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HSC Business Studies: Marketing

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john lund

on 8 October 2015

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Transcript of HSC Business Studies: Marketing

Aston Martin has vigorously defended its new Cygnet, its cheapest model ever that's based on a Toyota.

Aston Martin chief executive Ulrich Bez has lashed out at detractors of his company's forthcoming city car, the Cygnet, rejecting claims the controversial move to build a car based on Toyota's tiny iQ car would "destroy" the brand.

The Cygnet is set to go on sale in Australia in early 2012, when it is expected to sell for roughly four times the price of the donor Toyota car, with a price tag of about $55,000.

Comments such as "Nice way to destroy a brand" and "Whatever little credibility Aston Martin had left has just gone out the window" were slammed as ill-informed by Dr Bez.

"Did you ask the people who make the comments whether they are Aston Martin owners?" Dr Bez asks. "Because I need to ask my customers, and these are the people who are supporting us.

"People today don't ask what sort of processor is in an iPhone. They don't ask where it is built. It is built in China. They don't care. Who cares that a Bentley Continental GT is based on a Volkswagen Phaeton? Nobody cares.

"People talk about destroying the brand. Ten years ago when I came here as a German to lead an English company, people asked, 'How can this happen?' We are in better shape than ever, that's a fact."

He also rejected suggestions the Cygnet was conceived purely to help Aston Martin lower its emissions average across its range to meet strict new European targets.
QANTAS
iconic brands: prestige, image, reputation, status
Airbus

Qantas

Rolls Royce
emphasises the importance of staff training for safety and customer service and quality control in operations
accidents, faults/defects, recalls, strikes or bad publicity can negatively affect a brand
Airbus A380 incident
Aston Martin
Aston Martin DBS, the more typical
vehicle image of this brand.
Aston Martin Cygnet
Marketing objectives should be quantifiable:

increasing product awareness to 20% of the target market
expanding distribution to supermarkets by 9%
increasing brand awareness to 65% of potential customers
expand market share of a product by 5%
launching a new brand of breakfast cereal onto the market by years end
launching a new vehicle into a foreign market mid year
http://www.hermes.com/
luxury brand: Hermes
The Hermes Kelly Bag

The Kelly bag is a marketing success as it does not require advertising for the product.
It is a flagship model for Hermes.

Grace Kelly owned a Hermes bag which then later became her name model bag, as she was photographed with one and put on the cover of Life Magazine many years ago.

The Kelly bag has a timeless classic style bag which has lasted through the years.

Exclusivity through a waiting list
and
very high prices
ensures near legendary status for the Hermes brand.

The
exclusivity and reputation of this bag brings promotion
to Hermes without the company having to spend any budget.

The bag is loved by fashionistas who write
blogs and celebrity magazines
and no expensive advertising is required by Hermes.

Supply and demand factors allow upmarket prices which ensure huge profit margins on the merchandise.

The Kelly bag provides ongoing
free promotion
for the luxury Hermes brand.
Product: Kelly bag
* history and classic design
* flagship status and exclusivity
* no need promote
* profit margin
Paris Store
Tokyo Store
architect: Renzo Piano
Product Differentiation
this strategy is used to gain an edge over their competitors
in industries where multiple competitors produce similar products, managers will try to make their product unique in some way so that it stands out from the pack
Branding
Marketing
Virgin v Qantas: its flights and fights
SMH May 5, 2011
Virgin Australia undertook the biggest step in its
brand renewal
yesterday, a new name;
Virgin Australia
(replacing Virgin Blue and V Australia) and a
new livery
, assisted by plenty of
Branson
himself hanging out of the cockpit of the new aircraft to appeal to the cameras.

The product the new Virgin Australia unveiled yesterday is impressive. The aircraft looks fresh and comfortable on the inside, both in business and economy, and is spacious enough to satisfy the corporate traveler.

Virgin Australia's boss,
John Borghetti,
has spent the $35 million capital expenditure wisely to pull his product out of the middle-ground dead zone between Jetstar and Qantas - with a cost base that could not compete with the no-frills market and a product that could not capture the more discerning business traveler - and
into the

full service market.

Once the fleet is introduced,
the business traveler will have an alternative to Qantas in quality
- but perhaps not in frequency.

The airline will also beef up its
frequent flyer program
and
overhaul its business class lounges.

But Qantas, as the airline with a near monopoly on the business market, has the advantage of a well-established frequent flyer customer base. It also has the huge advantage of more flights.

Virgin does not aspire for a moment to catch half of the business share - it just wants to take an additional 10 per cent, which on its numbers is $150 million in revenue.
Quiz
What are some possible problems of penetration pricing?
What is a perceptual map?
What is market segmentation?
Why are products differentiated?
How do marketers effectively position a product?
What are the marketing aspects of packaging?
At what stage is price skimming most likely?
How are opinion leaders used?
Describe the different intensities of distribution?
What is the main purpose of branding?
What is the 'promotion mix'?
What do you think are some of the ethical responibilities of marketers?
What are below the line promotions?
February 14, 2011

Pepsi challenged ... "skinny" can offensive say critics.

Diet Pepsi has introduced a new "skinny" can for Fashion Week, but some critics are giving it a big, fat "no".

The can is a "taller, sassier" version of the traditional can that the company said was made in "celebration of beautiful, confident women".

Some say Pepsi's approach only reinforces dangerous stereotypes about women and body image.

PepsiCo Inc presented the new can at New York's Fashion Week, which began on Thursday. It will be available to consumers nationwide next month.

The company, a Fashion Week sponsor, is hosting a series of events to launch the new can, including collaborations with popular designers such as Charlotte Ronson and Betsey Johnson.

"Our slim, attractive new can is the perfect complement to today's most stylish looks, and we're excited to throw its coming-out party during the biggest celebration of innovative design in the world," Jill Beraud, chief marketing officer for PepsiCo, said in a statement.

Critics have said it was nothing to celebrate.

Brand experts praised the new design, but said the company might be a bit off on its sales pitch that skinny is better.

The National Eating Disorders Association said it took offence to the can and said the company's comments were both "thoughtless and irresponsible".

Libby Copeland summed up many of the criticisms in an article for Slate.

"Same old story - aspirational, looks-oriented advertising with a thin layer of faux-empowerment on top," Copeland wrote. "If you're confident on the inside, you'll be skinny on the outside, or something. Huh?"

Pepsi said that the can and its campaign were focused on design.
product design customisation to meet
Rolls-Royce's new 'mid-range' model


Steve Colquhoun
July 18, 2011

Rolls-Royce Ghost EWB

$750,000 Ghost Extended Wheelbase to sit between ‘entry level’ Ghost and flagship Phantom.

Rolls-Royce will plug the $400,000-plus chasm between its ‘‘base model’’ Ghost and range-topping Phantom limousines in Australia with a stretched version of the Ghost.

The Ghost EWB - or extended wheelbase – was unveiled at April’s Shanghai motor show and adds 17 centimetres to the length of the standard Ghost, all of which has been used to lengthen the back seat for the benefit of the company’s chauffeur-driven clients.

Rolls-Royce says the move to a longer wheelbase was driven more by a desire to increase the size of the rear door to match the front door, than simply adding rear leg space to what was already a spacious back seat.

Customer feedback indicated that the short wheelbase Ghost’s rear-hinged back doors — shorter than the front ones — did not send the right message of affluence for customers who prefer to ride in the rear seat, says Asia Pacific marketing and events manager Dan Balmer.

‘‘Where the customer makes their mind up is on the first impression, nine times out of 10,’’ he says.

‘‘When you’re showing a car in India, and China, for example, you open the door to a Rolls-Royce and the first thing they do is get in the back of the car.
Role of marketing
1960 Chrysler advertisement: USA
Influences on marketing
Marketing process
Marketing strategies
Psychological factors:
these inluences include the way we feel, think and reason as we decide to select a particular product
this is affected by the way we percieve the product, our personality and our beliefs
Sociological factors:
these influences come from the society or culture a person comes from and includes social class, household type and status
Economic factors:
these influences come from changes in income and spending in the economy such as occurred with the GFC
Government decisions:
these include laws, taxes

and stimulus packages and can impact
on consumer decisions
Influences on customers
Consumer laws
Recently introduced Australian Consumer Law provides for:
deceptive and misleading advertising
: ads that deliberately decieve consumers about quality and/or price are illegal
price discrimination
: this is where a good is sold at different prices to different customers and is illegal
implied conditions
: this ensures that the product fits the
:
description claimed by the manufacturer
warranties
: these are guarantees that goods will meet the customers needs, otherwise the supplier will remedy any defect
Ethical behaviour
Ethics involve
values and morals
that determine generally accepted behaviour.
Consumers in particular and the community in general expect that:
truth, accuracy and good taste
be evident in advertising
products available should not
endanger health
and wellbeing
businesses should
engage in fair competition
, and not be involved in anti-competitive practices or selling techniques like sugging
CHINESE
1. Situational analysis
this sets out the present state of the business
it will describe the market and the position of the business within that market
the two key tools are:
SWOT analysis
product life cycle analysis
Marketing has the central role in
satisfying the needs of customers
by
developing, promoting, pricing and distributing a product
the marketing function strives to meet these needs more effectively than competitors in a changing environment
The strategic role of marketing is to
enhance sales and revenue
by
adapting the business and its products to the changing market environment
so there is a good fit between the products the business offers to the marketplace environment.


This involves both
external analysis
of competitors and changes in the business environment and
internal analysis
of the business performance and competitive advantage:

External analysis
involves monitoring and analysis of:
changes in the business environment
the unmet needs of customers
strengths and weaknesses in competitors
trends in the market place
the technological, consumer and economic environment

Internal analysis
involves monitoring and analysis of:
profitability
customer satisfaction
product quality
Marketing is
interdependent
on other key functions:
operations
finance
human resources
Marketing is the driver of the business.
Once customer needs have been identified, the goods or service needs to be produced by the operations function , which requires employees or human resources and the necessary finance.
BMW 7series
Rolls Royce Ghost
But times - and customers - change, with China now the biggest single market for the 7-Series. And Chinese 7-Series buyers ride in the back seat.
http://smh.drive.com.au/motor-news/first-drive-bmw-7series-20120730-23825.html
production orientated (1820s - 1920s)
selling orientated (1920s - 1960s)
customer/market orientated (1960s to the present)
The different types of markets include:
resource market
(land including natural resources, labour, capital)
industrial markets
(products needed to manufacture other products)
intermediate markets
(goods purchased for resale)
consumer markets
(purchase of goods and services for personal use)
mass markets
(large numbers of consumers who buy standard products such as petrol)
niche markets
(consumers with specialised needs)
personality, character, history, reputation
"Vorsprung durch Technik"
"Advancement through technology"
2. Market research
market research is the way
information
needed for the marketing process is collected and analysed
data comes from
primary
and
secondary
sources
businesses that understands their customer will be more successful
3. Establishing market objectives
marketing objectives should have these characteristics:
it must be
specific
it should be capable of being
measured
it must be
realistic
for example: 'to gain a 10% increase in market share in 3 years'
4. Identifying target markets
marketers identify and develop
strategies
to engage a particular group of customers with
common characteristics
at which to direct their marketing activities
when a business understands its
target market
it can develop new products and increase revenue
5. Developing marketing strategies

and objectives
marketing strategies
are the ways a business achieves its objectives
marketing objectives are measurable: to 'gain a 10% increase in market share in 3 years'
a business will adopt a series of measures, or strategies that are based on the four Ps or the
marketing mix
product
price
promotion
place
6. Implementing, monitoring and controlling
implementing
is the process by which plans are put into operation
monitoring
is being aware of what is happening and watching for problems (sales analysis)
controlling
involves comparing actual results (sales, market share or profit) with forecast sales
revising the marketing strategy is essential if forecasts prove inaccurate
Positioning
positioning is the
perception
or
image
that potential buyers have of a product in terms of its
price
and
quality

compared to its competitors
Products
the actual product is often called the
augmented product
this refers to the way the product itself can be used as a strategy to improve competitiveness
typically the core product is augmented with features such as

those to the right:
Pricing methods
there are three key methods of pricing products:
costs

of development, manufacturing and distribution
plus a profit margin
market price
determined by supply and demand
competition based
where a business carefully considers prices of competitors for similar products
in reality a combination of these factors may be considered

promotion is about effective communication with customers
advertising, which is paid communication, is only one way of the available techniques
the
promotion mix
refers to the way elements of communication such as advertising, personal selling and relationship marketing are combined to meet the business's communication objectives
Elements of the promotion mix
advertising
this is paid communication and can be very expensive
media such as TV, newspapers, magazines and radio can be used
increasingly
social media
such as Facebook, and internet advertising (including viral types) are effective
advertising can be designed not so much to sell the product but to
support
the brand and its positioning
personal selling and relationship marketing:

this is probably the most important promotional tool
this is what teams of
sales representatives
do when they sell products to retailers
there is a trend to personal selling becoming a partnership between supplier and retailer
relationship marketing
is about building a long term relationship between the business and its customers
it can utilise loyalty schemes or card such as Flybuys
sales promotion:
these are non media communications with customers
they include competitions, vouchers for special offers and loyalty card offers
they often include special displays, tasting products and free samples
they are often done by the in-house marketing function rather than an outsourced agency
publicity and public relations:
this is about ensuring the business is seen in a positive light and that the business has a strong public image
publicity is concerned with creating newsworthy stories about the business and its products
packaging, stationery, website, uniforms, livery and buildings all need to project a positive image
special events, opening nights and sporting sponsorship can be effective
opinion leaders and word of mouth:
these are very influential and it is important to understand what influences buyer behaviour and who influences these decisions
the people who influence buying decisions in this way are opinion leaders; people respected and whose views you agree with
word of mouth refers to personal endorsements by people who are opinion leaders and social media can be important

distribution channels are concerned with the way the product gets from the manufacturer to the final customer
distribution costs
can be very significant and add to the final cost of the product
the traditional system was
manufacturer, wholesaler, retailer to final customer,
but this can involve problems of cost effectiveness
distribution channels
refers to the number of outlets selling the product:
intensive:

as many outlets as possible
selective:
certain retailers will be chosen
exclusive:
highly presige products tend to have only their own store
physical distribution issues
center on efficiency and cost reduction
transport:
meeting containerisation sizes, pallet size requirements and roll on / roll off truck design can be important
warehousing:
computerised and automated warehouses and minimal staff have led to cost savings

inventory:
holding inventory is a cost that needs to be balanced with customer requirements
global brand and marketing
standardised product
technical excellence
economies of scale
high quality

expanding into global markets needs consideration of marketing concepts such as global branding, standardisation, customisation, global pricing and global positioning before taking the risk
global branding
a global brand is one recognised in most countries
the internationalisation of buying patterns and tastes supports this
global brands allow a business to make cost savings, often associated with economies of scale, common advertising campaigns and packaging
standardisation
a standardised product is one designed to meet the needs of every market segment
marketing segment continue to exist but geographic ones are breaking down
customisation
customisation is concerned with getting a
better fit
between global products and the needs of customers in particular segments of the total market, eg: Asian variants of global beverages are often sweeter
global pricing
t
his is complicated by
exchange rate movements
and is important as it is the link between marketing and the business's profitability
it is important not to have the price too low in support of the global brand
competitive positioning
this is concerned with creating an image in the minds of customers of the value the business's products can give in a global market where competitors are also trying to create an image
competitive positioning is the relationship a business develops with its customers regarding this image
product and technology development is an important aspect of competitive positioning and the aim is to be seen as an innovative market leader in product development
product magazines
direct marketing to
customers SMS
product launch party
Promotion
product / brand magazines
mobile advertising
and sport
product placement
social media
cultural sponsorship
opinion leaders
unforgettable name / target market / sport
fashion parade
shopping bags
ideas
Topics:
Role of marketing
Influences on marketing
Marketing process
Marketing strategies

Term 1 2015
Assessment task: Marketing analysis presentation
Term Week

SWOT analysis: potential factors
TV advertising / cross advertising
Target market segmentation
each soft drink and magazine has a target market
Princess Grace of Monaco
Red Bull:
"a marketing company that sells an energy drink"
Red Bull
has an
aggressive international marketing campaign.
The numerous sponsored activities range from extreme
sports
like:
mountain biking, BMX, motocross, windsurfing, snowboarding, skateboarding, kayaking, wakeboarding, cliff-diving, surfing, skating, freestyle motocross, rally, Formula 1 racing, and breakdancing
to art shows, music, and video games
In keeping with their
target market of young males,

Red Bull
has also enlisted help from celebrities, such as Eminem that would appeal to this group .
Red Bull: China
longer rear door and back seat room
brand

slogan
trademark
design cues
brand damage
a two brand airline
strikes
falling share price
bad publicity
Brand renewal: Virgin Australia moves up - market
needs
Objectives
celebrity opinion leader: Victoria Beckham
as owners are chauffeur driven
sport and sports events
Red

Bull
sport event:
not just sponsorship - they own the event
striking packaging
colours
logo
slogan - "gives you wings"
history, character, reputation, style
positioning
Documentaries:
History of now: "The story of the noughties"
(BBC) - examines the

cult of youth / forever young

and branding / promotion
Teaching / learning strategy
students list:
the characteristics of the time frame discussed
the representative products discussed
and using these as a scaffold write a response regarding the 'Noughties and marketing' using the TEEL concept
"The September Issue"
- examines the marketing of high end female fashion through Vogue magazine
Teaching / learning strategy
students make a list of factors relevant to the topic
reorder their list as necessary
write topic paragraphs using the TEEL concept
"Secrets of the superbrands - food"
(BBC) - examines global branding, standardisation and customisation and other marketing factors
Teaching strategy
students construct a mind map specific to the Red Bull example
the 21st century Australian market is a
conglomerate of international brands,
with influences from all continents and regions of the world
we have seen strong connections between the Australian consumer and various brands and influences from previously ‘dormant’ countries such as Brazil, Spain and the UAE
(e.g. Havaiana’s, ZARA and Emirates)
recent times have also seen a strong push from some of the relatively quieter Asian countries such as Taiwan
(e.g. HTC, ASUS, Cha Time & EasyWay),
and Korean culture
(i.e. frozen yoghurt

chains and K Pop)
Teacher: J.W. LUND
celebrity branding
online affordable fashion
use of social media
cool brand personality
brand renewal
cool pop culture brand
rapid model turnover
competitors: top end luxury goods
student case study presentations
White Tiger
similar product but organic and Fair Trade
totally different market
corporate social responsibility (CSR)
Teaching and learning strategies in this colour
Interdependence
Marketing approaches over time
Types of markets
Strategic role of marketing
Role of marketing
Teaching and learning strategies incorporating 'Students learn to':

Use the internet to research various definitions of marketing
Discuss why marketing is a strategic role in business
Internet case study: smartphones and the importance of successful marketing strategies p.116
Internet research: look for historical sales figure analysis by different operating platforms
Reflection questions p. 117 of text
Students use a graphic technique to set out trends in smartphone platform use
http://en.wikipedia.org/wiki/Smartphone
Teaching and learning strategies incorporating 'Students learn to':

Class quiz on the nature of the four functions
Create a flow diagram that demonstrates the interdependence of marketing with other key business functions
Teaching and learning strategies incorporating 'Students learn to':

Discuss the difference between a production, selling and marketing approach, provide examples from a range of products including those shown above
Teaching and learning strategies incorporating 'Students learn to':

case study: Dick Smith's business start; a niche market p. 122 and reflection questions
Topic Test p. 124, multiple choice and short answer, demonstrate to students short answer using TEEL paragraph technique
A-Z of products – brainstorm products that start with each letter of the alphabet, then classify each to its type of market
Teaching and learning strategies incorporating 'Students learn to':

Think, Ink, Pair and Share: factors affecting smartphone choice p.127
Teaching and learning strategies incorporating 'Students learn to':

Discuss how social class might influence the buying decision involving new car purchase
Teaching and learning strategies incorporating 'Students learn to':

Quiz students re their knowledge of the GFC and its affect on consumer decisions
Teaching and learning strategies incorporating 'Students learn to':

Think, Ink, Pair and Share: plain packaging for cigarettes p. 128
Students watch documentary: 'The story of the noughties', see teaching and writing strategy in 'documentaries' above
Teaching and learning strategies incorporating 'Students learn to':

Internet research activity: Australian Consumer Law website p.129 for questions
Use consumer websites and media sources to find examples of deceptive and misleading marketing
Investigate the experiences family and friends have had with unethical marketing practices
Teaching and learning strategies incorporating 'Students learn to':

Internet research: bad taste in advertising, use the above multi-media links and view the most complained about advertising, utilising discussion
Examine the ethics of marketing by evaluating a range of current TV commercials for truth, accuracy and good taste in advertisingFind examples of product recalls and investigate the reasons why they occurred
Internet research: ACCC website re misleading pricing p. 130
Case study: Dodo IP, fined for misleading ads p.131
Case study: Diet Pepsi, negative body perception, see graphic / data frame to the right
Topic Test p. 136, multiple choice and short answer, demonstrate to students short answer using TEEL paragraph technique
Skinny Diet Pepsi canned
AC Nielsen is a global marketing research firm, with worldwide headquarters in New York.
http://www.docstoc.com/docs/18234417/BMW-Strategic-Marketing-Plan
Teaching and learning strategies incorporating 'Students learn to':

Students view and discuss the diagrams above
Students view and discuss the 'SWOT analysis: potential factors' in the graphic / data frame to the right
In groups, develop SWOT analysis for different brands within product groups
Search the internet for published SWOT analyses for a range of actual businesses
focus group
Teaching and learning strategies incorporating 'Students learn to':

Role play a technique for obtaining primary data and a technique for obtaining secondary data
Discuss the different market research techniques portrayed in the photographs above
Think, Ink, Pair and Share: considering the three steps in the research process p.143
There are three typical steps in the market research process:
1. determining informational needs
2. collecting data from primary and secondary sources
3. data analysis and interpretation
Teaching and learning strategies incorporating 'Students learn to':

discuss: what other types of marketing objective (besides market share) are there p.144
view: marketing objective examples in the graphic / data frame to the right
Teaching and learning strategies incorporating 'Students learn to':

view and discuss the two diagrams above
group work: target market, Steve Jobs launch of the iPad2, p. 145
Think, Ink, Pair and Share: categorising breakfast cereals and target markets p. 145
Teaching and learning strategies incorporating 'Students learn to':

Students view the diagram above, and quiz students on words selected from the word cloud
Students make a list of the key factors in BMW's Strategic Marketing Plan, link above
Internet research: view the link above and students look for the strategies of BMW as perceived by the author of the work
Teaching and learning strategies incorporating 'Students learn to':

Discuss why unfair competition and sugging are not ethical marketing practices and how each damages the business environment
Topic test: multiple choice questions p. 148 and 149
Marketing strategies
marketing strategies refers to the way the marketing function goes about achieving the marketing objectives
necessary is a sound understanding of the market and the needs of customers
Market segmentation
market segmentation is the process of breaking the total market into parts or
segments
based on
demographic factors
and
lifestyle
demographic factors will include: gender, age, income and educational levels
Teaching and learning strategies incorporating 'Students learn to':

Students watch the You Tubes above and the internet link re BMW global marketing strategy
Describe this overall strategy through several key statements
http://www.koreatimes.co.kr/www/news/bizfocus/2012/09/332_96718.html
Teaching and learning strategies incorporating 'Students learn to':

Literacy development: p. 153
Discuss the demographic and lifestyle factors involved p.152 and consider which market segments are growing in Australia
Internet research: find out about 'M Performance' and discuss the market segment it would apply to
Teaching and learning strategies incorporating 'Students learn to':

Discuss the photograph showing an array of toothpaste products
Internet research: analyse the BMW product lineup, using the above link, by considering the lifestyle of specific groups of customers
http://www.bmw.com.au/com/en/insights/Promotions/bmw_360_event.html?dbc=2287&gclid=CJbil_SY_7ICFUo5pgodFBEAPg
Teaching and learning strategies incorporating 'Students learn to':

Analyse the perceptual map technique above for training type shoes
Think, Ink, Pair and Share: positioning of smartphones or cars p. 154
Graphic presentation: Virgin Australia re branding, see graphic / data frame to the right
quality
technology
styling
warranty
servicing aspects
branding
provision of credit
packaging
Product aspect: Branding
brands are at the very heart of marketing
a brand is a
logo, name, symbol or design
that distinguishes a business's products from other products in the marketplace.
Teaching and learning strategies incorporating 'Students learn to':

discuss: the importance of branding after viewing the brands in the photos above, all of which belong to BMW (Bavarian Motor Works)
view: Audi branding, see graphic / data frame to the right
discuss the Coca Cola and Pepsi brands as mentioned p. 156
Think, Ink, Pair and Share: the three most important brands you buy p. 156
view aspects of the luxury brand 'Hermes' in the graphic / data frame to the right, discuss whether you are familiar with the product and why, or why not?
case study: Innocent drinks p. 157 and do:
group work: Innocent drinks p. 158
Teaching and learning strategies incorporating 'Students learn to':

Discuss how warranty and servicing can be an important augmentation to a car as a product
Internet research: using the link above find out about the warranty and roadside assistance for the Jaguar XJ
Product aspect:

Packaging
packing has both a
functional
and
marketing
role
products are often packaged to reach different target markets, eg: Coca Cola packages single drinks, and fridge packs of 18, 24 and 30 cans
packaging needs careful consideration as it impacts on
distribution costs
for many businesses packaging needs to
support the positioning
and the brand

prices are not static and they can be used as a strategy to gain an advantage over competitors
the key pricing strategies are:
skimming strategies:
this is when the business sets a relatively high price at first and then lowers the price over time
in fact they are pricing the product at 'what the market will bear'
penetration strategies:

this is when the business sets a lower price (below its competitors) in order to increase market share
loss leaders:

these are prices set at a very low level
t
o encourage consideration of a product newly introduced or to encourage customers to consider other products
price points:
these are psychological price references in the minds of customers
$9.99 is a price point, rather than $10.00
low entry level prices can create a perception of value for money for the whole product range
price and quality interaction:

this interaction is concerned with understanding how price sensitive customers are
if necessary a multi-brand strategy of offering different products can be used, some being for value for money shoppers, and some for those who regard quality as the main criteria

businesses in high wage countries are increasingly providing
services
and so it is important to extend understanding of the marketing mix to include people, processes adn physical evidence
people
are central to service business and customer service is vital to achieving sales growth
recruitment, selection and training
of people have to well executed if a competitive edge is to be gained through people
processes
are important in achieving
cost advantages
against competitors
physical evidence
is important as potential customers are constantly making judgements on the basis of what is visable to them
e-marketing
refers to the use of the internet to research customer needs and develop products and sell products that met those needs
it enables a business to reach a much greater market potential while significantly lowering costs
it is experiencing rapid growth often at the expense of traditional retailers
Teaching and learning strategies incorporating 'Students learn to':

graphic presentation: global brands in graphic / data frame to the right
Think, Ink, Pair and Share: supporting the Coca Cola brand p. 177
Think, Ink, Pair and Share: global brands by origin p. 178
case study: Nescafe, global branding and reflection questions p. 178
case study: Virgin, global branding and reflection questions p. 179
case study: Heineken, discuss global branding strategy
Think, Ink, Pair and Share: iPhone, standardisation vs customisation p. 180
topic test: multiple choice p. 188
Teaching and learning strategies incorporating 'Students learn to':

analyse the examples above; what strategies arte being employed?
case study: XBox 360 and price skimming p. 162
case study: Qantas brand and Jetstar brand and price points p. 163, reflection questions p. 164
case study: Dulux paints and pricing strategies, reflection questions p. 165
Teaching and learning strategies incorporating 'Students learn to':

Think, Ink, Pair and Share: advertising and target market p. 166
Case study: Dulux Paints, personal selling and relationship marketing p. 167 reflection questions p. 168
Case study: Red Bull's promotional techniques, see graphic / data box to the right
Graphic presentation: promotion ideas, see graphic / data frame to the right
Case study: Qantas and adverse publicity, see graphic / data frame to the right
Think, Ink, Pair and Share: sports team sponsorship p. 169
Think, Ink, Pair and Share: opinion leaders p. 170
Teaching and learning strategies incorporating 'Students learn to':

Discuss: What products tend to be priced based on market forces?
Teaching and learning strategies incorporating 'Students learn to':

case study: BMW and Rolls Royce, exclusive distribution p. 172, reflection questions p. 173
case study: Hermes, exclusive distribution; view the stores shown in the graphic / data frame to the right
case study: Dell Computers, successful variations in distribution p. 173, reflection questions p. 174
case study: Red Bull, extensive distribution, view the graphic data frame to the right
Teaching and learning strategies incorporating 'Students learn to':

Think, Ink, Pair and Share: importance of people p. 175
internet research: internet marketing p. 176
Teaching and learning strategies incorporating 'Students learn to':

discuss the packaging sample above
Think, Ink, Pair, Share: packaging supporting positioning p. 161
http://www.jaguar.com/au/en/owner_support/servicemaintenance/
Teaching and learning strategies incorporating 'Students learn to':

Discuss the internal and external analysis of a business, eg: David Jones
focus group
http://smh.drive.com.au/sydney-motor-show/jaguar-slashes-prices-by-up-to-64500-20121018-27tl4.html
http://www.smh.com.au/small-business/smallbiz-marketing/six-ways-to-stretch-your-marketing-dollars-20121030-28gmp.html
Six ways to stretch your marketing dollars
Outcomes
The student:
H1 critically analyses the role of business in Australia and globally
H2 evaluates management strategies in response to changes in internal and external influences
H3 discusses the social and ethical responsibilities of management
H4 analyses business functions and processes in large and global businesses
H5 explains management strategies and their impact on businesses
H6 evaluates the effectiveness of management in the performance of businesses
H7 plans and conducts investigations into contemporary business issues
H8 organises and evaluates information for actual and hypothetical business situations
H9 communicates business information, issues and concepts in appropriate formats
H10 applies mathematical concepts appropriately in business situations
Focus: The focus of this topic is the main elements involved in the development and implementation of successful marketing strategies.
Students learn to:

examine contemporary business issues to:
• explain why goods and/or services are central to both marketing and operations
• examine why ethical behaviour and government regulation are important in marketing
• assess why a mix of promotional strategies is important in the marketing of goods and services

investigate aspects of business using hypothetical situations and actual business case studies to:
• evaluate the marketing strategies for a good or service
• analyse a marketing plan for a business
• explain how globalisation has affected marketing management
Outcomes
H1, H3, H7, H8, H9, H10

Students learn about:
• strategic role of marketing goods and services

• interdependence with other key business functions

• production, selling, marketing approaches

• types of markets – resource, industrial, intermediate, consumer, mass, niche
Outcomes
H1, H3, H7, H8, H9, H10

Students learn about:
factors influencing customer choice – psychological, socio-cultural, economic, government

consumer laws
deceptive and misleading advertising
price discrimination
implied conditions
warranties

• ethical – truth, accuracy and good taste in advertising, products thatmay damage health, engaging in fair competition, sugging
Outcome: H2, H5, H6, H7, H9, H10

Students learn about:
situational analysis – SWOT, product life cycle

market research

establishing market objectives

identifying target markets

developing marketing strategies

implementation, monitoring and controlling – developing a financial forecast; comparing actual and planned results, revising the marketing strategy
Outcomes: H2, H4, H5, H7, H9, H10

Students learn about:
marketing strategies, market segmentation, product/service differentiation and positioning

products – goods and/or services
branding
packaging

price including pricing methods – cost, market, competition-based

pricing strategies – skimming, penetration, loss leaders, price points

price and quality interaction

promotion
elements of the promotion mix – advertising, personal selling and relationship marketing, sales
promotions, publicity and public relations
the communication process – opinion leaders, word of mouth

place/distribution
distribution channels
channel choice – intensive, selective, exclusive
physical distribution issues – transport, warehousing, inventory

people, processes and physical evidence

e-marketing

global marketing
global branding
standardisation
customisation
global pricing
competitive positioning
Pricing strategies
Promotion
Place / distribution
People, processes and physical evidence
Global marketing
http://www.smh.com.au/opinion/society-and-culture/sexism-dovetails-with-hypocrisy-20120620-20ocf.html
The release of the film led to a number of promotional licensed tie-in items, including a toy Aston Martin DB5 car from Corgi Toys which became the biggest selling toy of 1964.
The DB5 is famous for being the first and most recognised cinematic James Bond car, first appearing in Goldfinger (1964).
famous product placement

"I know what I like": why most of us stay true rather than think outside the square.


You may think you are an exciting individual, but chances are your consumer habits are making you ''astonishingly boring''.

A new study has found the daily habits of 46 per cent of consumers drive their shopping choices, steadfast in their brand loyalty.

Recognising this, marketers are targeting consumers at times when they are vulnerable and open to change, such as when they move house, get married, have a baby or form a new relationship, the report from consumer insights group BrandHook states, which surveyed 1000 respondents.



Read more: http://www.smh.com.au/national/i-know-what-i-like-why-most-of-us-stay-true-rather-than-think-outside-the-square-20130403-2h77k.html#ixzz2PRIXW7D1
Read more: http://www.smh.com.au/national/i-know-what-i-like-why-most-of-us-stay-true-rather-than-think-outside-the-square-20130403-2h77k.html#ixzz2PRI5D6ph
http://www.ellentv.com/videos/0-rztzaf1y/

What is marketing about?

Why ethical behaviour and government regulation are important in marketing?

Why a range of promotional strategies might be important?

http://www.smh.com.au/business/comment-and-analysis/david-jones-takeover-the-foreign-brands-are-here-because-australia-is-rubbish-at-retail-20140409-36cfi.html
The strategic role of operations is to minimise the expense of the transformation process.

The strategic role of marketing is to develop a product and implement a series of strategies aimed at promoting, pricing and distributing a product to a specific target market in order to get more sales.

The strategic role of finance is to plan, monitor and control the business’ financial resources to ensure that their efforts assist in the achievement of financial objectives in both the short and long term.

The strategic role of human resources is to develop a business with an effective and skilled workforce that will suit the business' needs in order to improve efficiency and competitiveness.
http://education-portal.com/academy/lesson/market-orientation-and-sales-orientation-definition-and-differences.html
At the centre of Mayfair, London, Claridge’s 5 star hotel is an art deco jewel that offers the ultimate in luxury. It is the embodiment of grand English style and timeless glamour. For more than a century, Claridge’s has preserved its unique heritage with all the modern flourishes a guest could wish for, bound together by world-renowned service that is impeccable, intuitive and highly tailored. From breath-taking rooms and suites by the world’s leading designers to dining inspired by nature from Simon Rogan inside Fera at Claridges, Claridge’s is a unique combination of splendour and charm.
4Ps....7Ps....which Ps and new Ps?
Often this is referred to as 'Physical environment'
impressive
shabby
comfortable
dated
Assess the importance of using a mix of promotional strategies in the marketing of goods and services.

Why are ethical behaviour and government regulation important in marketing?
Outline the strategic role of marketing products.
Describe the difference between the former 'selling approach' and the 'marketing approach' common today, using examples.
Distinguish between industrial goods and intermediate goods?
Describe and give examples of niche markets.
Analyse why is marketing described as the driver of a business.
Provide examples of mass markets.
What are some of the principles that might asssist a business in the process of continuous improvement?
Describe the concept behind 'relationship marketing' with examples.
An influence on consumer choice is that of psychology and personality. We usually refer to someone's personality by traits, such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness.
How does awareness of personality benefit marketers?
Sociocultural factors are an influence on customer choice. Culture is mostly a learned behavior, being constructed by the society (largely family and institutions) a consumer grows up in.
Explain how the culture of the USA might differ from that of a developed Asian nation, as it impacts on an adolescent.
Outline the ethical issues influencing business marketing.
List some of the main consumer laws that impact on marketing including 'implied conditions'.
Brand loyalty
online customised computers
http://www.businessinsider.com.au/gadgets-to-look-forward-to-2014-12?op=1#the-apple-watch-will-launch-in-early-2015-1
The 14 Most Exciting New Tech Products That Will Launch In 2015
When organizations are planning for their future, they need to be able to analyze lots of data, ranging from information about what customers are buying and why. It is important to understand the leading indicators of change. In other words, how will changes impact what products and services an organization will offer in the future?
SMAC
http://www.strategicmanagementinsight.com/swot-analyses/apple-swot-analysis.html
The publication looked to inspiration from media brands Wired, Fast Company, Monocle and locally BRW and Boss.
From a content perspective, Lisa Messenger said: "We’ve morphed the business magazines with something like Vanity Fair. It’s highly designed and beautiful. And I’ve done that specifically as I think it will appeal to a whole other side of the market, those people who like magazines with a design aesthetic."

Similarly, on the topic of target audience, Messenger said: “A lot of advertising people have asked do I think it’s for men or women and I can say it’s a 70 to 30 female-male skew."
Lisa Messenger takes a punt with $1.5m launch of ‘the Vanity Fair of business magazines’
http://www.abc.net.au/news/2015-02-13/one-plus-one-with-lisa-messenger/6087042
Lisa Messenger's 'let's just jump in' approach key to her entrepreneurial success
http://collectivehub.com/
Website

Target market
around 70/30% male female readership
tertiary education
higher income
corporate employment or self employed
30s to 50s but predominately
Generation X

Product

a high-end
cross over magazine
that features interviews and profiles of entrepreneurial and creative minds in the business world
active across a number of
platforms
including social media
download via the Magshop App, Zinio and Press Reader
the magazine style is shaken up month to month, keeping readers
engaged
and talking about the product

Promotion
brand ambassadors
- these focus on establishing credibility of a product or service amongst the target audience, a concept also known as
customer engagement
, t
he brand ambassador is meant to embody the corporate identity in appearance, demeanor, values and ethics
promotional connections with Price Waterhouse Coopers and Qantas
social media platorms (social marketing) including guest spot interviews on a variety of TV shows

Price
currently $9.95
psychological pricing strategy
is evident though strategiesd such as
competitors pricing
and
cost plus pricing
will be important

Place
stockists
: Coles and Woolworths supermarkets, newsagents nationally, Qantas flights and lounges, selected travel and airport stores, corporations subscriptions, distributed to 30 countries internationally

Positioning
between Business Review Weekly (BRW) and Vogue or Vanity Fair

People
entrepreneur and marketer Lisa Messenger, brand ambassadors and a small committed team
initiative and team work valued
Renegade Collective
game changers | thought leaders | rule breakers | style makers
http://www.news.com.au/finance/business/new-car-warranty-wars-sevenyear-coverage-for-kia-sets-a-new-australian-record/story-fnkgdhrc-1227076425861
New car warranty wars: seven-year coverage for Kia sets a new Australian record
Kia Cerato
http://www.carsguide.com.au/car-reviews/2015-kia-cerato-s-premium-review-30894
'augmented product'
Unethical Target Marketing
Most consumers are unaware of the standard of caveat emptor ('let the buyer beware') is part of all purchase transactions. Under this idea, businesses' only responsibility is to provide a product or service at a fair price. It is up to the consumer to research products and look out for their own interests. Companies are skilled at researching the psychological makeup of their consumers, and by understanding their customer's motivations, interests, desires, and beliefs, the easier it is to manipulate their emotions.

When companies purposely target vulnerable populations, they are participating in unethical target marketing. These types of populations or target markets consist of consumers that have psychological problems or lack maturity and intelligence to make informed purchases. Examples of this type of target market include the elderly, children, and poorly educated consumers. Target marketing strategies that are considered unethical would include lying, deception, manipulation, and threats. Sadly, these unethical ways of marketing are used against vulnerable populations.
What are the six steps in the marketing process?
What are the four key infuences on customers regarding their purchase decisions?
Explain the connection between the i Phone 5c
and the pysychological influence on marketing.
Was the strategy used successful?
Explain how the economic influence of the Global Financial Crisis impacted on the i Phone sales and marketing strategy?
How have sociocultural influences been utilised in some of the i Phone marketing?
Outline how government influences including consumer laws impact on i Phone marketing decisions.
Cigarettes are an example of a clearly unethical product. Outline the variety of government laws regarding the marketing of this product. Analyse whether these have been effective in reducing the incidence of smoking.
http://www.health.gov.au/internet/main/publishing.nsf/Content/tobacco-kff
Has the i Phone any concerns regarding its marketing in terms of ethics?
From the SWOT analysis of the i Phone, select four points from each quadrant (in the case study) which you consider to be important. Write a simple TEEL paragraph to develop each point.
Explain the shift in marketing approach for the i Phone over time.
Patents and trademarks offer protection of inventions and certain products from illegal infringement by competitors, thus encouraging innovation and creativity in the business community. Patent and trademark violations are punishable by heavy fines, and subject to civil actions that can be costly if the defendant loses the infringement case.
http://www.abc.net.au/news/2015-02-23/kia-promises-refunds-to-customers-over-charged-for-servicing/6221452
The
exclusivity technique
works by making the eligible subset of customers feel special. This creates a better customer business relationship and is proven to increase brand loyalty.
Apple have taken this technique and put their own spin on it to develop what has been one of the most successful, and probably low-cost marketing techniques of all time.
Instead of making a special offer exclusive, Apple made their entire iPhone product range exclusive. The cherry on top for Apple is that they orchestrated the Exclusivity Technique to make their mobile phone the world’s most popular, despite it supposedly being exclusive.
So what did Apple do differently with their iPhones? They deliberately restricted the flow of their iPhones to customers and mobile phone providers.Apple’s version of the Exclusivity technique not only gave a feeling of specialness for those that got an iPhone but a feeling of jealousy in those that wanted one and couldn’t have one just yet. This made them even more determined to get an iPhone, almost as a means of compensating themselves for rejection on some psychological level.
There are of course a huge portion of people who don’t want an iPhone and are sickened by the thought that so many are fanatical about these mobile devices.
The beauty of Apple’s exclusivity technique is that it creates two opposing groups within society (those with an iPhone and those without) and it creates conflict. The conflict is verbalised through blogs, forums even in person.
This purposely incited speculation and bickering about iPhone is Apple’s method of generating free publicity. It is what keeps the spot light firmly on the iPhone and makes it a perpetually hot topic.
The Apple Brand Personality
Apple has a branding strategy that focuses on the emotions. The starting point is how an Apple product experience makes you feel. The Apple brand personality is about lifestyle; imagination; liberty regained; innovation; passion; hopes, dreams and aspirations; and power-to-the-people through technology.
The Apple brand personality is also about simplicity and the removal of complexity from people's lives; people-driven product design; and about being a really humanistic company with a heartfelt connection with its customers.
http://www.ukessays.com/essays/marketing/marketing-strategy-of-the-iphone-marketing-essay.php
http://www.businessinsider.com.au/iphone-v-android-market-share-2014-5
http://www.cnbc.com/id/102380241
http://www.slate.com/articles/technology/technology/2015/03/apple_watch_edition_how_apple_became_a_luxury_brand.html
Watch Me
With its pricey new wrist candy, Apple is selling prestige. And maybe its soul.
http://www.dailymail.co.uk/sciencetech/article-2922474/Do-iPhone-SMARTER-Android-user-Infographic-reveals-link-education-phone-choice.html
Why McDonald's and Lego succeeded where Nokia and Blackberry failed
The past three decades are littered with brands and products that were built to be key parts our lives, only to become almost obsolete when they failed to reinvent themselves.
http://www.abc.net.au/radionational/programs/drive/from-nokia-to-blackberry-charting-big-brand-decline/6503420
Full transcript