Marketing Basics

The Big Question

Why do customers

purchase what

they do?

Why do customers purchase what they do?

• Personal Factors

– Age

– Life-Cycle Stage

– Occupation

– Economic Circumstance

• Psychological Factors

– Motivation

– Personal Perception

– Learned Experiences

– Beliefs

– Attitudes

• Social Class

Who are your core customers and why would they buy what you’re selling?

• Need• Convenience• Impulse• Desire• Comfort• Hunger• Easiness• Pressure• Image• Boredom

Marketing Mix: The Four P’s of

Marketing

• Product – What are you selling?

• Price – How much does the customer pay?

• Place – Where can a customer purchase your product? How does it get there?

• Promotion – How will people know what you’re selling?

Product• What are the benefits of your

product?

• What makes your product different from what is in the market today?

• How much research will you need to do to bring your product into the market? How will you do it?

Price• What are competitors

charging?

• What would your customers pay?

• What is your breakeven point?

– BE in units = total fixed cost divided by the pre-unit contribution to fixed cost

(selling price – variable cost)

Pricing Practice #1• Penetration –

initially setting low prices to “beat the competition” and then, as customers become more aware, prices are increased.

Pricing Practice #2

• Competitive – shift the emphasis to non-price competition based on other elements of the marketing mix

Pricing Practice #3

• Skimming – initially setting high prices for distinctive products with little or no competition.

Pricing Practice #4

• Psychological - pricing designed to have a positive psychological impact. For example, selling a product at $4.95 rather than $5

Place (Distribution Channels)

• How easy will it be for customers to purchase your product?

• Will you market directly to the end-user or indirectly through wholesalers and retailers?

• How will you physically distribute your product?

– Internally: how will the product move within your facility

– Externally: how will you move the product from your facility to the end-user or intermediary?

Promotional Mix• Advertising - Any paid form of

non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

• Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails.

Promotional Mix

• Sales promotion - Incentives designed to stimulate the purchase or sale of a product, usually in the short term.

• Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.

Promotional Mix

• Public relations - Non-paid non-personal stimulation of demand for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media.

• Examples: Newspaper and magazine articles/reports, TV and radio presentations, Charitable contributions, speeches, issue advertising, and seminars.

Promotional Mix

• Personal selling - A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation.

• Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone.

Service Marketing (3 more P’s)

• People - employees

• Process - service

• Physical evidence - comparing

21st Century Marketing

• Personalization

• Participation

• Peer-to-Peer

• Predictive Modeling

Develop an Advertising Campaign

• Send a single idea and theme across a number of advertising outlets

• What is the campaign theme or central message communicated in all promotional activates

• Speak in the advertising language your target market will want to hear

Trademarks/themes

If the 4 P’s in a marketing mix overlap,

where do I start?

Product

Price

Place

Promotion

Your Customer is at the center of your marketing mix.

Do you know your customeror think you know your customer?

• Who decides if your product is worth buying?

• Who decides its value?

• Who decides where to buy?

• Who decides where you should promote your product?

Research your customers.

Marketing Plan

• Write it

• Build it

• Guide it

• Direct it

Developing Your Marketing Plan

• Use a template or computer program

• Start with what you know

• Research your assumptions and fill gaps

• Use real numbers and set realistic goals

Marketing Today

Website

BlogsLinked In

Facebook

Webinars

Forums

You Tube

Email newsletter

twitterTraditional

(business cards, direct mail)

Google profile

Industry specific

More than 300 million active users

• 50% of our active users log on to Facebook in any given day

• The fastest growing demographic is those 35 years old and older

185 Million Registered Users

50.2% Female / 49.8% Male

Primary Age Demo: 14 – 34

Over the last 5 months, had between 39 and 45 Billion page views per month.

350,000 new registrations each day

1 Billion total images

Millions of new images/day

25 Million Songs, 60,000 new videos / day

4.5 Million people on site on any one time

45-54 year olds are the top demograpic tech-entrenched, early adopters

claim use of online social media is their favorite leisure activity

use multiple forms of online social media

over 30 years of age

self-employed, entrepreneurs

use mobile phones to access

their respective social media

prefer to contact friends via

online social media vs. the telephone

Average Age: 41Household Income: $109,703

Male: 64%Household Income $100k+ 53.5%

Own Smartphone/PDA: 34%College Grad/Post Grad: 80.1%Business Decision Maker: 49%

EVP/SVP/VP: 6.5%24% Have a Portfolio Value of $250k+

Job Titles:

C-Level Executives 7.8%EVP/SVP 6.5%

Senior Management 16%

Why do you need them?

• Effective tool for reaching target market

• Cost effective

• Contacts can be closely tracked

• Target certain messages to particular addresses

• Reward customer loyalty

• MUST BE PERMISSION BASED!!!

E-newsletter sites

Help identify template and programs you can use

One-on-one business consulting

Research tools – ESRI, Dunn and Bradstreet. First Research

Goal setting and accountability