Description
Due date: Week 6
Group/individual: Individual
Word count / Time provided:2500 words
Weighting: 30%
Subject Learning OutcomesLO1, LO2 , LO3 and LO4
Task Description
Purpose:
The assignment is served as two purposes: a) to assess students’ knowledge about contemporary issue of marketing and b) act as a diagnostic test of the students’ writing and referencing skills. This contributes to learning outcomes a, b ande.
Assessment topic:
“Some companies are accused of shortening the life cycle of their product and deliberately making their product obsolete to push consumers to buy or adopt their new product. This practice is known as planned obsolescence”. Discuss
Task Details:
The students are required to respond to the statement above and write the responses in
an essay format.
Marks out of 30 will be awarded based on how well the following criteria is addressed:
Criteria
Mark allocation Appropriate Respons 20
Organisation of the essay 20
Mechanical (spelling, grammar, punctuation) 20
Citation : the use of in-text citation in the body of the essay 20
References (minimum 8 references) 20
Total 100
Scale down to 30 marks
Submission Details:
o You need to state the word count of the assessment on the cover page.
o The response should be professionally presented in Arial 10pt or Times New Roman 12pt, single space. Harvard style referencing.
o Softcopy to be uploaded Turnitin via Moodle
Unformatted Attachment Preview
Level 10 & 11
233 Castlereagh Street
Sydney
NSW 2000
AUSTRALIA
ASSESSMENTS BRIEF MKT002
Assignment 1 – Forum Disucssion Portfolio
Due date:
Group/individual:
Word count / Time provided:
Weighting:
Subject Learning Outcomes:
Week 3, 5, 7 and 9
Individual
300 – 400 words/post
20% (5% each)
LO1, LO2, LO3 and LO4
Task Description
You task is to choose response to each task below and post the answer in the forum discussion of
the associated week.
Week 3 :
Describe how you go about putting together a new product development strategy for a luxury sports
car. Include all steps and provide supporting justification. Also, identify the target market for your
product. (300 – 400 words)
Week 5:
Describe your plan to do a concept testing research for a new robotic vacuum cleaner. Include all
steps and provide supporting justification. Also, identify who are the respondents for this concept
testing (300 – 400 words)
Week 7
Identify and recommend some possible new products Hershey Chocolate Company could offer to
make themselves more successful in the market. Justify your answer. Also, identify the target market
they will aim at (300 – 400 words).
Week 9:
Hungry Jack introduce new range of healthy burger and named them “A not so hungry Bare Jack” – this
is a burger without a bun targeted for those who are on a carb diet. Develop a launching strategy for this
new burger and Justify your answer (300 – 400 words)
The respond should be presented in forum discussion of associated week in 300 – 400 words
Page 1 of 7
Trimester 3, 2023
MKT002 Marketing New Products
Assessment Criteria
Criteria
Mark allocation
40
40
20
100
5 marks.
Appropriate Response
Organisation of the report
Mechanical (spelling, grammar, punctuation)
Total
Scale down to
Rubric Assessment 1 – Forum Portfolio
Criteria
Fail
Pass
Credit
Distinction
Appropriate
Response (30
mark)
The
response to
the essay
topic and
the main
ideas are
not clear.
There is one
argument to
the topic,
however the
main ideas are
somewhat
unclear.
There is more
than one
argument to
the topic and
the main ideas
are
Organisation
of the report
(30 mark)
There is not
clear
introduction
to the topic,
discussion
or
conclusion
Mechanical :
spelling,
grammar &
punctuation
(20 marks)
The report
illegible due
to very poor
grammar,
spelling and
punctuation
errors
The
introduction
addresses the
topic of the
report, the
discussion and
the conclusion
are aligned
with topic but
very limited
detail is
provided.
Sentences are
reasonably
constructed.
However,
there are
significant
errors in
grammar,
mechanics
and/or spelling
that interfere
with
understanding
The
introduction
addresses the
topic of the
report, the
discussion
and the
conclusion
are aligned
with topic and
good
details are
Most
sentences are
well
constructed,
but they have
similar
structure.
There are
several errors
in grammar,
mechanics
and/or spelling
There are
more than one
clear wellcrafted
arguments but
are not well
supported by
detailed
information.
The
introduction
addresses the
topic of the
report, the
discussion and
the conclusion
are aligned
with topic and
comprehensiv
e details are
provided
Most
sentences are
well
constructed
and have
varied
structure and
length. There
are few errors
in grammar,
mechanics
and/or spelling
but they do not
interfere with
understanding
High
Distinction
There are
more than one
clear wellcrafted
arguments,
main ideas are
clear and are
well supported
by.
The
introduction is
inviting, the
main topic is
clearly state,
the discussion
and conclusion
are strong with
excellent
details
All sentences
are wellconstructed
and have
varied
structure and
length. The
author makes
no errors in
grammar,
mechanics
and/or spelling
Page 2 of 7
Trimester 3, 2023
MKT002 Marketing New Products
Assignment 2 – Essay
Due date:
Group/individual:
Word count / Time provided:
Weighting:
Subject Learning Outcomes:
Week 6
Individual
2500 words
30%
LO1, LO2 , LO3 and LO4
Task Description
Purpose: The assignment is served as two purposes: a) to assess students’ knowledge about
contemporary issue of marketing and b) act as a diagnostic test of the students’ writing and
referencing skills. This contributes to learning outcomes a, b and e.
Assessment topic:
“Some companies are accused of shortening the life cycle of their product and deliberately making their
product obsolete to push consumers to buy or adopt their new product. This practice is known as
planned obsolescence”. Discuss
Task Details: The students are required to respond to the statement above and write the responses in
an essay format.
Marks out of 30 will be awarded based on how well the following criteria is addressed:
Criteria
Appropriate Response
Organisation of the essay
Mechanical (spelling, grammar, punctuation)
Citation : the use of in-text citation in the body of the essay
References (minimum 8 references)
Total
Scale down to
Mark allocation
20
20
20
20
20
100
30 marks.
Submission Details:
o You need to state the word count of the assessment on the cover page.
o The response should be professionally presented in Arial 10pt or Times New Roman 12pt,
single space. Harvard style referencing.
o Softcopy to be uploaded Turnitin via Moodle
Page 3 of 7
Trimester 3, 2023
MKT002 Marketing New Products
Marking Rubric Assessment 2: Essay – 30%
Criteria
Appropriate
Response (20
marks
Organisation of the
essay (20 marks)
Mechanical:
Spelling, Grammar
& Punctuation
(20 marks)
Citation: the use of
in-text citation in the
body of assignment
(20 marks)
Trimester 3, 2023
Fail
(0 –
49%)
Pas
s (50
64%)
Credit (65
– 74%)
High
Distin
ction
(85 –
100%
)
The response There is one
There is more
There are
There are
to the essay
argument to
than one
more than
more than
topic and the the topic,
argument to the one clear
one clear
main ideas
however the
topic and the
well-crafted well-crafted
are not clear. main ideas are main ideas are arguments but arguments,
somewhat
clear.
are not well main ideas
unclear.
supported by are clear and
detailed
are
information. well
supported
by
detailed
informatio
n.
There is not
The
The introduction The
The
clear
introduction
addresses the introduction introduction
introduction
addresses the topic of the
addresses the is inviting,
to the topic,
topic of the
essay, the
topic of the
the main
discussion or essay, the
discussion and essay, the
topic is
conclusion
discussion and the conclusion discussion
clearly state,
the conclusion are aligned with and the
the
are aligned
topic and good conclusion are discussion
with topic but details are
aligned with and
very limited
provided.
topic and
conclusion
detail is
comprehensiv are strong
provided.
e details are with excellent
provided.
details
The essay
Sentences are Most sentences Most
All
illegible due to reasonably
are well
sentences are sentences
very poor
constructed.
constructed, but well
are wellgrammar,
However,
they have similar constructed, constructed
spelling and
there are
structure. There and have
and have
punctuation
significant
are several
varied
varied
errors
errors in
errors in
structure and structure
grammar,
grammar,
length. There and length.
mechanics
mechanics
are few errors The author
and/or spelling and/or spelling in grammar, makes no
that interfere that interfere
mechanics
errors in
with
with
and/or spelling grammar,
understanding understanding but they do
mechanics
not interfere and/or
with
spelling
understanding
The essay has The essay
The essay has a The essay
The essay
no in- text has fewer
least eight in-text has at least has at least
citations
than eight in- citation with
eight in-text eight in-text
(please note, text citation
significant
citation with citation
this results in a
formatting errors minor
formatted
Page
4 of 7
fail
of
formatting
correctly
MKT002 Marketing New Products
Distin
ction
(75 –
84%)
assessment)
errors.
References:
The essay has The essay has The essay has at The essay has The essay
submission of at least less than eight at least eight least eight
at least eight has at least 8
8 references
references
references with references with references
references
major
few formatting with minor
formatted
formatting
errors
formatting
correctly
(20 marks)
errors.
errors
Total marks out of 100
Page 5 of 7
Trimester 3, 2023
MKT002 Marketing New Products
Assignment 3 – New Product Marketing Plan
Due date:
Group/individual:
Word count / Time provided:
Weighting:
Unit Learning Outcomes:
Week 10
Group (3 to 4 students)
3500 words
30%
LO1, LO2, LO3, LO4
Task Description
The groups are expected to act as team from marketing agency located in Sydney and they have been
asked by the client to help them with a new product idea for their company. The group don’t need to
build or make the product, but rather come up with an idea which suits your target market and describe
it. The group must use the 7 Steps for A New Product Development Process. The group should also
explain how the group went through the steps, and what was considered and decided in each step.
The group should also present their idea in a 10 minutes presentation. Prepare a PPT slides
with voice over and submit the file along with the report.
The client list is as follow (choose one client ONLY and the students need to consult with their tutors
before finalizing their choice).
1. Frank Green : https://www.frankgreen.com.au
2. TDE daily edited : https://www.thedailyedited.com/
3. Luna Park : https://www.lunapark.com.au/
The students are required to include the following information in the proposal.
Executive Summary
Table of Content
1. A brief business background: including the location, the industry, and the market it operates and
the brief description of current products.
2. Situational Analysis: analysis of macro and microenvironments of the client and generate
SWOT Analysis
3. Proposed New Product – explain how the process of this proposed product development is
3.1 Name of the new product
3.2 Product development process
3.2.1 Idea generation
3.2.2 Idea screening
3.2.3 Concept Development
3.2.4 Business Analysis
3.2.5 Product Development (Prototype)
3.2.6 Market Testing
3.2.7 Commercialisation
4. Target Market for this new proposed product: develop customer profile based on four
segmentation basis (demographics, geographics, psychographics and behaviour)
Page 6 of 7
Trimester 3, 2023
MKT002 Marketing New Products
References
Include at least 8 academic references with corresponding full references in your List of References.
For the presentation, the students should prepare power point presentation for 10 minutes duration
consist :
1. SWOT Analysis
2. Proposed New Product
3. Process of new product development
4. Target market for this new proposed product
Assessment Criteria
Criteria
Situational Analusis – SWOT Analysis
Proposed new product and the process of new product development
process
Target Marketing
Written communication including references
Total
Scale down to
Mark allocation
30
40
20
10
100
30 marks.
Rubric A3 – New Product Marketing Plan
Criteria
Situational
environment
analysis
(30 marks)
Proposed
new
product
and the
process
of new
product
developm
ent
(40
marks)
Fail
(0 –
49%)
High
Distinctio
n (85 –
100%)
Demonstrated
Demonstrated
Demonstrated Demonstrated Demonstrated
limited coverage average
above average good coverage excellent
of marketing
coverage of
coverage of
of marketing
coverage of
environmental
marketing
marketing
environmental marketing
analysis
environmental
environmental analysis with
environmental
analysis with
analysis with most aspects
analysis with all
only few aspects some aspects are analysed
aspects are
are analysed
are analysed
analysed
Poor attempt at
Just adequate
Good attempt Convincing
Superior
describing the new attempt at
at describing attempt at
attempt at
product and no
describing the
the new
describing the describing the
discussion on the new product and product and
new product
new product
7 steps of product limited
good
and convincing and existing
development
discussion on the discussion on discussion on discussion on
7 steps of
the 7 steps of the 7 steps of the 7 steps of
product
product
product
product
development
development development
development
Pass (50 –
64%)
Credit
(65 –
74%)
Distinct
ion (75
– 84%)
Page 7 of 7
Trimester 3, 2023
MKT002 Marketing New Products
Target
Market
(20
marks)
Limited description Sufficient
Adequate
Good
Excellent
on recommended description on
description on description on description on
target market by recommended recommended recommended recommended
using segmenting target market by target market target market by target market by
variables and do using
by using
using
using
not specify any
segmenting
segmenting
segmenting
segmenting
recommended
variables and do variables and variables and do variables and do
target market.
not specify any do not specify not specify any not specify any
recommended any
recommended recommended
target market.
recommended target market. target market.
target market.
Written
Poorly organised, Basic structure Basic
Very good,
Superior
communication lacks cohesion,
followed,
structure
coherent
report
: Quality of
hard to navigate cohesion &
elaborated
report – wellstructure &
Executive
and understand, navigability just upon, mostly structured,
visual
Summary;
frequent spelling adequate, clarity coherent,
navigable,
presentation,
Organization
and grammatical is developing,
writing
is clear and
seam- less,
(structure, use errors, absence of adequate
mostly
relevant, easy always clear
of links, ease pertinent visuals spelling &
relevant
& to read, very
& accurate,
of navigation,
grammar with
clear,
good spelling
highly
coherence),
occasional
satisfactory
and grammar, articulate,
writing style
errors, some
spel-ling
& pertinent
impeccable
(clarity,
pertinent visuals grammar,
visuals well
spelling
&
readability,
pertinent
explained
gram- mar, a
consistent),
visuals
pleasure to
spelling and
referred to
read/review
grammar,
visuals (10
marks)
Total Mark out
of 100
Page 8 of 7
Trimester 3, 2023
MKT002 Marketing New Products
Assignment 4 – Pitch Presentation
Due date:
Group/individual:
Word count / Time provided:
Weighting:
Unit Learning Outcomes:
Week 12
Group – the same group as in A3
15 minutes
20%
LO3
Task Description
The students are expected to present their new product marketing plan as pitch
presentation.
Assessment Criteria
Criteria
Mark allocation
20
30
20
20
10
100
20 marks.
Presentation Structure
Accuracy of information
Communication and presentation skills
Visual aids and presentation slides format
Presentation duration
Total
Scale down to
A4 – Presentation Pitch
Crit
eria
Presentation
structure
(20 marks)
Accuracy of
the
information
presented
(30 marks)
High
Distinctio
n (85 –
100%)
Not all the
All required
All required
All required
All required
required
elements are
elements are elements are
elements are
elements are
presented,
presented.
presented. The presented. The
presented. The however, the
The sequence sequence of the sequence of the
structure and
sequence of the of the
information is
information is
sequence of
information is
information is easy to follow,
easy to follow,
information is
hard to follow
easy to follow, good details are excellent details
hard to follow
however,
provided.
are provided.
limited details
are
provided.
The information The information The
The information The information
provided in each provided in each information
provided in each provided in each
required element required element provided in
required element required element
are inaccurate
are accurate,
each required are accurate and are accurate and
and do not align however, it does element are
it is aligned with it is aligned with
with the
not align with the accurate and it the proposal, and the proposal, and
proposal.
proposal.
is aligned with good details are excellent details
the proposal, provided
are provided
however,
limited details
are provided
Page 9 of 7
Trimester 3, 2023
Fail
(0 – 49%)
Pass
(50 –
64%)
Credit
(65 –
74%)
MKT002 Marketing New Products
Distinct
ion (75
– 84%)
Communica
tion and
Presentatio
n skills
(20 marks)
Visual aids
and
presentation
slides format
(20 marks)
Presentation
duration
(10 marks)
Inaudible and
Mostly audible
spoken too
and reasonably
quickly or too
well-paced
slowly and many speech, some
unnecessary
unnecessary
pauses.
pausing
Consistently
audible an
clear voice,
well- paced
speech and
some good
use of pausing
No or lack of
visual aids,
presentation
slides are poorly
formatted.
Basic use of
Mostly good
visual aids,
use of visual
presentation
aids,
slides are
presentation
readable but
slides are
need
appropriately
improvement.
formatted.
Presentation is Presentation is
Presentation
longer than 15
longer than 15
is on time (5
minutes and only minutes and only minutes) and
able to present 2 able to present 3 all the
out of 4 required out of the 4
required
information.
required
information
information.
are presented
with limited
details.
Interesting and An excellent
effective delivery, delivery, wellwell-paced and paced and
good use of
effective. Speaker
voice (tone and is entertaining
diction) and
and stimulating,
pausing
confident and in
throughout
control.
Very good use of Outstanding use
visual aids,
of visual aids,
presentation
presentation
slides are
slides are
effectively
professionally
formatted.
formatted.
Presentation is
on time (15
minutes) and all
the required
information are
presented with
reasonable
details.
Presentation is on
time (15 minutes)
and all the
required
information are
presented with
excellent details.
Total marks
out of 100
Trimester 3, 2023
MKT002 Marketing New Products
Page 10 of
7
Trimester 3, 2023
MKT002 Marketing New Products
Page 11 of
7
1
DEFINING MARKETING FOR THE NEW REALITIES
THE VALUE OF MARKETING
• Financial success often depends on marketing ability.
• Successful marketing builds demand for products and services, which, in turn, creates jobs.
• Marketing builds strong brands and a loyal customer base, intangible assets that contribute heavily to the value of a firm.
• In an Internet-fueled environment where consumers, competition, technology, and economic forces change rapidly and consequences
quickly multiply, marketers must choose features, prices, and markets and decide how much to spend on advertising, sales, and online and
mobile marketing.
Meanwhile, the economic downturn that began globally in 2008 and the slow recovery since, have brought budget cuts and intense
pressure to make every marketing dollar count.
• There is little margin for error in marketing.
THE SCOPE OF MARKETING
WHAT IS MARKETING?
• Marketing is about identifying and meeting human and social needs.
One of the shortest good definitions of marketing is “meeting needs profitably.”
American Marketing Association (AMA) formal definition:
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large.
• Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers
through creating, delivering, and communicating superior customer value.
WHAT IS MARKETED?
Marketers market 10 main types of entities:
1. Goods
Physical goods constitute the bulk of most countries’ production and marketing efforts.
2. Services
As economies advance, a growing proportion of their activities focuses on the production of services.
Services include the work of airlines, hotels, car rental firms, and accountants, bankers, lawyers, engineers, doctors, software programmers, and
management consultants. Many market offerings mix goods and services, such as a fast-food meal.
3. Events
Marketers promote time-based events, such as major trade shows, artistic performances, and company anniversaries.
4. Experiences
By orchestrating several services and goods, a firm can create, stage, and market experiences.
5. Persons
Artists, musicians, CEOs, physicians, high-profile lawyers and financiers, and other professionals often get help from marketers.
6. Places
Cities, states, regions, and whole nations compete to attract tourists, residents, factories, and company headquarters.
Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising
and public relations agencies.
7. Properties
Properties are intangible rights of ownership to either real property (real estate) or financial property (stocks and bonds). They are bought and
sold, and these exchanges require marketing..
8. Organizations
Museums, performing arts organizations, corporations, and nonprofits all use marketing to boost their public images and compete for audiences
and funds.
Some universities have created chief marketing officer (CMO) positions to better manage their school identity and image.
9. Information
Information is essentially what books, schools, and universities produce, market, and distribute at a price to parents, students, and communities.
10. Ideas
Every market offering includes a basic idea.
WHO MARKETS?
A marketer is someone who seeks a response (attention, a purchase, a vote, a donation) from another party, called the prospect.
If two parties are seeking to sell something to each other, we call them both marketers.
Marketers are skilled at stimulating demand for their products, but that’s a limited view of what they do.
They also seek to influence the level, timing, and composition of demand to meet the organization’s objectives.
Eight demand states are possible:
1. Negative demand
Consumers dislike the product and may even pay to avoid it.
2. Nonexistent demand
Consumers may be unaware of or uninterested in the product.
3. Latent demand
Consumers may share a strong need that cannot be satisfied by an existing product.
4. Declining demand
Consumers begin to buy the product less frequently or not at all.
5. Irregular demand
Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.
6. Full demand
Consumers are adequately buying all products put into the marketplace.
7. Overfull demand
More consumers would like to buy the product than can be satisfied.
8. Unwholesome demand
Consumers may be attracted to products that have undesirable social consequences.
In each case, marketers must identify the essential cause(s) of the demand state and decide a plan of action to shift demand to a more
desired state.
Markets
Market → a collection of buyers and sellers who transact over a particular product or product class.
Five basic markets and their connecting flows are shown in Figure 1.1.
–
Manufacturers go to resource markets (raw material markets, labor markets, money markets), buy resources and turn them into
goods and services, and sell finished products to intermediaries, who sell them to consumers.
Consumers sell their labor and receive money with which they pay for goods and services.
The government collects tax revenues to buy goods from resource, manufacturer, and intermediary markets and uses
these goods and services to provide public services.
Each nation’s economy, and the global economy, consists of interacting sets of markets linked through exchange processes.
Marketers view sellers as the industry and use the term market to describe customer groups.
They talk about need markets (the diet-seeking market), product markets (the shoe market), demographic markets (the “millennium”
youth market), geographic markets (the Chinese market), or voter markets, labor markets, and donor markets.
Figure 1.2 shows how sellers and buyers are connected by four flows.
–
Sellers send goods and services and communications such as ads and direct mail to the market;
in return they receive money and information such as customer attitudes and sales data.
–
The inner loop shows an exchange of money for goods and services;
the outer loop shows an exchange of information.
Key customer markets
Consider the following key customer markets:
Consumer Markets
Companies selling mass consumer goods and services, establish a strong brand image by developing a superior product or service,
ensuring its availability, and backing it with engaging communications and reliable performance.
Business Markets
Companies selling business goods and services often face well-informed professional buyers skilled at evaluating competitive
offerings.
Global Markets
Companies in the global marketplace navigate cultural, language, legal, and political differences while deciding which countries to
enter, how to enter each, how to adapt product and service features to each country, how to set prices, and how to communicate
in different cultures.
Nonprofit and Governmental Markets
Companies selling to non-profit organizations with limited purchasing power such as churches, universities, charitable organizations,
and government agencies need to price carefully.
Much government purchasing requires bids; buyers often focus on practical solutions and favor the lowest bid, other things equal.
CORE MARKETING CONCEPTS
NEEDS, WANTS, AND DEMANDS
Needs: the basic human requirements such as for air, food, water, clothing, and shelter.
Wants: specific objects that might satisfy the need.
Demands: wants for specific products backed by an ability to pay.
Companies must measure not only how many people want their product, but also how many are willing and able to buy it.
Marketers do not create needs: needs pre-exist marketers.
Some customers have needs of which they are not fully conscious or cannot articulate. We can distinguish 5 types of needs:
1. Stated needs
(The customer wants an inexpensive car.)
2. Real needs
(The customer wants a car whose operating cost, not initial price, is low.)
3. Unstated needs
(The customer expects good service from the dealer.)
4. Delight needs
(The customer would like the dealer to include an onboard GPS system.)
5. Secret needs
(The customer wants friends to see him or her as a savvy consumer.)
To gain an edge, companies must help customers learn what they want.
TARGET MARKETS, POSITIONING, AND SEGMENTATION
Marketers identify distinct segments of buyers by identifying demographic, psychographic, and behavioral differences between them.
They then decide which segment(s) present the greatest opportunities.
For each of these target markets, the firm develops a market offering that it positions in target buyers’ minds as delivering
some key benefit(s).
OFFERINGS AND BRANDS
Companies address customer needs by putting forth a value proposition, → a set of benefits that satisfy those needs.
The intangible value proposition is made physical by an offering, which can be a combination of products, services,
information, and experiences.
A brand is an offering from a known source.
MARKETING CHANNELS → To reach a target market, the marketer uses 3 kinds of marketing channels:
Communication channels deliver and receive messages from target buyers and include newspapers, magazines, radio, television, mail,
telephone, smart phone, billboards, posters, fliers, CDs, audiotapes, and the Internet.
Distribution channels help display, sell, or deliver the physical product or service(s) to the buyer or user.
These channels may be direct via the Internet, mail, or mobile phone or telephone or indirect with distributors, wholesalers, retailers, and agents as
intermediaries.
To carry out transactions with potential buyers, the marketer also uses service channels that include warehouses, transportation
companies, banks, and insurance companies.
Marketers clearly face a design challenge in choosing the best mix of communication, distribution, and service channels for
their offerings.
PAID, OWNED, AND EARNED MEDIA
The rise of digital media gives marketers a host of new ways to interact with consumers and customers.
– Paid media allow marketers to show their ad or brand for a fee, include TV, magazine and display ads, paid search, and
sponsorships.
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Owned media are communication channels marketers actually own, like a company or brand brochure, Web site, blog,
Facebook page, or Twitter account.
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Earned media are streams in which consumers, the press, or other outsiders voluntarily communicate something about
the brand via word of mouth, buzz, or viral marketing methods.
The emergence of earned media has allowed some companies to reduce paid media expenditures.
IMPRESSIONS AND ENGAGEMENT
Marketers now think of three “screens” or means to reach consumers: TV, Internet, and mobile.
Surprisingly, the rise of digital options did not reduce the amount of TV viewing, in part because 3 of 5 consumers use two screens at once.
Impressions, which occur when consumers view a communication, are a useful metric for tracking the scope or breadth of a
communication’s reach that can also be compared across all communication types.
The downside is that impressions don’t provide any insight into the results of viewing the communication.
Engagement is the extent of a customer’s attention and active involvement with a communication.
It reflects a much more active response than a mere impression and is more likely to create value for the firm.
VALUE AND SATISFACTION
The buyer chooses the offerings he/she perceives to deliver the most value, the sum of the tangible and intangible benefits and costs.
Value is primarily a combination of quality, service, and price (qsp), called the customer value triad.
Value perceptions increase with quality and service but decrease with price.
We can think of marketing as the identification, creation, communication, delivery, and monitoring of customer value.
Satisfaction reflects a person’s judgment of a product’s perceived performance in relationship to expectations.
If performance falls short of expectations, → the customer is disappointed.
If it matches expectations, → the customer is satisfied. If it exceeds them, → the customer is delighted.
SUPPLY CHAIN
The supply chain is a channel stretching from raw materials to components to finished products carried to final buyers.
Each company in the chain captures only a certain percentage of the total value generated by the supply chain’s value delivery system.
When a company acquires competitors or expands upstream or downstream, its aim is to capture a higher percentage of
supply chain value. Problems with a supply chain can be damaging or even fatal for a business.
COMPETITION
Competition includes all the actual and potential rival offerings and substitutes a buyer might consider.
MARKETING ENVIRONMENT
The marketing environment consists of the task environment and the broad environment.
– The task environment includes the actors engaged in producing, distributing, and promoting the offering.
These are the company, suppliers, distributors, dealers, and target customers.
In the supplier group are material suppliers and service suppliers, such as marketing research agencies, advertising agencies, banking and
insurance companies, transportation companies, and telecommunications companies. Distributors and dealers include agents, brokers,
manufacturer representatives, and others who facilitate finding and selling to customers.
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The broad environment consists of six components: demographic environment, economic environment, social-cultural
environment, natural environment, technological environment, and political-legal environment.
Marketers must pay close attention to the trends and developments in these and modify their marketing strategies as needed.
New opportunities are continuously emerging that await the right marketing knowledge and creativity.
THE NEW MARKETING REALITIES
The marketplace is dramatically different from even 10 years ago, with new marketing behaviors, opportunities, and challenges emerging.
1. TECHNOLOGY
With the rapid rise of e-commerce, the mobile Internet, and Web penetration in emerging markets, the Boston Consulting
Group believes brand marketers must enhance their “digital balance sheets.”
Massive amounts of information and data about almost everything are now available to consumers and marketers.
Even traditional marketing activities are profoundly affected by technology.
2. GLOBALIZATION
The world has become a smaller place. New transportation, shipping, and communication technologies have made it easier for
us to know the rest of the world, to travel, to buy and sell anywhere.
By 2025, annual consumption in emerging markets will total $30 trillion and contribute more than 70 percent of global GDP growth.
A staggering 56 percent of global financial services consumption is forecast to come from emerging markets by 2050, up from 18 percent in 2010.
Demographic trends favor developing markets such as India, Pakistan, and Egypt, with populations whose median age is below 25.
In terms of growth of the middle c
