Introduction to Marketing

Wendy's pigtails get first touch-up since 1983

http://www.philly.com/philly/business/homepage/173679491.html

Marketing: the 4 Ps The on-going process of

planning and executing the:

(1) product,

(2) price,

(3) promotion,

(4) placement

of ideas, goods or services to meet and satisfy (People's) needs or wants

Marketing is about…

• Psychology:– Understanding who

and why and how…

• Reaching your TM

The Marketing MixThe 5 P’s

1. Product /Service/ Idea description / purpose what are you selling?

2. Placement where are you going to sell it Location, Location, Location

Geographic location in what forum: store/online/a selected

retailer

3. Price how much is it worth how valuable is it to TM : TARGET MARKET how can you make a profit: Mark-up % What is your pricing strategy compared to

competition Demand and Price relationship (elastic/inelastic)

4. Promotion What forms of promotions will you use how will you reach you TM how will you convince your TM to buy this service

or good

People– Who is the Target Market?

• Know the Demographics:' population characteristics'

– Age Range– Gender– Education Level– Income Range– Where are these people located?– Psychographics : personality traits / likes and

dislikes

– Accurate Information can be attained through the US Census Bureau: http://www.census.gov/

Use this website to find FACTS about your Target Market

• http://www.census.gov/population/www/ – Click on the Population Finder link on

the left– Enter the zipcode of your business– Click on Fact Sheet

The Market Analysis

• Market Analysis– Actual assessment of the target population,

competition, and needs for promoting a product or service

– This is the 1st step in determining if there is a NEED or WANT for your business in your proposed location

Analysis of Target Market (TM) 1. Segment description: (as specific as possible)

2. What are their personal demographics?• Age range• Gender• Income range (low, middle, high)• Educational attainment (elementary, high

school, college)3. What are their psychographic

demographics?• Likes/Dislikes• Cultural influence

4. What are their geographical demographics?• City and town your TM can be found in• Population of this city

Demographic Data Source– http://quickfacts.ce

nsus.gov/qfd/states/42000.html

Target Market Segmentation:breaking down your TM into smaller groups; convince as many people as possible to be in your market

Key questions1. What do they buy?2. How do they buy?3. Where do they buy?4. When do they buy?5. Why do they buy?6. Who buys?

An identifiable group of individuals, families, businesses, or organizations, sharing one or more characteristics or needs

Why Segment a Market?1.Better matching of customer needs

• Customer needs differ. Creating separate offers for each segment makes sense and provides customers with a better solution

2.Enhanced profits for business• Customers have different amounts of

disposable income. They are sensitive to price. Convince each segment to buy p/s for different reasons

One Product Marketed to Many Segments

Market Panera Bread to 5 different Segments

1. Parents - 2. Seniors3. Business People 4. College/Grad School 5. Health Phanatics

Did you Know!?Social Media Marketing 2012

• http://www.youtube.com/watch?v=XVQ1ULfQawk

• http://www.youtube.com/watch?v=wgQNZa3C7BU

Social Media Marketing1. Twitter

– 2012: 500 million registered users– Real-time audience and info– Networking, send promotions, get

customers in your store NOW

2. FB Fan page– 2012: 955 million registered users– More fans = social likeability of you!– Promotions– Access to Customers, aka “friends”

Other Social Media Tools3. Youtube Account and videos

1. Commercials

2. Tour of your Store

3. About us…Your compelling story as the Entrepreneur ; interviews with Customers/Employees: Testimonials

4. Linked In:1. Professional networking and relationship

management website

2. 175 million professionals who are sharing connections, ideas, and opportunities.

3. You have to build a profile

KitchenAid tweet about Obama’s grandmother brings apology

– Story• http://news.yahoo.c

om/blogs/lookout/kitchenaid-tweet-obama-dead-grandmother-brings-apology-130031473.html

• Video:– http://news.yahoo.c

om/blogs/lookout/kitchenaid-tweet-obama-dead-grandmother-brings-apology-130031473.html

Market Research• Smarter Business Decisions Begin with the Best

Information and Analysis.• understanding consumers and their needs/wants

• the process of collecting and analyzing info about the customers you want to reach, your TM. – This information provides you with the business intelligence you

need to make informed decisions.

• Rely on:1.Neilson2.Google Analytics as an excellent, leading market research tools

Most Popular Market Research Methods

1. Google Analytics – ONLINE….where is your TM shopping, what are they reading, what are they “clicking” on!

2. Neilson1. Surveys 2. Focus Groups – putting together a TM

and asking for feedback

3. Personal Interviews – word of mouth

Google Analytics

Neilson!• In 100 countries around the world, Nielsen

provides clients the most complete understanding of what consumers watch and buy.

• ASK NEILSON!– Where do senior citizens shop?– Where do Moms get their news?– What tv shows do pre-teens watch/

• http://www.youtube.com/watch?feature=player_embedded&v=FxH0PUwDCaw

Nielsen Ratings 101: Introduction

• http://www.youtube.com/watch?v=r4jyhQnl5Vo

Neilson Case Studies:http://www.nielsen.com/us/en/industries/consumer-packaged-goods/consumer-case-studies.html

1. Nestle2. Hormel3. Nice n’ Easy4. Best Buy5. Ball Park• Read the case study with your group.

You will present the company, the problem, and the solution…

Part 5:The Marketing Plan Segment your TM!

http://www.youtube.com/watch?v=pxcNVrwkroU&feature=relatedhttp://www.youtube.com/watch?v=JIirzTdaey4&feature=related

1.

2.

3.

4.

The New Look at the 4 Ps

• http://www.youtube.com/watch?v=JIirzTdaey4&feature=related

• Hand-out notes template– Watch video and complete

Calculate the Market Potential:

Market Potential: The amount of customers that are potentially willing to buy your product/service

Math CalculationThe total amount of customers that are willing to purchase the product*% of market you could REASONABLY own

This is called FORECASTING

Why is this necessary?

• To determine if your selected geographic location to open your business, has the target market to support your business by covering all of your expenses and making a profit

• Do the demographics you need to support your business, exist in this location?

Market Saturation

• Good for Consumer

• Bad for Entrepreneur: more work, more competition

% of Market Ownership

• You must look at who are you competing with– Use www.yellowpages.com

• List them• Break down who owns what % of the

market• See where you could fit in

Calculate the Sales Potential

Sales Potential: The maximum percentage of Revenue that can be earned

Math Calculation:Market Potential*usage rate (how many units sold per month / per year)*$$/per unit

Promotions• a “paid for” way of promoting

products, services or information • a form of communication between

the company and the targeted market

• Use all known media forms and constantly seek new media, new channels of communication.

Types of Promotions Watch: www.youtube.com/watch?v=F5ftoHwsBbA

Direct Promotions– WORD OF MOUTH– Website– Emails– TV commercials– Magazine and

Newspaper ads– Internet ads on

relevant websites– Billboards– Paid Celebrity

Endorser– Sponsor local and

national events

Indirect Promotions

– Product Placement in movies, tv shows, video games, celebs• Every award

show…”who are you wearing tonight?”

• Have celebrities wear your clothes/use your product…

• Watch• http://www.youtube.co

m/watch?v=4LFQIoc49ZM

• http://www.youtube.com/watch?v=eQ5uztI9EvI

How do you measure Promotion effectiveness?

• Views per 1000 people

• Example:– Haverford Township Day

• Teens: 2000• Cost of table: $200• Cost per 1000: 5 cents per person

Federal Donuts in Philly

• Success Story

• Now at 2 locations• http://www.uwishunu.com/2011/03/federal-donuts-a-donuts-

and-fried-chicken-shop-from-chef-michael-solomonov-to-open-in-south-philadelphia-this-summer/

• http://federaldonuts.com/main/

Ten brands that may disappear in 2013

• Read– http://www.marketwatch.com/Story/story/

print?guid=6FCAE664-09BA-11E2-95D5-002128049AD6

Public Relations

• Helps raise awareness about the company through a variety of different means

• the management of relationships between an organization and the public

• Image development and control• If a negative story comes out, how are

you going to RESPOND??

PR Stars

• Michael Vick: The Path to Redemption – http://www.youtube.com/watch?v=go0riZ_DfHQ

• Toyota– http://www.youtube.com/watch?v=GWsAnlFZVrY

• Five Minute Guru – http://www.youtube.com/watch?v=zTmQXsw-NSc

• Merrymead Farms

Internet / E-Commerce

• Advertising your business through the internet, email and Social Networking

• Reaching your TM through YOUR website AND websites that your TM uses

• Selling your product / service online instead of OR in addition to, a physical location

• Expert in website design• Expert in knowing where your TM is

“clicking”

Marketing Mix Case Study

• Introduction• NIVEA® is an established name in high

quality skin and beauty care products. It is part of a

• range of brands produced and sold by Beiersdorf. Beiersdorf, founded in 1882, has grown to

• be a global company specialising in skin and beauty care.

• http://www.thetimes100.co.uk/downloads/nivea/nivea_13_full.pdf

Business Nightmares: Marketing Mess-Ups Pt 1 of 4 • http://www.youtube.com/watch?

v=9CtM0vCOCDg

Primary Marketing Tool: Your Website

• Important Pages– Homepage– About Us– Contact Us– Product/Service List

Local SB with or without Websites

1. C&M Sporting Goods

2. Testa’s Bakery

3. Havertown Pizza

• Google it and Discuss

Read articles

• The Importance of your Website…

• Understand the value of an effective Website…

• Watch: The Top 10 Small Business Web Design Mistakes – http://www.youtube.com/watch?

v=BPgZAUHVzdU

Other Marketing “Musts” online

1. Search Engine Results!• What Google Looks for:

• Link Popularity • Content of Page• Domain Name• If you “pay them an extra fee” to be on top results

• Pay Per Click (pay Google/Yahoo everytime your link is clicked on)

• Pay for Performance (pay to be on top of reulsts page)

2. Banners and Pop-up Ads on OTHER websites where your TM goes

3. Online video commercials on OTHER websites where your TM goes

• Primarily news websites (before a person would watch a video, they’d have to see your commercial)

Important Qualities for your Website

1. Strong Brand Awareness– Logo and slogan in the same place on every

page2. Appeal to Many Segments within your Target

Market3. Promotions offered to get them in the door and

keep them checking your website for updates4. Easy navigation and menu bars (left and bottom)5. Many ways to contact them

– Email, phone, address, social networks6. Clear pricing strategy (inexpensive, moderate, or

premium) or have actual prices listed

Millionaire By 25 - Spencer Costanzo

In the last year, 18-year-old Spencer Costanzo and his team of nine developers and designers have successfully built and brought to market 40 iPhone apps — eight of which rank high up on iTunes’ list of top 200 reference apps.

"The idea that I could create applications for a device as amazing as the iPhone was major motivation,” says Costanzo, the founder of the Princeton, N.J.-based Malibu Apps. “I still can’t explain the feeling of seeing apps I’ve created on iTunes top charts.”

Spencer Costanzo, the founder of Malibu Apps, is YoungEntrepreneur.com’s Startup of the Month.

Millionaire By 25 - Spencer Costanzo Interview

• Check out his website:– http://

www.malibuapps.com/

• Interview:– http://

www.youtube.com/watch?v=GulRDj-6tbU

Office Basics: Growing a Father’s Legacy• https://www.officebasics.com/CGI-BIN/lansaweb?

webapp=WOBHOMPGE+webrtn=WRDISPLAY+ml=LANSA:XHTML+partition=PRD+language=ENG+sid=

• Office Basics is an independently owned and operated distributor of office products, furniture, breakroom, technology, and janitorial products.

• We have been in business since 1987 and we have grown to be one of the largest independent office products dealers in the nation. Our main office and distribution center is located just outside the city of Philadelphia in Boothwyn, PA.

• This state of the art 100,000 square foot distribution center serves as the hub for our distribution capabilities. We have three other facilities (Bethlehem, PA, Lancaster, PA, and Moorestown, NJ) to increase the efficiency of our operations and better serve our customers within their local markets.

• Office Basics focus has always been our customer’s success. We define our success by providing our customers with consistently low prices and high levels of service.

Monitoring Employee Internet Use—Where to Draw the Line With

Privacy• http://www.nfib.com/business-resources/business-resources-item?cmsid=52370 • Question of the Week #6How to Keep Your Monitoring Legal • Employers generally have access to employee communications while on the job, but

there are a few steps to always take before monitoring employee communications: • Establish a Policy : don't let there be any confusion about whether a particular form

of communication will be monitored or not. Create a clear policy that outlines what forms of communications are monitored, why they are monitored and under what circumstances they are monitored. To be extra careful, consider having employees sign a consent form acknowledging that they understand and agree that their workplace communications will be monitored.

• Have a Justification for Monitoring : courts are far less likely to find you liable for violating an employee's right to privacy if you had a good, work-related reason for monitoring communications. If you've had past experiences that prompted monitoring or have received complaints, these all qualify as perfectly good justifications for monitoring employee communications.

• Be Reasonable : be smart about how and when you monitor employee communications. If you create a draconian atmosphere of surveillance or implement a system that seems excessive given the potential problems, a court is much more likely to find that you are violating employee privacy rights. Ensure that your monitoring system is proportional to any potential problems because overreaching is a good way to ensure a lawsuit from a disgruntled employee.

• READ:

– http://www.sba.gov/community/blogs/email-phone-and-social-media-monitoring-workplace-%E2%80%93-know-your-rights-employer

Email, Phone and Social Media Monitoring in the Workplace – Know Your Rights as an

Employer