IB Business Management B
October 7, 2019
Price is how much consumers pay for a product or service. It is an important part of how products are marketed because it affects consumer demand. The pricing of goods and services plays an important role in the success or failure of products and services.
With a partner, read through your assigned segment of Chapter 27 (Price) and attempt to make the content visible by drawing simple charts and illustrations on a large scroll of paper. Together, we will attempt to visualize the complexities of price.
October 2, 2019
Product Life Cycle
The life cycle of a product records the sales of that product over time. The stages of a product life cycle are: introduction, growth, maturity and decline.
The product is first launched. Sales are often low at first, but not always.
If effectively promoted and well-received by the market, sales should grow significantly.
At this stage sales stop growing but do not decline significantly.
Sales fall steadily.
Why Uber and Lyft Will Have A Short Lifespan
Create a visual timeline that traces the product life cycle of a product you know. Include the following elements.
Description of each phase of the life cycle
One image for each phase
A timeline showing duration of each phase
The arc of the product life
What preceded the product? What is likely to come next?
Due October 4
September 30, 2019
Branding can have a real influence on marketing. It can create a powerful image or perception in the minds of consumers- either positive or negative- and can give one firm's products a unique identity.
Choose a brand to research and compile the findings on a grid layout in Adobe Illustrator and print it for display. Show logos and branding or marketing materials and define the colors, font families and other graphic elements being used. Refer to the color emotion guide when creating your analysis to determine what the color of their brand is trying to convey emotionally.
Follow the assignment instructions here.
September 25, 2019
The Boston Matrix is a model which helps businesses analyse their portfolio of businesses and brands. The Boston Matrix is a popular tool used in marketing and business strategy.
Research one of the following brands so we can locate them on the Boston Matrix. To do so, find each company’s global market share % and market growth % (revenue).
Coca Cola, Pepsi-Co, Samsung, Huawei, Apple, Volkswagon Group, Toyota, Facebook, Pinterest,
Twitter, Chrome, Safari, Firefox.
Then, apply the Boston Matrix to a brand of your choice.
Research the product portfolio of one well-known business in the United States that sells a range of products. Determine the market share of the different products sold and the rate of growth of the market segment the products are sold in.
1. Analyze the firm's product portfolio using the Boston Matrix.
2. Evaluate two strategies the business could adopt for any of its products. Some ideas include building, holding, milking, divesting.
Due September 27
September 24, 2019
Chapter 26 Key Terms
Use the pdf to read through Chapter 26 of the textbook. Write the definitions of each of the key words on notecards with the word on one side and definition on the opposite side.
September 23, 2019
Chapter 25 Review
A market plan is a formal written document that puts forth how a business will achieve its objectives. Data from market research is used to determine market trends, gain the edge over competitors and accurately identify consumer wants.
Check what you know about the information presented in Chapter 25 of the textbook by answering the 15 questions. Refer to the pdf of the chapter as needed.
Due September 24
September 20, 2019
Porter's Five Forces provide a framework to analyze how industry is influenced by industry forces. The model can be used to establish a market advantage over rivals by understanding context and making strategic decisions.
In the context of the current climate crisis, there is growing pressure on business to address the issue. The response of businesses has the potential to influence the competitive rivalry in many industries.
How will your business respond? Add a slide to your visual presentation detailing how your business will respond to consumer concerns regarding the climate.
September 18, 2019
Marketing Mix Project
The marketing mix is made up of seven interrelated decisions regarding: product, price, promotion, place, people, process and physical evidence.
Create a visual presentation that delivers a coordinated marketing mix for one of the following products: shampoo, a bicycle, a pair of jeans, a car, a fast-food restaurant, a phone, or another teacher-approved product.
Your visual presentation should include the following:
a description of product
pricing and rationale
an original logo that promotes brand message
places product will sell
Due September 20
September 17, 2019
CASE STUDY EXAM PRACTICE
Read the case study below and answer the questions that follow.
Le Sportif is a health and sports club located in Paris. The club has performed well over the last two years but now faces competition from two clubs, Wellness and Glides which have just opened. Wellness has been particularly successful and has attracted a number of customers from Le Sportif.
The management of Le Sportif conducted some extensive marketing research to find out more information about their customers. They used a series of focus groups to find out about customers' views on Le Sportif and a questionaire to provide them with precise data about the way the customers used the club.
Le Sportif has responded positively to its market research by adopting the following strategies:
introducing a family membership scheme
introducing a range of family-based classes to encourage health and fitness
opening a coffee shop
The management of Le Sportif believe that this new customer-oriented approach, which targets health and fitness for the whole family, will give the club a unique selling point and will enable it to stand out from the competition.
1. Define the following terms:
a. market research
b. unique selling point
2. Explain the way focus groups could have been used to provide Le Sportif with market research information.
3. Using Porter's Five Forces model, analyze two forces that might have affected Le Sportif.
4. Evaluate the advantages and disadvantages of Le Sportif using market research to guides its new strategy of targeting the family market.
Due September 19
September 16, 2019
The Role of Marketing
If gaining and retaining customers are the main reason why businesses engage in production, then how businesses meet the needs and wants of potential customers is the role of marketing.
Marketing involves the advertising and selling of products. It involves identifying, anticipating, and satisfying consumers’ requirements profitably.
Business not only market tangibles in the form of products (cars, clothes, food) but also intangibles in the form of services (tourism, banking, insurance), places (countries, cities or tourist destinations), events (sports competitions, automobile and fashion shows), people (pop and film stars), experiences (Disney world, diving in the oceans), ideas (social messages about the dangers of drugs or alcohol), properties (residential or real estate), organizations (Oxfam, Museums) and information (university or school statistics for decision-making).
Management functions related to marketing:
MARKET SIZE, GROWTH AND SHARE
When the overall demand increases in a market, growth is said to be taking place. An increase in market sales is the best indicator that consumers are now demanding more from the producers. Market growth, however, does not mean that all companies are experiencing increased sales as this is spread across the entire market or concentrated in select companies.
The sales that a company reports at the end of the year do not reveal how well the company is doing relative to the competition. When a company wants to determine its position in the market place and against its competition, the overall share of the market that it commands is the best measure. This can be expressed as the company’s sales relative to the total sales made but all the companies in the market.
Market size can be measured in two ways:
volume of sales (units sold)
value of goods sold (revenue)
The pace of growth depends on several factors:
changes in consumer incomes
development of new markets
changes in consumer taste
technological change (innovative products can boost market sales)
whether the market is saturated
Market Share is the percentage of sales in the total market sold by one business.
Market share % is calculated by dividing a firm’s sales in time period by the total market sales in time period and then multiplying by 100.
Market share is often the most effective way to measure the relative success of one business’ marketing strategy against that of its competitors. The product with the highest market share is called the “brand leader.”
Benefits of brand leadership:
Sales are higher which can lead to higher profits
Retailers want to stock and promote best-selling brands. May be given most prominent position in shops
Often a discount rate offered to shops. Higher sales lead to higher profitability
Brand leadership can be used can be used in advertising which is often attractive to consumers who want to buy most popular brands.
Measuring market growth is often ambiguous because it can be measured in two ways, by volume and by value.
Market share is subject to certain qualifications:
A company’s market share is best judged against its closest rivals and not the entire market
A decline in market share may also mean that a new company has entered the market and therefore the company is not worse off than other companies
A drop in market share can be deliberate, if for example the business ceases to provide some clients with its business
Sales and seasonal changes can affect market share and cause fluctuations
CONSUMER MARKETS AND INDUSTRIAL MARKETS
Consumer markets represent goods and services bought by the final user of the product, whereas industrial markets are markets for goods and services bought by businesses to be used in the production process of other products.
Marketing Business to Business
When selling to other businesses, firms will direct resources to industrial exhibitions and selling direct to companies, often customizing their goods and services, and producing technical promotions.
Marketing Consumer Goods and Services
Managers responsible for selling consumer services have to consider factors such as: the immediate consumption of services, services cannot be taken back or replaced, the importance of a trained and friendly staff.
A business will seek to market its products on the basis of its strength. Therefore, the question that one must ask is whether a business will use its core competencies and thereby produce something that the market will potentially want, or alternatively conduct market based research and determine what it is that the consumer in the market desires.
Market Orientation and Product Orientation
The market orientated business focuses on the needs of buyers, which can be both reactive and proactive.
The product orientated approach is the more traditional approach of providing consumers with products of services of higher quality and affordability.
Asset Led Marketing
Companies such as Apple have technical engineers that brought us the Ipod and Ipad. Through what is referred to as the core competencies of the business, namely their labor expertise, capital-intensive investments and entrepreneurial sense of creativity they have been able to Produce products that we the consumers find appealing. Apple is therefore referred to as product or asset-led orientated business. Its assets that lead its productivity are primarily in the labor (human) and vision of Steve Jobs.
Marketing by the government or non-for-profit organizations that seeks to defray the negative externalities in society or promote the positive externalities is referred to as social marketing. Social marketing considers not only the demands of the consumer, but of the larger society.
MARKETING IN NON-PROFIT ORGANIZATIONS
At first, it might seem unusual for non-profits to be involved in marketing, but most have ver clear fund raising objectives. These organizations need money to support their cause and they need to do it in a cost effective way. There are many similarities between marketing consumer goods and charities. For example:
using market research
finding best ways to communicate with donors
assessing the effectiveness of different promotions and campaigns
A marketing plan is an essential component of any successful marketing plan. A successful marketing plan has to be planned. They key components include:
SMART marketing objectives
specific marketing actions
a marketing budget
the management task that links the business to the customer by identifying and meeting the needs of customers profitably- it does this by getting the right product at the right price to the right place at the right time
the total level of sales of all producers within a market
the percentage change in the total size of a market (volume or value) over a period of time
the percentage of sales in the total market sold by one business
markets for goods and services bought by the final user of them
markets for goods and services bought by businesses to be used in the production process of other products
an outward looking approach basing product decisions on consumer demand, as established by market research
an inward-looking approach that focuses on making products that can be made- or have been made for a long time- and then trying to sell them
an approach to marketing that bases strategy on the firm's existing strengths and assets instead of purely what the consumer wants
this approach considers not only the demands of consumers but also the effects on all members of the public ('society') involved in some way when firms meet these demands
a detailed report on an organization's marketing strategy
Due September 18
“"The future is already here—it's just not evenly distributed" -William Gibson