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

4. 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.

5. 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

6. 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.

7. 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.

8. 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

9. 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.

10. 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.

11. 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

12. 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.

14. REVIEW Identify the marketing mix element being illustrated (product, price, place, promotion). • How should the product be packaged? • Should we offer credit and layaway? • Should we allow our product to be sold by a wholesaler? • How often should we advertise? • How many sales people should we hire? • Should we offer guarantees or warranties? • Which type of transportation should we use to move the product? • What should be offered for sale? • How often should we put the product on sale? • Which celebrity could we use to entice customers into the store?

15. SHAMPOO PROJECT Your shampoo company is going for a new look! Create the new packaging for your shampoo. After you have created a new look discuss the marketing mix for your shampoo on the back – label & explain all 4 parts to the marketing mix!!

16. RELATIONSHIP OF GOALS, TACTICS, & STRATEGIES TO THE MARKETING MIX • Mission Statement – the guiding principle for all business decisions and provides direction for planning; big picture. • 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.

18. 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.

19. 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

20. 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

21. 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

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

23. THE MARKETING MIX REVIEW 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. P? P? P? P?

25. WHY ARE MARKETING STRATEGIES IMPORTANT IN THE MARKETING MIX? Marketing plan is created with marketing strategies for the marketing mix. Marketing strategies are important because they are the framework of conducting business. They guide the allocation of a business’s resources. It unites the marketing activities throughout the business and everyone is on the same page. Eliminates chaos and confusion.

27. What is a Market? • = a customer or potential customer who has a unfulfilled desire and is financially able and willing to satisfy that desire • A market are those who have: • A need or desire, and • The ability to pay, and • The willingness to buy (soon)

28. MASS MARKETING • Mass Market is when the group is considered as a whole with all the marketing activities; using a single marketing plan. • Ex. Chewing gum & light bulbs

29. MASs marketing Designing of products that will appeal to most buyers and direct their marketing activities to the whole market Undifferentiated marketing Appeals to many types of customers through one marketing plan Example: Henry Ford black Model T

30. Advantages Used to communicate a broad message to a large audience Allows a business to produce one product for everyone Provides the most possibilities for success at the least cost Don’t have to pay for the production of similar products Can price and distribute one type of product more easily than many Can send one promotional message to everyone Easier to manage, cost effective Predictable response rates Easy to set up.

31. Disadvantages Diversity of the mass marketing audience Small percentage of the mass market is likely to purchase the product Unable to track return, low response rates Nonpersonal Beliefs that everyone is the same Low profit margins High competition

32. How marketers meet customer needs • Grouping customers by their similarities Pinpointing the particular group of customers to attract

33. Segment marketing Planning their activities for a specific, well-defined group of customers is known as market segmentation

34. Advantages • Utilizes the marketing concept-knowing the customer needs and meeting those needs • More precise than mass marketing • Allows for: • Finely-tuned products • An appropriate price • Ease of distribution • Encourages effective communication • Makes more efficient us of resources • Small businesses become competitive

35. disadvantages Takes more resources (time & money) Can be more difficult to produce

36. Why use of segments is increasing • Today’s customers are: • Better educated • More discerning in the purchases

38. WHAT IS A TARGET MARKET? • Identified segments of the market that a business wants to have as their customers. • For example, teenagers, mothers-to-be, single mothers, American Family, men .vs. women, or college freshman. Each example has wants and needs that can be targeted and utilized to develop effective strategies to reach existing and/or potential customers.

39. TARGET MARKET • A target market are those who: • Are grouped within a market by what they have in common • Are the customers the business seeks to attract

40. IMPORTANCE OF TARGET MARKETS A target market represents the people most likely to buy what you sell. These people have something in common that solidifies their desire for your product or service. And that something distinguishes them from the market at large.

41. Importance of Target Markets Every customer belongs to a number of markets Customers are targeted in the consumer market, and businesses are targeted in the industrial market The same customer or business can be included in more than one target market Markets usually change over time

43. SEGMENTATION Market Segmentation is the process of dividing a larger market into smaller parts. Market segment is a subgroup of a larger market that share one or more characteristics.

44. MARKET SEGMENTATION • Advantages: • Providing the products customers want • Effective communication • Higher response rate, • Repeat and loyal customers • Personal • Disadvantages: • More expensive, more difficult to produce • Expensive to set up • Requires more marketing research

45. WHY IS MARKET SEGMENTATION BEING USED MORE? Better matching of customer’s needs Better profits & opportunities for growth Repeat customers Target market communication More businesses operating globally creates more competition & greater market share via market segments It is more efficient in the long run.

46. 4 TYPES OF MARKET SEGMENTATION • Ways to divide markets into smaller groups • Demographic • Geographic • Psychographic • Behavioral

47. DEMOGRAPHIC SEGMENTATION Statistics that describe a population by personal characteristics such as age, gender, income, marital status, ethnicity, education, & occupation.

48. Demographic Factors • Age • Stage in family life cycle • Occupation • Economic circumstances • Lifestyle • social influence variables • family background • reference groups • roles and status

50. DEMOGRAPHIC Example: • Gender: indicates purchase preferences (female) • Origin or heritage: race, ethnicity, nationality (Caucasian) • Religion (Christian) • Social or economic status: education level, occupation, income (Middle-Class) • Life stage: age, generation, marital status, family life cycle, family size. (Teens)