December 2020 Module Shs Principles Of Marketing 12

Date to be answered: December 1 to 4, 2020

12 2

Principles of Marketing Quarter 2– Module 2: Product Strategies

Name: ____________________________

Lesson

1

New Product Strategy

Overview This module was designed and written with you in mind. This chapter covers the first of these four “Ps”, product and includes issues such as a new product development, brand management, and product mix management. The module has one lesson:  Lesson 1 – New Product Strategy  Lesson 2 – Branding Learning Objectives After going through this module, I can: 1. enumerate alternative forms of revenue generation; 2. create your own business plan.

Activating Prior Knowledge Before you start this module, take this pretest to find out how much you already know about the topic. Take a comfortable position. Relax, prepare yourself to answer and put your answer on a clean sheet yellow pad paper. Are you ready? Task 1. Complete Me Using your yellow pad paper, do the following task. 1. What would make your product idea different from competing or substitute products in the market?

Lesson Businesses do not need to be dependent on actual consumer purchases for their business models. Here are some alternative forms of revenue generation that may be considered: 

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Advertising. You get to consume the product with no cash outlay and with the costs of providing the product being covered for by a number of third party advertisers. This has always been the business model for much of print, radio, and television enterprises. Sponsorship. Alternately, instead of constantly finding a number of small advertisers to support adbased business, you may opt to focus on a few big sponsors instead. This leads to less “clutter” in the media and more focused messages from the sponsors. Donations. This is often the business model of choice for non-profit organizations but also the model that fuels a number of online and mobile products such as games and productivity apps. These organizations and developers hope that while their products or services are being offered for free, enough people will be grateful and provide a sufficient pool of funding to keep the services going on. Rent or lease. For expense assets, such as machinery or vehicles, they sometimes become more attractive for the market to consider through renting rather than outright ownership. This is because ownership represents significantly large cash outlays while rent or lease options allow to space out payments in predictable and manageable regular amounts. This works best when dealing with established businesses because long-term relationships can be built. Subscription. Certain products and services lend well to a subscription model. Instead of consumers buying the product at stores, a subscription business sends the products regularly to their door in exchange for a fixed monthly fee. This has proven to be successful for some specially coffee retailers, for instance, that ship coffee beans to the homes of self-styled coffee connoisseurs and even for providers of products such as shaving products like Harry’s in the U.S. The Business Plan Plans rarely come to fruition exactly as conceptualized but this is not a reason to not plan everything out. The business plan serves as the road map for bringing the product idea to life and it specifies the details that would help to make the selected business model work.

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There is no single standard for preparing a business plan. Some of the most successful businesses began as plans scribbled on a few pieces of paper. Others are more comprehensive and could even be the result of detailed doctoral dissertations. However these are written, a business plan would best contain the following at very least: Statement of opportunity. This refers to the identified market opportunity that the proposed business seeks to address. It could be in the form of an untapped market, growing demand for an existing product category, or even a potential market for an untried product offering. Environmental analysis. Key issues and trends in the environment, both macro and micro, that should be noted when assessing the business proposal. Market estimates and market segments. Estimated size of the total potential market along with descriptions of the different possible market segments and their estimated sizes. Competitive analysis. A roundup of the existing competition along with existing substitutes and potential substitutes together with their strengths and weaknesses. An analysis of the ease or difficulty of entry into the industry would also help. Business strategy. Details of the proposed business including the product concept, the logistics required for its mobilization, the organization structure needed, and the methods for product distribution among other things. The details are often what will have to be adjusted, refined, or even drastically modified moving forward. But at the very least, this will serve as a draft blueprint on how to bring the idea to life. Risk analysis. Informally speaking, this is a list of things that could go wrong along with a corresponding list of safeguards and contingency actions to address these. The sooner these are anticipated, the more airtight the plan becomes. Financial forecast. Estimates of financing required for initial capitalization, asset acquisition, working capital, overhead, and inventory. The forecasts could be for the first three to five years of operations and should include cash flow forecasts. Ideally, cash flows should become positive within that period, indicating a self-sustaining venture. For proof of viability, the venture should eventually become profitable and yield an acceptable return on investment. Competitive Strategies There are generic competitive strategies that you consider when developing your business idea. These are (1) least cost, (2) differentiation, (3) niche strategies. (Wright 1986) Least cost. This strategy involves producing goods or services at the least possible cost, and then passing these to consumers through low-priced, affordable products. This strategy requires an obsessive attention to operational efficiency-finding the cheapest ways to produce a product or service, investing in the most economical production methods and technologies, and constantly doing research on even more economical ways of offering the products in order to sustain this low-cost leadership for the long run. A recognized low-cost leader such as CD-R King, for instance, has invested in building supply-chain relationships with economical gadgets manufactures in China. Differentiation. This strategy involves a lot of brand-building, with an effort to get the market to associate the brand with particular benefits that, hopefully, will be distinctly associated with the brand. Niche. A niche strategist is one that focuses on the needs of a very specific target market, usually a market that is small enough or specialized enough that it requires particular expertise. For instance, a company can focus on the production of tools for architects or a textbook publisher can focus on the needs of surgeons. Assessment

Now, let’s evaluate how well you have understood the lesson. Be sure to carefully read and follow the directions. Are you ready? Assessment 1. List Me! (Written work) Using your yellow pad paper, do the following task. 1. Enumerate alternative forms of revenue generation. Assessment 2. Create Me! (Performance Task) DIRECTIONS: In your long bond paper, create your own business plan and explain it. Be guided rubrics below.

Concept Statement

Level 1 (5 points) Group did not include in presentation or to

Level 2 (3 points) Missing parts of the concept statement.

Level 3 (2 points) Had each component. Might not have been clear

Level 4 (1 point) Had each component overall clear but might

-Presenting the product, reason for selecting the product and summarizes the general plan. Marketing Plan - Presents the need for the product, who it will be marketed to and why that group. - Present a sample of a marketing strategy (i.e. magazine, tv or radio ad) Finance & Accounting - Show an accounting plan for the business, outlining the fixed and variable costs as well as project ted revenue. -Give supporting evidence. Overall Presentation -How well was the paper / report written -Demonstration of understanding the concepts. -Ability to support decisions throughout the paper / report.

such a limited degree it would not count.

Left some questions.

or well described. Left some questions.

have left some questions.

Group did not include in presentation or to such a limited degree it would not count.

Missing parts of the marketing plan. Left some questions.

Had each part of the marketing plan but not presented in a very clear or organized way. Was not supported. Left some questions.

Had each part of the marketing plan and started to support some of the decisions but still left for some questions.

Group did not include in presentation or to such a limited degree it would not count.

Only presented the cost or the revenue.

Presented both cost and revenue but did not provide support or research for how they got the information.

Presented both cost and revenue and provided support. Not completely clear but overall good.

Group was disorganized and the presentation was not coherent and could not be followed. Missing many components. Someone or a few people might not have participated.

Group was a little disorganized and there were some parts that needed work. Might have missed one section. Someone might not have participated.

Everyone participated. Each section was presented. It was not always clear.

Everyone participated in the presentation. The flow made sense and it was clear, entertaining and professional.

Lesson

2

Branding

Learning Objectives After going through this module, I can: 1. define brand in your own words; 2. create your own brand and label it using elements of brand stated in the lesson. Activating Prior Knowledge Before you start this module, take this pretest to find out how much you already know about the topic. Take a comfortable position. Relax, prepare yourself to answer and put your answer on a yellow pad paper. Task 1. Complete Me 1. Give three (3) example of local brand that has managed to impress you. Give your reasons why.

Lesson What is Brand? Brand is a mark of distinction that can be sensed usually in the form of names or terms, signs or symbols, design elements, or even a combination of these, and is utilized for the purpose of identifying and distinguishing the goods or services of one provider from another. Consistency is a significant factor in brand management. Consistency, in fact, is what makes the imputed contract between producer and consumer possible. The following are the functions of a brand:  It identifies the product or service, enabling consumers to accept, reject or communicate their opinions about it to others.  It communicates messages to the markets and to the public at large, whether the messages are intentionally or unintentionally generated.  It functions as a legal property, allowing its owners to invest in building up the value of the brand

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Elements of the Brand A brand is not just a name. Today’s brand are composites of various elements including: Trade name: the trademark name by which the product is to be known as, such as Coca-Cola, Google, and Jollibee. Trade names are registered through the Intellectual Property Office. Generic category: the category in which the brand would fall under, such as beverage, search engine, or quick service restaurant. The Intellectual Property Office requires that brands explicitly specify the categories that they would fall under. Logo: the visual symbol or image that will identify the product. Tagline: an optional catchphrase such as BDO’s “We find ways” Visual cues: aside from the actual logo, brands can also be represented with distinctive visual identifiers, such as red and green brands that wrap around the outside of a Seven-Eleven store. Shapes: the actual shape or form of the product or packaging, such as the pinched contour the outside of a bottle of Yakult. Colors: a yellow cab store is quickly distinguishable from after thanks to its bold yellow signs with black letterings. Sounds: such as advertising jingles, or even very shot intro sounds such as those heard upon starting up a computer. Scents: establishments such as Rustan’s and the Shangri-La Hotel have signature fragrances made that help to create distinctive atmospherics in their premises. Tastes: this includes special recipes or secret ingredients, such as Max’s distinctive fried chicken formulation

Figure 1. Elements of Brand Identity on a Package

Elements of Logo Design Graphic design guide Logo Design Love gives important tips on what makes for a great brand logo (Airey 2010): 

Keep it simple. Simplicity gives the logo designs versatility, allowing it to be used in a wide range of media – from business cards to billboards.

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Make it relevant. The design should be appropriate to the business it is identifying – to the industry, to the market, and to the audience it is addressing. Incorporate tradition. Logos should not strive to be trendy but rather contain the symbolic elements that are timeless as far as the nature of the business is concerned. Aim for distinction. The logo should easily stand out versus the competition. Prioritize shape and form over color. A tip is to work first in just black and white so that distinct from is emphasized over anything else. Commit to memory. Great logos should be memorable even after just one quick glance. This is useful given the rapidly moving nature of the nature of the world that we live in – with people flipping through magazines, clicking through web pages, and driving past billboards at high speed. Think small. Logos may look great on a billboard but they should also be recognizable in small items such as zippers and coffee stirrers. A tip is that the design should still be easily recognizable even at a minimum size of just one inch, which means that simplicity is key. Focus on one thing. The most iconic logos have just one feature that helps them to stand out. Incorporating more than one key element will only clutter the mark and make it less memorable. Levels of Meaning

A brand is just a signifier. But as a signifier, it can manage to have several layers of meanings. The following are six levels of meanings that a brand can have:    

Attributes. Characteristics of the product itself, such as softness, engine power, physical size, friendliness (for services), locations, designs and colors. Benefits. What consumers stand to gain from patronizing the brand such as shinier hair, peace of mind, comfort, time savings and happiness? Values. The core values that the brand is identified with such as family ties, independence, creativity, innovation, and risk-taking. Culture. The culture or sub-culture that a brand is identified with. Culture and values have a lot of interdependencies but culture can refer to regional identities, such as Bacolod Chicken Inasal being expressly associated with its titular province.

Assessment Now, let’s evaluate how well you have understood the lesson. Be sure to carefully read and follow the directions. Are you ready? Assessment 1.Define Me! ( written work) Direction. For 10 points (10), answer the following questions briefly in your own words based on your learnings. Write it in your yellow pad paper. RUBRICS: 10 pts – If the answer was originally explained very well and showed correct usage of grammar 8 pts – if the answer was originally explained well but some error in grammar 5 pts – if the answer was originally explained but mostly error in grammar 0 pt – if the answer was not correct and not related to the question 1. Define brand in your own words. Assessment 2. Discern Me! (Performance Task) DIRECTIONS: In your long bond paper, create your own brand and label it using elements of brand stated in the lesson. Be guided rubrics below. a. Creativity and Presentation b. Originality c. Relevance to the Theme

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Congratulations! You have completed this module on Product Strategies! God Bless and Keep Safe – Teacher Kimberly Panes