MARKETING MIX

MARKETING PLAN A DETAILED GUIDE WITH 2 PRIMARY PARTS: PART I: MARKETING GOALS: WHAT YOU WANT TO ACCOMPLISH WITH A TIME FRAME: SHORT-RANGE GOALS: GOALS FOR THE FIRST YEAR MID-RANGE GOALS: GOALS FOR 2-5 YEARS LONG-RANGE GOALS: WHERE DO YOU SEE YOUR BUSINESS 10-20 YEARS FROM NOW? PART II: STRATEGIES TO REACH TO GOAL (MARKETING MIX)

THINGS TO REMEMBER TO ACCOMPLISH YOUR GOALS: MOTIVE: WHY DO YOU WANT TO REACH YOUR GOAL? WHAT REWARDS WILL YOU OBTAIN? CONSISTENCY: GOALS SHOULD NOT CONFLICT WITH EACH OTHER. COST: WORK OUT A BUDGET FOR YOUR MARKETING PLAN. COST INCLUDES MONEY AND YOUR PERONAL ENERGY. MARKET SHARE: % OFMARKET BUYING YOUR PRODUCT.

MARKETING MIX – “FIVE P’S” PEOPLE: TARGET CUSTOMERS. INCLUDE A DETAILED CUSTOMER PROFILE. PRODUCT: WHAT ITEMS WILL YOU SELL TO BEST MEET NEEDS OF TARGET MARKET? PLACE: SELLING & DELIVERY METHODS PRICE: WHAT PRICE IS REASONABLE, OR EVEN A GOOD DEAL? PROMOTION: PROCESS TO MAKE CUSTOMERS AWARE OF PRODUCT/SERVICE

PEOPLE/PRODUCT STRATEGIES PRODUCT MIX: THE COMBINATION OF PRODUCTS A BUSINESS SELLS. BRAND: MARKETING STRATEGY THAT CAN CREATE AN EMOTIONAL ATTACHMENT TO YOUR PRODUCT “IN THE CUSTOMER’S MIND”. A BRAND IS PERCEIVED IN A CERTAIN WAY. (PREMIUM BRAND) PERCEPTION MAY NOT BE REAL BUT CUSTOMER BELIEVES IT IS.

PRODUCT STRATEGIES PRODUCT POSITIONING: PROCESS OF CREATING A STRONG IMAGE. CAN INFLUENCE POTENTIAL CUSTOMERS TO DISTINGUISH YOUR BRAND’S CHARACTERISTICS FROM COMPETITORS. BRANDING CAN CAUSE CUSTOMERS TO THINK OF A PARTICULAR COMPANY FIRST. (NIKE, KLEENEX) MIND SHARE: AWARENESS OR POPULARITY A CERTAIN PRODUCT HAS WITH CONSUMERS.

PLACE (DISTRIBUTION) CHANNELS DISTRIBUTION CHANNELS: VARIOUS WAYS A PRODUCT CAN REACH CONSUMERS. DIRECT CHANNEL: A PRODUCT GOES STRAIGHT TO THE CONSUMER. INDIRECT CHANNEL: PRODUCT GOES FROM PRODUCER TO INTERMEDIARY BEFORE GETTING TO THE CONSUMER. INTERMEDIARY: BRIDGE BETWEEN PRODUCER AND CONSUMER—AGENTS, BROKERS, WHOLESALERS, DISTRIBUTORS, RETAILERS.

EXAMPLE OF INDIRECT CHANNEL MANUFACTURER PRODUCES MILLIONS OF CELL PHONES. WHOLESALER BUYS THOUSANDS OF PHONES FROM THE MANUFACTURER. RETAILER BUYS DOZENS OF PHONES FROM THE WHOLESALER. CONSUMER GOES TO RETAIL STORE AND BUYS ONE PHONE.

HOW WIDELY DO YOU WANT TO DISTRIBUTE YOUR PRODUCT? EXCLUSIVE DISTRIBUTION: GIVES A SPECIFIC RETAILER THE SOLE RIGHT TO SELL A PRODUCT IN A PARTICULAR AREA. RETAILER CANNOT SELL COMPETING PRODUCTS. INTENSIVE DISTRIBUTION: MAKE PRODUCT AVAILABLE AT AS MANY OUTLETS OR RETAILERS AS POSSIBLE. SELECTIVE DISTRIBUTION: PRODUCT CAN BE SOLD AT A MODERATE AMOUNT OF SALES OUTLETS

PRICING STRATEGIES PRICE BASED ON TWO THINGS: YOUR TARGET MARKET POTENTIAL PROFITS FOR YOUR COMPANY PRICE SHOULD BE LOW ENOUGH FOR CUSTOMERS TO BUY FROM YOU RATHER THAN COMPETITORS. PRICE SHOULD BE HIGH ENOUGH TO EARN A PROFIT.

SELECTING A PRICING STRATEGY DEMAND-BASED PRICING: FOCUSES ON CONSUMER DEMAND—HOW MUCH CUSTOMERS ARE WILLING TO PAY FOR YOUR PRODUCT. GOOD FOR UNIQUE ITEMS COMPETITION-BASED PRICING: FOCUSES ON WHAT COMPETITION CHARGES. DECIDE WHETHER YOU WANT TO CHARGE THE SAME, MORE OR LESS THAN COMPETITOR. COST-BASED PRICING: PRICE BASED ON WHAT IT COSTS YOUR BUSINESS TO MAKE.

PRICE ADJUSTMENTS MARKUP PRICE: WHEN A RETAIL STORE BUYS FROM A WHOLESALER, THEY ADD AN ADDITIONAL AMOUNT (MARKUP AMOUNT) TO THE WHOLESALE COST TO MAKE A PROFIT. MARKDOWN PRICE: WHEN A RETAILER WANTS TO REDUCE THE PRICE OF A PRODUCT; USUALLY WHEN THEY ARE OVERSTOCKED.

BUNDLING COMBINING THE PRICE OF SEVERAL SERVICES (AND/OR PHYSICAL PRODUCTS) INTO ONE PRICE. EXAMPLE: TRAVEL AGENCY – VACATION PACKAGES (AIRLINE, HOTEL AND CAR) APPLIANCE DEALERS – PACKAGE OF STOVE, DISHWASHER & REFRIG. ALLOWS BUSINESSES TO SELL SERVICES AT A SLIGHTLY LOWER PRICE.

PROMOTION – AIDA MODEL ATTENTION: GRAB THE ATTENTION OF POTENTIAL CUSTOMERS. (CELEBRITY) INTEREST: FOCUS YOUR MESSAGE ON PRODUCT’S FEATURES AND BENEFITS. DESIRE: WHAT CAN YOU DO TO MAKE YOUR PRODUCT DESIRABLE? DEMONSTRATE HOW IT WORKS. ACTION: ASK CONSUMERS TO BUY. MAKE IT EASY & CONVENIENT; SPECIAL OFFER

PROMOTIONAL MIX ADVERTISING: PUBLIC, PROMOTIONAL MESSAGE. VISUAL MERCHANDISING: USING ARTISTIC DISPLAYS. PUBLIC RELATIONS: ACTIVITIES TO PROMOTE GOODWILL PUBLICITY: “FREE ADVERSITING” PERSONAL SELLING: DIRECT ONE-TO-ONE EFFORT BY SALES REP. SALES PROMOTION: SHORT-TERM ACTIVITY OR BUYING INCENTIVE (COUPONS, FREE SAMPLES)

PROMOTION TELEMARKETING: PROMOTING OR SELLING BY PHONE. NETWORKING:MEETING NEW PEOPLE THROUGH CURRENT FRIENDS AND BUSINESS CONTACTS. NEWSGROUP: ELECTRONIC NETWORKING USING ONLINE MESSAGE BOARDS. 360 DEGREE MARKETING: A MIX OF METHODS-WEBSITE, EMAIL, DIRECT MAIL, CATALOGS

PROMOTIONAL PLAN PROMOTIONAL CAMPAIGN: SPECIFIC PROMOTIONAL ACTIVITIES BUILT AROUND A THEME OR GOAL CAMPAIGN PROVIDES MEDIA TO BE USED, DATES, QUANTITIES, COST, ETC. EXAMPLE: CAMPAIGN TO EDUCATE YOUR TARGET MARKET ABOUT FEATURES & BENEFITS OF YOUR PRODUCTS. MUST HAVE A WAY TO TRACK EFFECTIVENESS OF CAMPAIGN