Indicator 1.04 – Employ marketing information to develop a marketing plan

1. Indicator 1.04 – Employ marketing information to develop a marketing plan Marketing Part 1

2. THE MARKETING MIX • Includes four basic strategies called the 4 P’s or elements of marketing. For each strategy, decisions have to be made for each product the business offers to best reach their target market. • Product • Place • Price • Promotion

3. The 4 P’s • Product - decisions include what to make or obtain as the business’s product mix. • Level of quality, features, branding, packaging, service, and warranty are items to decide and develop for each product.

4. PRODUCT Examples: • Product: the goods, services, or ideas a business will offer its customers. • Marketers conduct research and use their creativity to figure out what customers need and how they will meet those needs

5. The 4 P’s • Place - decisions include where the customer can obtain the products. Many businesses utilize multiple channels of distribution. • For example, store locations, website, and catalogs are the standard for most retailers today. Decisions of direct distribution or indirect distribution (intermediaries/middlemen) must be made.

6. PLACE Example: • The place element can make or break the buying experience. • Getting a product in the right place at the right time is all about creating convenience for the customer.

7. The 4 P’s • Price - decisions include determining what a customer is willing to pay • What competition is charging, determining seasonal discounts and allowances, and credit terms. • Determine how to accept payment: • Cash, debit, credit, check, or combination

8. PRICE Example: • Price is the amount of money a firm asks in exchange for its products. • To be successful, a good balance between customer value and satisfaction, as well as company cost and profit must be found.

9. The 4 P’s • Promotion - decisions include the promotional mix (advertising, sales promotion, selling, and publicity) • These decisions are based on the budget a business sets for the promotional mix. • The ultimate goal of promotion is to generate a positive response from customers.

10. PROMOTION Example: • Promotion refers to the various types of communication that marketers use to inform, persuade, or remind customers about their products. • Advertising • Personal selling • Publicity • Public relations • Sales promotion

11. IMPORTANCE OF THE 4 P’S • Product is important to obtain or develop the best product mix within your market and your target market. • Place is important because it is the avenues you come into contact with your customers. This is the element that has direct impact on loyalty and repeat customers. • Price is important because it establishes your profit and set the quality level of your products/services. • Promotion is important because it communicates with your customers so they know about your product mix.

12. ACTIVITY • Choose a product that you use frequently (toiletry items are good). • List suggestions for improvements to the product and the marketing mix. • Explain how the improvements would increase satisfaction of the customer and the business.

13. RELATIONSHIP OF GOALS, TACTICS, & STRATEGIES TO THE MARKETING MIX • Mission Statement – the guiding principle for all business decisions and provides direction for planning. • Goals/Objectives – established on a yearly basis and support the mission statement. Goals must be measurable and have a deadline. • Strategies – are then developed to accomplish goals and it reflects the method to achieve the goal (what to do). • Tactics – are then developed to accomplish the strategies; it is the how things will be done, daily actions.

14. Goal: What is the marketer’s destination? • A goal is an objective you plan to fulfill • SMART:(Specific, Measureable, Action, Realistic, Timebound) • Determine where your firm needs to be by a particular date and agree upon goals • A family-style restaurant wants to increase sales • Agree to increase annual sales by 10% over last years sales • Goal is specific and can be evaluated for success or failure at the end of a given time frame.

15. Strategy: Which route will the marketer take to get there? • A strategy is a plan of action for achieving your goals and objectives. • Create the plan of action (route) believed to be most efficient. • Example: • Strategy #1: add a kids’ menu in order to increase sales to young parents in the area

16. Tactics: What small steps are needed to make it happen? • Tactics are specific actions used to carry out strategies • Marketers carefully choose the short-term actions, or tactics, they use to carry out their strategy. • Tactics must line up with where they plan to go –their goal-and how they plan to get there • They pay attention to every detail – their strategy

17. MARKETING STRATEGIES CHANGE…… • What factors cause that change? • Different Goals • Economic conditions change • Political or influence of governmental agencies changes • Demand changes reflecting new consumer attitudes • Environmental changes • Advancements in technology • Actions of Competitors

18. ACTIVITY • Think of 5 products that have “changed” in your lifetime • How did they change? • Why did they change?