Extending comprehension competency focus

 

Answering WHY questions: Speak up your mind.

 

1. Why is it so important for businesses to undertake market research?

2. Why are companies willing to take the risk of introducing new products to the market?

3. Why is packaging important for selling product?

4. Why do companies use promotion?

5. Why would a money-off coupon be a good way to promote a new product?

 

Critical thinking (Discussion competency): Discuss the following questions in groups/pairs.

     (1) Write down your opinion in note form;

(2) Prepare for discussion: revise the speech formulas.

 

1. What is the purpose of considering the “four P’s” of marketing?

2. Why would a company want to find new uses for a product that is in decline?

 

Solving problems and finding solutions: Describe two ways that companies can find out which consumers are most likely to buy a new product.

 

Exploring issues:  Learn a bit more about consumer utility and answer the question that follows:

Utility is divided into four major types.

1. Form utility, created by production, is the conversion of raw materials to finished goods. Examples include transforming cotton cloth into clothing or refining crude oil into gasoline, as shown here.

2. Place utility is created by having a good or service available where a consumer wants to buy it. Locating a gas station on a busy corner is an example of this type of utility.

3. Time utility is created by having a good or service available when a consumer wants to buy it. An all-night diner is an example of time utility.

4. Ownership utility is the satisfaction one receives from simply owning the good or service. One might purchase a fine art painting or a piece of expensive jewelry just to have the satisfaction of owning the object. Luxury cars also provide ownership utility.

Discussion question: Rank the four types of consumer utility in order of importance. Explain your reasoning.

 

Categorizing information: Select 8 businesses in your region. Categorize each business according to the type of utility it provides.

 

Describing: Describe the steps businesses take to develop a new product.

 

Making inferences:

1. What might happen if a business did not invest in market research?

2. Why would it be unwise to sell a new product at a higher than usual price?

Reviewing: Watch video “Marketing”. Have you learnt anything new about the Four “Ps” of marketing? Answer the following questions:

 

1. What activities does marketing include?

2. How important are the moments of contact of a product and a potential customer?

3. How are the basics of marketing summed up?

4. What does each P from 4 “Ps” (product, price, place, promotion) include?

 

Applying information (Team work competency): Although price is certainly one major factor affecting a consumer’s decision to buy, many other factors also influence this decision. Each company spends a great deal of time and effort trying to find out what these factors are. This research can help the company develop an effective strategy that combines “the four Ps” of marketing. In the activity that follows your group will form a marketing team that develops a marketing strategy and a short advertisement for a product of your choice.

      

Marketing strategy

Product	Price	Place	Promotion
What type of packaging will you use? Will you include a warran- ty? What type of logo or trade-mark will be used to identify the pro- duct?	Estimate your cost of production, ad- vertising, selling and distribution. How much will you charge the consumer? How much profit do you hope to make?	How are you going to sell your pro- duct: by mail, on the Web, by phone or door-to-door? What type of shop will sell the product?	How will you advertise the pro- duct: in news- papers, radio an- nouncements, TV commercials or direct mail? Will you rely on one form of adver- tisement? Consider offering coupons, free samples, etc.

 

Cooperative group process:

 

Stage 1. Group work: Work in groups of eight or more. Choose a product that your company will package, distribute and market. Assign one or two group members to work on each of “four Ps” of marketing.

 

Stage 2. Paired work: Work in pairs or in small groups. Research similar products already on the market. Use the questions in the table above as a guide. One person from each team should record the research findings. Explain how the product will be packaged, how much it will cost, where it will be sold, or what advertising will be used.

 

Stage 3. Group work: Return to original groups. Pairs or small groups present their summary to the group. Group members should try to solve all problems that are identified. Finally, work together to create a short TV commercial to advertise your product to the class.

Enjoying comprehension competency focus: