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					        CHAPTER 25:   By: Chinwoo
MARKETING PLANNING
                    INTRODUCTION

Marketing planning: The process of
making appropriate strategies and
preparing marketing activities to
meet marketing objectives.
It is usually a formal document
which details how the business
intends to achieve the marketing
objectives.
The plan will contains things such as
budgets, sales forecasts and
strategies.
                  MARKETING MIX

Marketing mix: Central decisions that must be taken to make
ef fective marketing of a product.
The 7Ps: Product, Price, Promotion, Place , People, Process,
Physical evidence.
                   PRODUCT, PRICE

 A business needs to
  make what the
  consumers want, this
  might be an existing
  product, a dif ferent
  version of an already
  existing product, or a
  completely new one
 Needs to be af fordable
  yet enough to make a
  profit
               PROMOTION, PLACE

 Promotion needs to be persuasive so that consumers would
  want to buy the product, packaging also helps the product
  image.
 Place is not only where but also when, it needs to be
  distributed at the right time and place.
PEOPLE, PROCESS, PHYSICAL EVIDENCE

 The business needs to leave a good impression on the people
  so that they come back often, this is particularly relevant in
  hotels and restaurants.
 The process is the business satisfying the customers needs.
  For example: Waiters refilling water in restaurants without you
  asking for it.
 Physical evidence is for the consumers to be able to see the
  product for themselves.
PRACTICAL EXAMPLE
       APPROPRIATE MARKETING MIX

Co-ordinated marketing mix : All of the marketing mix working
together to provide consumers a consistent message about the
product.
All the marketing mix not working together could lead to the
product being misrepresented the wrong way and therefore
leading to confusion for the customers.
The most appropriate marketing decisions:
 Af fordable
 Co-ordinated
 Appropriate consumers
                 MARKETING AUDIT

Marketing audit: Review of the cost and
ef fectiveness of a marketing plan including
an analysis of internal and external
influences.
 Analysis of internal strengths and
  weaknesses and how they have changed
  since the last audit
 Analysis of opportunities and threats and
  how it has changed since the last audit
 Review the marketing plan by looking at
  the market share, number of sales, and if
  it is following its SMART objectives.
        MARKETING AND CORPORATE
               OBJECTIVES
Marketing objectives : Targets for marketing to help the
business achieve its goals. Ex: Increasing market share,
increasing brand awareness, increasing sales, expansion, etc.
 Objectives should match the aims and missions of the
  business. Should be decided by the senior management
 SMART
Why are they important?
 Sense of direction
 Progress is measurable
 Forms the basics of market strategy
Marketing strategy: A long-term plan to reach marketing
objectives.
                MARKET RESEARCH

Market Research: Collecting, recording, and analyzing data
about customers, competitors and the market.
Market Research is important because it
 Reduces risks with new products
 Predicts future demand changes
 Explains patterns in sales of existing products and market
  trends
 Assesses the best style of packaging and promotions for the
  product
SOURCES OF MARKET RESEARCH DATA

              There are 2 types of research
              Primary research: First-hand data
              that are directly related to the
              business’s needs
              Secondary research: Data from
              second-hand sources such as”
              Government publications, local
              libraries, trade organizations,
              newspaper reports, internal
              company records, and the
              almighty internet.
                       ACTIVIT Y

Write the advantages and disadvantages for secondary
research.
Write the advantages and disadvantages for primary research.
                 RESEARCH T YPES

Quantitative research: Research that are numerical and can be
presented and analyzed.
For example: The number of sales made in the past year, the
net profit of the business, etc.

Qualitative research: The motivation for a consumer buying
products or opinions of the consumer.
For example: The consumer bought the ice cream because it
was bigger than the others, it tasted better, etc.

Focus groups: People who are questioned about how they feel
towards a product, service, advert, or packaging.
                  RESEARCH T YPES

Test marketing: Marketing a new product in a small location
first before launching the product.

This can help the business as it reduces the risk of failure and
can see how the product does. But it can be not accurate as the
region may be dif ferent from the total population.

Surveys- Businesses could use surveys to get both quantitative
and qualitative research by asking questions that the business
wants answers to.
       SAMPLING METHODS AND SIZE

Sample: A group of people in market research survey that
represents the total market.
Sampling error: Errors in research because of using a sample
and not the whole population.
Methods!
Random sampling: Everyone has a chance to get selected, its
random.
Stratified sampling: Picks from specified groups of the
population and then uses random sampling.
Cluster sampling: Only using one type of group from the
population
Quota sampling: Getting data from a specific sub group.
Snowball sampling: Using sampling groups to recruit more
samples through acquaintances.
MARKET SEGMENTATION AND CONSUMER
            PROFILE
Market segment: a sub -group of the entire market where
consumers are similar.
Market segmentation: Identifying segments of a market and
then focusing on them.
Consumer profile: A quantified picture of consumers showing
the age groups, income levels, location, gender, and social
class.




Segmentation is sometimes called dif ferentiated marketing.
   IDENTIFYING DIFFERENT CONSUMER
               GROUPS
Target market: The segment of a market that a product is aimed
at.

Geographic dif ferences- Location dif ferences

Demographic dif ference- Age, sex, family size, ethnic
background. Also things like social class and income is
considered demographic dif ferences.

Psychographic factors - Dif ferences in life style, personalities,
values and attitudes.
                       ACTIVIT Y

What are some of the advantages of market segmentation and
some limitations of it?
                CORPORATE IMAGE

Corporate image: Consumer’s view of the company and the
brand.
Businesses constantly try to make a good image of the brand as
it has positive impacts on sale. Some ways to get a positive
image is:
 Focusing on long-term reputation, not short -term money.
 Honesty
 Let the stakeholders have access to information about the
   company
 Make good company policies
  UNIQUE SELLING POINT/PROPOSITION

Unique selling point/
proposition (USP): Factors that
makes a company unique,
motivating consumers to buy.

Customers are attracted to
good or services that are
special, out of the ordinary.
They want distinct image,
service, feature, or
performance.

				
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posted:1/15/2013
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