Presentation on theme: "WARM UP: 1.01 – 1.02 Review A personal data sheet that provides a summary of information about an individual is a: Resume Kate’s company needs a new package."— Presentation transcript:
1 WARM UP: 1.01 – 1.02 ReviewA personal data sheet that provides a summary of information about an individual is a:ResumeKate’s company needs a new package design for its crackers. What marketing career category would be responsible for creating the new package?Product service mgmtWhat marketing career involves catching customers’ attention, informing them of products and persuading them to buy?AdvertisingNate is graduating in May; this is what type of goal?Short term
2 What’s next? Work on Project for 20 minutes Lesson 1.04 Review Clock Buddies
3 Marketing (CHANGE PAPER TO 1.04) Indicator 1.04 – Employ marketing information to develop a marketing planMarketing(CHANGE PAPER TO 1.04)
4 THE MARKETING MIX Product Place Price Promotion Includes four basic strategies called the 4 P’s or elements of marketing. A combination of decisions a business makes in order to best reach its target market.It is called a Marketing Mix because the 4 P’s can each be adjusted to better meet the needs of the customers and companyProductPlacePricePromotion
5 The 4 P’sProduct - Businesses must decide which products to offer customers.Level of quality, features, branding, packaging, service, and warranty are items to decide and develop for each product.
6 PRODUCT Marketers as themselves questions such as: Should we offer one product-or more than one?Is the product a good, service, or idea?Does the product have special features?Does the product have multiple uses?What resources are necessary to research and develop the product?What level of quality should be produced or provided?Which brands should be used?How should the product be packaged?How might the product affect the firm’s image?How might customers view this product in relation to others?Should we offer a warranty, maintenance contract, or other support services?
7 The 4 P’sPlace - Having the product available at the right time and location.Also known as channel management/ distribution.For example, store locations, website, and catalogs are the standard for most retailers today. Decisions of direct distribution or indirect distribution (intermediaries/middlemen) must be made.
8 PLACE Consider the following: Which firms to buy the product from? When to buy the product?How much of the product to order?Where to make the product available?How to process customer orders?Which firms to involve in the process?How to answer customer questions?How to coordinate all of the steps involved?
9 The 4 P’sPrice - The amount a business charges customers for a product.What competition is charging, determining seasonal discounts and allowances, and credit terms.
10 PRICE Determine pricing objectives: Getting their product into more customers’ hands.Helping customers view their firm as distinct from competitorsBringing in the amount of income they need or want.Raising the product’s value in the customer’s eyesMatching the product’s value with what customers expect to receive
11 The 4 P’sPromotion - Informing and reminding customers of the products available to them and persuading them to purchase. Promotional Mix includes advertising, personal selling, sales promotion, and publicity.These decisions are based on the budget a business sets for the promotional mix.
12 PROMOTION Consider the following: Which messages to send? Which media to use?When they want messages delivered?How often they want messages delivered?How to coordinate communication efforts?How to evaluate results?The ultimate goal of promotion is to generate a positive response from customers.
13 DO YOU KNOW?? How should the product be packaged? Product Identify whether the following question pertains to A: Product, B: Place, C: Price, D: PromotionHow should the product be packaged?ProductShould we offer credit and layaway?PricingShould we allow our product to be sold by a wholesaler?PlaceHow often should we advertise?Promotion
14 Identify whether the following question pertains to A: Product, B: Place, C: Price, D: PromotionWhich celebrity could we use to entice customers into the storePromotionShould we offer guarantees or warranties?ProductWhich type of transportation should we use to move the product?PlaceWhat should be offered for sale?How often should we put the product on sale?PriceHow many sales people should we hire?
15 RELATIONSHIP OF GOALS, TACTICS, & STRATEGIES TO THE MARKETING MIX Goals/Objectives: Specific statements that clearly communicate what the business expects to achieve.Established to fulfill the mission statementMust be single-minded, realistic, specific, measurable, consistent with each other and with overall company goals, and must include a time frame for completionStrategies: Specific statements indicating how the business expects to accomplish its objectives taking the demands of the target market(s) into account.Identify target marketsIdentify appropriate marketing mix choicesUtilize information obtained during SWOT analysis
16 RELATIONSHIP OF GOALS, TACTICS, & STRATEGIES TO THE MARKETING MIX Tangible, measurable tasks that have to be completed to accomplish the strategic objectives.Tactics are the day-to-day activities that step the company toward its goals.Tactics are used to reach the strategies that then meet the goals.
17 Coming up w/ Marketing Strategy You own a RESTAURANTGoal: A family-style restaurant wants to increase salesStrategy: Add a kids’ menu in order to increase sales to young parents in the areaTactics : To introduce the new kids’ menu, the family style restaurant might decide to use the following tactics:1. Introduce kid-tested mealsA)spaghetti & meatballs C) hot dog w/chipsB) macaroni & cheese D) hamburger w/fries2. Offer a free ice cream cone to each child
18 Activity 1 Get with your 6 o’clock appointment Complete Fit For Success and Mix and Match Review (front and back)You have 10 minutes.
19 Warm UP – WHAT would YOU do Warm UP – WHAT would YOU do? Read the scenarios and identify what marketing mix(es) needs to be put in place. Also, out of the following choices in purple, which sounds like the best idea for the business to do and why? Write in paragraph form:Lower prices throughout the storeOffer some products exclusive to the storeMail flyers to every household in the neighborhoodScenario 1: A small computer business realizes that it needs to improve something to gain more customers. The large competitor in town is able to offer a variety of products and lower prices, too. What would help the small computer business distinguish itself from its competitor.Scenario 2: A pet store has just moved into the community. Although there are several pet stores in the area, this pet store offers goods and services that can’t be found anywhere else. What do you think would help the new pets store communicate its benefits to the pet owners in the neighborhood.
20 What is a Market?Market: The group of all potential customers who have similar needs and wants and have the ability to buy the product. Businesses must understand who the potential consumers are in order to effectively meet their needs and wants.
21 WHAT IS A TARGET MARKET?Identified segments of the market that a business wants to have as their customers. For example, teenagers, mothers-to-be, single mothers, American Family, men .vs. women, or college freshman. Each example has wants and needs that can be targeted and utilized to develop effective strategies to reach existing and/or potential customers.
22 IMPORTANCE OF TARGET MARKETS A target market represents the people most likely to buy what you sell. These people have something in common that solidifies their desire for your product or service. And that something distinguishes them from the market at large.
23 Ex. Chewing gum & light bulbs MASS MARKETINGA single marketing plan used to reach all consumers.Ex. Chewing gum & light bulbs
24 MASS MARKETING Advantages Disadvantages: Don’t have to pay for the production of similar productsCan price and distribute one type of product more easily than manyCan send one promotional message to everyoneEasier to manage, cost effectivePredictable response ratesEasy to set up.Disadvantages:Diversity of the audienceUnable to track return, low response ratesNonpersonalBeliefs that everyone is the sameLow profit marginsHigh competition
25 SEGMENTATIONMarket Segmentation is the process of dividing a larger market into smaller parts.Market segment is a subgroup of a larger market that share one or more characteristics.
26 MARKET SEGMENTATION Advantages: Disadvantages: Providing the products customers wantEffective communicationHigher response rate,Repeat and loyal customersPersonalDisadvantages:More expensive, more difficult to produceExpensive to set upRequires more marketing research
27 4 TYPES OF MARKET SEGMENTATION DemographicPsychographicGeographicBehavioral
28 DEMOGRAPHIC SEGMENTATION Gender: indicates purchase preferencesOrigin or heritage: race, ethnicity, nationalityReligionSocial or economic status: education level, occupation, incomeLife stage: age, generation, marital status, family life cycle, family size.
29 GEOGRAPHIC SEGMENTATION Markets divided by where the customer lives.It is valuable information because businesses can tailor their product mix based on location. Characteristics are nations, states, regions, counties, cities, or neighborhoods.
30 PSYCHOGRAPHIC SEGMENTATION Defined: Markets divided by social and psychological characteristics. (value/morals, attitude Lifestyles, and interests)Characteristics reflect consumer buying behaviors. The characteristics are Interests, Habits, Activities, Lifestyles, Opinions, & Hobbies. These reflect who your customers are. Businesses that use Marketing principles to guide their decision making must evaluate and reevaluate their customer’s wants and needs continuously to stay ahead in the game.
31 BEHAVORIAL SEGMENTATION Dividing the market into groups based on what they are looking for in a product and why they buy the productTypes of behavioral segmentation:Product BenefitsUsageLoyaltyOccasions
32 DO YOU KNOW? TV Guide’s potential subscribers are its: General Mills dividing groups of people into smaller, more similar groups is called:Market segmentationTV Guide’s potential subscribers are its:MarketSierra Mist is giving away a free can of soda to the first 250 guests at the next Bobcats game. This is an example of which mkt mix?PromotionMatt will only buy a car w/ a two or more year warranty – which seg.?BehavioralRace Care Digest runs advertisements that appeal to racing enthusiasts – which mkt segmentation?Psychographic
33 How will inventory be stored- which mkting mix? PlaceTargeting Dallas Cowboy Cheerleaders – seg.?Demographic ANDPsychographicClaire wants to raise $1000 for her bakery; this is an example of a:GoalA marketing plan that is used to reach all customers at one time is:Mass marketingProducers of Go-Gurt decide to put their product in a unique easy- to-carry container. This is an example of which mkt mix?Product
34 ACTIVITY 2 Find a partner and complete the following: Pick a person to be your target audience and decide the following about that person:Demographic – what age, gender, race, income levelGeographic – where does s/he live: east, west, suburbs, urban, etcPsychographic – what does this person like to do? Run, dance, hang, etcBehavioral – specifics; runs three miles, works out daily, looking for a shoe that’s stylish, etc.Type a description of person on computer.Go to Nikeid.nike.com and customink.com and create a shoe and shirt that would appeal to that specific segmentation. (make sure you follow printing directions or you will get points taken off).Cut out pictures and description and paste to separate sheet of paper; label “MARKETING SEGMENTATION”