Chapter 9Chapter 9

The Role and Functions of The Role and Functions of MarketingMarketing

Product Life CycleProduct Life Cycle(Fads and Seasonal look different)(Fads and Seasonal look different)

Brand Management StrategiesBrand Management Strategies

Push StrategyPush Strategy Goods flow through the channels of distribution where Goods flow through the channels of distribution where

they pass from producer to consumer via importers, they pass from producer to consumer via importers, wholesalers and retailerswholesalers and retailers

Main goal is to sell to retailer who sells to consumerMain goal is to sell to retailer who sells to consumer Push to obtain good sales space (reasonable Push to obtain good sales space (reasonable

compared to established brands already carried?)compared to established brands already carried?) May offer deals: cheaper cost prices, cooler to store May offer deals: cheaper cost prices, cooler to store

drinks in (doesn’t take up shelf space), store contests, drinks in (doesn’t take up shelf space), store contests, pay for advertising (shelf allowance)pay for advertising (shelf allowance)

Pull StrategyPull StrategyGoes straight to consumers instead of Goes straight to consumers instead of

through retailersthrough retailersThey attempt to convince consumers who, in They attempt to convince consumers who, in

turn, convince retailers to carry products by turn, convince retailers to carry products by going into stores to look for the product. This going into stores to look for the product. This convinces the retailer that they should carry it.convinces the retailer that they should carry it.

Often do this through advertisingOften do this through advertising

Marketing ResearchMarketing Research

1.1. Consumer ResearchConsumer Research What type of products do consumers want?What type of products do consumers want? Surveys and interviewsSurveys and interviews Focus groups (get potential consumers together to Focus groups (get potential consumers together to

talk about an idea for a product)talk about an idea for a product)

2.2. Market ResearchMarket Research Identify who would use certain products using Identify who would use certain products using

demographics and psychographicsdemographics and psychographics

3.3. Motivation ResearchMotivation Research Why do we buy?Why do we buy? Analyze emotional and rational motives that Analyze emotional and rational motives that

determine consumer behaviordetermine consumer behavior

4.4. Pricing ResearchPricing Research Helps marketer determine the price that can be Helps marketer determine the price that can be

assigned to products so they are competitive and assigned to products so they are competitive and still make a profitstill make a profit

5.5. Competitive ResearchCompetitive Research Similar products are studied to see where there Similar products are studied to see where there

have been mistakes made and where there is room have been mistakes made and where there is room for a new marketfor a new market

6.6. Product ResearchProduct Research Examines details of products (color, packaging, Examines details of products (color, packaging,

flavor, size, texture, scent design, sound) and how flavor, size, texture, scent design, sound) and how they have an impact on the market; maybe it can be they have an impact on the market; maybe it can be made easier for consumers to usemade easier for consumers to use

7.7. Advertising ResearchAdvertising Research Provide information on most effective way to get the Provide information on most effective way to get the

message across to customersmessage across to customers

Product DevelopmentProduct Development

Product DesignProduct DesignForm – what product looks like, shape, color/ Form – what product looks like, shape, color/

patterns, materialpatterns, materialFunction – what product is designed to doFunction – what product is designed to do

Packaging – protection, easy to use, Packaging – protection, easy to use, shape (identification), labelshape (identification), label

Branding – identifies productBranding – identifies product

Channels of DistributionChannels of Distribution

Product does not change along the wayProduct does not change along the way If it has changed, it is at the end of the If it has changed, it is at the end of the

current chain and at the beginning of a current chain and at the beginning of a new one (example: wheat into bread) new one (example: wheat into bread)

1.1. Direct Channel – sell directly to Direct Channel – sell directly to consumers (costs less money because consumers (costs less money because you don’t have to give up some profit to you don’t have to give up some profit to intermediaries along the way). Provides intermediaries along the way). Provides direct feedback to businesses and direct feedback to businesses and people know where their products are people know where their products are coming from (farmer’s market).coming from (farmer’s market).

2.2. Indirect Channels – product goes through Indirect Channels – product goes through different businesses along the waydifferent businesses along the way

Importers – products are brought into Canada from Importers – products are brought into Canada from another country and soldanother country and sold

Wholesalers – buy products in large volumes and Wholesalers – buy products in large volumes and then resell them to businessesthen resell them to businesses

Retailers – buy products and sell to consumersRetailers – buy products and sell to consumers

3.3. Specialty Channels – indirect channel that Specialty Channels – indirect channel that does not use a retailerdoes not use a retailer

Vending machinesVending machines Telemarketing (sales pitch)Telemarketing (sales pitch) Catalogue salesCatalogue sales E-commerceE-commerce Door-to-door salesDoor-to-door sales

Types of AdvertisingTypes of Advertising

Direct-to-home – any ads that come to Direct-to-home – any ads that come to your home (flyer, internet ad, catalogue)your home (flyer, internet ad, catalogue)

Out-of-home – any advertising message Out-of-home – any advertising message that the consumer is supposed to receive that the consumer is supposed to receive while not at home (billboard, buses, while not at home (billboard, buses, subways, transit shelters)subways, transit shelters)

RadioRadioTelevisionTelevisionNewspapersNewspapersMagazinesMagazines

Sales PromotionsSales Promotions

Coupons (redemption rate = % of coupons Coupons (redemption rate = % of coupons distributed that actually get used by distributed that actually get used by consumers; average = 5%)consumers; average = 5%)

ContestsContestsPremiums - get something free with Premiums - get something free with

product (customer loyalty cards)product (customer loyalty cards)SamplesSamplesSpecial EventsSpecial Events

ActivityActivity

1.1. Design a productDesign a product2.2. Choose one type of research that you will do to Choose one type of research that you will do to

make sure the product will sell. What do you make sure the product will sell. What do you feel will be the results of the research? feel will be the results of the research? (hypothetical)(hypothetical)

3.3. Will you use the pull or push strategy? Will you use the pull or push strategy? Describe how.Describe how.

4.4. Product Development: describe one feature Product Development: describe one feature from each category.from each category.

5.5. What channel will you sell it through and why?What channel will you sell it through and why?6.6. Choose one type of advertising you will use Choose one type of advertising you will use

and one type of sales promotion (describe).and one type of sales promotion (describe).