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Indicator 1.02 – Employ marketing information to

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Indicator 1.02 – Employ marketing information to Powered By Docstoc
					     WARM UP: 1.01 – 1.02 Review
1.       A personal data sheet that provides a summary of
         information about an individual is a:
          Resume
2.       Kate’s company needs a new package design for its
         crackers. What marketing career category would be
         responsible for creating the new package?
          Product service mgmt
3.       What marketing career involves catching customers’
         attention, informing them of products and
         persuading them to buy?
          Advertising
4.       Nate is graduating in May; this is what type of goal?
          Short term
What’s next?
Work on Project for 20 minutes
Lesson 1.04
Review
Clock Buddies
   Indicator 1.04 – Employ marketing
information to develop a marketing plan

          Marketing
      (CHANGE PAPER TO
            1.04)
      THE MARKETING MIX
 Includes four basic strategies
                                     Product
  called the 4 P’s or elements of
  marketing. A combination of        Place
  decisions a business makes in
  order to best reach its target     Price
  market.
                                     Promotion
 It is called a Marketing Mix
  because the 4 P’s can each be
  adjusted to better meet the
  needs of the customers and
  company
The 4 P’s
 Product - 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.
                          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?
                         The 4 P’s
 Place - 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.
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?
                 The 4 P’s
 Price - The amount a business charges
 customers for a product.
    What competition is charging, determining seasonal
    discounts and allowances, and credit terms.
  PRICE
 Determine pricing objectives:
  Getting their product into more customers’ hands.
  Helping customers view their firm as distinct from
   competitors
  Bringing in the amount of income they need or want.
  Raising the product’s value in the customer’s eyes
  Matching the product’s value with what customers
   expect to receive
                 The 4 P’s
 Promotion - 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.
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.
         DO YOU KNOW??
 Identify whether the following question pertains to
 A: Product, B: Place, C: Price, D: Promotion

 How should the product be packaged?
Product
 Should we offer credit and layaway?
Pricing
 Should we allow our product to be sold by a
  wholesaler?
Place
 How often should we advertise?
Promotion
       Identify whether the following question pertains to
         A: Product, B: Place, C: Price, D: Promotion

 Which celebrity could we use to entice customers into the store
Promotion
 Should we offer guarantees or warranties?
Product
 Which type of transportation should we use to move the
  product?
Place
 What should be offered for sale?
Product
 How often should we put the product on sale?
Price
 How many sales people should we hire?
Promotion
    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 statement
    Must be single-minded, realistic, specific, measurable,
     consistent with each other and with overall company goals,
     and must include a time frame for completion
 Strategies: Specific statements indicating how the business
  expects to accomplish its objectives taking the demands of the
  target market(s) into account.
    Identify target markets
    Identify appropriate marketing mix choices
    Utilize information obtained during SWOT analysis
  RELATIONSHIP OF GOALS,
TACTICS, & STRATEGIES TO THE
       MARKETING MIX
 Tactics:
  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.
    Coming up w/ Marketing Strategy
You own a RESTAURANT
Goal: A family-style restaurant wants to increase sales
   Strategy: Add a kids’ menu in order to increase sales to young
    parents in the area
Tactics : To introduce the new kids’ menu, the family style
restaurant might decide to use the following tactics:
   1. Introduce kid-tested meals
       A)spaghetti & meatballs     C) hot dog w/chips
       B) macaroni & cheese        D) hamburger w/fries
   2. Offer a free ice cream cone to each child
        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.
       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 store
 Offer some products exclusive to the store
 Mail flyers to every household in the neighborhood
Scenario 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 .
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.
     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.
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.
    MASS MARKETING

 A single marketing plan used to reach
 all consumers.
 Ex. Chewing gum & light bulbs
             MASS MARKETING
 Advantages                        Disadvantages:
   Don’t have to pay for the         Diversity of the audience
    production of similar             Unable to track return,
    products                           low response rates
   Can price and distribute one      Nonpersonal
    type of product more easily       Beliefs that everyone is the
    than many                          same
   Can send one promotional          Low profit margins
    message to everyone               High competition
   Easier to manage, cost
    effective
   Predictable response rates
   Easy to set up.
                 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
4 TYPES OF MARKET SEGMENTATION


        Demographic
        Psychographic
         Geographic
          Behavioral
      DEMOGRAPHIC SEGMENTATION
 Gender: indicates
  purchase preferences
 Origin or heritage: race,
  ethnicity, nationality
 Religion
 Social or economic
  status: education level,
  occupation, income
 Life stage: age,
  generation, marital status,
  family life cycle, family size.
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.
PSYCHOGRAPHIC SEGMENTATION
   Defined: Markets divided by      Characteristics reflect
    social and psychological          consumer buying behaviors.
    characteristics.                  The characteristics are
    (value/morals, attitude           Interests, Habits, Activities,
    Lifestyles, and interests)        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.
    BEHAVORIAL SEGMENTATION
 Dividing the market into        Types of behavioral
  groups based on what they        segmentation:
  are looking for in a product        Product Benefits
  and why they buy the
                                      Usage
  product
                                      Loyalty
                                      Occasions
                               General Mills dividing groups
DO YOU KNOW?                    of people into smaller, more
                                similar groups is called:
 Matt will only buy a car       Market segmentation
 w/ a two or more year         TV Guide’s potential
 warranty – which seg.?         subscribers are its:
  Behavioral                    Market
                               Sierra Mist is giving away a
 Race Care Digest runs
                                free can of soda to the first 250
 advertisements that appeal     guests at the next Bobcats
 to racing enthusiasts –        game. This is an example of
 which mkt segmentation?        which mkt mix?
  Psychographic                 Promotion
                                 How will inventory be
 A marketing plan that is
                                  stored- which mkting
  used to reach all               mix?
  customers at one time is:
                                   Place
   Mass marketing
                                 Targeting Dallas
 Producers of Go-Gurt
                                  Cowboy Cheerleaders –
  decide to put their             seg.?
  product in a unique easy-
                                   Demographic AND
  to-carry container. This is
                                   Psychographic
  an example of which mkt
  mix?                           Claire wants to raise
   Product
                                  $1000 for her bakery;
                                  this is an example of a:
                          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 level
    Geographic – where does s/he live: east, west, suburbs, urban, etc
    Psychographic – what does this person like to do? Run, dance, hang,
     etc
    Behavioral – 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

				
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