4.2 Marketing Planning Chapter 25 Part 1

Marketing Planning A formal document which outlines the details of how a business plans to achieve its marketing objectives as derived from its corporate objectives.

Marketing Mix Effectively combining key decisions in the areas of product, price, promotion, and place to successfully market a product.

The 4 P’s of Marketing Product Price Promotion Place

Product The right product could include: An existing product An updated existing product A new product

Price The right price must be set for the product Too low – the product quality may be perceived as low quality Too high – the customer may not be able to afford the product Can you identify a product that fits into a too LOW price and a too HIGH price category?

Promotion Telling your customer about your product and convincing them to buy Packaging is considered part of promotion and can reinforce image or create a product preference. Can you think of any promotion activities that encouraged you to make a purchase? Can you think of any creative packaging that would make you purchase one product over another?

Place Distributing the product to the proper PLACE so customers can make a purchase. If your product is not available at the right time and place, customers cannot buy it. Where might you make purchases? How is “PLACE” changing?

The 3 other P’s There are 3 more P’s – related to Service People: Selling services require people to create a positive experience for the customer (restaurants, hair salons) Process: Satisfying customer needs as part of marketing services (automatically renewing a membership) Physical Evidence: Customers can see for themselves the quality of the product (a clean lobby at a hotel, table clothes used a nice restaurant)

Successful Marketing Mix The marketing mix must be consistent in order to be successful in sending a clear message to customers. Example: McDonald’s Product: Fast Food Price: Inexpensive to moderate Promotion: Billboards, road signs, TV commercials Place: Convenient, busy streets People: FAST service Physical Evidence: Clean

What is wrong with this picture? An expensive well-known brand of perfume for sale by a street-vendor. Saks Fifth Avenue wrapped your fine china purchase in newspaper. Lamborghini sports cars are advertised in Seventeen magazine.

Marketing Ethics Ethical marketing issues are increasing with the globalization of the world’s markets. What do you think of these situations? Sell a printer cheaply or give it away to sell expensive ink cartridges. Advertise low airfare then add taxes and surcharges after the purchase has been made?

What do you think? Advertise toys to children and not clearly distinguish between and advertisement and children’s programming. Close retail stores and only sell on the Internet when your customer base historically does not use computers. Buy cheap raw materials to decrease a products price.

Marketing Audit A regular review of the cost and effectiveness of a marketing plan including the analysis of external and internal influences.

Marketing Audit A marketing audit answers the question: What is our current situation? 3 Factors: Examine INTERNAL strengths and weaknesses Examine EXTERNAL opportunities and threats Review progress of the plan: Market share – how does it compare with the objective Actual sales performance – is it meeting original sales goals Is the company meeting its SMART objectives

Market Research The process of collecting, recording, and analyzing data about customers, competitors, and the market

Why conduct market research? 1.Reduce the risks of launching a new product 2.Predict future demand changes 3.Explain patterns in sales of existing products and market trends 4.To identify the favored designs, flavors, styles, promotions, and packaging