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Marketing Information Management LAP 7

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Presentation on theme: "Marketing Information Management LAP 7"— Presentation transcript:

1 Marketing Information Management LAP 7
Pick the Mix

2 Objectives: Explain the importance of marketing strategies to business. Explain the nature of the marketing mix.

3 Explain the importance of marketing strategies to business.

4 How 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?

5 Many 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.

6 What is the marketer’s destination?
When determining their goals, strategies, and tactics, marketers first figure out where they’re headed. Goal What 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. A is an objective you plan to fulfill. goal Example Marketers 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.

7 Which route will the marketer take to get there?
Strategy Marketers 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?

8 Strategy By 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. Example By sensibly evaluating their options, the restaurant’s marketers pick the strategy most likely to help them reach their goal.

9 Tactics 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 meatballs Example Hot dog with potato chips Macaroni and cheese Hamburger and french fries

10 Marketers 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.

11 When 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 situation Its strategy may not be the only option. There can be many appropriate marketing strategies. When they want to reach their goal Which resources are on hand

12 Finding out the firm cannot handle distribution on its own
Marketers keep their plans flexible. Finding out the firm cannot handle distribution on its own Situations 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 features Seeing the firm’s ad in the back of the newspaper—instead of the front, as expected Figuring out that the price is slightly high for customers Changes in governmental rules Economic ups-and-downs Changes in technology

13 Does 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.

14 Explain the nature of the marketing mix.

15 The 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. Product The 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? Product Product At 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? Price Does the product have multiple uses? Promotion What resources are necessary to research and develop the product? Place Others… Marketing Mix

16 the amount of money a firm asks in exchange for its products.
refers to the amount of money a firm asks in exchange for its products. Price To 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’ hands Helping customers view their firm as distinct from competitors Bringing in the amount of income they desire Raising the product’s value in customers’ eyes Product Price Matching the product’s value with what customers expect to receive Promotion Place Marketing Mix

17 At 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. Product Price Promotion Place Marketing Mix

18 getting a selected product in the right place at the right time.
refers to getting a selected product in the right place at the right time. Place To 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 damage How to store the product until it’s needed Where to make the product available How to get the product where it’s needed How to process customer orders Which firms to involve in the process How to answer customer questions How to coordinate all of the steps involved Which firms to buy the product from When to buy the product How much of the product to order Product Price Promotion Place Marketing Mix

19 If 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. Product Price Promotion Distribution is successful if the customer can buy the product when and where s/he wants. Place Marketing Mix

20 Promotion 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 selling Sales promotion Publicity Advertising Product Price Promotion Place Marketing Mix

21 To use these types of communication effectively, marketers determine:
Which messages to send Which media to use When their messages will be delivered Marketers also take into consideration things such as: Frequency of communication Success! Coordination of activities Product Evaluation of results Price Promotion If the customer is sure that making the purchase is the right thing to do at this time— then marketers have successfully promoted their product. Place Marketing Mix

22 Putting 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 together When distribution is simplified, the price goes down. Marketing Mix

23 Marketers select a strategy before customizing the marketing mix.
How Strategies Affect the Marketing Mix Similar 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. Product Marketing Mix Price Place Promotion Target’s strategy is to offer discount shopping for the fashionable crowd. Example

24 In 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.

25 In 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.

26 In 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.

27 Promotion—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.

28 Target’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.

29 CompuBank 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 access just what you’d expect from the first virtual National Bank! What strategies and tactics do you think your bank is using to reach its goal?

30 If 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?

31 Lelia Ventling and Mary C. Hollaway, MarkED
Acknowledgements Original Developers: Lelia Ventling and Mary C. Hollaway, MarkED Version 1.0 MarkED Resource Center Copyright ã 2005

32 Digital-based photography sources:
DIGITAL JUICE #090, 056, 096, 439, 606 Photos 1998 Corbis Corp. 750 Second Street Encinitas, CA USA LIQUID LIBRARY Various images used in this presentation are ©2004 Liquid Library. All rights reserved MICROSOFT CLIP GALLERY LIVE Various clipart used in conjunction with PowerPoint 2000[R], Microsoft[R] All rights reserved One Microsoft Way Redmond, WA USA PHOTODISC, INC. Meetings and Groups Volume 69 #69103, 06101 Photos PhotoDisc, Inc 2013 Fourth Ave. Seattle, WA 98121

33 Copyright: All photographic digital images on this CD are owned by the aforementioned photographic resources or their licensors and are protected by the United States copyright laws, international treaty provisions, and applicable laws. No title to or intellectual property rights to the images on this CD are transferred to you. These sources retain all rights and are not to be used, digitally copied, transferred, or manipulated in any way. To do so is a violation of federal copyright laws.


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