Introduction to Marketing Commercial Analysis Watch each of

Introduction to Marketing

Commercial Analysis • Watch each of the following commercials and then discuss the following at your table. – Who is the advertiser trying to appeal to? – What makes this commercial memorable? – Do you think it is a good commercial? Why or why not?

• Marketing is…. . – Concerned with introducing the product to potential consumers. • The four P’s of marketing – Product, Price, Place, Promotion

Product • Is the product a good product? – Well made? – Looks good? • 4 elements to a product besides the product itself. – Brand, Product Image, Warrantee & Service, the Package

Brand • The name of the product • How is it perceived? – Positive or negative perception?

Product Image • What does the product stand for? • Has it become popular?

Warrantee & Service • How well the company backs its product up • Easy or difficult to exchange or return?

Package and Labeling • What does the packaging communicate? • What “feel” does it give the consumer?

Product/Brand Image Package i. Pad High consumer preference, cool, innovative, sexy Large Screen, black case, Colours are possible specialty / shopping SMART car M&M’s candy Special ‘K’ Cereal ‘Beats’ by Dr. Dre.

Product/Brand Image Package i. Pad High consumer preference, cool, innovative, sexy Environmentalist Practical Unsafe, can’t carry much, ugly Fun, characters promote product, “melt in mouth, not in hand” Large Screen, black case, Colours are possible Small, specialty / shopping SMART car M&M’s candy Special ‘K’ Cereal ‘Beats’ by Dr. Dre. Healthy, athletic, market to women, walking/healthy lifestyle big, bold, edgy, hip-hop, expensive Brown, Yellow, Christmas, bold colour, always with characters and picture of candy Big Red K. photo of dr. dre Sleek, single colour, logo.

Convenience Products • Veggies, groceries, gas

Preference Products • Perceived ‘high risk’ to change brands • ‘trial by error’ until you find one you like – Deodorant, toothpaste, coffee, service industries.

Shopping Products • Won’t buy right away • Will shop around for best price • Make comparisons between quality, location, price, etc… • Strong loyalty once an ideal product is found. – Clothes, sports equipment, furniture, technology, cars….

Specialty Products • Only 1 brand accepted • No shopping done • Perceived to be the ultimate in its area, price is generally irrelevant.

Who will buy? • • • • ‘Specialty’ items ‘shopping’ items Risk How easily ‘’preference’ items a product sells ‘convenience’ items • Effort – Time the consumer puts into finding the right product

Advertising Strategy • First step: Define who your consumer is. – What group of people are you trying to reach? • • • Males Females Older Younger Immigrant

Demographics & Geography • Demographics – Defining ‘types’ of people in society – Split up a population into different segments based on a variety of factors • Geography – Where people live – How does that affect what they buy?

Dynamics • Early vs. later adopters of new products • Heavy vs. light users • Brand loyalty vs. brand switchers. – Is your brand something people are generally loyal to or does it fluctuate regularly?

Choosing A Strategy 1) Undifferentiated -One product to everyone -Can be tough to define a truly undifferentiated product in our society. 2) Differentiated -One product line amongst a number of the same product from different companies. -i. e toothpaste, coke, deodorant, jeans

Strategy Continued 3) Concentrated – One product to 1 segment – i. e baby food, sports equipment 4) Partial Differentiated – New products targeting a few specific segments. – i. e i-pods (young and middle age people), Internet (Ultra – normal – light speeds), Cars (XLE, XL, L)