1. 4.2a Marketing Planning Marketing Mix, Objectives, Ethics

2. Marketing Mix: The major marketing management decisions can be classified in one of the following categories:  Product  Price  Place (distribution)  Promotion  People  Physical Evidence  Packaging  Process

3. Product The product is the physical product or service offered to the consumer. In the case of physical products, it also refers to any services or conveniences that are part of the offering. Product decisions include aspects such as: 1.Functionality 2.Appearance 3.Quality 4. Packaging (packaging is now generally considered its own ‘P’) 5.Brand 6.Warranty/Guarantee 7.Service/Support

4. Price Pricing decisions take into account - profit margins Market determines price, costs determine profits - probable pricing response of competitors - response of customers - elasticity Pricing includes: 1.List price2.Discounts 3.Allowances4.Financing 5.Leasing options

5. Place Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical and facilitating functions. Distribution decisions include: 1.Channel members 2.Channel motivation 3.Market coverage 4.Locations 5.Logistics 6.Service levels

6. Promotion decisions are those related to communicating and selling to potential consumers. It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them. Promotion decisions involve: 1. Advertising 2. Personal selling 3. Public relations 4. Message 5. Media Promotion

7. People Utilizing the human capital of the organization in the most productive and beneficial manner Utilizing the human capital of the organization in the most productive and beneficial manner Ensuring that employees are clear on objectives is crucial Ensuring that employees are clear on objectives is crucial Other factors involving your people Other factors involving your people Customer relations Customer relations Sales Sales Innovation Innovation

8. Process The systems in place The systems in place to ensure quality to ensure quality Consistent from location to location Consistent from location to location to deliver the product to deliver the product to meet customer needs to meet customer needs McDonald’s and WalMart are the world leaders in process McDonald’s and WalMart are the world leaders in process

9. Physical Evidence Essential for all services Essential for all services The evidence the customer sees The evidence the customer sees Enables the customer to make a judgment about your business and marketing mix Enables the customer to make a judgment about your business and marketing mix

10. Packaging The look of both the product and its container The look of both the product and its container Protects product Protects product Contains product Contains product Provides information Provides information Includes Includes Branding Branding advertising advertising

11. Limitations Costs Costs Competition Competition Technology Technology External External Government regulations Government regulations Ethics Ethics Social responsibility Social responsibility

12. Marketing Objectives Context Objectives are what we attempt or wish to achieve. Marketing objectives are marketing targets, for products and markets, set by a business for future time period. These objectives must: Fit with the over all aims, goals, and mission of the business. Fit with the over all aims, goals, and mission of the business. Be determined by senior, management. Be determined by senior, management. Be realistic, motivating, achievable, measurable and clearly communicated to all in the organisation. Be realistic, motivating, achievable, measurable and clearly communicated to all in the organisation. Failure to link these objectives with the overall aims of the business can lead to different departments pulling in different directions.

13. Setting Marketing Objectives for the Mix The marketing objectives a business sets should be SMART in the same way as the overall objectives of the business. They should be: Specific stating exactly what is trying to be achieved, Measurable to be able to determine if they have been achieved Agreed and Achievable everyone involved embrace the objectives within reason Realistic able to be achieved within constraints of the business Time specific stating exactly when they should be achieved.

14. Why are marketing objectives important? They provide a sense of direction for the marketing department. They provide a sense of direction for the marketing department. Progress can be assessed. Progress can be assessed. They can be broken down into limited short term targets and also divided between different products and geographical regions of the firm. They can be broken down into limited short term targets and also divided between different products and geographical regions of the firm. They will impact on other department of the business. They will impact on other department of the business. The objective will be used as a starting point for the business marketing strategy. The objective will be used as a starting point for the business marketing strategy.

15. Summary of Marketing Objectives

16. Constraints on marketing objectives Internal: External: Finance Political Factors Finance Political Factors Organisation The Economy Organisation The Economy The product Social Factors The product Social Factors Price Technology Price Technology Place Environmental Factors Place Environmental Factors

17. The study of right and wrong with respect to marketing policies, practices, and systems. The principles and standards that guide appropriate performance in organizations. Ethicists believe that Relationship Marketing is a reasonable practice leading to positive relationships between buyers and sellers. This allows buyers and sellers to work together.

18. Ethics The principles of behavior that drive the ‘right’ decision making process The principles of behavior that drive the ‘right’ decision making process Some examples of unethical marketing behavior Some examples of unethical marketing behavior Pricing Pricing Lack of full disclosure Lack of full disclosure Bait and switch tactics Bait and switch tactics Misleading or false pricing tactics Misleading or false pricing tactics Promotion Promotion Emotional appeals using fear and sex Emotional appeals using fear and sex Exploiting a culture, race, or gender Exploiting a culture, race, or gender Marketing a product directly to children Marketing a product directly to children Saturday morning children’s shows Saturday morning children’s shows Cereal, toys, McDonalds Cereal, toys, McDonalds Product Product Health and safety issues with unsupervised or cheap suppliers Health and safety issues with unsupervised or cheap suppliers

20. This codifies the ethic of change between the buyers and sellers. This was outlined by President John F. Kennedy in 1962.

21. Responsibility of the marketer Responsibility of the marketer Marketers must accept responsibility for the consequences of their activities and make every effort to ensure that their decisions, recommendations, and actions function to identify, serve, and satisfy all relevant publics: customers, organizations and society. Honesty and fairness Marketers shall maintain and advance the integrity, honor and dignity. Rights & duties in the marketing exchange process Participants should be able to expect that products and services are safe and fit for intended uses; not deceptive. Organizational relationships Organizational relationships Marketers should be aware of how their behavior influences the behavior of others in organizational relationships. They should not demand, encourage, or apply coercion to encourage unethical behavior in their relationships with others.

22. An example of ethical conflict: the tobacco industry. H:\Videos\Deadly_Secrets.avi H:\Videos\Deadly_Secrets.avi Cigarettes have for many decades been a profitable business. powerful allies in Congress provided agriculture subsidies for tobacco Cigarette and tobacco marketing has worked Profits were/are high for the tobacco industry. Many thousands of people around the world are employed in the tobacco industry. However, cigarettes are harmful to society. De-merit good legal product with detrimental effects on society at large documented proof that cigarette smoking is harmful to health.

23. BIBLIOGRAPHY: Clark, et al, Business and Management Course Companion Ethical Issues: http://pwebs.net/marketing/ethics/articles/internetethics.htm Business Ethics: http://exchanges.state.gov/forum/journal/bus10background.htm Marketing Ethics & Marketing Strategy: http://www.utdallas.edu/~tskim/Lecture%20Note%202.pdf