1. DEVELOPING THE RIGHT MARKETING MIX AND PLAN
UNIT 2 • INTEGRATED MARKETING
DEVELOPING THE RIGHT MARKETING MIX AND PLAN
Class Name
Instructor Name
Date, Semester

2. Performance Objectives
After this lecture, you should be able to complete the following Performance Objectives
1. Combine the Four P’s—product, price, place, promotion—into a marketing mix. 2. Choose the attributes of your product or service. 3. Price your products for success. 4. Find the best location for maximum efficiency and effectiveness of distribution. 5. Determine the mix of promotion to use for your business. 6. Find a way to add the Fifth P, philanthropy, to your business. 7. Understand the importance of a marketing plan. 8. Identify the critical components of a marketing plan. 9. Use breakeven analysis to evaluate your marketing plan.

3. 5 Marketing Mix = the 4 Ps Product Price Place Promotion
Goal: Bring the right product to the right place at the right price with the right promotion.

4. 5 Create Your Total Product or Service Concept
A product is something that exists in nature or is made by human industry, usually to be sold.
A service is intangible –work, skills, or expertise provided in exchange for a fee.

5. 5
Focus Your Brand
The key to building a successful brand is to focus tightly on the primary benefit you want customers to associate with your business.
Even entertainers can become a brand.
Ford’s Costly Failure: The Edsel – lacked focus, too many features  failure
Ford’s Focus on Success: The Mustang – tightly focused on target market of year olds  success

6. 5
How to Build Your Brand
Choose a business name that is easy to remember, describes your business, and helps establish mindshare.
Create a logo that symbolizes your business to the customer. (Trademark your creation)
Develop a good reputation.
Create a brand personality.
Communicate your brand personality to your target market.

7. Seven Things to build and Maintain Your Brand and Its Reputation5
Seven Things to build and Maintain Your Brand and Its Reputation
Provide a high-quality product or service.
Maintain the highest ethical standards.
Define your product or service clearly - focus.
Treat your employees well.
Make all your advertisements positive and informative.
Associate your company with a charity.
Become actively involved in your community.

8. PRICE: What It Says about Your Product/Service?5
PRICE: What It Says about Your Product/Service?
Strategies & Tactics for Effective Pricing:
Value
Prestige
Cost-Plus
Mark-Up
Penetration
Skimming
Meet-or-Beat-the-Competition
Follow-the-Leader
Personalized
Variable
Price Lining

9. 5 Place: Location, Location, Location!
Key Factors in Deciding upon Location
Access for customers
Access to suppliers
Climate and geography
Convenience
Cost of facilities
Demographics
Economic conditions and business incentives
Governmental regulations and laws, including environmental impact
Labor pool
Proximity to competitors
Visibility

10. 5 Promotion: Advertising + Publicity
Using advertising + publicity to get your market message to your customers
Advertising (purchased): billboards, TV ads, magazine ads
Publicity (free): mentions in media such as articles, stories on TV, etc.

11. Use Integrated Marketing Communications for Success5
Reinforce the Company’s Unique selling Proposition

12. 5 Promotional Planning Determines a Promotional Budget
- Percentage of sales
- Competitive spending
- Excess funds
- Objective and Task

13. 5 The Advertising Advantage Building brand and image
Providing information
Persuading
Stimulating action
Reinforcing the purchasing decision
Types of Advertising
- Institutional advertising
- Product advertising
Media Planning & Buying: Focus on Your Customer
Marketing Materials Should Reinforce Your Competitive Advantage

14. 5 Sales Promotion Solutions When to Use Promotional Tools
Advertising Specialties
Trade Show Exhibits
Mall Carts or Kiosks

15. 5 Alternative Marketing Guerilla Marketing Buzz Marketing
Product Placement/Branded Entertainment
Lifestyle Marketing
In-Store Marketing
- Samples or Demonstrations
- Point-of-purchase and shelf placement
Other Media Venues
Edutainment-a combination of education and entertainment used to in promotion to make a more lasting impression on an audience.

16. 5 Other Media Venues Exhibit 5-4 Other Media Venues
Ambient Advertising
Indoor Advertising
Other Advertising
Parking Lots
Movie Theaters
Carry-Out Menus
Tunnels
Video Games
Shopping Bags
Escalators
Bathroom Stalls
Advertising on Clothing
Benches (Bus Stops)
Commercial Trucks
Brochure Racks
Airline In-Flight

17. 5
E-Active Marketing
E-Active Marketing- combination of the two major components of Internet marketing – e-commerce and interactive marketing.
E-C0mmerce
Interactive Marketing
Online Advertising
Brand Spiraling-the integration of a company’s conventional offline branding strategy with its internet strategy, which uses conventional approaches to drive traffic to its online sites.

18. 5
E-Active Marketing
Blogs- a journal that appears on the internet periodically (often daily) and is intended for the public (short for Web log)
Blogosphere-the aggregate term for all the blogs on the Internet
Blogger
LiveJournal
Twitter
(micro blogging)
TypePad
Vox
WordPress
Xanga

19. 5
E-Active Marketing
Online Social Networks- social networks such as Facebook, MySpace, and LinkedIn.
Stealth Marketing-undercover or deceptive marketing efforts that are intended to appear as if they happened naturally.
Mobile Social Networking- the updating of social network sites via mobile handsets.
Consumer Generated Advertising
Viral Marketing- the process of promoting a brand, product, or service though an existing social network, in which a message is passed from one individual to another

20. 5 Publicity Potential Generating Publicity - Pitch Letter
- Press Release
Telling the Story (make the connection of: Who, What, When, Where, & How)
Sample Press Release
Follow Up a Press Release
Public Relations
- Special Events
- Sponsorships
- Networking
- Public Speaking

21. 5 The Fifth P: Philanthropy
- Philanthropy – Foundation - Not-For-Profit Organization
Cause Related Marketing
Gaining Goodwill
Teach for America and Upromise
What Entrepreneurs Have Built
You Have Something to Contribute
Pledge a percentage of your profits to a nonprofit organization you have researched, believe, and respect.
Become a mentor to a younger entrepreneur
Volunteer for an organization that helps your community.
Sell your product to a charity that you support at discount.
You will realize that you have a lot to give…not always money.

22. 5 Developing a Marketing Plan
The roles of the marketing plan includes:
convincing skeptical investors that your plan has merit.
using and disclosing market studies.
identifying the target market for the organization
evaluating the competition
demonstrating the pricing strategy
detailing the advertising plan

23. 5
Market Analysis
Marketing analysis-an analysis of the market is the heart of the marketing plan that brings the various strategic and tactical components of the promotional efforts together into a single comprehensive section

24. 5 Marketing as a Fixed Cost
Calculate Your Breakeven Point: this is why calculating the breakeven point will tell you if your marketing plan will work.
Fixed Cost = Breakeven Units
Gross Profit per Unit

25. Key Terms blog blogosphere brand spiraling buzz marketing
cause-related marketing
cost-plus pricing
e-active marketing
edutainment
follow-the-leader pricing
foundation
goodwill
guerilla marketing
institutional advertising
logo
markup pricing
meet-or-beat-the-competition pricing
mobile social networking
not-for-profit organization
penetration pricing
personalized pricing
philanthropy
pitch letter
press release
prestige pricing
price lining
product advertising
stealth marketing
trademark
skimming prices strategy
value pricing
variable pricing strategy
viral marketing