1. Developing a Marketing Plan
Unit 6

2. Differentiate Market Segments
Marketing Strategy—specifies the way marketing activities are planned and coordinated to achieve an org.’s goals
Two step process: carefully select a target market, develop a marketing mix for that target
Start with a market
Recognize differences and similarities
Segmenting factors
Needs and Wants
Demographics
Psychographics/Lifestyle
Behavioral
A market includes all of the consumers available for a business to serve by selling a product or service. People in a market can be so different, it is nearly impossible for a business to serve all customers well
The differences among all of the people in your market will affect purchasing decisions and the information they need
Remember that segments are components of a market in which people have one or more similar characteristics
Behavioral segmentation factors could include their previous experience with products, what sources of information they use, whether decisions are rational or emotional, and how much time they take to gather and evaluate information before making a decision
Marketing information systems and marketing research are used to gather information in order to divide markets into segments

3. Factors Used to Segment a Market
Needs and Wants
Demographics
Psychographics/Lifestyle
Necessities
Convenience items
Luxuries
Age
Gender
Education
Occupation
Income
Geographic location
Interests
Hobbies
Values/beliefs
Religion
Attitudes
Leisure activities
Behavioral
Preferences and habits
Life cycle
Buying behavior patterns

4. Select Target Markets Four criteria:
People in target must have common, important needs
People outside the target should have enough differences from those in the market
The company needs adequate information about the people in the target so they can be identified and located
The important wants and needs of the target and their buying behavior must be understood well enough
1: must respond in a similar way to marketing activities designed to satisfy those needs
2: the differences are enough from those in the market that they will not find the marketing mix satisfying
4: well enough that an effective marketing mix can be developed

5. Question…
If a company changes the product element of the marketing mix, will it also have to change one or more of the other mix elements?
Why or why not?

6. Product Mix Element Basic product Product Features Options
Most important part of this element
First factor considered by the consumer in deciding whether or not to purchase
Product Features
Makes product more competitive
Options
Gives customers choices on the features they want
Product mix element has many components
Not all of these components will be used with every product or service. In some cases, all the target market wants is the basic product.
Marketers need to be familiar with all of the possible changes that can be made in a product and select the most satisfying combination to serve a target market

7. Product Element Cont. Associated Services Brand/Image
Services that come with a product
Brand/Image
The brand of certain products is an important factor in making a purchase decision
To be effective, the image must match important needs of the consumer
Guarantee/Warranty
Provides insurance that the product will be repaired or replaced if there are problems

8. Product Element Cont. Packaging Uses Often overlooked
Provides protection and security, information that helps the customer make a better purchasing decision
Attracts attention
Uses
Can be more satisfying to customers or appeal to new markets if other uses are found

9. Question…
What types of features might each family member prefer when purchasing a large-screen television for their home?

10. Distribution Mix Element
Facilitates the physical exchange of products and services between businesses and their customers
Important questions in planning distribution:
Where will the customer obtain the product?
Where will the customer use it?
Are there special requirements to transport, store, or display the product?
When should distribution occur?
Who should be responsible for each type of distribution activity?
Many products require specific attention to physical distribution factors including the type of transportation, inventory control, product handling, protective packaging, order processing, and customer service

11. Price Mix Element
The amount that a buyer pays as well as the methods of increasing the value of the product to the customers
Several decisions to affect the perception of value:
Does the business want to increase sales, increase profits, or enhance the image of the product?
Should price be based on costs, what customers are willing to pay, or what competitors are charging?
Will there be one price for all customers?
Will customers be allowed to negotiate price?
Will discounts or sales be used?
Will the price be clearly communicated?

12. Promotion Mix Element
Includes the methods used and information communicated to customers to encourage purchases and increase their satisfaction
Many decisions:
Will promotions be directed at a general market or specific segments?
Is the specific goal of promotion to increase knowledge, to change attitudes, or to influence behavior?
What specific information does the audience need to make a decision?
How will promotion be most effective?
What is the total amount of money needed for effective promotion?

14. Product Life-Cycle Analysis
Product Life-Cycle: the stages a product goes through from the time it enters the market until it is no longer sold
4 Stages:

15. Product Life-Cycle Cont.
Introduction:
Customers may not be aware of it or don’t realize how it can satisfy their needs
No direct competitors, price will be high
Growth:
If product is successfully introduced, it will attract more customers
More competitors
Calls for a change in the marketing mix
Maturity:
Sales peak and profits begin to decline
Competition is more intense
More attention to price
Decline:
Product no longer satisfies or they discover a new product
Little opportunity for product improvement
Price is reduced
Introduction: Because it is new, there are no other products that are direct competitors. It will be competing with older, established products that are currently meeting customer needs.
Product may not be widely distributed, it would be too risky and too expensive for the company to try for widespread distribution immediately. The brand name helps. Price will be high to cover initial expenses
Growth: distributed more widely; a range in prices; more choices in brands, features, options, and services; promotion becomes more competitive—attracting customers who have not tried the product as well as the advantages of specific brands
Maturity: Consumers are aware of the product and either buy it or not based on their needs; businesses compete for sales; products amongst companies are similar; the availability of the product increases
Decline: Sales drop rapidly and there is little or no profit; businesses try to get out quickly unless they have many loyal customers; companies are not willing to invest in product changes; distribution will be cut back to only profitable locations

17. Marketing Planning
Marketing Plan: a clear written description of the marking strategies of a business and the way the business will operate to accomplish each strategy
Includes:
Objectives/goals
Strategies
Budgets
How you plan to meet objectives/goals
In a marketing strategy, the business identifies the target market to be served and develops a marketing mix. The marketing plan is based on a marketing strategy.

18. Developing Marketing Plans
Marketing objectives/goals should:
Be clear
Be measurable
Have a stated time frame for achievement
Examples:
Increase product awareness among the target market by 30% in one year
Inform target market about features and benefits of our product and its competitive advantage, leading to a 10% increase in sales in one year
Decrease or remove potential customers’ resistance to buying our product, leading to a 20% increase in sales in six months or less
If there are multiple objectives, make sure they are consistent and not in conflict with each other. Your marketing strategy (4Ps) and budget should support your marketing objectives
Always ask: Do you have the resources (human, financial, technological) necessary to accomplish your objectives?

19. Analyzing the Market
Market Analysis: identifies a business’s strengths, weaknesses, opportunities and threats (SWOT)
Strengths:
builds on what a company does well
Weaknesses:
improves on weaknesses that could interfere with the strategy
Opportunities:
uncovers opportunities for new customers and new products
Threats:
identifies possible threats to the company posed by competition or changes occurring in the economy, laws, and technology.

20. Activity
Your marketing team is advising a new fitness center, FastFit, which offers 30-minute, high-intensity, aerobic workouts for people with busy schedules.
Develop a marketing strategy (target market, product, distribution, price, and promotion) for the business.
Include a positioning statement
A specific description of the unique qualities of the marketing mix that make it different from the competition and satisfying to the target market

21. Activity Cont. Layout of assignment: Target Market Marketing Mix
Identifying characteristics
Unique needs, attitudes, behaviors
Marketing Mix
Product
Distribution
Price
Promotion
Positioning Statement