Marketing Unit 4 HL/SL 4.5-4.8

Marketing Unit 4 HL/SL 4.5-4.8

1. The Four P's (4.5)

   • Product Life Cycle
     • Stage 1 Development
       • 1. Generating Ideas
       • 2. Screening Ideas
       • 3. Creating a Prototype
       • 4. Carrying out Test Marketing
       • 5. Communication
     • Stage 2 Introduction
       • Price Skimming
         • Setting a high price when introducing a new product to the market
     • Stage 3 Growth
       • Penetration Pricing
         • Setting a low initial price for a product with the aim of attracting a large number of customers quickly and gaining a high marketing share
     • Stage 4 Maturity
     • Stage 5 Saturation
     • Stage 6 Decline
     • Extension Strategies
       • Sell Existing products into a new market
       • Find new uses for the product
       • Change the Product's Packaging
       • Target different Market Segments
       • Develop new promotional strategies
       • Plans by firms to stop sales from falling by lengthening the product's life cycle
     • The course a product passes from its development it its decline in the market
     • Product
       • Any good or service that is offered to the market with the aim of satisfying consumers needs or wants
   • Boston Consulting Group Matrix (Boston Matrix)
     • An analysis method of a firm's product portfolio regarding its market share and market growth
     • Stars- High Market Share High Market Growth; Successful products in the market and generate large amounts of income for the business.
     • Question Marks- Low Market Share, High Market Growth; Concern to the business because of the large amount of money needed to increase their share in the market.
     • Cash Cows- High Market Share, Low Market Growth; Well-established products in a mature market.
     • Dogs- Low Market Share, Low Market Growth; operate in markets that are not growing or in declining markets generate low income for the business
   • Branding
     • Brand
       • A name, symbol, sign or design that differentiates a firm's product from its competitors
     • The process of distinguishing one firm's product from another
     • Aspects of Branding
       • Brand Awareness
         • The ability of consumers to recognize the existence and availability of a firm's good or service
       • Brand Development
       • Brand Loyalty
         • When consumers become committed to a firm's brand and are willing to make repeat purchases over time
       • Brand Value
         • How much a brand is worth in terms of its reputation, potential income and market value
     • Importance of Packaging
       • Concerns the designs and production of the physical container or wrapper of a product
       • Provides Physical Protection
       • Offers convenience
       • Provides Information
       • Can help reduce security risks
       • Aids Promotion
   • Price
     • Cost-Plus Pricing
       • Refers to adding a mark-up to the average cost of producing a product
     • Penetration Pricing
     • Price Skimming
     • Psychological Pricing
       • When a firms consider how pricing affects consumers' perception of the value of their products
     • The Loss Leader
       • Charging a low price for a product, usually below its average cost, to attract consumers to buy other higher priced products
     • Price Discrimination
       • Charging different prices to different groups of consumers for the same product
     • Competitive Pricing
       • Charging a price that is in line with or just below the competitors' prices
   • Promotion
     • Above the Line
       • Advertising
         • Informative Advertising
         • Persuasive Advertising/ Impulse Buying
         • Reassuring Advertising
       • A Paid form of communication that uses independent mass media to promote a firm's products
     • Below the Line
       • A form of communication that gives a business direct control over its promotional activities so that it is not dependent on the
       • Direct Marketing
       • Personal Selling
       • Public Relations
       • Sales Promotion
     • Promotional Mix
       • A Balance of both above the line and below the line methods used by a firm to support its marketing goals
       • Cost
       • Legal Framework
       • Target Market
       • Stage in the Product Life Cycle
       • Type of Product
     • Social Media Marketing
       • The use of technology to build relationships, drive repeat Business, and attract new customers by individuals sharing with other individuals
     • Viral Marketing
       • A form of peer-to-peer communication where individuals are encouraged to pass on promotional messages within their social networks
     • Benefits of Technology
       • Wide Reach
       • Engagement
       • Market Information
       • Cost Savings
       • Brand Recognition
       • Speed
     • Limitation of Technology
       • Accessibility Problems
       • Distraction
       • Lurkers
   • Guerrilla Marketing
     • A low-cost unconventional marketing strategy that has an innovative and significant promotional effect
     • Methods
       • Peer Marketing
       • Product Give-aways
       • SMS Texting and Video Messaging
       • Roach Baiting and Buzz Marketing
       • Intrigue
       • Live Commercials
       • Bill Stickers
     • Benefits
       • Low Cost
       • Flexibility
       • Simplicity
       • Identified Target Market
       • Communication Tool
       • Interaction Opportunity
       • Accessibility
     • Negative Effects
       • Denting in Brand Image
       • High Negative Attitudes
       • Negative Impact on Social Life
       • Ethical Issues
   • Place
     • Channel of Distribution
       • The Path taken by a product from the producer or manufacturer to the final consumer

2. The Extended Marketing Mix 7 P's (HL)

   • People
     • The human Capitial in terms of skills, attitudes and abilities necessary in the production of good or the production of services
   • Processes
     • The procedures and policies pertaining to how an organization's product is provided and delivered
   • Physical Evidence
     • The tangible or visible touch points that are observable to customers in a Business
   • Marketing Mix
     • Product: Design, Technology, Perceived usefulness, Convenience of use, Quality, Packaging, Brand Utility, Accessories, Warranties
     • People: Employees, Management, Organization Culture, Customer Service, Orientation
     • Physical Evidence: Facilities, Infrastructure, Service Delivery
     • Process: Uniformity of Offering, Service Delivery, Service Consumption
     • Promotion: Special Offers, Advertisements, Endorsements, User Trials, Campaigns, Joint Ventures
     • Place: Retail, Wholesale, Mail Order, Internet, Direct Sales, Peer to Peer, Multi-Channel
     • Price: Skimming, Penetration, Value Based, Cost Plus, Cost Leadership

3. International Marketing (HL) (4.7)

   • The marketing of goods and services across national boundaries
   • Methods
     • The Internet
     • Exporting
       • Piggybacking
         • The use of the existing distribution channels of one domestic Business by another home country Business trying to sell a new product overseas
     • Direct Investment
     • Joint Venture
     • International Franchising
   • Globalization
     • The increasing worldwide competition leading to a rise in International Marketing
   • Opportunities of Entry
     • A larger Market
     • Diverisification
     • Enhanced Brand Image
     • Gaining Economies of Scale
     • Forming New Business Relationships
   • Threats
     • Economic Challenges
     • Political Challenges
     • Legal Challenges
     • Social Challenges
     • Technological Challenges
   • Implications of Globalizations
     • Competition
     • Changing Consumer tastes and expectations
     • Location Decisions
     • Economies of Scale

4. E-Commerce (4.8)

   • Features
     • Ubiquity
     • Customization
     • Global Reach
     • Integration
     • Universal Standards
   • Types of E-Commerce
     • Business- to- Business (B2B)
       • A type of E-Commerce where a Business trades with another Business
     • Business to Consumer (B2C)
       • A type of E-Commerce carried out from a Business to a particular end user who is usually the customer or consumer
     • Consumer to Consumer (C2C)
       • A type of E-Commerce that allows for transactions from one customer or consumer to another
   • The buying and selling of goods and services through the internet
   • Benefits to Firms
     • Reach a wide Target Market
     • More Cost-Effective
     • Social Companies benefited from high advertising revenue by selling their high-valued space
     • Reduced wastage on paper
   • Benefits to Consumers
     • Convenient
     • Increased Choice of Products
     • Good Online Customer Service = Increased Customer' Satisfaction
   • Cost to Firms
     • Concerns of Internet Security with regarding Payment
     • Spending Significant sums to improve security
     • Firms are vulnerable to competitors
     • Setting up and Maintaining a website is costly
   • Cost to Consumers
     • No Ability to try certain products before buying
     • Online Pop-up Advertisements and spams are major distractions
     • Some Countries lack tools to access the Internet
     • When looking for information they are faced with too much information some times