What I learnt this week

This week I had an introduction marketing, I learnt how to approach marketing and advertising a product.

It’s basic terms marketing means letting potential customers know about your product and sell this product at a price where everyone is happy (customer sees value, business sees the expected return).

I learnt about market positioning, this involved knowing what product your are selling, what price you will sell it at , where can the customer get this product and how will people know about the product.

Chris went into more details about each of the positioning steps, one example is with pricing. A naive view of pricing is that price is or should be – x (cost) + 5% = y (price). A better view is the price should be what it is worth to the customer, a business wanting to maximize revenue will try testing the highest they can charge for it, while still keeping customers happy. For example Apple usually sell products for higher prices than competitors, they do this because they sell their products well as premium solutions to problems (there are many other aspects too).

It is important to understand that when people buy a product (a product can be physical or service), they are actually buying a solution to a problem. It is important to use this when selling the product to a customer, what will the product solve? Can you make it look like this product will offer a solution to more things than you had originally thought? Perhaps some aspects of the way the product is positioned in the market can lead to more sales!

Maslow’s hierarchy of needs is a theory in psychology which can be used to tackle peoples needs at different levels. The theory is that once people meet their needs at the lower levels, they will concern themselves with the higher levels for fulfillment – can our product fulfill these needs?

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These can be categorized broadly as physical needs, security needs, relationship needs, appreciation needs and attaining your full potential. The most basic needs are at the bottom (like food to live), more complex needs are near the top.

We looked at a range of adverts, one that is memorable for me is the advert for a Dodge Charger which tells man that he goes through the day to day, being told what to do, doing work, being bothered by others – but buying this car is a reward for all of this work “man’s last stand”, and this car will somehow make it all worth it and make him happy. This one clearly attacks the higher levels such as “Esteem” (confidence, achievement).

A product’s customer must also be identified by looking at age range, what interests them, what they know about, how much money they have to spend etc etc. The customer may not be the user of a product, for example a parent buying a toy for their child.

More things about marketing, such as surveys will be coming up next week and in the future.

I found out that the intermediate presentation is like a progress report.

  • We should let Chris know how we are coming along with our solution / product, while explaining what it is.
  • We should explain the roles in our team – what have I been doing in the ream, what am I going to be doing in the team?
  • We should present the key parts of the business plan that we have completed so far – what company are we? What are we selling? How many? How much for? And how will we make money?
  • We should present the key points of the marketing plan that we have completed so far. What have we done to explore how to market it? What are we doing next?
  • We should let Chris know what other things still need to be done to get the project completed
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