 Well, hello everyone and welcome back to to Sailor Academy's Marketing Management MBA 602 this will be our review of unit 7 now If you haven't seen any of these before these videos are an overview of the entire course So make sure you're checking out the entire course and check out the previous videos We've done and as you're watching along if you have any questions You can leave them in the chat or if you're watching the video later You can leave a comment below like some people did and maybe I'll hand it over to Dr. Salza right now and she can take it away Great. Thanks Mike and and welcome everyone to our review of unit 7 What I'd like to do today is is really start with By answering some of the questions that that were posed in previous weeks. So there had been a question What is the difference between value and benefit? So benefits are the direct result of the features of a product So for example Let's use orange juice as an example. So orange juice has calcium So that's one of the features the benefits of that can be better bone health Other items let's say high-tech items features could be the latest technological advances To say for your phone the benefits could be quality of connection or you know sound quality So those are benefits the value relates more to Emotional satisfaction, so Value will give us an emotional response. We will feel good about using a particular product We would feel you know some kind of sense of personal satisfaction and that's where value comes in Let's say if I use the example of a high-end watch So features of a high-end watch might be precision parts or you know master craftsmanship The benefits of that could be that time is kept more accurately The watch might have greater durability and lasts longer, but the value comes into The prestige of ownership of that kind of items So so benefits or the things that the product does for us the value connects more to Emotional response and some of the other less tangible Satisfactions that we get from using a product or service. So I hope that answers the question about Value and benefit of course if anyone has any additional questions about it or follow-up questions please feel free to share them and And and we will we will answer them for you Now the other question that was asked was That examples of marketing metrics. So so metrics are a way for marketers and other other Departments and organizations to to evaluate the effectiveness of the strategies that they have implemented. So for marketing in particular So some of the marketing Tools that we use might be email digital marketing social media the use of websites Promotions and so on so some of the metrics let's say for email might be measuring How many times those emails were opened or how often they were forwarded? For digital marketing, we might say, you know, we might look at click-throughs to see how what those numbers look like on social media follower follower follows likes and so on If we're looking at websites, we might look at the amount of time spent on the website We might look at the amount of time spent on a particular page And The traffic of course the number of people that are visiting the website If we do look at more traditional You know marketing activities, we might look at promotion. So we would say well how how many coupons were redeemed or you know You know if it's a buy one get one how many people, you know took advantage of that kind of of promotion We would also look at cost per thousand. We might look at how many people were reached if again going back to traditional methods And then we look at revenue we look at return on investment and All of those can measure whether or not that campaign was successful But it's it's very important to note that when you're looking at marketing metrics that you're choosing the right metrics Based on what your goals and objectives were so, you know, if you have a robust social media Marketing campaign you want to make sure that the metrics that you're choosing are specific to to social media. So You know, again, if you're if you have a limited budget and you're doing an email campaign, of course Measuring, you know, how many times your your email was opened how many times it was forwarded If you're including a link in that email, how many people click through so again You know, these are different kinds of marketing metrics and they should be very specific to the goals that are or have been set by the Organization and that could of course change over time as well as as a product or service goes through You know the product life cycle and and actually we'll touch on some of this in today's in today's unit, so I'm glad that those questions were asked and You know, again, if there's any follow-up questions I'm happy to answer them as we go forward So with that, let me move right into into unit seven and The objectives for today are to explain the various means of product promotion such as direct mail and television advertising We'll look at the different types of promotional methods that are best suited to a particular product to target markets As well as the positioning strategy of the organization We're going to explain various pricing methods such as everyday low prices and penetration pricing that companies can use for their products and services and We will also Determine different pricing strategies such as pricing for profit and increased sales of various firms and industries and as you can see You know and as we've talked about throughout the course about the four piece the most basic of Marketing tools which are product price place and promotion clearly today. We are addressing the price and promotion elements of the four piece So again, I always like to point out why the learning objectives are important and and again for today There's you know that applies as well both the learning objectives relate specifically to the course material in the content The assessments are directly connected to the learning objectives and also this will help you with with test preparation And I just want to point out that after We're done reviewing each of the eight units. There will be two sessions where we will Where I will go over some of the some of the questions in the exam to give you kind of Kind of a heads up and also to help you get a greater understanding of what that what the exam will look like so so, you know Again as Mike had mentioned, it's important to If you're not able to watch these sessions live to please go back They're all recorded and they are you know quite valuable and will help will be helpful to you when you're preparing for these assessments Mike before I go forward does anybody have any questions I Am not seeing any questions in the chat right yet But I will obviously keep an eye on there and as of course you you just Said and just answered the questions if you're watching later Feel free to leave a comment below and we'll get to it next time Okay, all right great things and Mike if you have any questions you can feel free to To interrupt me at any time as well We'll do okay. So so here the topics that we're going to cover today. We're gonna look at brand awareness Positioning competitor pricing of integrated marketing communications Strategies which is very important and of course they're all important as I mentioned pricing strategies Return on investment different social media marketing options that are available for companies Substitute products and this is really important when we're particularly when we're looking at the competition because it's always important to recognize that while competition encompasses other Organizations that provide the same offerings There are products that we can buy that are substitutes for those so when we look at competition It's important to to look at them. They're really the bigger picture And we'll talk a little bit about trademarks as well So the first learning objective that I will be addressing today is to explain the various means of product promotion Such as direct mail and TV and advertising and we'll talk about quite a few options We'll look at the elements of the promotional mix and we'll look at the factors that influence How companies decide on which methods they're going to use to promote a product or service So let's first start with the promotional mix So when we talk about integrated marketing communication strategies What we mean is that all elements of a marketing strategy should be working together and support each other so For example, let's say if you have a website The the the look and feel and an image of the website should Match the other promotional activities you're doing so you don't want your your customers to be confused so think about this if you Had a website that looked one way and you had a logo that looked one another way and your product and your packaging rather Had a completely different look and when you had a commercial it had a whole different kind of message Your customer would be confused They wouldn't have a full understanding of what you stand for and what your image is and what you're offering So when we talk about into integrated marketing communications You want to make sure that everything works together Uh and when we're doing this we're talking specifically about the promotional mix or the communication mix And the components of this can include advertising Sales promotion direct marketing professional selling uh public relations sponsorships Any kind of activity whether it's traditional media Whether it's special events whether it's digital digital related whether it's web related all of those components Comprise the promotional mix and when a company is is choosing their various strategies They have to take various Factors into consideration and really the first thing is going to be your budget Right. Your your promotional activity is really going to be I don't want to say limited but certainly guided By the budget that's available You know if you've got very deep pockets like some of the major corporations you can invest in some of the more uh costly You know promotional activities you can have an ad during the Super Bowl which you know could top five or six million dollars for You know a 30 second commercial But if you have a more limited budget That might be when you put a social media campaign together or you use Uh email marketing or other You know other means of of getting the message out there that don't cost as much um Stage in the product life cycle for example So for a product in in in the introductory stage You're going to require much more A promotional activity than a product Let's say that's in the decline stage because in the decline stage You're not going to be putting a lot of money into promoting that item Uh If your product or services is complex you might need a more Robust campaign where you might have to explain what your product or service does so You know rather than something that you know convenience product that someone's buying on a regular basis Understanding the habits of your target market are going to influence the promotional mix You know, where are they going to make their purchases? Where are they going to get their information? Uh, you know, how do they behave when they see some kind of marketing or promotional efforts? So you want to understand your target market very very In great detail and you want to understand how they make their purchase decisions And you know, it's very interesting as we've seen You know such an increase in uh in online Commerce, you know in e-commerce and an online, you know shopping that Uh marketers need to understand what that what that looks like So that they can put their promotional activities and choose the right promotional activities because they understand how consumers are making purchase decisions But just to add to this a little bit. Uh, there's been a lot of recent You know news and information about The increase in the number of people that are making returns when it comes to purchasing online And there's been actually there's been actually a lot of talk about many companies Um charging consumers for making returns of things that they purchase online And so understanding whether or not that's going to sit well with consumers is going to be very meaningful And how those products and services are are promoted So it'll be interesting to see how that kind of plays out at least in the current times when when we're recording this And of course if you're looking at this at a later time, you know, the retail market, um, you know It's kind is very dynamic and constantly changing. So that might be different later on, you know, even in a couple of months But at this moment right now, uh, it's important to understand what's going on in the marketplace which really Illustrates the importance of constantly being current on what's going on in the market constantly being current on what What's going on with your target market? What's going on with your competition? It's it's a living marketing and in promotion. It's a living breathing Entity and it requires Attention and it requires, you know care and nurturing So, you know, keep that in mind as you as you, you know, look at how companies choose their promotional activities And of course the preferred media outlets and and this is where understanding your target market comes into play because if you're looking at If you target market, for example, our younger generations Uh, your media outlets are going to be very different than if you're targeting Consumers that are baby boomers or or, you know, older consumers who might be getting more of their information from traditional media So, you know, choosing the promotional activities really requires a great deal of information And again, that's constantly changing and requires attention and nurturing Um, so there's a lot of information there. Um, Mike, anybody have any questions for me before I move on? Um, I don't I don't see anyone. I don't see any questions right now, but I'm gonna We're gonna go away for just a minute and let everyone catch up because uh, we're having a little bit of a delay So let's let everyone catch up and we'll be right back everybody. Sure. Thank you Okay, well, it doesn't look like we have any questions in the chat right now But as always if you uh, you can leave a chat question in the chat anytime or you can just say hi in the chat I guess if you wanted to uh But if you if you're watching later again, of course, you can comment below and we'll get to those questions But now I'll hand it back over. Uh, excuse me. We can keep going. Okay. Thanks, Mike. So, um second learning outcome for unit seven is to determine the type of emotional methods That are best suited to particular products or particular target markets as well as the positioning strategy of a firm and Two of the issues that we'll look at are some of the brand awareness factors marketers need to consider When they're developing their promotional activities and we'll look at the primary online and social media outlets that are available to marketers, uh, and I'm sure that All of you are probably intimately familiar with all of those different outlets as well So let's first talk about about um brand, um awareness Uh, and when we look at brand awareness, the first thing we'll look at is brand recognition And that can play a role in the promotional choices made so So, you know for a brand that has very strong brand recognition the marketing for that is going to differ From something that has relatively little brand awareness. All right, so if you're if you're um You know coca-cola or Nike, you know when this goes to trademarks Um There's very little that you have to do when it comes to brand awareness other than just showing your your trademark So, you know, you show the Pepsi Pepsi or coke trademark. You show the Nike swoosh. You show the golden arches of mcdonalds Those are very well known. So your marketing is going to you know, really change and vary If you've got brand recognition in a trademark that people see and immediately Have um An awareness of what what's associated with that brand? What's the brand's image? And and again, all of those factors will impact the content of your message You know and generally, you know With these brands that that have a strong strong image and strong brand awareness and strong brand recognition They're going to generate positive feelings Towards that brand and and that can That will lead to the the kinds of promotional activities that are That are chosen brand position So when we talk about brand positioning brand positioning relates to how we How we view a particular brand relative to the competition so Let's say for let's use cars as an example And we would say well, let's look at Luxury cars and we might say that alexis is a luxury brand. We might say a bmw is a luxury brand Because we have Mercedes. We have a sense of those brands But then if we start to add let's throw, you know portion into the mix or a Bentley or a Rolls Royce Well, those are luxury brands. So You know the the way we might look now at a Mercedes might not be as in that same high luxury Category so everything is relative to the competition And and depending upon that will determine the kinds of of You know promotions that are done and how a brand is presented to to their customers and to the public Brand loyalty. So think about the products to which you are loyal Right the kind the content of marketing that's going to appeal to you. It was going to be very different than the marketing that is presented to customers that may be Our first time buyers or new to the brand so Brand loyalty, you know, and again, this comes back to understanding your target market understanding how they think understanding and knowing who your customers are So all of these factors really impact brand awareness and relate to the kinds of Marketing and promotional strategies that are selected for a product or service So let's look at the internet tools that are available To companies and you know, and this is an area that's that's continuing to grow technology is expanding every day New platforms are available all the time new ways of connecting with consumers continue to grow so Let's talk about the company website, which is very often the first place that somebody's going to go to learn about a product or service So you want to make sure that your website is attractive that it's User friendly that it has, you know, that it has all of the information that a customer might be looking To you know to find that information about your company and to have as much as possible About what you have to offer Again, it should be attractive, informative and certainly easy to use. I mean, I think that we can all Point to websites that we've been to that we just abandoned because they were just too hard to navigate Um digital advertising social media email great marketing strategy a great marketing tool videos Think about youtube youtube is one of the most popular social media platforms That exist and we go very often to youtube for so much information But you know tiktok is also becoming, you know, very popular For you know connecting with people and depending upon your target market again, you will choose different even different video outlets seo search engine optimization Think about when you do an online search You could conceivably get millions of results when you look for something So search engine optimization enables you to be higher up on that food chain Most of us don't go to page two when we're doing an online search So you want to make sure that you can be on that first page? You want to optimize your presence in a search engine, which is going to cost money And be part of you know, again, we'll go back to the budgeting Uh, which is part of your budget and and how you can be higher up on that food chain by um by having a robust search engine optimization campaign Mobile is becoming more and more Um, you know a way for us all to to you know connect with companies for companies to connect with us Uh, and to our codes again are becoming more and more popular for pretty much everything that we're doing. So You know, when we look at internet marketing, we want to look at the entirety of it Uh, based again based on our budget based on our target market based on what we're offering Based on which platform or which outlet really makes the most sense for what we have to offer Anybody have any questions before I move on? Well, I I just had to say when you when you said when you said none of us go to page two I was thinking like I guess I never thought seo you always think of seo like you want to be at the top of the page But I'm like, oh, yeah, I'm never going unless I'm looking for an obscure like old mad tv sketch or something I'm never I'm never leaving the page one of a search That's that's true. And I mean think about this if you were to google if you were looking for a new pair of shoes All right, and you would to just put into the search and I say google because I that's you know the search engine Because they got that brand recognition Brand recognition. Yeah, I mean it's great brand. And by the way in googling google has now become a verb Right google is not just an entity, but we google something Meaning we're doing an online search. So when we talk about brand awareness, I mean you can't You know, it's just amazing. You know, there's so many categories I mean think about when when you cut your finger and you want an adhesive bandage You ask for a band aid, but band aid is a brand So, you know again, you know that brand awareness really, you know, I mean it's just wonderful to have that But you know going back to your search if you were to do a search for shoes And let's even even narrow it down. So let's say you wanted men's shoes or men's dress shoes You're going to get millions of hits And for the most part You're not going past that first page So Of course now I'm going to the even even I mean not even a good just a search on amazon. I'm going to the first recommended seller Get yourself there That's right. And very often zappos is right up there at the top zappos has a has a very robust search engine optimization Strategy in place and very often that's one of the first if not the first Results that you'll be getting You know in zappos has done a great job of marketing in general and just as a side note Zappos has an at least up until recently free shipping to you and returns they have a very Very generous return policy, which is 365 days as long as you return something in You know original condition So, you know, it really makes sense for them to be as high up on that food chain when you're doing a search as possible Yeah, that makes sense to me. Well, I will um, I'll let you know right now We don't have any other questions in the chat. So we'll keep moving But everyone, uh, if you have any questions later, you can leave them in the comment section or put them in the chat at any time Okay, thank you mic So we're now going to move from promotion to the to the last page that we'll be exploring Which is pricing and we'll look at various pricing methods Such as everyday low prices penetration pricing That companies various, you know companies can use for their products and services and we'll look at some of the pricing objectives That companies need to consider When they're setting the prices for what they have to offer We'll look at the factors that impact pricing decisions and we'll look at different pricing strategies that are available for companies to use so If we first look at at pricing objectives, the first thing we want to look at is is return on investment And and this is when companies determine, you know, what they want to achieve what they want to set as their profit level And that could vary again depending upon You know again product lifecycle with the competition is And that will determine some of their Yeah, the pricing objectives would also come into play into their promotional strategies as well Companies might want to just look at maximizing profits. So they might Set prices so they can earn as much revenue as possible, which could potentially be either a high price point Or a low price point But it's important here to recognize the price value relationship that customers are going to be evaluating. So I think about when you Go to buy something sometimes a higher price Will Lead you to feel that the product has better value. So that price value relationship is very important when considering The prices that you're going to be setting for your product or service Sometimes companies need to maximize sales or generate as high level of sales as profitable Even if that strategy, you know, it might be a high level of sales, but it might not be profitable So that's important to consider as well. Sometimes this is done just to generate needed cash But generally that's going to be a a short term strategy because companies wouldn't be able to maintain that For a longer period of time Sometimes pricing objectives are to maximize market share and that will lead to certain strategies Sometimes by generating a greater share of the marketplace And enables a company to to remain more viable To give them greater awareness even if it doesn't translate to higher profits And sometimes companies just looking to maintain status quo where competitors will generally keep their prices relatively in line While they each continue to capture their target markets So let's talk about the different external and in External and internal factors to an organization that impact their pricing decisions. So sometimes Price sensitivity which refers to how a sensitive a customer is to a price price change will determine The role and the price that's set for product or service Competitor pricing and these are the external factors as I mentioned so competitor pricing can play a role So if a price for a similar product is set at a lower price point A consumer is you know, and the product is basically the same consumers are more likely to purchase that product And again, as I mentioned earlier prices for substitute products Can impact pricing strategies. So for example right now in our current travel climate Airline prices are very expensive if you you want to take a trip on it on a plane somewhere It's going to be very expensive. So while you might compare prices Of different airlines that go to wherever you happen to be wanting to travel You might also look at prices for a train You might look at prices for A bus you might look at prices for rental cars So it's important to consider, you know, what's going on not only in the competition, but in substitute products Other factors to consider when pricing are the economy Certainly a factor right now as we're recording this live Government regulations and customers are less likely to buy expensive items In a weaker economy or when you know when we're in a period of inflation where prices are much higher If we just touch a little bit on some laws, which is the Robin Robinson Patman Act This regulates pricing decisions so that there is fair competition Among different companies as well as ethical ethical behavior among different companies And some internal factors to look at Can include production costs distribution marketing costs and if we look at You know some of the reasons why some price some of the prices are so high in recent times is because High distribution costs because of high production costs because of product shortages And and you know and challenges within the whole supply chain. So You know again internal external factors all are interconnected and really should be looked at of course individually, but how they all Relate to each other So let's look at look at some some pricing strategies that companies use when You know As it adds to profit levels and and and how they determine prices. So prestige pricing is when a company showcases a product with a high quality image And so that again when we talked about the price value relationship, this is this is what we're talking about when it comes to prestige pricing Leader pricing for example is when a store Will price certain items at a low point to attract shoppers Anticipating that they're going to buy higher priced items in that store in addition to the low priced merchandise that draws them in The product life cycle of course is going to Impact strategies. So for example a product that's new to the market Will be subject to different kinds of introductory pricing strategies Which can include a skimming strategy Where there's an initial high price set for a product Or a penetrate penetration pricing strategy when the initial price is set at a low point so For a skimming strategy, I would use the example of when When kindle was when a kindle was first introduced or or e-readers Which was a very was very new technology and the pricing was quite high And as that as the kindle and e-readers went through the product life cycle And consumers became more aware of it and sales increased the price declined But products that are introduced new products that are introduced into an already perhaps saturated market might look at penetration pricing because there are already other Entries in that marketplace with a low price. So again, it's important to look at the big picture Before determining the pricing strategy Uh, you know, what's going on in the marketplace? What's going on with the competition? And again, you know, what your customer is willing to to to to put out there for for a new product Um, before I go on, um, Mike, do we have any questions for for me about pricing strategies? Um We don't have any questions right now. I I did look up. It's generic Genericification generic I'm I'm putting it up on the the screen right now for people. Okay G-e-n-e-r-i-c-i-z-a-t-i-o-n generic When something gets generic a size I knew there was a big word for losing your trademark. That's what that's what if you So that's what happened to things like escalator and trampoline. They didn't protect their trademarks. Yeah I don't have it on my screen Oh, sorry, I'll see if I can figure out a way to show it to you. Um, anyway, because I knew I was gonna uh butcher the pronunciation But that was the term I was like, so that's why Kleenex is always suing people Yeah, but you know, but it's amazing when you think about, um, you know brands that have become You know, this is why also if you if you look at a commercial or some kind of marketing for band aid It always says band aid brand They add the word brand in there because they want to make sure that that We're not looking at it as a generic. They say these are brand band aid brand band aids Band aid brand it's even it's even in the little jingle That you know band aid brand You know stuck on me because they want to make sure that they're identified as a brand Oh, that's interesting. All right. Well, that was a little tidbit. I had uh, and I doesn't seem that uh We have no other questions for you right now. So let's just keep rolling Okay, great. Thank you. And thanks for adding that I I think that you know It's I think that we take some of those things for granted and not recognize what they really mean in the bigger marketing picture So, uh, so thank you for that. Okay. So the final Uh learning outcome for unit seven is to determine pricing strategies such as pricing for profit and increase sales of various firms and industries And we're going to look at the market how the market Equilibrium price point is determined We're going to look at the impact of of excess supply and demand On pricing strategies and we'll look at the elasticity of demand and some of these Can be a little bit challenging and confusing and and I'll try to really break it down In the simplest way possible. So Basically when the demand for a good increases The price tends to increase Very simple when the demand increases the price will increase And when the supply increases the price tends to decline So when we combine both the supply curve and the demand curve, we can see where the two curves Intersect and this is known as market equilibrium where the quantity demanded Matches the quantity supplied So when quantity and supply When when quantity demanded and supply Are are meat This is the equilibrium price and and the the goal of pricing and and supply and demand are always to reach that equilibrium price Let excuse me that equilibrium point So what happens when we have excess supply and excess demand So when we have excess supply Competition tends to be more aggressive And this creates a pressure to lower the prices And that will continue until again that equilibrium is reached and and the equilibrium Equilibrium always is reached might take a while it might change market dynamics, but the equilibrium always gets reached When we have excess demand It generates greater competition Prices are going to rise and again, this will continue until the equilibrium is reached So let's look at what is elasticity of demand So elasticity elasticity of demand is the relative change in the quantity That people will buy when there is a price change So let me say that again. It's the change in the quantity people will buy When the price changes So low elasticity is when there's little change in the quantity purchased Relative to a change in price. So for example If there's a change in the price of eggs or the change in the price of milk or a change in the price of Products that we tend to buy on a regular basis There's going to be relative change in the amount we purchase However Inelastic demands Is when um, which is high elasticity Which is when there's a big change in the quantity purchased relative to a change in price And I think for for the current market situation. I think we could probably Put housing In this category. So housing prices have have increased dramatically And as a result The quantity purchased has declined many people because there's such a high Because the housing market is so So so has increased so much in price Many people have decided that they they're not going to buy a house now. So, you know, think about Some of the changes in your purchase decisions, you know Is there is a small change going to impact what you buy in something In the quantity you buy something that you buy on a regular basis Probably not, but if there's a very large change in price of something, you might choose to To to put off making that purchase. So that's what we that's what we mean when we talk about Elasticity of demand. It's related to how much we're willing to buy When there's a change in the price of a product or service And that covers unit seven All right. Well, uh, once again, uh, thank you for taking us through another unit Next week will be um, we'll be unit eight. That will be the last of the units we're covering Uh, but we will to have two other streams after that next week will be Pre-recorded for everybody, but of course like you can do now if you're watching this later You can leave a comment down in the uh, in the comment section below and and we'll get to it. I'm not seeing Much activity here in the chat today. So I think we're probably good to just, uh, Uh, To just, uh, let uh, let it go so that we can, uh, record the ones you guys have a another lesson for you next week Um, but again, I want to thank everyone who's joining us. I want to thank everyone who's watching this later And of course we want to thank, uh, dr. Salazar for taking us through all of this. Um Uh, thank you All right. Thank you everyone. I look forward to seeing you next time