 minutes (you will keep the time)
You will present your idea to the class (you will choose who)
Someone will be the team leader (you will choose them)
All work on A3 paper.Slide3
What I want
Product- I want a new idea Price- I want a pricing strategyPlace- I want ONE main location where you think you should sell this product.Promotion- I want ONE type of promotion that you will use to encourage people to buy it.
These are called the 4 P’s of the MARKETING MIXSlide4
What is market?A market is where buyers and sellers come together and exchange their products for money. It can be in the streets, on the internet, in shops around the world, etc… Customers and sellers exchange both goods and services for money.
Product-orientated and market-orientated
business focuses on the quality and price of the product before finding a
for it to sell in. These type of businesses usually produce
basic needs. New technology
could be developed this way, and customer
are created by
Other big companies cannot afford to produce a product that will not sell, so they have to do market research first to find consumer wants before developing a product. They are called market- orientated businesses. They will need to set up a marketing budget for this, which is a financial plan for marketing of a product, which contains the amount of money the Marketing department may spend on marketing.
What is marketingMarketing is the management process which identifies consumer wants, predict future wants, create wants and find ways to use these wants to the fullest (most profitably). In other words, businesses try to satisfy wants in the most profitable way possible. Marketing covers a wide range of activities such as: advertising, packaging, promotion, etc…Slide6
The Marketing department
Most businesses will have a
which will have a
He will be in charge of things such as R&D, distribution and pricing. Here is an
chart showing what departments the marketing director controls
Responsible for sale and distribution of products for each
There may also be an
Research and Development department:
Responsible for finding out consumer wants
They also need to find ways to
an existing product.
In charge of advertising and promotion. It will need a
which limits the amount of money it can spend.
It transports products to their markets.Slide7
The objectives of marketing
A successful Marketing department should be able to achieve these objectives for the business
(percentage of sales a product has in a market).
To maintain or improve
of a product or company.
To target a
This is a method to evaluate the statistics of a product of business. It assess these things
Easy grid to use….
So what could be a company’s Strengths?
For example: A strength could be:
Your specialist marketing expertise.
A new, innovative product or service.
Location of your business.
Quality processes and procedures.
Any other aspect of your business that adds value to your product or service.Slide10
So what could be a company’s Weaknesses?
A weakness could be:
Lack of marketing expertise.
Undifferentiated products or services (i.e. in relation to your competitors).
Location of your business.
Poor quality goods or services.
So what could be a company’s opportunities?
An opportunity could be:
A developing market such as the Internet.
Mergers, joint ventures
Moving into new market segments that offer improved profits.
A new international market.
A market vacated by an ineffective competitor.Slide12
So what could be a company’s threats?
A threat could be:
A new competitor in your home market.
Price wars with competitors.
A competitor has a new, innovative product or service.
Competitors have superior access to channels of distribution.
Taxation is introduced on your product or service.Slide13
Largest by ValueSlide14
Largest by labor employed
US Army 3.2 million
Chinese Army 2.3 million
Walmart 2.2 million
Largest by market share USA
What about a sub-market?
Strengths and weaknesses of a product are its
while opportunities and threats are
are parts of a market which contains people which have similar
for their products. The Marketing department should know which segment their product fits the most, so that they can advertise and sell their products to
There are two ways to
markets. By the
type of product
or the attributes of the
it. Here are two types of markets which are segmented based on the product
Where there is a
number of sales of a product. (e.g. Pepsi can be bought anywhere
products. (e.g. Ferrari cars)Slide17
How else can you separate/segment a market
IncomeAgeRegionGenderUse of productLifestyle
Can you think of a product for each of these?Slide18
is very important to
he right market segment since it can
by a lot. If a business can
all of these market segments, they may find a market segment whose
is when the business finds a
gap in the market,
and it could produce goods to take advantage of this gap and again increase
The marketing mixThe marketing mix is a term that describes how products are marketed. You must remember that before marketing can be achieved, market research is needed. The rest is summarized into the four P's. Let's look at them briefly first, since they will be covered in other chapters:
Design and quality, competitiveness,
There are different pricing strategies. Businesses need to use them so that they increase sales.
Advertising and promotion. Discounts, TV adverts, sales,
The location of the
point of sale
Channels of distribution.
Type of shop (wholesaler or retailer
A successful product require effective use of the four P's. However, businesses must be careful to not let each of these factors counteract each other (e.g. expensive but low quality goods), else the product will fail.
End of Chapter 16
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