Post on 17-Dec-2015
THE MARKETING PLAN- CHAPTER 10
IDENTIFY the purpose of the marketing plan
DESCRIBE the part marketing tactics play in the marketing plan
NAME the five marketing strategies that make up the marketing mix
Marketing the iPad and iPad Apps
WHAT DO YOU NEED BEFORE YOU START MARKETING?
Marketing PlanBlueprint used by a business to guide its
marketing
activities to a desired conclusion.
It should include:
Marketing TacticsActivities that need to be taken to carry out
the marketing plan
Target Market Objectives
Mix of Marketing Strategies
Marketing Budget
Marketing Tactics
MARKETING DEFINITIONS
Target MarketThe group of people you plan to market
your product to.
(Demographics)
Marketing ObjectivesGoals a business wants to accomplish
through its
marketing efforts.
Who is your target market? What are your marketing goals?
PRODUCT STRATEGY
What goods and services is your business going
to provide consumers?
Your product will be identified by…
1. Brand: Name, symbol, or design used to identify a product
2. Package: Physical container or wrapper that holds the product
3. Label: Part of package used to present information
PRODUCT STRATEGY
Product PositioningHow consumers view your product
compared to the
competitions product. Prestigious? Good Bargain? Equal in Quality?
Product MixAll of the products a company makes and
sells.EX: Kim Kardashian
PLACE STRATEGY
How are you going to deliver your goods and
services to customers? Will your product be for
sale where and when your customers what it?
Channel of DistributionPath your product takes from producer
(manufacturer)
to consumerDirect Distribution: Move from producer to consumer with NO ONE in between
Indirect Distribution: Intermediaries move products between producer to consumer.
1) PRODUCER
Business that gathers raw goods.Materials gathered in their original state from natural resources.
T-SHIRTCotton & Polyester
2) PROCESSOR
Changes raw materials into a more finished
product.
T-SHIRTTurn cotton and polyester into thread
Create Twill for seam binding
3) MANUFACTURER
Business that makes finished products out of
processed products.
T-SHIRTCreates the t-shirt of out the thread and
seam
binding
4) INTERMEDIARY
Business that moves goods from one business
to another. It buys goods, stores them, and then resells them.
T-SHIRTBuys the ready-made t-shirts in very large quantities and
stores them. They sell these shirts to wholesalers
5) WHOLESALER (DISTRIBUTOR)
Distributes goods by dividing large quantities
into smaller ones and sells them to retailers.
T-SHIRTDivide and distribute the t-shirts in smaller quantities
to stores
6) RETAILER
Purchases goods from a wholesaler and sells them to
consumers, the final buyers of the goods.
Consumers buy the t-shirt from a retailer. Kohl'sAmerican Eagle
T-SHIRT
GRAPHIC ORGANIZER
1.
2.
3.
4.
5.
6.
Wholesaler
Processor
Manufacturer
Retailer
Producer
Intermediary
TEAM TEACHING
Group 1: Selecting a Channel of Distribution (229)
Group 2: Intensity of Distribution (230)
Group 3:Transportation (230-231)
Group 4:Location, Layout, Availability (231)
Group 5: Questions to Ask About Place Decisions (232)
Group 6: Impact of Technology on Place Strategy (232 & Figure 10.3)
THE PRICE STRATEGY- CHAPTER 11
• IDENTIFY factors that affect pricing strategy
• SUMMARIZE the marketing objectives related to pricing
• DESCRIBE the components that go into making price strategy decisions
PRICE STRATEGY
Setting a price for a good or service is not easy.
Things to take into consideration:
Fixed Expenses: Costs that DO NOT vary with the
number of units sold
Variable Expenses: Costs that DO vary with the
number of units sold
THINK/PAIR/SHARE--- 3 examples of each!
COSTS SUPPLY AND DEMAND
CONSUMER PERCEPTIONS
COMPETITION
GOVERNMENT REGULATIONS
TECHNOLOGICAL TRENDS
Inelastic Demand:Customers will buy a product regardless of price
Elastic Demand:Prices are sensitive to demand
Dominick's and Jewel Price Fixing
Article
SUPPLY AND DEMAND
CONSUMER PERCEPTIONS
Prices too ?Consumers may believe your product lacks quality
Prices too ? Consumers may believe your product is of higher quality and status
What should your prices be for your specific target market?
GOVERNMENT REGULATIONS
Price Gouging
Practice of pricing above the market with no
alternatives
Price Fixing
An illegal practice in which competing
companies agree on specific prices
Unit Pricing
Required pricing of goods on the basis of the
cost per unit of measure (pound, ounce)
SETTING A BASIC PRICE
Cost-Based PricingYou must consider your business costs and profit
ObjectivesMarkup: The amount added to your cost to cover expenses
Demand-Based PricingOnly used if your product is inelastic AND your
Product has a greater value than competitors
Competition-Based PricingFind out what your competition charges and
then
decide if your price should be lower, the same, or
higher
PRICING POLICIES
Flexible-Pricing PolicyAllows customers to bargain for a price Advantages and Disadvantages? Examples?
One-Price PolicyAll customers are charged the same price Advantages and Disadvantages? Examples?
PRICING TECHNIQUES
Discount Pricing Cash Discounts (2/15, n/30) Quantity Discounts Seasonal Discounts
Psychological Pricing The customers perception of the product are strongly
influenced by price
PRICING WORKSHEET!
CALCULATING PRICES
Break-Even Point– When the cost to make the item equals how much you made
(Fixed Cost/Unit Selling Price)-Variable Costs
Markup- Amount added to the cost of an item to cover expenses and ensure a profit $$
Price – Cost = PROFIT!
Markdown- The amount of money taken from the original price
Price X Markdown % = $ Markdown
THE PROMOTION STRATEGY- CHAPTER 12
EXPLAIN the role of the promotion strategy
EXPLAIN how to formulate promotional plans
IDENTIFY considerations for putting together a promotional mix
DESCRIBE the elements of a promotional mix
PROMOTIONAL STRATEGY
Communication intended to persuade, inform,
and remind a target market about a business
and its products
Promotional PlansPreopening Plan Establish a positive image Let customers know you are opening for business Bring in customers/have them contact you Make customers interested
Ongoing Plan
SELECTING A PROMOTIONAL MIX
Combination of different promotional elements that a company uses to reach and influence potential customers
Considerations that need to be made:Target MarketProduct ValuePromotional ChannelsTime FrameCost
ADVERTISING
Paid non personal presentation of ideas, goods, or services.
Advertising Campaign- Series of related promotional activities with a similar theme
Successful Advertising Campaigns
DIFFERENT TYPES OF ADVERTISING
Newspapers Magazines Direct Mail Outdoor Advertising Directories Transit Advertising Specialty Items Television Radio Internet
INTERNET ADVERTISING
** #1 Fastest growing medium for advertising **
Website Goals:
1. Attract Visitors
2. Convert Visitors
Advantages Disadvantages
Expanded Markets Buyers do not have an opportunity to physically see the product
No Geographic Location Security
Cost Savings
Quick Turn Around Time
SALES PROMOTION
The use of incentives or interest-building activities to stimulate traffic or sales.
Premiums- Anything of value that a customer
receives in addition to the product purchased
(ex.- coupons and gifts)
Rebates- a return of part of the purchase
price
Displays
Samples- Free trial size samples or in store samples (Costco!)
Sweepstakes and Contests
Sweepstakes: a simple game of chance
Contest: Customer has to do something to win
SALES PROMOTION CONT.
Rational Buying Motive
• A conscious, logical reason to make a purchase
• Product dependability• Time or money savings• Convenience• Comfort• Health or safety issues• Recreational value• Service• Quality
Emotional Buying Motive
• A feeling a buyer associates with a product
• Social approval• Recognition• Power• Affection• Prestige
CUSTOMER KNOWLEDGE
PUBLICITY
Placement in the media of newsworthy items about a company or product
Ways to draw attention to your business:
1. Write news releases- brief newsworthy story sent to the media
2. Write Feature Articles
3. Submit captioned photos
4. Call a press conference
5. Seek interviews
6. Public Relations- activities designed to create goodwill toward a business
BUDGETING FOR PROMOTION
Industry Average- Standard used to compare costs from promotional expenses
Not Creative? GET HELP!1. All major media advertising companies have
advertising departments
2. Cooperative Advertising- Advertising costs are divided between two + parties
3. Advertising Agency- Company that acts as an intermediary between the business and the media to communicate a message to the target market
4. Web Designers
PEOPLE STRATEGY
How will your business assemble, prepare, and maintain
the people who will help you achieve success?
Basic Hiring CriteriaDeveloping EmployeesEstablishing a productive environmentRewarding Employees