Marketing Unit Three
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--- WHAT IS IT?! Marketing the iPad and iPad Apps
What do you need before you start marketing? Marketing Plan • Blueprint used by a business to guide its marketing • activities to a desired conclusion. It should include: Marketing Tactics • Activities that need to be taken to carry out the marketing plan
Marketing Definitions Target Market • The group of people you plan to market your product to. • (Demographics) Marketing Objectives • Goals a business wants to accomplish through its • marketing efforts. Who is your target market? What are your marketing goals?
Marketing Mix FIVE “P”s of Marketing • Product • Price • Place • Promotion • PEOPLE!
PRODUCT Marketing Mix
Product Strategy • What goods and services is your business going • to provide consumers? Your product will be identified by… • Brand: Name, symbol, or design used to identify a product • Package: Physical container or wrapper that holds the product • Label: Part of package used to present information
Product Strategy Product Positioning • How consumers view your product compared to the • competitions product. • Prestigious? • Good Bargain? • Equal in Quality? Product Mix • All of the products a company makes and sells. EX: Kim Kardashian
PLACE Marketing Mix
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 Distribution • Path your product takes from producer (manufacturer) • to consumer • Direct 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-SHIRT • Cotton & Polyester
2) Processor • Changes raw materials into a more finished • product. T-SHIRT • Turn cotton and polyester into thread • Create Twill for seam binding
3) Manufacturer • Business that makes finished products out of • processed products. T-SHIRT Creates 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-SHIRT Buys 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-SHIRT • Divide 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's • American Eagle T-SHIRT
Graphic Organizer 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 Marketing Mix
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!
Supply and Demand Inelastic Demand: • Customers will buy a product regardless of price Elastic Demand: • Prices are sensitive to demand Dominick's and Jewel Price FixingArticle
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 Pricing • You must consider your business costs and profit • Objectives • Markup: The amount added to your cost to cover expenses Demand-Based Pricing • Only used if your product is inelastic AND your • Product has a greater value than competitors Competition-Based Pricing • Find out what your competition charges and then • decide if your price should be lower, the same, or • higher
Pricing Policies Flexible-Pricing Policy • Allows customers to bargain for a price • Advantages and Disadvantages? • Examples? One-Price Policy • All 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
PROMOTION Marketing Mix
Promotional Strategy • Communication intended to persuade, inform, • and remind a target market about a business • and its products Promotional Plans • Preopening 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 Market • Product Value • Promotional Channels • Time Frame • Cost
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: • Attract Visitors • Convert Visitors
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
Sales Promotion Cont. • 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
Customer Knowledge • Emotional Buying Motive • A feeling a buyer associates with a product • Social approval • Recognition • Power • Affection • Prestige • 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
Publicity Placement in the media of newsworthy items about a company or product Ways to draw attention to your business: • Write news releases- brief newsworthy story sent to the media • Write Feature Articles • Submit captioned photos • Call a press conference • Seek interviews • 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! • All major media advertising companies have advertising departments • Cooperative Advertising- Advertising costs are divided between two + parties • Advertising Agency- Company that acts as an intermediary between the business and the media to communicate a message to the target market • Web Designers
PEOPLE Marketing Mix
People Strategy • How will your business assemble, prepare, and maintain • the people who will help you achieve success? • Basic Hiring Criteria • Developing Employees • Establishing a productive environment • Rewarding Employees
Commercials • Add relevant commercials and discuss the 5 “P”s of marketing.