Indicator 1.02 � Employ marketing information to develop a by AiAs3Vw8

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									   Indicator 1.04 – Employ marketing
information to develop a marketing plan

             Marketing
              Part 1
      THE MARKETING MIX
 Includes four basic
                                  Product
  strategies called the 4 P’s
  or elements of marketing.       Place
  For each strategy, decisions
  have to be made for each        Price
  product the business offers
  to best reach their target
                                  Promotion
  market.
               The 4 P’s
 Product - decisions include what to
 make or obtain as the business’s
 product mix.
    Level of quality, features, branding,
    packaging, service, and warranty are
    items to decide and develop for each
    product.
PRODUCT Examples:
 Product: the goods, services, or ideas a business will offer its
  customers.
 Marketers conduct research and use their creativity to figure
  out what customers need and how they will meet those needs
                 The 4 P’s
 Place - decisions include where the
 customer can obtain the products.
 Many businesses utilize multiple
 channels of 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.
PLACE Example:
 The place element can make or break the buying experience.
 Getting a product in the right place at the right time is all
  about creating convenience for the customer.
                       The 4 P’s
 Price - decisions include determining
 what a customer is willing to pay
    What competition is charging, determining seasonal
      discounts and allowances, and credit terms.
  Determine how to accept payment:
    Cash, debit, credit, check, or combination
PRICE Example:
 Price is the amount of money a firm asks in exchange for its
  products.
 To be successful, a good balance between customer value and
  satisfaction, as well as company cost and profit must be
  found.
                 The 4 P’s
 Promotion - decisions include the
 promotional mix (advertising, sales promotion,
 selling, and publicity)
    These decisions are based on the budget a business
     sets for the promotional mix.
    The ultimate goal of promotion is to generate a
     positive response from customers.
PROMOTION Example:
 Promotion refers to the various types of communication that
  marketers use to inform, persuade, or remind customers
  about their products.
   Advertising
   Personal selling
   Publicity
   Public relations
   Sales promotion
       IMPORTANCE OF THE 4 P’S
 Product is important to       Price is important because
  obtain or develop the best     it establishes your profit
  product mix within your        and set the quality level of
  market and your target         your products/services.
  market.                       Promotion is important
 Place is important because     because it communicates
  it is the avenues you come     with your customers so
  into contact with your         they know about your
  customers. This is the         product mix.
  element that has direct
  impact on loyalty and
  repeat customers.
                                  REVIEW
Identify the marketing mix element being illustrated (product, price, place, promotion).


1. How should the product be packaged?
2. Should we offer credit and layaway?
3. Should we allow our product to be sold by a wholesaler?
4. How often should we advertise?
5. How many sales people should we hire?
6. Should we offer guarantees or warranties?
7. Which type of transportation should we use to move the product?
8. What should be offered for sale?
9. How often should we put the product on sale?
10. Which celebrity could we use to entice customers into the store?
              SHAMPOO PROJECT
Your shampoo company is going
 for a new look! Create the new
 packaging for your shampoo.
 After you have created a new
 look discuss the marketing mix
 for your shampoo on the back –
 label & explain all 4 parts to the
 marketing mix!!
          RELATIONSHIP OF GOALS, TACTICS, &
          STRATEGIES TO THE MARKETING MIX
 Mission Statement – the guiding principle for all business
 decisions and provides direction for planning; big picture.

   Goals/Objectives – established on a yearly basis and support
    the mission statement. Goals must be measurable and have a
    deadline.

     Strategies – are then developed to accomplish goals and it
      reflects the method to achieve the goal (what to do).

         Tactics – are then developed to accomplish the strategies; it is
          the how things will be done, daily actions.
                      MISSION STATEMENT

       GOAL/OBJ              GOAL/OBJ              GOAL/OBJ


STRATEGY   STRATEGY   STRATEGY   STRATEGY   STRATEGY   STRATEGY


      TACTIC      TACTIC    TACTIC      TACTIC    TACTIC      TACTIC

      TACTIC      TACTIC    TACTIC      TACTIC    TACTIC      TACTIC

      TACTIC      TACTIC    TACTIC      TACTIC    TACTIC      TACTIC
    Goal: What is the marketer’s
    destination?
 A goal is an objective you plan to fulfill
 SMART:(Specific, Measureable, Action, Realistic, Timebound)
 Determine where your firm needs to be by a particular date
  and agree upon goals
   A family-style restaurant wants to increase sales
   Agree to increase annual sales by 10% over last years sales
   Goal is specific and can be evaluated for success or failure at the
    end of a given time frame.
    Strategy: Which route will the marketer
    take to get there?
 A strategy is a plan of action for achieving your goals
  and objectives.
 Create the plan of action (route) believed to be most
  efficient.
 Example:
   Strategy #1: add a kids’ menu                     in
    order to increase sales to                   young
    parents in the area
  Tactics: What small steps are needed
  to make it happen?

 Tactics are specific actions used to carry out strategies
 Marketers carefully choose the short-term actions, or
  tactics, they use to carry out their strategy.
 Tactics must line up with where they plan to go –their
  goal-and how they plan to get there
 They pay attention to every detail – their strategy
MARKETING STRATEGIES CHANGE……
 What factors cause that change?
   Different Goals
   Economic conditions change
   Political or influence of governmental agencies changes
   Demand changes reflecting new consumer attitudes
   Environmental changes
   Advancements in technology
   Actions of Competitors
   Indicator 1.04 – Employ marketing
information to develop a marketing plan

           Marketing 1.04
              Part II
       THE MARKETING MIX REVIEW
 Includes four basic
                                  P?
  strategies called the 4 P’s
  or elements of marketing.       P?
  For each strategy, decisions
  have to be made for each        P?
  product the business offers
  to best reach their target
                                  P?
  market.
WHY ARE MARKETING STRATEGIES
IMPORTANT IN THE MARKETING MIX?
 Marketing plan is created with marketing strategies for
  the marketing mix. Marketing strategies are important
  because they are the framework of conducting business.
  They guide the allocation of a business’s resources. It
  unites the marketing activities throughout the business
  and everyone is on the same page. Eliminates chaos and
  confusion.
 What is a Market?
 = a customer or potential customer who has a
  unfulfilled desire and is financially able and willing to
  satisfy that desire
 A market are those who have:
   A need or desire, and
   The ability to pay, and
   The willingness to buy (soon)
               MASS MARKETING
 Mass Market is when the group is considered as a whole with
  all the marketing activities; using a single marketing plan.
   Ex. Chewing gum & light bulbs
 Designing of products that will appeal to most buyers and
  direct their marketing activities to the whole market
 Undifferentiated marketing
 Appeals to many types of customers through one marketing
  plan
 Example: Henry Ford black Model T
 Used to communicate a broad message to a large
    audience
   Allows a business to produce one product for
    everyone
   Provides the most possibilities for success at the
    least cost
   Don’t have to pay for the production of similar
    products
   Can price and distribute one type of product more
    easily than many
    Can send one promotional message to everyone
   Easier to manage, cost effective
   Predictable response rates
 Diversity of the mass marketing audience
 Small percentage of the mass market is likely to
    purchase the product
   Unable to track return, low response rates
   Nonpersonal
   Beliefs that everyone is the same
   Low profit margins
   High competition
   Grouping
    customers
    by their
    similarities



                    Pinpointing the
                     particular group of
                     customers to attract
 Planning their
activities for a specific,
well-defined group of
customers is known
as market segmentation
 Utilizes the marketing concept-knowing the customer needs
  and meeting those needs
 More precise than mass marketing
 Allows for:
   Finely-tuned products
   An appropriate price
   Ease of distribution
 Encourages effective communication
 Makes more efficient us of resources
 Small businesses become competitive
 Takes more resources (time & money)


 Can be more difficult to produce
 Today’s customers are:

  Better educated


  More discerning in the purchases
      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.
TARGET MARKET
 A target market are those who:
   Are grouped within a market by what they have in common
   Are the customers the business seeks to attract
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.
Importance of Target Markets
 Every customer belongs to a number of markets
 Customers are targeted in the consumer market, and
  businesses are targeted in the industrial market
 The same customer or business can be included in more than
  one target market
 Markets usually change over time
                  SEGMENTATION
 Market Segmentation is the      Market segment is a
  process of dividing a larger     subgroup of a larger
  market into smaller parts.       market that share one or
                                   more characteristics.
        MARKET SEGMENTATION
 Advantages:                     Disadvantages:
   Providing the products          More expensive, more
    customers want                   difficult to produce
   Effective communication         Expensive to set up
   Higher response rate,           Requires more marketing
   Repeat and loyal customers       research
   Personal
     WHY IS MARKET SEGMENTATION
          BEING USED MORE?
 Better matching of customer’s needs
 Better profits & opportunities for growth
 Repeat customers
 Target market communication
 More businesses operating globally creates more competition
  & greater market share via market segments
 It is more efficient in the long run.
4 TYPES OF MARKET SEGMENTATION
 Ways to divide markets into smaller groups
   Demographic
   Geographic
   Psychographic
   Behavioral
   DEMOGRAPHIC SEGMENTATION
 Statistics that describe a
  population by personal
  characteristics such as age,
  gender, income, marital
  status, ethnicity, education,
  & occupation.
Demographic Factors
 Age
 Stage in family life cycle
 Occupation
 Economic circumstances
 Lifestyle
 social influence variables
         family background
         reference groups
         roles and status
DEMOGRAPHIC Example:
  Gender: indicates purchase preferences (female)
  Origin or heritage: race, ethnicity, nationality (Caucasian)
  Religion (Christian)
  Social or economic status: education level, occupation, income
   (Middle-Class)
  Life stage: age, generation, marital status, family life cycle,
   family size. (Teens)
    PSYCHOGRAPHICS
Psychological variables assist in shaping a person’s lifestyle and
   values.

   Psychological variables:

    -1. Learning experiences
    -2. Personality
    -3. Attitudes and beliefs
    -4. Self-image
    PSYCHOGRAPHIC
 Lifestyles
    The way in which people lead
      their daily lives as determined by
       Income
       Interest
       Activities
    Example: specific sports, travel, fashion,
      or hobbies
 Personality
    Person’s individual qualities or traits and
     behaviors
    Example: zip-line course would appeal
     adventurous personalities
PSYCHOGRAPHIC SEGMENTATION
  Defined: Markets divided by      Characteristics reflect
   social and psychological          consumer buying behaviors.
   characteristics. (Lifestyles,     The characteristics are
   morals, values, & interests)      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.
PSYCHOGRAPHIC Example:
  It gives a clearer picture of customers’ needs and wants based
   on personality and lifestyle.
  Snowboarder: LOVES cold and outdoors, free-spirited, not into
   authority, fun-loving, has lots of friends
GEOGRAPHIC SEGMENTATION
 Markets divided by where    It is valuable information
  the customer lives.          because businesses can
                               tailor their product mix
                               based on location.
                               Characteristics are nations,
                               states, regions, counties,
                               cities, or neighborhoods.
GEOGRAPHIC
 Customers are grouped on the basis of such geographic
  divisions as
   Regions
   States
   Cities
   Neighborhoods
GEOGRAPHIC Example:
  Determine customers’ purchase preferences according to
   climate, political boundaries, or population density
  Marketers discover:
    Where their markets are located
    Who their competitors are
    Which media will reach their customers
  Businesses can market to customers based on location
     Concentration Map of Ann Taylor's
     Segment Target Groups – Wash DC
 The exhibit below is a map thematically shaded by the key segment
  groups who shop at Ann Taylor. By analyzing a market by dominant
  segment groups and overlaying your customer file, you can identify
  where your current customers and potential new prospects live in
  relation to where you are located and reveal over or under
  penetrated areas for store consolidation or expansion. Spatial data
  like this is also instrumental in local promotion activities from
  direct mail, to zoned newspaper advertising to cable television
  insertions and outdoor advertising.
  BEHAVIORAL
 = Segmenting a market base on the way customers use a
  product or behave toward a product. (How a consumer
  responds to a product.)
 Dividing customer into groups according to:
   Response to a product
   What they are looking for in a product
   Why they buy the product

 Includes
   Rate of use; usage
   Benefits derived
   Loyalty response
   Occasion response
If a customer has been using the same
brand of toothpaste for 12 years and
has had no cavities in that time period,
a small price increase will most likely
not be an issue to that customer.

    Behavioral Segmentation is market segmentation based on
     certain consumer behavior characteristics, such as benefits
     sought by the consumer, the extent to which the product is
     consumed, brand loyalty, price sensitivity, and the ways in
     which the product is used.
BEHAVORIAL Example:
 Customer questions in behavioral marketing:
   How will the product benefit me?
   Am I ready to buy it?
   When will I use the product?
      On what occasions?
      How often?
   Am I in a comfortable buying pattern?
   Do I feel loyal to a particular brand?
REVIEW - Match these retailers with their target market

Bass Pro Shop                  Pregnant woman

Hollister                      Fishing and water enthusiast

K and W cafeteria              Families with small children

A Pea in the Pod (maternity)   Sporting enthusiast

Toys R Us                      Females who enjoy crafts

Dick’s Sporting Goods          Senior citizens

Michael’s                      Teenagers & college students
              TARGET MARKET ACTIVITY
 Team of 2
 Create a representative of your ‘target market’
 Include Demographic, Geographic, Psychographic, & Behavioral
 Decorate your figure as to what they would look like, wear, etc.
 What types of products and/or services could you realistically see this
  person using, buying, etc? Why would the company who makes the
  good or provides the service want to market to this particular person
  (the representative of the target market)?
 Decorate your cutout person with pictures of products you think
  would appeal to him/her (you may print these from the internet, cut
  from magazines, etc and glue or tape them to the person
 For each product/service by typing up a reason why on a separate
  sheet of paper and attaching it to your figure.
TARGET MARKET ACTIVITY

								
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