Marketing and advertising

MARKETING AND ADVERTISING

1. Finding the right marketing mix

• Life cycle of a product = explain it

The product life cycle is defined as four distinct stages: product introduction, growth, maturity, (saturation) and decline.

• Extending the life cycle of a product =what are the techniques, strategies ?

One of the most common strategies to extend the product life cycle of a mature brand is to modify your product to meet the changing needs and expectations of your customers.

Improve :

• Quality
• Features
• Design
• Packaging
• Performance of your product
• Adding new benefits or sevices

• Why is the price important ? Arguments

• Its the first impression and may influence customers to purchase

• What are the pricing strategies ?

• Competitive pricing
• Dynamic pricing
• Bundle pricing
• Costed-based pricing
• Price skimming

• Place : What are the channels of distribution ?

• Dual distribution
• Wholesalers
• Indirect distribution
• Retailers

• Promotion : What are the goals/ objectives ?

• Create awareness
• Increase use of product
• Identify potential customers
• Teach clients about potential services

• What are the media used ?

• Print
• Television
• Outdoor signage
• Digital media

1. Finding the right marketing mix

• The mareketing mix is the way in which a company combines the various elemets of marketing to make the biggest profits and satisfy the needs and desires of its customers.
• To succeed, companies have to work on all factor simultaneously

• Product
• Price
• Place
• Promotion
• Packaging

1. PRODUCT

1. Types of products

They are different types of products on the markets :

• Non-durable products : food, drinks, cosmetics, tobacco, newspapers, etc.
• Durable products : electrical goods (TV sets, computers ..) cars, clothes, jewellery, white goods (refrigerators, washing machines ..), books
• Disposables (produits jetables) : products that you throw away after using them (pens, razors, paper ans plastics plate, glasses…)

1. Brands

Products are defined by a brand which can be the name of a firm (L’Oreal, Michelin, McDonalds..). It can also be an invented mane for a product (Barbe for example)

They are two translations of « une marque » into English :

• A make is used to refer to cars and electrical applliances
• A brand is used to refer to everything else and particulary to a product.

1. Life cycle

[pic 1]

• Development : hight cost but no sales
• Lauch : high expenditure (=dépenses) on promotion and product development, low sales.
• Growth : sale increase and product should break even (=équilibrer les comptes)
• Maturity : sale stabilise, less expenditure on. Promotion needed, revenue (chiffre d’affaires) & profit should be high
• Saturation : sales begin to slow down as there may be a new or alternative product on the market
• Decline : sale decline, extension strategies can be adopted or the product withdrawn

1. Extending the product’s life

Manufactures use various ‘extension techniques’ to extend sales in the maturity stage :

• They lauch new adapted version of the products
• They offer different packaging
• They organise advertising campaigns
• They find new uses for the products
• They changes its image, so that it can appeal to (plaire à) other customers
• They make special offers, reduce prices or give free gifts
• They find new outlets (=point de vente) or new markets

Manufacture = fabricants

1. PRICE

1. The important of price

• It covers the cost of making the product and includes the company’s profit margin (=taux de marge)
• It encourages the customers to choose a certain product over another
• It varies according to competition, or to a rise (une augmentation) or a fall (une chute) in demand.

1. Pricing strategies (=politique tarifaire)

They are different princing stratégies :

• Penetration pricing (=prix de pénétration) : the price is low to enter the market and to obtain a large market share
• Skimming pricing (=prix d’écremage) : the price is hight because the product is new and has little competitors
• Psychological princing (=prix psychologique) : phsychological pricing method based on the belief that certain prices ranges are more appealing to buyers. This method involve setting a price in odd numbers (just under round even numbers) such as £4.95 instead of £50.00.
• Competitive princing (=prix selon la concurrence) : a similar price charged to that of competitors’ products.
• Loss leader (=prix d’appel) : products may be sold at a price lower than the cost to produce it. Often used by supermarkets to encourage people into the store where it is hoped they will buy other products
• Differential pricing (=différentiation des prix) : different prices are charged for the same product, i.e bus fares for children are cheaper than adult prices.
• Cost  plus princing (=prix fixes à partir des coûts) : an additionnal ‘mark-up’ (=une marge) is added to the cost of producing a product or a service.
• Strategic pricing : price is set to position an exclusive product or to make it more brand desirable for consumers, generate demand or demonstrate value.                    

1. PLACE

‘Place’ refers to how the product is distributed to customers

1. Three main channels of distribution

• Through wholesalers (=grossistes) and retailers (=détaillants)

A producer sell goods in bulk (=en gros) to a wholesaler who then sells and delivers the goods to a retailers in smaller quantities. In the end, the customer will buy the goods in the retailer’s store.

• Through regional distribution centres and supermarkets

Manufacturers and suppliers deliver their goods to a regional distribution centre (RDC), a large warehouse (=entrepôt) equipped with computers systems. The RDC supplies all the branches of a supermarket chain in a region, where customers do their purchases.

• Directly to consumers

Producers sell directly to customers : on the street markets, through mail-order catalogues (=catalogues de vente par correspondance), newspaper and magazine advertisements, and on the internet.

 Promotion

a-    Mass-market (grand public) advertising campaigns

Their goals are:

∙      To inform consumers about a new product

∙      To make people more aware of the brand

∙      To create or improve the company’s image/brand.

∙      To compete (rivaliser) or to cooperate with the other brands,

∙      To promote the philosophy of the company