Marketing!

What is Marketing? All the activities carried out by a business

to promote and sell its products Examples?

Sales Promotions (coupons or special deals) Personal Selling of product to consumer Open Houses Publicity in the media Advertisements in publications/media

How are you affected by marketing?

Why is Marketing Important? If products are not effectively

marketed, then the business is not likely to succeed.

The amount of effort put into marketing should be proportional to the size of the need. Ex: If you only produce a small amount of

maple syrup each year (enough to sell your neighbors), then you shouldn’t be spending a lot of time marketing that product to farmer’s markets, grocery stores, etc.

Why is Marketing Imp..cont.

If no one knows about your product, how are they going to know they can buy it???

Marketing = sales and awareness of product

5 P’s of Marketing1. Product (or service): Know and understand your

product and how it fits in with the community you are selling to.

2. Price: Ensure that you make a profit, and that the consumer agrees with the price versus value of the product.

3. Place: Where do you offer your product? Choose how you’re going to sell (i.e. internet, retail location, wholesale, farmer’s markets)

4. Promotion: How do you get the word out?5. Positioning: USP (Unique Selling Proposition)

What makes your product so special

Practice: You produce eggs at your house and hope to start selling them.

Marketing Review

What is Marketing?

Why is Marketing important to a business?

What are the 5 P’s of Marketing?

Who will you sell your product to? A target market is a group of customers

that the business has decided to aim its marketing efforts and ultimately its merchandise towards

What is the next step? How do you know if your

business/product/service is appealing enough to customers that they will buy it?

You ask them!

This is called “Market Research”

Market Research a series of activities designed to identify

customer needs and wants, and satisfy these while making a reasonable profit on a quality product or service.

2 types: Primary Research Secondary Research

Primary market research Original and directly interacting with the

consumer Includes:

Surveys Focus Groups Conversation

Secondary market research

Using other resources to find out information about your target audience.

Includes: U.S. Census Report Books Trade Magazines Local Chamber of Commerce Competitor’s websites & annual reports

Marketing Plan

See Packet

Ideas Hanging baskets Pallet Garden kits Pumpkins Salsa gardens Eggs Pesto project-grow basil, make pesto, sell Tea gardens Mini Succulent gardens Herb gardens Tomato plants or other potted plants Ornamental plants Seasonal plants-poinsettias CSA baskets

Mission Statement State the goal of the marketing plan A philosophy, a vision Answer the questions:

What business are we in? Who do we serve? http://www.starbucks.com/about-us/comp

any-information/mission-statement

Ben & Jerry’s is founded on and dedicated to a sustainable corporate concept of linked prosperity. Our mission consists of 3 interrelated parts:

Social Mission: To operate the Company in a way that actively recognizes the central role that business plays in society by initiating innovative ways to improve the quality of life locally, nationally and internationally.

Product Mission: To make, distribute and sell the finest quality all natural ice cream and euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment.

Economic Mission: To operate the Company on a sustainable financial basis of profitable growth, increasing value for our stakeholders and expanding opportunities for development and career growth for our employees.

Underlying the mission of Ben & Jerry’s is the determination to seek new and creative ways of addressing all three parts, while holding a deep respect for individuals inside and outside the company and for the communities of which they are a part.

Diagnosis In order to determine how to get where

you want to be, you need an accurate, objective picture of where you are now

Write a brief statement assessing the current statement of business You don’t have much…

Product /Service Identify your product

Name Color Shape Characteristic Packaging Labeling

Product/Service What is your competitive advantage? How does your

product differ from your competition in terms of exclusive processes or superior ingredients, or other features?

What are your strengths versus your competition’s? Will require some research

What are your weaknesses versus your competition’s Determine the cost of each product Determine the price you charge for each product What is your product’s personality?

Market (Target Market) ID your customers-who are they?

Male or female How old Education level Type of work Level of income How knowledgeable about your product? What factors influence their purchase decisions? (price,

service) What other people influence their buying decisions? How would you describe heir personality Is there anything unique about your customer

Market Do you have a large homogenous customer

base, or several small market segments? What are your customer’s real needs?

Perceived needs? Are you meeting these needs? What resistance do people have to buying

your product? Identify the location of your customers?

Market List the factors that affect purchasing

Seasonal Tax considerations Price Availability Convenience Service Emotional considerations Gift

Distribution Identify the most effective methods for

getting products to customers Do customers come to you? Do you go to the customers? Do you use dispensers, racks, etc? Do you mail out samples, use trial offers?

Do you use the internet? Do you make it easy for customers or

potential customers to get to your product?

Distribution

Have you made it easy for customers or potential customers to get more information about your product?

Identify the need for warehousing of products and distribution channels (for example internet) if not sold directly to the buyer

Promotional Strategy What is your current image in the marketplace?

How are you perceived by your customers? Is this accurate?

What would you like your image to be in the marketplace?

Will everything in your organization consistently represent the image you want to project? Employee behavior Place of business atmosphere Printed communication

Promotional Strategy How/where will you get new business? How/where will you get repeat

business? Review your message-see packet

Promotional Strategy List the promotional activities you are

(will) currently using Advertising Personal selling Sales promotion (coupons, freebies) Publicity and public relations

Promotional Strategy Are the benefits you offer being

communicated effectively? (OR: How will you know they are working)

Review of advertising: Does the audience for the media selected match your target market profile?

Promotional Strategy Public Relations: is the practice of

managing the spread of information between an individual or an organization and the public.

Review public relations activities What are your plans? Can you generate any product publicity?

How Special programs

Competition Identify competitors by division, product

lines, and markets

Compare your marketing techniques with those of your competitors

Pricing Review product costs for accuracy

including all variable and fixed expenses Fixed costs-are the same every month,

every time you pay (rent on a building) Variable costs-costs vary (price of feed)

Be sure all product carry their share of overhead expenses plus provide for profit. Overhead expenses

Compare prices of your product with similar products in the industry

Pricing If your prices are higher, do they provide the

necessary “added value” to justify the higher price? If they re lower, why? Is this a part of your

marketing strategy? How price sensitive (elastic) is your market-how

much change in buying occurs when prices rise or fall?

Are your prices “top of the line” or “bargain basement?”

Does your current marketing strategy support this price position?

Action Plan Identify goals. Should be concrete,

measureable, and realistic Specific Measureable Achievable Realistic Time-bound

Example: To increase sales volume by 50% within 6 months

Action Plan

Strategy-a general approach you will be taking to achieve a goal. PERSONAL SALES CALLS DIRECT MAIL NEWSLETTERS NETWROKING DISCOUNTS FOR LARGE VOLUME

CUSTOMERS

Example:Goal: To increase sales volume by 50% within 6 monthsStrategy: Increase promotional strategies by creating an Instagram account and posting once a week about our product

Paper Formatting Needs to be in one document-see example Do not re-write questions. Do not start a paragraph or sentence with “no, we do not have a

large homogenous market” Include sub-headings for all components with the name of

student who wrote it Include title page with

Product name Student names Marketing Plan Date Picture/graphic