Elements of business skills chapter 5 slides

Elements of Business Skills

Chapter 5

Aspects of Marketing

Objectives

• State the steps in the marketing process (Pg 98)• List the different marketing activities and explain its

purpose (Pg 98)• Understand the differences between goods and services

(Pg 104)• Explain the importance and use of brands (Pg 106-108)• Explain the importance and the use of packaging (Pg 111)• Explain how pricing is used to market a product or

service ( Pg 114-118)• Explain how to promote and advertise a product or

service (Pg 122-125)

What is Marketing?

It is a process of:

• Identifying the needs and wants of the chosen customers

• Satisfying them in ways that are better than other competitors (E.g Coca-Cola versus Pepsi) (MacDonalds versus Burger King, versus Kentucky Fried Chicken)

Which Burgers Are Yummier?

Burger King? MacDonalds? KFC?

• Discuss with your partner why you feel one brand of burgers are better than the others

• Give reasons that are valid. For example: Say I like xxx burgers because their portions are bigger and they are value-for- money! Don’t say things like ‘I just like lor!’

• Why? What needs did it satisfy for you?

Can You Tell Me Why?

The Marketing Process…

Let’s see…I want my business to be better than the others! But, how do I win the competition?

Mr Suresh wants to make his first million selling roti-pratas.

Let me give you an advice: Start with knowing 1)who are your

potential customers!

Donald Trump, Billionaire, Marketing Guru of ‘The Apprentice’

The Marketing Process Cont…

2) Understand your customers’ needs and wants

3)Apply the 4Ps of Marketing

4) To be better than your competitors in satisfying customers’ needs and wants!

Do all these 4 steps and you WILL earn your million!

1) Your Potential Customers (Target)

Cu

sto

me

rs c

an

be

gro

up

ed

in

dif

fere

nt

wa

ys

Geography: Where they live or work?

Age: How old are they?

Gender: Male or Female?

Income: How much they earn?

Profession: What their jobs are?

Lifestyle: What their areas and attitudes are?

Social group: Who they Mix With?

Cu

sto

me

rs c

an

be

gro

up

ed

in

dif

fere

nt

wa

ys

Remember!

Different groups = Different needs and wants

goods = customers

Eg. A mother who has just given birth will not have the same needs as a woman who is getting married.

The 4 Ps of Marketing

Question: How to know the needs and wants of the customers?

Answer: Use the 4 Ps in Marketing to help you draw up a marketing plan

The 4 Ps• Price: -How much does it cost?

-How much will customers pay?

• Product: -What is it? -What needs/wants does it satisfy?

• Promotion: -How to tell customers about our products? - What will you tell the customers?

• Place: - Where do customers prefer to shop? - How will we make the product available?

4Ps- ProductQs: What is a product?

Ans: A product is anything that a business can offer to satisfy customers’ needs and wants

Eg. I need to drink now because I am very thirsty. I will drink either coke or even Guardian Pharmacy distilled bottled water!

or

What makes a good product?• Good quality

• Right features, functions and design

• Familiar name or brand

• Attractive packaging

• Excellent customer service

• Support services such as warranty and on-site repair Eg: Do you think Sony

has all these characteristics?

What’s the difference?

• 100% Good – Dresses, sports shoes, costume jewellery

• Combination of Good and Service - Car repair and restaurant meals

• 100% Service - Hair Styling, Facial and Spa

In general, the term ‘product’ refers to both goods and services.

Goods ‘vs’ ServicesGoods

• Physical, can touch and feel

• Produced in factory• Can be stored• Can be standardised, can

be of the same standards• Can be counted• Can own the goods after

buying

Services• Cannot be felt but can

‘experience’• Provided and

experienced at the same time

• Can be tailor-made or customised but may not be experienced in the same way

• Cannot be counted• Cannot own and bring

back

Branding…

QS: What is branding?Ans: It is the use of a name, term, symbol or

design or the combination of all four things to identify a product.

E.g: Disneyland: ‘Share the Magic, Where Dreams Come Alive,

Adventure Abounds’Qs: What is the first thing that comes to your

mind when someone says I am going to Disneyland for a holiday?

Brand Loyalty

If you had a good experience in Disneyland, and should you go on another trip, do you think you will still choose Disneyland or other amusement parks?

If Yes: It means you are Brand Loyal

If No: It means that brand has not given you that level of expectation that you were promised. You will not be Brand Loyal

Why is Branding Important?1) Many businesses offer similar products and

services

2) To stand out, your brand must be outstanding!

3) Marketing the product is more efficient and effective

4) Customers will recognise your ‘style’ and the products that are sold

5) Build customer loyalty= $$$

6) Improve image

7) Easier to introduce new product range

What is Packaging?

It can be:

1) The Container or Wrapper for the product

2) Labels

3) Instructions

4) Printed Description

Packaging

Container/Wrapper

Packaging

Labels

Packaging

Product description

Packaging

Instructions

Functions of Packaging…

1) Protects and Contains2) Prevents Shoplifting3) Saves Space and is easier to handle4) Promotes image of brand5) Prevents Spoilage6) Is easier and safer to use

7) QS: Now turn to your partner and give one example of how each function helps in the packaging of the product…

Support Services

Why?

Ans: When we provide excellent support services…

1) Our customers will remember us.

2)Improves image of business

3) = More $$$

Types of Support Services

• Loyalty card

• Customer Service

• Fast and Reliable Delivery

• Financing and Hire Purchase

• Warranty

• Friendly After-Sales Service

• Product and Technical Information

• On-Site Repair Service

• Free Installation

ASPECTS OF MARKETING

PRODUCTPLACEPRICE

PROMOTION

SUPPORT SERVICES... are services and benefits offered to customers in addition to the main

product.make our customers DELIVERY SERVICES remember us >> improve sales

& business image

LOYALTY CARDS

DELIVERYCUSTOMER SERVICE

What other SUPPORT SERVICES are there?

(brainstorm 5 other services) 113

PRODUCTPLACEPRICE

PROMOTION

PRICING

• … setting the PRICE of the product• PRICE is the amount of money that has to be

paid for a product • very important decision because it affects $$$

REVENUE $$$

PRODUCTPLACEPRICE

PROMOTION

Too high…

airfares

loansrent

room rates

… customers may not buy

Too low…

… you will lose $$$ money $$$

3Cs of Pricing

COSTSCOMPETITORS’

PRICECUSTOMER’S

WILLINGNESS TO PAY

• expenses paid to buy & produce product

• lowest limit on price of its product

• sets the upper limit onprice of similar product

• should price a productaccording to how much

customer is willing to pay

PRODUCTPLACEPRICE

PROMOTION

PRICING TECHNIQUES 117-118

Odd-even pricing

Optional-product pricing Product-bundle pricing

Promotional pricing

Product-line pricing

PRICINGTECHNIQUES

PRODUCTPLACEPRICE

PROMOTION

PRICING TECHNIQUES 117-118

• … involves setting different prices for different versions of the same product

• the pricing reflect the benefits of parts of the range • example: car wash (basic package vs. premium

package)

Product-line pricing

PRODUCTPLACEPRICE

PROMOTION

PRICING TECHNIQUES 117-118

• ..setting prices of optional or accessory products along with the main product

• optional 'extras' increase the overall price

of the product or service • example: pizza restaurant menus

Optional-product pricing

PRODUCTPLACEPRICE

PROMOTION

PRICING TECHNIQUES 117-118

• … pricing a few items of related products into a bundle

• bundle of products offered at reduced price

• example: set meals / combo meals

Product-bundle pricing

PRODUCTPLACEPRICE

PROMOTION

PRICING TECHNIQUES 117-118

• … involves temporarily pricing products below the listed prices in order to increase short-term sales

• examples: up to 50-70% SALE, discounts, Buy One Get One Free

Promotional pricing

PRODUCTPLACEPRICE

PROMOTION

PRICING TECHNIQUES 117-118

• … involves setting prices at values just below an even amount

• customers respond better to these prices

Odd-even pricing

PRODUCTPLACEPRICE

PROMOTION

PLACE 119

• … refers to how to the right product gets to the target customers

LOCATION TYPES OF OUTLETS

PRODUCTPLACEPRICE

PROMOTION

CONSIDER

LOCATION DECISION• Shop location can determine

whether the business will be successful.

• When deciding on the location, consider:

PRODUCTPLACEPRICE

PROMOTION

Convenient location

Target customers

Competition

Accessibility

Volume of human traffic

PROMOTION• … to influence the attitudes and behavior

of target customers so that they will buy our product

• to inform customers of

Product, Place & Price• each promotion technique has its

advantages and disadvantages. Therefore, we use a combination of techniques to create a more effective promotion

PRODUCTPLACEPRICE

PROMOTION

• … refers to attracting public attention to a product/business

• can be published in print media (newspaper, magazines, etc.), broadcast media (radio) or electronic media (internet)

PRODUCTPLACEPRICE

PROMOTION

• … refers to short term incentives offered

to encourage target customers to buy a product

• … refer to activities that communicate messages to the public to create goodwill towards a business

PRODUCTPLACEPRICE

PROMOTION

special events

sponsorship

corporate identity materials

websites

news

PR TOOLS

• … involves interpersonal communication with the potential customers with the aim of making sales and building customer relations

• example: insurance selling

PRODUCTPLACEPRICE

PROMOTION

• … a promotion method that sends

customised messages directly to the

target customers • tools: telephones, e-mail, Internet

CREDITS…

• http://www.courts.com.sg/guestcard/popup.html• http://www.ikea.com.sg/store_services/home_delivery.asp• www.asi.com.au• http://www.kfc.com.sg/latestpromo/familyfeast.asp• http://www.dnrfoods.com/sub.php?p=campaigns • http://vagrantrider.com/catalog/images/buy2_1free.jpg • http://touchstoneclimbing.com/images/graphics/0701_sale_clothing.png• http://mobaydp.blogspot.com/2007/09/street-vendor.html • http://www.pacificcoastvending.net/images/

combo_snack_and_pop_vending_machine_53_k0j1.jpg • http://www.targettiusa.com/applications/Mango/100_2951x.jpg• http://www.postercheckout.com/PrintImages/EUR/jpgs/2300-8346.jpg• http://wanster.blogspot.com/2006/09/wan-yean-wears-darnest-thing.html • Elements of Business Skills Textbook• Microsoft Clipart