Presentation on theme: "Marketing Information Management LAP 7"— Presentation transcript:
1Marketing Information Management LAP 7 Pick the Mix
2Objectives:Explain the importance of marketing strategies to business.Explain the nature of the marketing mix.
3Explain the importance of marketing strategies to business.
4How do you get an item you want? The conditions of your purchase have been planned way in advance—but not necessarily by you.How do you know about, and have access to, the items you want?
5Many purchases wouldn’t occur without marketers’ efforts. Do customers really understand how much preparation goes into connecting them with producers of goods and services?Many purchases wouldn’t occur without marketers’ efforts.To achieve satisfying connections, marketers plan where they need to go and how to get there efficiently.
6What is the marketer’s destination? When determining their goals, strategies, and tactics, marketers first figure out where they’re headed.GoalWhat is the marketer’s destination?Then, marketers assemble to discuss, and agree upon, their goal.From their company’s overall plan, marketers determine where their firm needs to be by a particular date.A family-style restaurant wants to increase sales.Ais an objective you plan to fulfill.goalExampleMarketers agree to increase annual sales by 10% over last year’s sales.Marketers know this goal is specific and can be evaluated for success or failure at the end of a given time frame.
7Which route will the marketer take to get there? StrategyMarketers want to move toward their goal without wasting anything. So, they plan the route they believe to be most efficient.A strategy is a plan of action for achieving your goals and objectives.Which route will the marketer take to get there?
8StrategyBy selecting this strategy, its marketers reject a couple of ideas:One strategy the family-style restaurant might use is to add a kid’s menu in order to increase sales to parents in the area.Staying open later—they think parents may put their kids to bed early.Reducing prices—they may not be able to make enough profit.ExampleBy sensibly evaluating their options, the restaurant’s marketers pick the strategy most likely to help them reach their goal.
9Tactics Example What small steps are needed to make it happen? Tactics are specific actions used to carry out strategies.Because marketers want to be efficient, they carefully choose the short-term actions, or tactics, they use to carry out their strategy.Marketers know their tactics must line up with where they plan to go and how they plan to get there, so they pay close attention to every detail.To introduce the new kid’s menu, the restaurant might decide to use the following tactics:Offer a free ice-cream cone to each child who selects a meal from the kid’s menu.Each of these simple actions leads the restaurant toward its desired destination— a little at a time.Introduce kid-tested meals such as:Spaghetti and meatballsExampleHot dog with potato chipsMacaroni and cheeseHamburger and french fries
10Marketers plan thoroughly but stay flexible. No one knows for sure exactly how a plan will play out.Planning needs to be as complete as possible—but easily adaptable, too.Marketers plan for success and are ready to adjust at any given moment.
11When deciding which strategy to use, marketers choose the best option. Once they’ve made their selection, marketers set aside the funds to make it happen.A firm’s strategy is important because it shows how its goal will be reached.To choose the best strategy for reaching their goal, marketers consider:How the marketing concept applies to their situationIts strategy may not be the only option.There can be many appropriate marketing strategies.When they want to reach their goalWhich resources are on hand
12Finding out the firm cannot handle distribution on its own Marketers keep their plans flexible.Finding out the firm cannot handle distribution on its ownSituations that might invite a change-of-plan include:Because business situations change, marketers are on the lookout for obstacles they can turn into opportunities for problem solving.Hearing about a new product with better featuresSeeing the firm’s ad in the back of the newspaper—instead of the front, as expectedFiguring out that the price is slightly high for customersChanges in governmental rulesEconomic ups-and-downsChanges in technology
13Does the same strategy work in every situation? Each marketing situation requires a customized approach.To adapt, marketers adjust their strategies to fit their purposes.Not in today’s world.
15The mix is a unique blend of elements that are valuable individually. refers to what goods, services, or ideas a business will offer its customers.The marketing mix is a combination of the four elements of marketing—Marketers research and use creativity to figure out what customers need and how they will meet that need.ProductThe mix is a unique blend of elements that are valuable individually.product , price, place, and promotion.Should we offer one product—or more than one?Is the product a good, service, or idea?ProductProductAt the end of the process, if the customer sees the product as the best solution, marketers have succeeded at this important first step.To do this, marketers ask questions such as:Does the product have special features?PriceDoes the product have multiple uses?PromotionWhat resources are necessary to research and develop the product?PlaceOthers…MarketingMix
16the amount of money a firm asks in exchange for its products. refers tothe amount of money a firm asks in exchange for its products.PriceTo achieve a good balance for each, marketers first determine their pricing objectives, which may include one or more of the following:The price element used to be the primary factor in a customer’s product choice—but not any more.Marketers try to achieve a good balance between value and satisfaction for the customer—and cost and profit for the firm.Getting their product into more customers’ handsHelping customers view their firm as distinct from competitorsBringing in the amount of income they desireRaising the product’s value in customers’ eyesProductPriceMatching the product’s value with what customers expect to receivePromotionPlaceMarketingMix
17At the end of the process, there are two measurements for success: After determining objectives, marketers consider if they’re willing to accept cash or credit and if they will offer discounts.Customers feel that the benefits they receive outweigh the costs.The firm brings in enough revenue to make a profit, while keeping prices low enough to encourage sales.ProductPricePromotionPlaceMarketingMix
18getting a selected product in the right place at the right time. refers togetting a selected product in the right place at the right time.PlaceTo be successful at distribution, marketers consider:It’s all about creating convenience for the customer.The place element can make or break the buying experience.How to protect the product from damageHow to store the product until it’s neededWhere to make the product availableHow to get the product where it’s neededHow to process customer ordersWhich firms to involve in the processHow to answer customer questionsHow to coordinate all of the steps involvedWhich firms to buy the product fromWhen to buy the productHow much of the product to orderProductPricePromotionPlaceMarketingMix
19If marketers make a mistake with this element, the results can be unfortunate: The product may be scratched.The product may be available in the wrong amount.The product may not be available at all.If done well, distribution can over- shadow other flaws such as a high price—because convenience might be worth the expense.ProductPricePromotionDistribution is successful if the customer can buy the product when and where s/he wants.PlaceMarketingMix
20Promotion Promotion refers to the various types of communication marketers use to inform, persuade, or remind customers of their products.It uses types of communication such as:Promotion seeks a positive response from the customer.It involves letting customers know the product’s value and the benefits that meet the customer’s current needs.Personal sellingSales promotionPublicityAdvertisingProductPricePromotionPlaceMarketingMix
21To use these types of communication effectively, marketers determine: Which messages to sendWhich media to useWhen their messages will be deliveredMarketers also take into consideration things such as:Frequency of communicationSuccess!Coordination of activitiesProductEvaluation of resultsPricePromotionIf the customer is sure that making the purchase is the right thing to do at this time— then marketers have successfully promoted their product.PlaceMarketingMix
22Putting it all together The marketing mix works as a unit.When they assemble the mix, marketers carefully determine which elements to include and to what degree.Since so many different marketing circumstances exist, marketers adapt the mix to suit each one.The marketing-mix elements are interrelated: A change to one element affects the others.When marketers improve the product’s features, the price goes up.Putting it all togetherWhen distribution is simplified, the price goes down.MarketingMix
23Marketers select a strategy before customizing the marketing mix. How Strategies Affect the Marketing MixSimilar to the careful selection of each tactic, choosing the right blend of the marketing mix takes thorough planning.Marketers select a strategy before customizing the marketing mix.ProductMarketingMixPricePlacePromotionTarget’s strategy is to offer discount shopping for the fashionable crowd.Example
24In support of this strategy, Target has designed a creative combination of the marketing mix. Product—Target offers both typical household necessities and products unique to its stores.Since Target hires its own designers for some of its product lines, it’s impossible for competitors to carry the same brands.This individuality encourages customers to come back for things they won’t get anywhere else.
25In support of this strategy, Target has designed a creative combination of the marketing mix. Price—Target features quality products at lower prices.Its prices are low enough to be considered “discount” but high enough to establish an image of quality.This offers chic shoppers a refreshing change from higher priced department stores— and from lower quality discount stores.
26In support of this strategy, Target has designed a creative combination of the marketing mix. Place—Target is part of an extensive online system to get products from its suppliers.This system helps Target master efficient distribution.It allows the firm to stock its shelves as professionally as department stores do.
27Promotion—Target’s advertisements sport a cutting-edge image. When customers notice the store’s advertisements, they conclude that this discount store accommodates customers’ style requirements.
28Target’s marketing mix does two things: It puts together the image of quality and the convenience of discount shopping in a way few stores have demonstrated.It effectively supports Target’s strategy of catering to classy discount shoppers.
29CompuBank 24-hour online access Strategies for increasing sales of a service may be quite different from strategies used to increase sales of a good.24-hour online accessjust what you’d expect from the first virtualNational Bank!What strategies and tactics do you think your bank is using to reach its goal?…
30If you were a marketing decision maker at one of these firms, how would you determine which strategy to use?Should Victoria’s Secret and Abercrombie & Fitch use sex to sell their products?
31Lelia Ventling and Mary C. Hollaway, MarkED AcknowledgementsOriginal Developers:Lelia Ventling and Mary C. Hollaway, MarkEDVersion 1.0MarkED Resource CenterCopyright ã 2005
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