1. Marketing Oh, tell me more!!

2. Marketing ► Set of processes for creating, communicating, and delivering value to customers for improving customer relationships….ok now in my terms ► The process of promoting, selling, and distributing a product or service

3. Target Market

4. ► Marketing Strategy – selecting a target market and create, price, promote & distribute (place) products in the market ► Target Market – Groups of customers who are or will be interested in your product

5. Market Segments (Targets) ► Demographic  Age, income, # of children, religion, education ► Geographic  Climate, region, population density ► Behavioral/Psychographic  Attitude toward product, user status, usage rate  Interests, activities, values

6. Lets Look at Some Ads ► Denver Water Company

7. Suplicy Cafe

8. Fiji Water

9. Burger King

10. iPhone

11. Marketing Concept ► Using the needs of customers as the primary focus during planning, production, pricing & distribution & promotion of a product.

12. Marketing Concept ► Business needs 3 things to happen  Identify what will satisfy customer’s needs  Develop products that customers think are better products  Business must operate profitably

13. Marketing Concept ► Two Steps  Identify target markets  Develop marketing mix ► Product ► Pricing ► Placing (Distribution) ► Promotion

14. Product ► ► Things to consider about your product   Design   Technology   Usefulness   Convenience   Quality   Packaging   Branding   Accessories   Warranties   Relevance – Time frame – Product Life Cycle

15. Product ► ► Different methods can be used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage like   Specialized versions   New/Limited editions   Improvements   Changed packaging   Technology, etc.

16. Product Life Cycle (PLC)

17. Think of Examples of PLC ► ► Video Games ► ► Cars

18. 3 Levels of a Product

19. Pricing ► How should you price your product  High?  Low?  Where do you start?

20. Pricing Strategies ► Skimming Pricing – Initially offers product at the highest price, lowering it eventually to increase demand again ► Penetration Pricing – Charging a low price to gain market share & lose competition ► Cost-based Pricing – Cost of product + a reasonable mark-up usually a percentage ► Demand-based Pricing – Charging the price that people are willing to pay for the products

21. Pricing Strategies ► Target costing – Working backwards, how much customers will pay and subtract from profit – this is how much to invest ► Prestige pricing – Pricing high to project high quality ► Odd-even (Psychological) pricing – Pricing a few cents under an even number ► Economy pricing - This is a no frills low price. Marketing costs are kept to a minimum.

22. 49.99

23. 2.59

24. 15.49

25. 15,967

26. 195.49

27. 3,299

28. 25.99

30. 49.99

32. 2.59

34. 15.49

36. 15,967

38. 195.49

40. 3,299

42. 25.99

43. Price Important to   Know the market   Price elasticity ► ► Definition   Know your competition’s prices

44. Price Elasticity ► ► A measure to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price.elasticity ► ► Are these products’ prices elastic?   Toilet Paper   Gas   Picture Frame   $500 pizza

45. Placing/Distribution ► All activities involved in getting the right quantity to the right customer at the right time at a reasonable cost.

46. Distribution/Placing ► ► Indirect vs Direct   Manufacturer   Wholesaler/Distributor   Internet   Catalog/Mail Order   Sales Team   Dealer   Retail   Multi-channel

47. Distribution/Placing ► ► Determining the best ways for customers to locate, obtain, and use the products/services ► ► Things to consider   Cost of shipping   Cost of distribution channel   Ease/best way to get the product to customer

48. Marketing Plan – 11/5/13 ► How you will break down your target market based on the 3 segmentations?  Be specific ► In depth strategy on how you will price your product  Explain why the strategy, factors behind pricing, future price changes ► In depth distribution strategy  What channels you will use and why  Factors/problems that may arise in distribution

49. Promotion I've been told of some crazy schemes and I've come up with even crazier ways of promoting them. Max Markson - Media Man of Australia Max Markson Max Markson

50. Marketing Communications

51. Promotions Mix ► Personal Selling ► Sales Promotion ► Public Relations ► Direct Mail ► Trade Fairs & Exhibitions ► Advertising ► Sponsorship ► Online Promotions ► Website

52. Personal Selling ► Examples?  Used Cars  Vacuum Cleaners

53. Sales Promotion ► Examples?  BOGOF  Coupons  Money Off (Rebates)  Competitions  Free Accessories  Introductory Offers

54. Public Relations (PR) ► The deliberate, planned & sustained effort to establish & maintain communication between an organization & the public ► “All attention is good attention” ► Examples?  Airlines  Celebreties

55. Direct Mail/Email Marketing ► Examples?  Emails  Mailing lists  18 Free Wings for your B-day!  Free Ice Cream from Cold Stone! ► Part email promotion, part direct mailings

56. Trade Fairs & Exhibitions ► Examples?  Video Games  Boat Shows

57. Advertising ► “Paid for” communication  Commercials  Billboards  Online  Radio ► Obscure Examples?  Buses  Cinema  Tatoos

58. Sponsorship ► Very powerful ► Examples?

59. Online Promotions ► Examples?  Pay per click  Sponsor a website  Email  Social Media ► Google Analytics Google Analytics Google Analytics  Websites

60. People ► ► Employees ► ► Management ► ► Culture ► ► Customer Service

61. People ► ► People represent the business   The image they present can be important   First contact often human – what is the lasting image they provide to the customer?   Extent of training and knowledge of the product/service concerned   Mission statement – how relevant?   Do staff represent the desired culture of the business?

62. Process ► ► Mainly relevant to service businesses   Refers to how services are consumed   In other words, what does a customer have to do in order to purchase/receive a service

63. Process ► ► What processes do customers have to go through to acquire the services? ► ► Where do they find the availability of the service? ► Considerations for Customers  Contact  Reminders  Registration  Subscription  Travel time  Convenience  Form filling  Online or phone call

64. Physical Environment ► ► The ambience, mood or physical presentation of the environment   Smart/shabby?   Trendy/retro/modern/old fashioned?   Light/dark/bright/subdued?   Romantic/chic/loud?   Clean/dirty/unkempt/neat?   Music?   Smell?

65. The Marketing Mix ► ► Blend of the mix depends upon:   Marketing objectives   Type of product   Target market   Market structure   Rivals’ behaviour   Global issues – culture/religion, etc.   Marketing position   Product portfolio

66. Evaluating Your Marketing Mix ► ► 1) Look at your sales (or fee income). ► ► 2) Ask your clients. ► ► 3) Does your advertising and/or promotional activity produce direct responses? 4) Do your networking activities create new opportunities for you? ► ► 5) Do your marketing tactics make it easier to sell your services? ► ► 6) Check your sales conversion rate.   The best approach here is to look at your historical records and determine whether your conversion (or closure) rate has improved. ► ► 7) Does your plan have a positive return on investment (ROI)?   Does it bring in enough new/repeat business to justify the expense?