The Marketing Game Plan

1. Chapter 6 6.1 The Game Plan 6.2 Entertainment and Sports Strategies 6.3 Mapping the Plan The Marketing Game Plan

2. Lesson 6.1The Game Plan Goals • Explain the difference between marketing tactics and strategies. • Discuss the importance of planning to stay ahead of the competition.

3. MARKETING TACTICS • Marketing Research showed: Nike was falling behind • Corporation Goal: be #1 in their market. • Nike needs to differentiate itself from Adidas, the market leader.

4. Tactics First, Then Strategies • tactic • the way a product or service is differentiated in the minds of customers from other competing products or services • “Competitive Mental Angle” • Competitive – stand out from the rest • Mental - in the minds of consumers • NuBoard – Devised a tactic to build brands and engage customers by using bags as mini-billboards

5. Tactics First, Then Strategies • Tactics Require: • Extensive knowledge & involvement with Customers • Tactics must be developed by people who have their minds open to the idea of exploring what customers think. • most effective tactics developed by salespeople • tactics can work their way from salespeople to upper management

6. Tactics First, Then Strategies • strategies • the process by which tactics are implemented • NuBoard – strategy of selling ad space on the mobile mini-billboard and adhered them to seats to advertise for their clients. • Ritz Carlton • Tactic – appeal to only the wealthiest customers • Strategy - partner with another brand name “Bulgari” (Fine Jewelry) for the new ulta-premium properties.

7. What is the difference between a tactic and a strategy? • Tactic – the way a product is differentiated • Strategy – process by which tactic is implemented • Tactic: competitive mental angle • Strategies: implementing tactics

8. BEATING THE COMPETITION • “Winning the game” in business means gaining market share over competitors and making a profit. • analysis, tactics, strategies devised & used • requires depth of competitive knowledge What Information is Needed? • marketing intelligence: • info gathered about competitors

9. Marketing Intelligence • Pricing • very important to customers • the prices of competitors can influence buying decisions • Distribution • marketers need to make the product purchase convenient for customers • place utility improved

10. Product/Service Management • knowing the product/service offerings of competitors can help a business determine how to differentiate its products • Goal: offer additional choices to consumer, not just follow their competitions lead. • Promotional Efforts • promotional competitive analysis reveals: • the product characteristics emphasized by competitors • target customers • promotional budgets

11. Finding the Information • Marketing information is critical to help anticipate future moves of the competition. • internet • efficient searching leads to effective results • company name • keywords • observations • combining the insights of a variety of salespeople can provide valuable competitive information

12. trade shows • major events where people in a related industry meet to • show their products • exchange ideas • learn about the latest trends • valuable source of competitive information • customers • customer feedback is critical for fine tuning marketing plans • can provide competitive information

13. Give three examples of marketing intelligence information that might be collected by a movie theater. • Mystery customer to assess competitor’s:food offerings, price points, seating type, cleanliness, environment, arcades, etc.

14. Lesson 6.2Entertainment and Sports Strategies Goals • Explain the importance of learning from customers. • Discuss sports marketing strategies. • Discuss entertainment marketing strategies.

15. DATA-DRIVEN DECISIONS • marketing plan • a document that describes the tactics and strategies that will be used to market the product or service • raw data • the facts and recorded measures that have been gathered

16. Interpretation • interpretation • explaining the information so that it has meaning • drawing conclusions that relate to the defined marketing research problem • Gathering an adequate amount of data and then transforming it into useable forms (such as summaries, charts, or graphs) simplifies the decision-making process.

17. Applied Research • applied research • conducted to solve specific problems • Marketing Concept • Focuses on customers, long-term profitability and coordination of all 6 core standards • Applying what is learned from marketing research to planning is a critical step to successful marketing

18. Applied Research • Peter Drucker, Management Guru • Defines Marketing as: “The whole firm, taken from a customer’s point of view.” • Carefully learn from the customer (research) • Use what is learned to attract those customers • Then engage them with product offerings

19. Applied Research • touchpoints • points at which business makes contact with customers • web site visits • e-mails • phone calls • advertisements • one-on-one sales pitches

20. Explain what Peter Drucker’s definition of marketing means. (Page 153) • Marketing focuses the purpose of the business on what the customer wants and needs.

21. SPORTS MARKETING STRATEGIES • Fans are necessary for the longevity of a team. • Attracting fans to watch the game (in person or on TV) and motivating them to buy related merchandise in order to generate profit. • Using research to form the right tactics to attract these fans is a challenge for teams.

22. Fans Rule • Competition for fans is fierce. • Adidas and Nike have different tactics and strategies to compete for soccer fans. • Adidas provides soccer balls for the World Cup and promotes customizable soccer cleats. • Nike is filling a niche for street-ready soccer merchandise and is sponsoring a number of major international soccer teams.

23. What drives professional sports teams’ marketing plans? Explain why. • The marketing plans focus on: • attracting fans to watch games in person or on TV • motivating them to buy related merchandise • in order to generate profit.

24. ENTERTAINMENT MARKETING STRATEGIES • The movie and music industries use many of the same strategies used in sports marketing to attract customers. • Determining the new tactic first and then figuring the strategies that will drive sales is the key.

25. Capitalizing on Controversy • Sony carefully developed a tactic and a strategy for promoting The DaVinci Code. • Addressed some of the religious outrage by providing a website for religious dialogue • Forego usual advanced screenings/interviews • avoided overexposure prior to the movie’s release • add mystery in the minds of consumer

26. Concert Pricing Strategies • Indoor concerts - more economical to produce • Less sound and other equipment = less cost • Large Sell-Outs make good profit but have high costs • Smaller indoor concert may be more profitable even with smaller crowd due to low costs. • Ticket Prices INCREASED • Between 1995-2006 – Prices jumped over 100% • Less then $25 to Over $50 in ten year span.

27. Concert Pricing Strategies • Concert Venues & Radio Stations Changed • Large % now owned by national companies rather than local owners. • Industry consolidation has lead to decreased competition = they control the pricing. • Declining profits are prompting concert promoters to re-evaluate pricing strategies. • $9 convenience fee; $4 processing fee; $2 facility fee

28. Music with Your Coffee? • Starbuck’s Entertainment • connects Starbuck’s brand with entertainment • By 2005, Starbucks sold 3.5 million CDs. • Starbucks’s beverages • In 2012, Test Markets for Wine & Beer

29. Why would a coffee shop add entertainment items to its menu? • To increase revenues • A way of “selling a lifestyle”(Differentiating itself from their competition)

30. Lesson 6.3Mapping the Plan Goals • Explain how marketers determine direction and focus for a marketing plan. • List and describe the components of a marketing plan.

31. KNOW WHERE YOU ARE HEADED • Primary importance: reiteration of the company’s Mission Statement. • mission statement • identifies the nature of the business and the reason it exists • All tactics and strategies in your plan should be built around the mission statement.

32. A Sense of Direction • mass market • a broad group of customers • product portfolio • all the products a company has available at any one time • test marketing • where the sales potential for a new product is tried in a small market prior to its final release

33. Explain the importance of a company’s mission statement to the marketing plan. • The mission statement provides focus for the company’s marketers and planners as they develop tactics for new products and services.

34. THE PLAN • The marketing plan is a detailed document that further provides a detailed description of how the tactics and strategies will be implemented.

35. Components of a Marketing Plan • A marketing plan should be guided by the current and future needs of customers. • Analysis • The Mission Statement • The marketing plan must be in agreement with the mission statement. • Marketing Information • Information is gathered, analyzed, interpreted and used to make business decisions. • The Tactic • describes product or service differentiation • should pinpoint a gap that is not be filled by another product or service

36. Strategy (1 of 2) • Product/Service • the identified need is the basis for the development of the product or service • The Distribution System • describes how the product or service will be made available to customers • Pricing • The price must be set where revenues will be maximized to cover all costs and provide a profit.

37. Strategy (2 of 2) • Promotional Strategies • how the product will be positioned in the minds of customers • advertising • publicity • sales promotion • personal selling • Financing • disclosure of all expected costs and revenues • might indicate need for additional funding • Risk Management • outlines possible risks and strategies for minimizing the risks

38. Implementation • Timeline • start with completion date and plan backwards • specify event sequencing • Assignments of Responsibility • specify who is responsible for each component of the plan • Internal Communication System • define how all key organizational members will be kept informed of the plan (provide a feedback mechanism) • Selling • defines how direct sales will be handled • Review and Evaluation • define mileposts for progress checks of the plan

39. Look to the Future • Organizations should have future products planned while current products are still experiencing strong sales. • Marketing plans require periodic revisions.

40. Why must the marketing plan include intervals for review and evaluation? • Review and evaluation are necessary to ensure the plan is on track and to make adjustments if/where necessary.