The Market

Market

The Four P’s of Marketing

  1. Product – packaging, development, warranty
  2. Price – strategies
  3. Promotion – advertising, sales promotion, personal setting, publicity, public relations
  4. Place distribution – getting your product from producer to consumer, channel of distribution

 

The Marketing Process

 

What is Marketing?

Marketing is the process of discovering what consumers want & need and then providing them with products/services that meet or exceed their expectations.

 

Consumer Buying Motives

Neccessity – Some products and services are acquired because we need them to survive. Food and water are certainly necessities.

 

Safety or Security – There are many examples of goods and services we buy for safety or security reasons. A parent of a baby will buy a car seat for the infant to protect that child in case of a car crash. Hockey players of all ages acquire helmets to protect themselves from serious injury. A business owner in a high crime neighbourhood is motivated to buy an alarm system for security.

 

Financial gain – Many consumers to spend money make more money. A person who buys stocks collects valuable coins, starts a business, or buys a condominium only to rent it out is motivated by financial gain. This motive applies to businesses, too. Then one company buys another company, both the company burying in the company selling are motivated by an expected future financial gain.

 

Pricing Strategies

 

Psychological pricing: Setting the price to appear cheaper than it actually is ($9.99)

 

Markup Pricing (cost plus): finding the cost, then adding a percentage increase

 

Breakeven pricing: setting your price in order to sell a specific quantity

 

Going Rate Pricing (competitive): Comparing your price to your competition

 

Loss Leader: Selling a product at or below cost in order to bring people into the store

 

Skimming and penetrating pricing: Skimming is setting a high initial price to maximize profits.

Penetrating is setting a low initial price to gain customers.

 

Discount Pricing (predatory): setting your price to eliminate competition

 

 

Canadian Tire Corporation: Developing an Effective Marketing Mix

Canadian Tire provides a good example of a company which has developed an effective marketing mix. From modest beginnings in Ontario, Canadian Tire has become a household name in virtually every part of Canada. Thousands of Canadians make the local Canadian Tire store major port of call whenever they need automotive parts, leisure products, household maintenance products, or housewares.

 

Dean Muncaster, president of the company, says” Our merchandise mix and marketing policies are notably melded to provide the products people want or need to buy, and at a price they want to pay, almost regardless of the economic outlook.: Muncaster makes this statement with confidence because the firm has carefully developed a strategy that fits the needs of the consumer. Consider how Canadian Tire has dealt with the four elements of the marketing mix. First they selected a limited assortment of products in four areas of long term consumer need. Second, they deliberately chose a pricing policy that would produce a “more for the money” image. Third, stores have been distributed across the country in market areas of significant size, convenient to customers with automobiles. Fourth, promotion is handled by experts at headquarters and made available in each market area through the stores as well as in national advertising media. It informs the customers of the firm’s offerings and reinforces the Canadian Tire image.

The combination of these variables constitutes the marketing mix for Canadian Tire. The effectiveness of the total marketing plan that is developed determines the long-term outlook for this company as it does for other companies and individual products.

Continued and growing acceptance illustrates that Canadian Tire has been successful in creating an organization and an assortment of products that possess significant utility for their customers.

 

AIDA Formula

 

A – Attention

I – Interest

D – Desire

A – Action

 

Types of Advertising

 

Market Research Terms

 

Distribution

 

Six elements in the distribution process

 

Bases for Market Segmentation

 

The Three Objectives of Advertising

 

Unethical Techniques