Week 2

The 4 P’s of Marketing

• Product• Place• Price• Promotion P

Product

• Products are created in order to meet customers needs

• Marketing is the link between customers and the products

• Marketing research informs new and developing product decisionsP

Place• The availability of and access to a product

or service for customers

• Where Is the product available ?• online only? • In a retail chain store at the mall?• A boutique store in a small town?

• Reaching customers at the right time, in the right way, and, of course, in the right place.P

Price• What customers must pay to acquire a

product or service

• Effective pricing strategies are critical for successful marketing

• Company costs, customer perceptions, supply and demand, competition, pricing incentives are all used to determine optimal value to customers at an optimal profit for the product provider

P

Promotion• Communications about a product and its value

to customers in order to compel them to behave a certain way• Usually, but not always, that intended behavior

is related to buying the product or service in question

• Involves any communication, advertising, and public relations activities• Handing out flyers• Press release• direct mail postcards• print, web, television, or radio advertisements

P

Brand• Often thought of as just a company's image

• The collective sum of customer experiences with any given company, product, or service• advertisements, store experiences, experience using products,

word of mouth, website exposure, and encounters with customer service or sales reps

• Everything a company does (or doesn't do) impacts how customers see and feel about that company• Shapes customer perceptions of that organization• Significantly impacts consumer buying behavior

Customer Relationship Management

The Four C’s

• All “C”s map to the 4 Ps as they relate to the all important customer

The Marketing Process

Value Proposition• The set of benefits (or values) a company promises to deliver

to customers in order to satisfy customer wants and needs

• Helps differentiate one company or product from another, both in the mind of customers and within the company itself

• Helps clarify a company's or product's competitive advantage

• Describes what makes that company/product special

• Helps customers answer questions like "Why should I buy your products instead of those from another company?"

Value Proposition

• The Ultimate Driving Machine

• Touching is believing

• Friendliness, cleanliness, consistency, and convenience

Mission Statement• A way for a company to identify and articulate what it is they

are setting out to do

• The mission statement describes a company’s purpose and what it wants to accomplish with its business

• Mission statements answer the questions: What is our business?

Who is the customer?

What do our customers value?

• Organizations can then use their mission statements to guide their strategic planning, and employment practices

Mission Statement

• “The Ritz-Carlton Hotel is a place where the genuine care and comfort of our guests is our highest mission. We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxed, yet refined ambience. The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.”

• We are ladies and gentlemen serving ladies and gentlemen

Goals• Process for achieving and measuring success

• Can be company-wide, short-term, long-term, department-wide, product, performance, employee

• Goals should answer the following questions: What do we hope to do?

By when do we hope to do this?

How much do we need to do?

• While the mission statement explains the overall purpose of the organization, goals represent the tangible things the organization plans to deliver to help it

Objectives

• Similar to goals in that they are what a person, department, or organization hopes to accomplish

• The support structure for goals

• Provide the important, detailed pieces that outline how to achieve the goals

• Steps or tasks that need to be completed in order to succeed in reaching each goal

Goals and Objectives• Goals and objectives must be specific• If you want a job, what specifically is the job and with which

company?

• They should contain specific numbers (how many people, how much money, to what degree, how often, how big, etc.)

• They should indicate when something will be completed, using specific dates not a period of time

• They must be measurable• You have to be able to know whether you have accomplished them

and when

SWOT Analysis

In Class Assignment• Pick a partner

• Pick an advertiser from each of your magazines

• Do a SWOT Analysis for each brand

• Build a presentation that expresses your understanding of the 4 Ps for these brands• Product (Customer Solution)

• What customer need does it satisfy?• What research did they do before bringing this brand to market?

• Place (Convenience)• Where is the product available?• How does it satisfy Convenience to the customer?

• Price (Customer Cost)• What is the cost?• Is the price a perceived value to the customer?

• Promotion (Communication)• Has the brand communicated properly in this ad?• Have they reached the right target?• Does the ad shift the perception about the brand in any way?

Homework• Read Module 2• Keep the same advertiser from your in class assignment (from YOUR magazine)• Research your company/product/service online and be thorough• New products• Location• Press releases (good or bad)

• Find the company’s mission statement

• Based on all of the information you have found on your company assume you are the Marketing Director of this company and create the following:• Review your class SWOT analysis, make changes based on your research• Create a NEW mission statement• Two goals for the upcoming year• A minimum of two objectives for each of those goals