Marketing Ch 16 is the process of identifying and anticipating consumer needs, and then producing products or services to satisfy these needs - at a profit. The first thing a firm must do is to define its marketing objective.

(15) Marketing Objectives The marketing concept (consumer orientation) The marketing strategy Developing the marketing mix -product, price, promotion and place main elements of a marketing strategy and marketing mix (evaluate)

A Marketing objective is a definition of what the firm wants to achieve in the market with its product or service. Based on this objective, they must develop a marketing strategy.

A Marketing Strategy is a plan that lays down the best use of organisational resources and tactics to achieve the marketing objectives.

The steps involved are: Opportunity Analysis Selecting a target market/market segmentation Conducting market research Developing the marketing mix

Marketing Plan When all these steps have been followed the business should be able to draw up a comprehensive M P.

The Marketing Mix or the 4 Ps of marketing: The business must employ tactics if is to succeed. The main way a firm does this is by developing what is known as the marketing mix or the 4 Ps of marketing: Product, Price, Promotion Place.

Product The product is the good or service that a business wants to sell to the consumer to satisfy their needs. The business must look at a number of factors, such as: Design, Packaging, Branding Product Life Cycle.

Price: The selling price of a product or service is a major part of the marketing mix. It will be influenced by a number of factors, such as: Cost of Production Profit Discounts offered Competition Customers Image

Pricing Strategies There are a number of possible pricing strategies that the business can employ to help them achieve their marketing objectives. Some examples are: Price skimming Penetration Pricing Discriminatory Pricing Price Leadership Competitive pricing

Promotion p266 Communicate to the public to increase sales Look up: Advertising Sales promotions Public Relations Face to Face selling Direct Marketing - Sample letter

1. Promotion: It involves the business using different techniques to inform the consumer about the product or service. The main techniques of promotion are: Advertising, Sales Promotion, Public Relations and Personal Selling.

2. The Promotion Mix: It is a combination of techniques chosen by a business to inform the consumer about a product or service. It is influenced by the following factors: type of product or service, stage in the product life cycle, the target market and the budget available

Break-Even Analysis As part of pricing, the business should carry out break-even analysis. This means that the firm should determine the level of sales at which the business is not making a profit or a loss. Revenues and costs are equal. This is said to be the break-even point.

3. Advertising: It is the giving of information about a product or service to consumers. Most advertisements fall into one of the following five categories: Informative, Persuasive, Competitive, Generic and Reminder

Products or services can be advertised in different places and through various media. These include:newspapers, television, radio, magazines, the Internet, billboards, direct mail/direct, marketing and others.

4. Sales Promotion: It refers to incentives or bonuses offered directly to the consumer of the product. The aim is to attract the consumer's attention and increase sales.

The main techniques of sales promotion are: money-off coupons, competitions, free gifts, special offers, two for the price of one and free samples. Merchandising: This is where businesses display products in a prominent way to encourage sales.

For successful advertising, you need to get the consumer's attention, create interest, create a desire and get action(AIDA). When advertising a product or service, businesses must adhere to certain advertising standards. They are the Consumer Information Act 1978 and the Advertising Standards Authority of Ireland (ASAI)

6. Personal Selling: It involves making contact with existing or potential customers in person to increase sales. This is done by Sales Representatives and Telemarketing.

5. Public Relations: It is important for a business to have a good image. Most firms have a Public Relations Officer (PRO) who looks after this.

Place p272 Distribution including: What channel of distribution to use Manu-wholesaler- distributor-retailer- consumer or Internet direct to Consumer Transport method

Channel of Distribution. 7. It is no good having a great product or service with excellent promotion and a suitable price unless you can get it to the customer. The business must decide on the most suitable Channel of Distribution. The choice depends on: Type of Product, Cost of Transport, Security, Distance and Speed.

8. Wholesalers buy in bulk from the manufacturer and resell in smaller quantities to the retailer. The main types are: Cash and Carry Wholesalers, Voluntary Wholesalers and Traditional Wholesalers.

9. The retailer breaks the quantities purchased from the wholesaler into units, and then sells them on to consumers. The different types of retailers are: Independent Shops, Supermarkets, Chain Stores and Multiples, Department Stores, Street/Market Traders, Mail Order and Vending Machines

10. Franchising is where a business or person (franchisee) is allowed to use a business idea of another (franchiser) in return for a fee and/or a percentage of the profits.

Conclusions Market research - Find out what people want or need Marketing Satisfies those needs using strategies such as SWOT and 4P’s. How and where to sell and promote Promote your product/company or service through P.R, Branding, Advertising, Sales promotion, Direct Marketing

Questions Define Marketing Strategy and tactics? The 4 P’s? Promotion? Advertising? PR? Chain of distribution? Read Segmentation from book p301 then quiz