AJU BROEKMAN Marketing Seminar Friday 11-21-14

INSTRUCTOR:
JEREMY BROEKMAN
NOVEMBER 2014

• Seven functions of marketing
• Four foundations of marketing
• Goods and services / wants and needs
• The Four Ps / Marketing Mix
• Customer and consumer
• Market definitions
• SWOT Analysis + Internal and External Analyses.
• Market segmentation + Target marketing + Mass marketing
• Marketing concept and Selling/Henry Ford approach
• Demographics + psychographics + DNA + statistics
• Marketing plans + code books
• Branding 101 with real client work
Marketing Seminar Overview

Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, & society at large.
-- American Marketing Association
Marketing is the conversation between a company or brand
and a consumer that ultimately leads to brand recall, preference
or a transaction. In today’s socially networked world, that
conversation is being disintermediated by word of mouth referrals.
Traditional marketers will have to work harder to get ahead of and
to influence this trend.
-- Josh Glantz – Vice President and General Manager, PCH Online-Publishers Clearing House
(disintermediated = remove the middle man)
72 Definitions of Marketing - http://heidicohen.com/marketing-definition/

Marketing is the art and science of persuading a potential buyer of a product/
service to purchase from a company that’s responsible for creating a compelling
message and communicating that message through targeted channels with
enough reach and frequency to guide that potential buyer through the
purchase cycle of “attention, interest, desire, action.”
-- Paul Mosenson President, NuSpark Marketing
Marketing is an integrated, multi-channel (online and offline), customer-centric
process used to define, segment, reach, and convince potential clients to
purchase your product or service, followed by analyzing the metrics to refine
your strategy and repeat the process as needed to optimize the ROI (return
on investment).
-- Sharon Mostyn – Assistant Vice President, 1st Mariner Bankd

Seven Functions of Marketing
• Distribution Function
• Financing Function
• Product/Service Management
• Marketing Information Management
• Pricing Function
• Promotion Function
• Selling Function

Distribution Function
• Deciding where products are to be
sold and to whom
• Moving and storing goods from/to
customer

Financing Function
Getting the money necessary to
pay for the operation of a business.
How the customer will pay for the
product.
#1 Killer.

Product/Service Management Function
• Obtaining, developing, maintaining,
and improving a good or a service
over time.
• Goods and services have a life cycle,
and the phase of the life cycle is
important in product/service
management.
• A product is introduced, (hopefully) it
is in great demand, it matures and
maintains a steady market, and then
it declines.
• A marketing strategy will depend on
what phase of the life cycle in is in. Is it
a new product or has it been around
for years?

Product Market Life Cycle
Introductory Phase
Customers:
Unfamiliar with or unaware of product
category. Those who do buy likely to be
more experimentalist by nature. Sales low
Competition:
Likely to be low
Company priorities:
Encourage trial. Work with customers on
product development to improve aspects
such as packaging or documentation, or to
eliminate "teething troubles"

Growth Phase
Customers:
Growing in numbers. Segments
begin to appear. May be less price
sensitive as category benefits more
widely known
Competition:
Growing as new entrants appear.
Company priorities:
Build share by concentrating on
distribution, creating alliances
where appropriate to do this

Early Maturity
Customers:
Segmentation is now more
distinct and customer loyalty
established as repeat purchases
take place
Competition:
Intense as players attempt to
secure their share
Company priorities:
Differentiate to attract and
retain customers in specific
target segments

Late Maturity
Customers:
Knowledgeable, may demand low prices and
high service levels
Competition:
Intense due to lack of market growth and
difficulty of further differentiation. May be
price based
Company priorities:
Attempt to lengthen life cycle by innovation,
re-inventing product category before decline
stage

Decline
Customers:
Late adopters, i.e. first time buyers of DVDs
and CDs, catch-up consumers
Competition:
May come more from substitute products or
services than direct competition, eg plastic
instead of steel components; on line services
instead of libraries or hard copy journals
Company priorities:
Re-define market whilst milking profits in early
part of decline stage.

Marketing Information Management
• Marketing Research
• Links the consumer, customer, and
public to the marketer through
information
• Information used to identify and
define marketing opportunities and
problems;
• Generate, refine, and evaluate
marketing actions;
• Monitor marketing performance;
• Improve understanding of marketing
as a process.
• Method for collecting information,
analyze results, and communicate
findings and their implications.

Pricing Function
• Essential to success in marketing!
Satisfying the customer and making a
profit.
• While you can put any price you want
on a product, as a business you need
to determine what price will actually
bring the greatest profit.
1. Costs to produce the product
2. Demand of product
3. Availability of similar products
(competition)
4. What customers will be willing to pay

Promotional Function
• Promotions, Publicity, PR
• Persuading customers to buy
• Raising awareness
• Win-back campaigns from past
customers
• Retention of current customers
• Promotion ranges from multimillion-
dollar advertising campaigns to
communication between a
salesperson and a potential customer.
• Promotion = showing corporate
socially responsibility

Selling Function
Matching customer needs
and wants with goods and/or
services.
• MOST of today’s CEOs began careers:
selling.
• Selling provides customers with the
goods and services they want.
• Retail selling
• Business-to-business selling
• Takes place at all levels of business-
manufacturing, wholesale, middle,
retail.

Marketing Skills flow from these 4 areas
• Business, management, entrepreneurship
Understanding the basics of business that
can affect business decisions.
• Communication and interpersonal skills
Understanding how to work efficiently
with others. Team Player.
• Economics
Understanding economic principles that
are basic to marketing. Understand
$$$$$$ = everything
• Professional Development
Understanding concepts needed for
career exploration, development, and
growth.

Two approaches to selling goods/services
• The Henry Ford Approach
Henry Ford once said, "You can have
any color of car you want—as long as it
is black." Ford did not follow a customer-
oriented approach.
• The Marketing Concept Approach
A company's main goal is to satisfy the
needs and wants of customers while
also making a profit. According to this
approach, if you keep the customer
happy and coming back, the profits will
follow.

Needs vs Wants & Income
The basic difference between the terms
is that needs are things necessary for
survival, while wants are things that add
comfort and aesthetic pleasures to life.
Marketers want to know how much
money people have to spend on
products.
Two types of income measurement.
- Disposable income is the money left
after taxes are subtracted.
- Discretionary income is the money left
after basic living expenses have been
met.

Added Value and Five Economic Utilities
• Five economic utilities and their
connections to one another.
• Utility refers to add-on value.
• The functions of marketing add value
to a product.
• That is, we take something and
combine it with other features to
make it more valuable.
FORM
UTILITY
PLACE
UTILITY
TIME
UTILITY
POSSESSION
UTILITY
INFORMATION
UTILITY
FIVE
UTILITIES

Form Utility
• Form utility represents
the manufacturing of a
Better product
• Changing materials
• Putting parts
together faster
• Making products
more useful
• Not directly related
to marketing

Place Utility
• Place utility – Placing product
who need it can buy it and
NEED it.
• Having a product where
customers can buy it.
• Most convenient
• Most efficient
• Catalogs, retails stores,
internet

Time Utility
• Having a product available
at a certain time of year or
a convenient time of day.

Possession Utility
• The exchange of a
product for some
monetary value.
• Cash
• Credit/Debit Cards
• Checks
• Layaway

Information Utility
• Information utility – Involves getting
the information about the product to
the consumer in a timely fashion
strategically.
• Communication with the consumer
• Salespeople
• Displays
• Packaging and Labeling
• Advertising

The 4 P’s - Original
• PRODUCT
Goods – Services - Features - Advantages –
Benefits - Packaging – Branding -
Installation – Warranty – Accessories
• PRICE
Flexibility - Over Life Cycle – GeoSocial –
Discounts - Allowances
• PLACE
Channel Types - Market Exposure -
Locations of stores – Transporting -
Managing Channels - Brick N
Mortar/Online
• PROMOTION
Promotion-Sales-Advertising-Publicity

Now The 7P’s
• PRODUCT
Focus on solution. Define offerings by need met.
• PRICE
Focus on value. Price vs. Benefit.
• PLACE
Focus on access. Purchase touch-points/journey.
• PROMOTION
Focus on education. Provide relevant 411.
• PEOPLE
• PROCES
• PHYSICAL ENVIRONMENT

Apple Case Study
Macro environment
• Social factors:
• Social trends which change over time
• New versions of products to keep up with trends and
technological changes in opinions
• iPhone 3G, 3GS, 4, 4S, 5, 5C, 5S, 6, 6 Plus
• Values, ideas, attitudes and beliefs in which consumers have in
regards to these products
• Technological factors:
! New innovations and ideas to create new products
! New technologies and introductions of products entice the
consumer to buy the product
! Can create negative sides for business
" Too hard to keep up with new technology
" New products being released straight after each other
and not making a substantial profit
" MacBook Pro, iPhone, iPod and iPad changed the way
the world looked at technology
" Revolutionised how the phone is used
" Portable technology – on the go
• Economic factors:
! Consumer purchasing power and spending patterns
" Income and wealth
" Money available to spend
! Economic factors of Apple revenue in 2008 were less
compared to those in 2009
! Revenue growth in 2009 increased by 10%
! iPhone and iPod sales increased, however, computer sales
decreased by 8%
• Political factors:
! Laws and polices that limit the company to work effectively and
produce products that go beyond technology and laws
! The governments perspective of what can be sold and bought
within a certain country determines the availability and supply
and demand of Apple products
• Legal factors:
• Piracy with music, movies, and app downloads
• Apple ensures that it’s database offers completely legal
services in which are paid for by it’s users
• Apple works with BSA and SIIA to combat worldwide
software piracy
• Must ensure that all products are protected by copyright laws
• All Apple Products do not cause copyright infringements
• Similar products to other competitors
• Operating software is similar
Operating environment
• Customers:
• Trialling products and providing feedback on products
• Customer satisfaction surveys may be used for feedback
• Help in determining what products are being successful and
what products are not
• Enable Apple to see which direction the company should go in
when introducing new/developed products
• Suppliers:
• Crucial when Apple is determining their pricing and profit
margins
• Ensuring that all parts are working properly and are not faulty
• Apple ensures that their workers undertake full training
• Suppliers must treat workers fairly and ethically at all times
• 349 suppliers in China
• 139 suppliers in Japan
• 60 suppliers in USA
• Competitors:
• Competitors influence the pricing of products, and the services
in which the product, or Apple as a whole provides
• Competitive pricing ensures that there is a market for the
product
• iPhone vs. Samsung Galaxy
• iPad vs. Samsung Galaxy Tab
• iMac/MacBook vs. Microsoft computers
• OS X Mavericks/Yosemite v. Windows
• By having competitors in the market, this ensures that Apple
would be able to continue to strive to do better and be better
• Interest groups:
• Help with new products and with market research
• The testing of products before they go on the market
• Checking if there are any glitches in the interface
• Whether or not the system runs smoothly
• The product is user friendly for the specified audience
Macro and Operating Environment

Apple Case Study
iPhone 6
The target market for the iPhone 6 is primarily high income earners, businessmen, and teenagers. Concentrated
segmentation is where Apple produces their products in limited numbers at higher prices. When the iPhone 6 was
released, consumers were lined up over 24 hours before the phone went on sale to ensure that they received one.
In one store, there were thousands of people lined up, however, there were only 40 iPhone 6s available to purchase.
This shows how exclusive the product is, and how Apple aims to produce products that are of high expense, but
good quality.
High Income earners (High society):
• As the phone’s base price to purchase outright is $900, the phone is quite expensive, and those on low income will not be able
to afford it
• Those ‘rich’ and who keep up with the trend buy the new iPhone each time it comes out, just to keep up and to show that
they have the newest technology available
Businessmen:
• Being the newest technology available, most businessmen and women buy the iPhone due to it’ s versatility and new features
• Health app
• Tips app
• Helps first time iPhone owners get started
• Podcast app
• Passbook
• Keynote
• Synchronizes documents and data from each Apple device
• iCloud
• Helps in organizing meetings and enables the customer to synchr onize numerous devices together to be able to
communicate and update each device with ease
Teenagers
• Teenagers usually want the most up to date technology, therefore, they are a huge target audience for the new iPhone 6
• Demographics
• 31% of iPhone users are aged between 35 and 49
• 27% are aged between 25 and 34
• 20% are aged between 18 and 24s
• 46% of iPod users are aged between 13 and 17
• This shows that more children and teenagers are
using iPods as they may not be allowed to use
phones yet
• 47% of iPhone users have a household income of over
$100k
• This shows that Apple customers are high income
earners as Apple products are expensive
• Music enthusiasts
• Media and design professionals as the software available
on Apple devices is highly revered by many
• Stigmas developed in the 90s about incompatibility with
Macs is a huge reason why there used to be less Mac
users as opposed to PC users
• Apple’s market share and success is predict to boom
over the next 10 years as those gen X and Y who have
developed those stigmas, establish that those problems
do not exist anymore
• Apple does not target any specific gender or family size,
however, there are apps within Apple’s database in which
are gender specific
• Geographic
• Apple’s largest market is the Chinese
• In China, many become attached to luxury goods and
‘worship’ them in means in which they must have those
products
• The USA and Malaysia are the cheapest places to
purchase Apple products
• Apple is a global company, however there are numerous
countries that are targeted as Apple has a high market
share in them:
• USA
• UK
• France
• Canada
• Germany
• Australia
• Japan
• Italy
• China
• Behavioural
• Those who have purchase an Apple product are almost
certain to stick with purchasing Apple products. This is die
to growing familiar with the interface which is similar
throughout all Apple products
• Apple has come to find that Apple users do not just see
an iPhone or a Mac as a phone or a computer, but a
representation of their life and a part of them
• Apple only does market research on their own existing
customers so they can see what they can improve, not
what other non-Apple customers want
Dimensions

Apple Case Study
Marketing Mix
•Product
•Price
•Place
•Promotion

Apple Case Study
Product
! Apple provides both goods and services
• The main products include phones, tablets and computers
• Services include:
• Garage Band
• Keynote
• iCloud
• These services work in conjunction with all Apple pr oducts
• Apple also provides support services in most Apple stores
which are called ‘Genius Bars’ and they are for help with
Apple products and maintenance work
! Apple provides both consumer and business products
! Most products that Apple sells are usually direct to the
public
! Apple has business deals with schools and other
businesses in which they supply products and software
Product Mix
! Breadth:
• Mac
• iPod
• iPad
• iPhone
• Apple TV
• Software's
! Line:
• iMac
• MacBook/Pro/Air
• iPad/2/3/Air/Mini
• iPod/Classic/Shufﬂe/Nano/Touch
• iPhone 3G/3GS/4/4S/5/5C/5S/6/6 Plus
• iOS
• OS X
• iWork
! Depth:
! iOS 2.0/3.0/4/5/6/7/8
! OS X Leopard/Snow Leopard/Lion/Mountain Lion/
Mavericks/Yosemite
! iPhone 8gb/16gb/32gb/64gb/128gb
! iPod 8gb/16gb/32gb/64gb
! iPad 8gb/16gb/32gb
! MacBook with Retina Display
Product Life Cycle
• With the introduction of the new iPhone, all other iPhones
will be on the decline, perhaps not the most recent on
prior to the iPhone 6, which is the 5C and the 5S
• The iPhone 5C and 5S may be nearing maturity as they
both have only bee out for a year, and the iPhone 5S is
still similar to the iPhone 6, so may be still in the gr owth
stage of it’s life cycle
• As for other products, as new versions of the same
product are released, the older versions either reach
maturity or decline

Apple Case Study
Place
• Apples products go from the manufacturer, to the wholesaler and then finally to the retailer which is either an Apple
Store, a certified retailer such as JB Hifi, Harvey Norman, Dick Smiths etc. and online retailers such as Ebay, Kogan
and Amazon. Apples products are sold direct to the customer at retail price.
• Apple headquarters is located in California (1 Infinite Loop, Cupertino, CA), and there are hundreds of stores located
globally. There are over 349 Apple retailers located in China, as the Chinese are Apples largest market. More Apple
stores are located in those cities and countries that show a larger market with more and more expensive purchases.
• Apple stores and certified retailers are usually located in shopping centers near more upmarket retailers. Apple
shops themselves are usually located in a city's central business district as there is more foot traffic heading in that
direction and most people work closer to the city or in the city. Being aimed to target those with higher income,
apart from being located in the CBDs of cities, Apple retailers are located in upmarket areas of cities and built-up
areas.
• Apple products are marketed using selective distribution, as more products are distributed to retailers where there is
a higher demand for Apple products, whereas a lesser amount is distributed to retailers where there is lesser or no
demand for those products
• At Highpoint shopping center, Apple is located near other electronic retailers such as Samsung which is one of their
main competitors with the Samsung galaxy.
• Being placed near or next to their competitors enables there to be constant foot traffic flowing from all competitors,
which may lead to new customers.
• Apple is a retailer and an online retailer as they sell their products from their stores and sell products online.

Apple Case Study
Promotion
• Apple promotes their products primarily through
television advertisements, online ads, and on billboards
• Most Apple products are advertised through numerous
different ads. They aim to make an ad that appeals to
most segments of the market. Their ads promote
different aspects of their products, just like these iPhone
ads. They pick out certain parts of the iPhone that can
really help sell the phone, and then make a fun ad on it.
• iPod packaging stays consistent as the iPods mature
and develop. Apple releases the iPods in clear
packaging which shows the consumer what the iPod
looks like and what they are purchasing.
• Apple packaging is very sleek and modern, and
promotes their products well because Apple products
are very upmarket and expensive.
• The packaging shows off the product and promotes a
higher level of technology
• Apple also have their products set up in their stores for
customers to trial and see how their products work
before they make up their minds in buy the product.
• Although Apple do not have ‘sales’ they have some
offers throughout the year, or when it comes to the end
of the ﬁnancial year

Marketing, Business & Strategic Plan

SWOT Analysis
To succeed in business, one must plan.
A well thought-out marketing plan is at
the base of a successful business, and it
begins with a self-analysis.
SWOT Analysis is key.
• Strengths
• Weaknesses
• Opportunities
• Threats
• March 1, 1998

SWOT Analysis
• Internal analysis - company, customers,
and competition.
• Company - mission, history, finances, production,
marketing strategies (market mix), employees/staff,
equipment, and facilities.
• Customer analysis includes research on the buying
habits, interests, satisfaction, wants, and needs of the
target market. Demographics, geographics,
psychographics, behavioral, socio-cultural influences,
market segmentation, or target marketing.
• Competitive analysis = determine how the company
compares / market share.
• External analysis — factors that can/do
impact business.
• Strengths and weaknesses of both direct and indirect
competition.
• Market share, company positioning, reputation,
products, and distribution.

Environmental Scan
Methodological look at the world that
typically includes four areas:
• Political,
• Economic,
• Socio-cultural, and
• Technological.

The Marketing Plan
A marketing plan is a formal document
that outlines the goals, objectives, and
strategies of a company.
A marketing plan considers three
questions:
• Is there a need for the product?
• Can we market and distribute the
product?
• What outside influences are going to
affect marketing and distribution of the
product?

Defining Strategy / What’s the plan?
1. Strategic
Marketing
Objectives
2. Focus
3. Customer Targets
4. Competitor
Analysis
5. Differential
Advantage
6. Marketing mix
7. Implementation
8. Monitoring
market performance

E-commerce vs Donor & Membership

Marketing Segmentation
Separate customers and/or consumers
into smaller buying groups.
• Customer = purchases a good or a service,
• Consumer = uses a good or service
• Sometimes may be same person
Four Ways to do market segmentation:
1. Demographics - race, ethnic background,
age, gender, marital status, income
2. Geographics - where people live.
3. Psychographics - people's lifestyles and
shared attitudes, values, and opinions.
4. Behavioral - product-related behaviors,
consumer shopping patterns (as consumers
often identify themselves by the brands and
products they purchase) and usage rates.

Marketing Research
Separate customers and/or consumers
into smaller buying groups.
• Customer = purchases a good or a service,
• Consumer = uses a good or service
• Sometimes may be same person
Four Ways to do market segmentation:
1. Demographics - race, ethnic background,
age, gender, marital status, income
2. Geographics - where people live.
3. Psychographics - people's lifestyles and
shared attitudes, values, and opinions.
4. Behavioral - product-related behaviors,
consumer shopping patterns (as consumers
often identify themselves by the brands and
products they purchase) and usage rates.

OBJECTIVE:
• Form own company in groups of three (3)
• Teamwork/collaboration project
DELIVERABLES:
1. Company Logo and advertising tagline
2. Mission Statement
3. 1-page SWOT Analysis of your product / brand
4. 1-Page Marketing Plan for launching company
Class Assignment: Form own company

break
LUNCH
Be back by 12:55pm

AJU BROEKMAN Marketing Seminar Friday 11-21-14

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AJU BROEKMAN Marketing Seminar Friday 11-21-14

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