Marketing

Oh, tell me more!!

Marketing

►Set of processes for creating, communicating, and delivering value to customers for improving customer relationships….ok now in my terms

►The process of promoting, selling, and distributing a product or service

Target Market

Target Market

►Marketing Strategy – selecting a target market and create, price, promote & distribute (place) products in the market

►Target Market – Groups of customers who are or will be interested in your product

Market Segments (Targets)

►Demographic Age, income, # of children, religion,

education►Geographic

Climate, region, population density►Behavioral/Psychographic

Attitude toward product, user status, usage rate

Interests, activities, values

Lets Look at Some Ads

►Denver Water Company

Suplicy Cafe

Fiji Water

Burger King

iPhone

Marketing Concept

►Using the needs of customers as the primary focus during planning, production, pricing & distribution & promotion of a product.

Marketing Concept

►Business needs 3 things to happen Identify what will satisfy customer’s needs Develop products that customers think

are better products Business must operate profitably

Marketing Concept

►Two Steps Identify target markets Develop marketing mix

►Product►Pricing►Placing (Distribution)►Promotion

Product►Things to consider about your product

Design Technology Usefulness Convenience Quality Packaging Branding Accessories Warranties Relevance – Time frame – Product Life Cycle

Product

►Different methods can be used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage like Specialized versions New/Limited editions Improvements Changed packaging Technology, etc.

Product Life Cycle (PLC)

Think of Examples of PLC

►Video Games►Cars

3 Levels of a Product

Pricing

►How should you price your product High? Low? Where do you start?

Pricing Strategies

►Skimming Pricing – Initially offers product at the highest price, lowering it eventually to increase demand again

►Penetration Pricing – Charging a low price to gain market share & lose competition

►Cost-based Pricing – Cost of product + a reasonable mark-up usually a percentage

►Demand-based Pricing – Charging the price that people are willing to pay for the products

Pricing Strategies►Target costing – Working backwards,

how much customers will pay and subtract from profit – this is how much to invest

►Prestige pricing – Pricing high to project high quality

►Odd-even (Psychological) pricing – Pricing a few cents under an even number

►Economy pricing - This is a no frills low price. Marketing costs are kept to a minimum.

49.99

2.59

15.49

15,967

195.49

3,299

25.99

49.99

2.59

15.49

15,967

195.49

3,299

25.99

Price

Important to Know the market Price elasticity

►Definition Know your

competition’s prices

Price Elasticity

►A measure to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price.

►Are these products’ prices elastic? Toilet Paper Gas Picture Frame $500 pizza

Placing/Distribution

►All activities involved in getting the right quantity to the right customer at the right time at a reasonable cost.

Distribution/Placing

► Indirect vs Direct Manufacturer Wholesaler/Distributor Internet Catalog/Mail Order Sales Team Dealer Retail Multi-channel

Distribution/Placing

►Determining the best ways for customers to locate, obtain, and use the products/services

►Things to consider Cost of shipping Cost of distribution channel Ease/best way to get the product to

customer

Marketing Plan – 11/5/13

►How you will break down your target market based on the 3 segmentations? Be specific

►In depth strategy on how you will price your product Explain why the strategy, factors behind

pricing, future price changes►In depth distribution strategy

What channels you will use and why Factors/problems that may arise in

distribution

Promotion

I've been told of some crazy schemes and I've come up with even crazier ways of promoting them.Max Markson - Media Man of Australia

Marketing Communications

Promotions Mix

►Personal Selling►Sales Promotion►Public Relations►Direct Mail►Trade Fairs & Exhibitions►Advertising►Sponsorship►Online Promotions►Website

Personal Selling

►Examples? Used Cars Vacuum Cleaners

Sales Promotion

►Examples? BOGOF Coupons Money Off (Rebates) Competitions Free Accessories Introductory Offers

Public Relations (PR)

►The deliberate, planned & sustained effort to establish & maintain communication between an organization & the public

►“All attention is good attention”►Examples?

Airlines Celebreties

Direct Mail/Email Marketing

►Examples? Emails Mailing lists 18 Free Wings for your B-day! Free Ice Cream from Cold Stone!

►Part email promotion, part direct mailings

Trade Fairs & Exhibitions

►Examples? Video Games Boat Shows

Advertising

►“Paid for” communication Commercials Billboards Online Radio

►Obscure Examples? Buses Cinema Tatoos

Sponsorship

►Very powerful►Examples?

Online Promotions

►Examples? Pay per click Sponsor a website Email Social Media

►Google Analytics Websites

The Marketing Mix

►Blend of the mix depends upon: Marketing objectives Type of product Target market Market structure Rivals’ behaviour Global issues – culture/religion, etc. Marketing position Product portfolio

Evaluating Your Marketing Mix

► 1) Look at your sales (or fee income). ► 2) Ask your clients. ► 3) Does your advertising and/or promotional activity

produce direct responses?4) Do your networking activities create new opportunities for you?

► 5) Do your marketing tactics make it easier to sell your services?

► 6) Check your sales conversion rate. The best approach here is to look at your historical records and determine

whether your conversion (or closure) rate has improved.

► 7) Does your plan have a positive return on investment (ROI)? Does it bring in enough new/repeat business to justify the expense?