Falinason inc | Why is it important to put your marketing plan in writing

1. Why is it important to put your marketing plan in writing? Falinasoninc

2. Market Your Business Develop the Marketing Plan The Marketing Mix─Product The Marketing Mix─Price

3. Developing the Marketing Plan Goals • Explain the importance of marketing a business. • Discuss how to develop a marketing strategy for a business. • Describe what information is included in a marketing plan.

4. Vocabulary • marketing • marketing concept • marketing mix • marketing strategy • marketing plan

5. What is Marketing? • marketing • all of the processes used to determine and satisfy the needs of customers and the company • planning • pricing • promoting • distributing • selling

6. marketing concept • Uses the needs of customers as the primary focus of a product or service during: • planning • production • distribution • promotion

7. A successful marketing concept will: • Identify what will satisfy the customers’ needs and wants • Develop and market products or services that customers consider better than other choices • Operate profitably

8. marketing mix • reaching the target market through a blend of: • product • price • distribution • promotion

9. Why is marketing important to a business?

10. The Marketing Strategy • marketing strategy • a plan that identifies how business goals will be achieved through marketing efforts • product introduction or innovation • pricing • distribution • promotion • sales or market share • projected profitability

11. marketing goals should: • be achievable with your available resources • be written following the SMART guidelines • reflect short, medium and long-term goals

12. Short-Term Goals • Achievements for the next year are the focus of short-term goals. • number of customers • level of sales • level of profits

13. Medium-Term Goals • Achievements for the next two to five years are the focus of medium-term goals. • Make sure your marketing strategy facilitates achievement of medium-term goals.

14. Long-Term Goals • Achievements for a 5, 10, or 20 year time horizon are the focus of long-term goals. • Long-term goals can help define current marketing plans.

15. Why is goal setting important when developing a marketing strategy?

16. Write Your Marketing Plan • marketing plan • defines your market • identifies your customers and competitors • outlines a strategy for attracting and keeping customers • anticipates changes

17. The marketing plan should include the following information: • Product or Service • Target Market • Competition • Marketing Budget • Business Location • Pricing Strategy • Promotional Strategy • Distribution Strategy

18. Marketing plans should include performance standards that are measurable. • Actual results should be compared to performance standards quarterly.

19. Why is it important to put your marketing plan in writing?

20. The Marketing Mix─Product Goals • Explain how the marketing concept affects decisions regarding the product mix. • Define and describe the importance of product management.

21. Vocabulary • product mix • features • brand • positioning

22. The Marketing Concept and the Product • If you can convince your customers that your products satisfy their needs better than any competitor’s products, then your products become a marketing tool for your business.

23. Consumer-Driven Market • The wants and needs of customers are the most important consideration when developing any product or marketing effort. • The U.S. has changed from a product-driven market to a consumer-driven market. • Consumers are more educated. • Competition includes the global market.

24. Product Mix • product mix • the different products and services a business sells • Entrepreneurs may carry some products that are not profitable just to please customers. • A small percentage of the product selection often makes up the majority of sales revenue.

25. How does the marketing concept affect decisions made about the product mix?

26. Product Management • There is more to a product than consumers may realize. • features • branding • packaging • labeling • positioning

27. Select Product Features • features • product characteristics that will satisfy customer needs • The target market should be considered when selecting product features.

28. Consider Branding, Packaging, and Labeling • brand • the name, symbol, or design used to identify your product • package • the box, container, or wrapper in which the product is placed

29. label • where information about the product is given on the package • The brand, package, and label that you choose for a product help differentiate it from others on the market.

30. Position Your Products or Services • Different products and services within the same category serve different customer needs. • positioning • creating an image for the product in the customer’s mind

31. Why is product management important?

32. The Marketing Mix─Price Goals • Identify pricing objectives for a business. • Calculate the price for products using various methods. • Discuss factors to consider when pricing services. • List and describe various pricing strategies.

33. Vocabulary • return on investment • market share • demand-based pricing • cost-based pricing • competition-based pricing • psychological pricing • discount pricing

34. Set Pricing Objectives • price • the amount a customer pays for a product or service • needs to be low enough that customers buy from you • needs to be high enough so revenues exceed expenses

35. Price objectives might include: • maximize sales • discourage competition • establish an image • increase profits • attract customers

36. Return on Investment • investment • the costs of making and marketing a product • return on investment(ROI) • amount earned as a result of the investment • usually expressed as a percentage

37. Market Share • market share • a business’s percentage of the total sales generated by all companies in the same market • The total market for a product must be known in order for market share to be determined.

38. Market Share = Amount of Sales ÷ Total Market Size

40. There are multiple ways to increase market share including: • lowering prices • advertising and promotion • networking with potential customers

41. Why is it important to determine pricing objectives before pricing goods and services?

42. Determine a Price for a Product • There is usually more than one price that can be charged for a product.

43. Demand-Based Pricing • demand-based pricing • pricing that is determined by how much customers are willing to pay for a product or service • Survey potential customers to determine what they would be willing to pay for a product. • The highest price identified is the maximum price that can be charged.

44. Cost-Based Pricing • cost-based pricing • determined by using the wholesale cost of an item as the basis for the price charged • markup price • determined by adding a percentage amount to the wholesale cost of an item

45. Markup amount = Wholesale cost × Percentage markup • Retail Price = Wholesale cost + Markup amount

46. markdown price • determined by subtracting a percentage amount from the retail price

47. Markdown amount = Retail price × Percentage markdown • Markdown Price = Retail price - Markdown amount

48. Competition-Based Pricing • competition-based pricing • pricing that is determined by considering what competitors charge for the same good or service

49. List three methods for determining the price to charge for a product.

50. Price a Service or an Idea • To set a price for a service, consider the following: • the cost of items used in providing the service • the amount of time required to produce the service