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					Marketing Mix
Marketing Plan
 Product
 Price
 Promotion
 Place
Marketing Mix

    Marketers have essentially four variables
     to use when crafting a marketing
     strategy and writing a marketing plan.
     They are price, promotion, product and
     distribution (also called placement). They
     are sometimes referred to as the four
     p's.
Marketing Mix

    A marketing mix is a combining of
     these four variables in a way that will
     meet or exceed organizational
     objectives. A separate marketing mix is
     usually crafted for each product offering.
     When constructing the mix, marketers
     must always be thinking of who their
     target market are.
Marketing Mix

  Mixcoherency refers to how well the
  components of the mix blend
  together. A strategy of selling
  expensive luxury products in
  discount stores has poor coherency
  between distribution and product
  offering.
Marketing Mix

    In the long term, all four of the mix
     variables can be changed, but in the
     short term it is difficult to modify the
     product or the distribution channel.
     Therefore in the short term, marketers
     are limited to working with only half their
     tool kit. This limitation underscores the
     importance of long term strategic
     planning.
Marketing Mix
    Some commentators have increased the
     number of p's in the mix to 5, 6 or even
     8. "People" is sometimes added,
     recognizing the importance of the human
     element in all aspects of marketing.
     Others include "Partners" as a mix
     variable because of the growing
     importance of colaberative channel
     relationships.
Marketing plan

    A Marketing Plan is a written document
     that details the actions necessary to
     achieve a specified marketing
     objective(s). It can be for a product or
     service, a brand, or a product line. It can
     cover one year (referred to as an annual
     marketing plan), or cover up to 5 years.
Marketing plan
 In general terms, it must:
    describe and explain the current situation
    specify the expected results (objectives)
    identify the resources that will be needed
     (including financing, time, and skills)
    describe the actions that will need to be taken
     to achieve the objective(s)
    devise a method of monitoring results and
     adjusting the plan where necessary
Marketing plan

 There are many formats for marketing
 plans and every company does it a little
 different, but the outline that follows is a
 very complete format. Using this format
 will produce a 30 to 40 page plan. Many
 companies prefer an abridged format that
 would yield a 10 to 20 page plan.
Marketing plan
  Title page
  Executive Summary
  Current Situation - Macroenvironment
        economy
        government
        legal
        technology
        ecological
        sociocultural
        supply chain
Marketing plan

    Current Situation - Market Analysis
      market definition
      market size
      market segmentation
      industry structure and strategic groupings
      Porter 5 forces analysis
      competition and market share
      competitors' strengths and weaknesses
      market trends
Marketing plan

  Current Situation - Consumer
   Analysis
    nature  of the buying decision
    participants

    demographics

    psychographics

    buyer motivation and expectations

    loyalty segments
Marketing plan

  Current      Situation - Internal
    company       resources
      financial

      people

      time

      skills
Marketing plan

    objectives
      mission  statement and vision
       statement
      corporate objectives

      financial objective

      marketing objectives

      long term objectives

    corporate    culture
Marketing plan

  Summary      of Situation Analysis
    external  threats
    external opportunities

    internal strengths

    internal weaknesses

    key success factors in the industry

    our sustainable competitive advantage
Marketing plan

  Marketing   research
    informationrequirements
    research methodology

    research results
Marketing plan - Product

    Marketing Strategy - product
      product mix
      product strengths and weaknesses
            perceptual mapping
      product life cycle management and new
       product development
      Brand name, brand image, and brand equity

      the augmented product
Marketing plan

    product   portfolio analysis
      B.C.G.  Analysis
      contribution margin analysis

      G.E. Multi Factoral analysis

      Quality Function Deployment
Marketing plan - Price
    Marketing Strategy - Price
        pricing objectives
        pricing method (eg.: cost plus, demand based, or
         competitor indexing)
        pricing strategy (eg.: skimming, or penetration)
        discounts and allowances
        price elasticity and customer sensitivity
        price zoning
        break even analysis at various prices
Marketing plan - Promotion

    Marketing Strategy - Promotion
        promotional goals
        promotional mix
        reach, frequency, flights, theme, and media
        sales force requirements, techniques, and
         management
        sales promotion
        publicity and public relations
        electronic promotion (eg.: Web, or telephone)
Marketing plan - Place

  Marketing   Strategy - Distribution
    geographical   coverage
    distribution channels

    physical distribution and logistics

    electronic distribution
Marketing plan

    Implementation
        personnel requirements
             assign responsibilities
        financial requirements
        management information systems requirements
        month-by-month agenda
             pert or critical path analysis
        monitoring results and benchmarks
        adjustment mechanism
        contingencies (What if's)
Marketing plan

  Financial   Summary
    assumptions

    pro-forma  monthly income statement
    contribution margin analysis

    breakeven analysis

    Monte Carlo analysis
Marketing plan

  Appendix
    pictures   and specifications of the new
     product
    results from research already
     completed
Pricing

    Pricing is one of the four aspects of
     marketing. The other three parts of the
     marketing mix are product management,
     promotion, and distribution. It is also a
     key variable in microeconomic price
     allocation theory.
Pricing

 Pricing involves asking questions like:

    How much to charge for a product or service?
    What are the pricing objectives?
    Do we use profit maximization pricing?
    Do we use profit maximization pricing?
    How to set the price?: (cost-plus pricing,
     demand based pricing, rate of return pricing,
     or competitor indexing)
Pricing

    Should there be a single price or multiple
     pricing?
    Should prices change in various geographical
     areas, referred to as zone pricing?
    Should there be quantity discounts?
    What prices are competitors charging?
    Do you use a price skimming strategy or a
     penetration pricing strategy?
    What image do you want the price to convey?
    Do you use psychological pricing?
Pricing

    How important are customer price sensitivity
     and elasticity issues?
    Can real-time pricing be used?
    Is price discrimination or yield management
     appropriate?
    Are there legal restrictions on retail price
     maintenance, price collusion, or price
     discrimination?
    Do price points already exist for the product
     category?
Pricing

    How flexible can we be in pricing? : The
     more competitive the industry, the less
     flexibility we have.
      The price floor is determined by production
       factors like costs, economies of scale,
       marginal cost, and degree of operating
       leverage
      The price ceiling is determined by demand
       factors like price elasticity and price points
Pricing
  Are there transfer pricing considerations?
  What is the chance of getting involved in a price
   war?
  How visible should the price be? - Should the
   price be neutral? (ie.: not an important
   differentiating factor), should it be highly visible?
     (to help promote a low priced economy product, or to reinforce the
     prestige image of a quality product), or should it be hidden? (so as to
     allow marketers to generate interest in the product unhindered by
     price considerations).
Pricing

  Are there joint product pricing considerations?
  What are the non-price costs of purchasing the
   product? (eg.: travel time to the store, wait
   time in the store, dissagreeable elements
   associated with the product purchase - dentist
   -> pain, fishmarket -> smells)
  What sort of payments should be accepted?
   (cash, cheque, credit card, barter)
Pricing

 A well chosen price should do three
 things:
  achieve the financial goals of the firm
   (eg.: profitability)
  fit the realities of the marketplace (will
   customers buy at that price?)
Pricing

  support a products positioning and be
   consistent with the other variables in the
   marketing mix
  price is influenced by the type of distribution
   channel used, the type of promotions used,
   and the quality of the product
        price will usually need to be relatively high if manufacturing is
         expensive, distribution is exclusive, and the product is supported by
         extensive and promotional campaigns
        a low price can be a viable substitute for product quality, effective
         promotions, or an energetic selling effort by distributors
Pricing
 From the marketers point of view, an
 efficient price is a price that is very close
 to the maximum that customers are
 prepared to pay. In economic terms, it is a
 price that shifts most of the consumers
 surplus to the producer. The effective
 price is the price the company receives
 after accounting for discounts, promotions,
 and other incentives.
Pricing

 A loss leader is a product that has a price
 set so low that it acts as a promotional
 device and draws customers into the
 store. Promotional pricing refers to an
 instance where pricing is the key element
 of the marketing mix.
Pricing

 The price/quantity relationship refers to
 the perception by most consumers that a
 relatively high price is a sign of good
 quality. The belief in this relationship is
 most important with complex product that
 are hard to test, and experiential products
 that cannot be tested until used (such as
 most services).
Pricing

 The greater the uncertainty surrounding
 a product, the more consumers depend
 on the price/quantity hypothesis and the
 more of a premium they are prepared to
 pay.
Premium pricing

 Premium pricing (also called prestige
 pricing) is the strategy of pricing at, or
 near, the high end of the possible price
 range. People will buy a premium priced
 product because:

    They believe the high price is an
     indication of good quality;
Premium pricing

  They believe it to be a sign of self worth -
   "They are worth it" - It authenticates their
   success and status - It is a signal to
   others that they are a member of an
   exclusive group; and
  They require flawless performance in this
   application - The cost of product
   malfunction is too high to buy anything
   but the best - example : heart pacemaker
Demand based pricing

    Demand based pricing refers to any of
     the pricing methods that use consumer
     demand as the central element. These
     include : price skimming, price
     discrimination and yield management,
     price points, psychological pricing,
     bundle pricing, penetration pricing, price
     lining, and premium pricing.
Promotion

  Promotion is one of the four aspects of
   marketing. The other three parts of the
   marketing mix are product management,
   pricing, and distribution. Promotion is
   comprised of four subcategories:
  personal selling
  sales promotion
  publicity and public relations
Sales

  Sales, or the activity of selling, forms
  an integral part of commercial activity.
  As a practical implementation of
  marketing, it often forms a separate
  grouping in a corporate structure,
  employing separate specialist
  operatives known as salesmen
  (singular: salesman or salesperson).
Sales

 The primary function of sales is to find
 and close leads, turning propective
 customers into actual ones. From a
 marketing point of view, selling is one of
 the methods of promotion used by
 marketers. Other promotional techniques
 include , sales promotion, publicity, and
 public relations.
Sales

 Moral strictures applied to marketeers often
 apply even more vigorously to those in
 sales. People selling second-hand cars,
 real estate or encyclopedias (of the non-
 Wikipedia variety) often come in for
 particular disdain. Sellers of snake oil have
 become stock figures for mirth at their
 quackery: they merge with the category of
 the confidence trickster or the carny.
Sales

 Small wonder that many organisations
 contract out sales to end-users.
 Moral strictures applied to marketeers
 often apply even more vigorously to
 those in sales. People selling second-
 hand cars, real estate or encyclopedias
 (of the non-Wikipedia variety) often
 come in for particular disdain.
Sales

 Sellers of snake oil have become stock
 figures for mirth at their quackery: they
 merge with the category of the
 confidence trickster or the carny. Small
 wonder that many organisations
 contract out sales to end-users.
Sales

 Forms of selling include:
    door-to-door
    multi-level
    direct
    mail-order
    telephone
    retail
    consignment

         Also see Sales Planning and Operations
Sales promotion

 In marketing, sales promotion is one of
 the four aspects of promotion. The other
 three parts of the promotional mix are ,
 personal selling, and publicity/public
 relations. Sales promotions are non-
 personal promotional efforts that are
 designed to have an immediate impact on
 sales.
Sales promotion

 Sales promotion is media and non-
 media marketing communications
 employed for a pre-determined, limited
 time to increase consumer demand,
 stimulate market demand or improve
 product availability.
Sales promotion

 Examples include:
  coupons
  discounts and sales
  contests
  point of purchase displays
  rebates
Sales promotion

 Sales promotions can be directed at
 either the customer, your sales staff, or
 distribution channel members (such as
 retailers). Sales promotions targeted at
 the consumer are called consumer
 sales promotions. Sales promotions
 targeted at retailers and wholesalers
 are called trade sales promotions.
Consumer Sales Promotion Techniques

  Price deal: A temporary reduction in the price
  cents-off deal: offers a brand at a lower price.
   Price reduction may be a percentage marked
   on the package
  price-pack deal: The packaging offers a
   consumer a certain percentage more of the
   product for the same price (eg: 25% more
   free)
  Coupons: coupons have become a standard
   mechanism for sales promotions.
Consumer Sales Promotion Techniques

  Free Standing Insert (FSI). A coupon
   booklet is inserted into the local
   newspaper for delivery
  on-shelf couponing: Coupons are
   present at the shelf where the product is
   available.
  checkout dispensers: On checkout the
   customer is given a coupon based on
   products purchased
Consumer Sales Promotion Techniques

  on-line couponing: Coupons are
   available on line. Consumers print them
   out and take them to the store.
  Rebates: Consumers are offered money
   back if the receipt and packaging is
   mailed to the producer.
  contests/sweepstakes/games: The
   consumer is automatically entered into
   the event by purchasing the product.
Consumer Sales Promotion Techniques

    Point-of-Sales displays:
        Aisle interrupter: A sign the juts into the aisle from the shelf
        Dangler: A sign that sways when a consumer walks by it
        Dump Bin: A bin full of products dumped inside
        Glorifier: A small stage that elevates a product above other
         products
        Wobbler: A sign that jiggles
        Lipstick Board: A board on which messages are written in
         crayon
        Necker: A coupon placed on the 'neck' of a bottle
        Y.E.S unit: Your Extra Salesperson is a pull out fact sheet.
Trade Sales Promotion Techniques include

   Trade Allowances: short term incentive
    offered to induce a retailer to stock up on
    a product.
   Dealer Loader: An incentive given to
    induce a retailer to purchase and display
    a product.
   Trade Contest: A contest to reward
    retailers that sell the most product
Trade Sales Promotion Techniques include

   Point-of-purchase displays: Extra sales
    tools given to retailers to boost sales
   Training Programs: dealer employees
    are trained in selling the product
   Push Money: also known as spiffs. An
    extra commission paid to retailer
    employees to push products.
Publicity

 Publicity is one of the variables that
 comprise the promotional mix. The other
 components of promotions are , sales
 promotion, and personal selling.
 Promotion is one of the variables that
 comprise the marketing mix. The other
 three are product management, pricing,
 and distribution.
Publicity

 Publicity is closely related to public
 relations. Whereas public relations is the
 management of all communications
 between the firm and the general public,
 publicity is the management of product or
 brand related communications between
 the firm and the general public.
Publicity

 It is primarily an informative activity (as
 opposed to a persuasive one), but its
 ultimate goal is to promote the
 companies products, services, or
 brands. A publicity plan is a planned
 program aimed at obtaining favorable
 press coverage for a companies
 products.
Publicity

 The most basic tool of the publicist is the
 press release, but other techniques
 include telephone press conferences, in-
 studio media tours, multi-component
 video news releases (VNR’s), newswire
 stories, and internet releases.
Publicity
  For these releases to be used by the
  media, they must be of interest to the
  public ( or at least to the market segment
  that the media outlet is targeted to).
  The releases are often customized to
  match the media vehicle that they are
  being sent to. Getting noticed by the
  press is all about saying the right thing at
  the right time.
Publicity

 A publicist is continuously asking what
 about you or your company will pique the
 reader's curiosity and make a good
 story? The most successful publicity
 releases are related to topics of current
 interest. These are referred to as news
 pegs.
Publicity

  An example is if three people die of water
  poisoning, an alert publicist would
  release stories about the technology
  embodied in a water purification product.
Publicity
 But the publicist cannot wait around for
 the news to present opportunities. They
 must also try to create their own news.
 Examples of this include:
  Contests
  Walkathons
  Art exhibitions
Publicity

  Event sponsorship
  Arrange a speech or talk
  Make an analysis or prediction
  Conduct a poll or survey
  Issue a report
  Take a stand on a controversial subject
  Arrange for a testimonial
Publicity

  Announce an appointment
  Celebrate an anniversary
  Invent then present an award
  Stage a debate
  Organize a tour of your business or
   projects
  Issue a commendation
Publicity

 The advantages of publicity are low cost,
 and credibility (particularly if the publicity
 is aired in between news stories like on
 evening TV news casts). The
 disadvantages are lack of control over
 how your releases will be used, and
 frustration over the low percentage of
 releases that are taken up by the media.
Public relations

 Public relations (PR) is internal and
 external communication (use of symbols
 and symbolic acts) to inform or influence
 specific publics using writing, marketing,
 advertising, publicity, promotions, and
 special events.
Public relations

 Some public relations specialists work as
 full-time employees of companies,
 politicians, nonprofit organizations, or
 governments; while others work for PR
 agencies that contract their services to
 clients (usually corporations, wealthy
 individuals or other special interests) who
 pay for their expertise at keeping them in or
 out of the spotlight, whichever is necessary.
Public relations

 According to the Public Relations Society
 of America (PRSA), one of the profession's
 leading trade associations, public relations
 "has been defined in many widely differing
 ways. Not unsurprisingly [sic], the earliest
 definitions emphasized the roles of press
 agentry and publicity since these were
 major elements from which modern public
 relations grew."
Public relations

 More recently, the PR industry has pushed
 to redefine itself as a management function.
 From a more critical perspective, public
 relations is sometimes also referred to as
 the manufacturing of consent, following a
 phrase popularized by Edward Herman and
 Noam Chomsky (see Manufacturing
 Consent).
Public relations
 The practice of public relations is often
 disparaged using terms such as "spin,"
 and public relations practitioners are
 sometimes characterized as "spin
 doctors" or "flacks."
Public relations


       Table of contents
       1 History
       2 The Industry Today
       3 Ethical and Social Issues
       4 See also
       5 External links
       6 Books
Distribution (business)
 Distribution is one of the four aspects of
 marketing. The other three parts of the
 marketing mix are product management,
 pricing, and promotion. Distribution deals
 with how to get the product or service to
 the customer. It must answer questions
 such as:
    What kind of distribution channel to use?
Distribution (business)

    Should the product be sold through retailing?
    Should the product be distributed through
     wholesale?
    Should multi-level marketing channels be
     used?
    How long should the channel be (how many
     members)?
    Where should the product or service be
     available?
Distribution (business)

  When should the product or service be
   available?
  Should distribution be exclusive or extensive?
  Who should control the channel (referred to as
   the channel captain)?
  Should channel relationships be informal or
   contractual?
References
    This Presentation is based
               on
           Fact Index

           Adaptation
              by
           Finntrack
Distribution (business)
  Should channel members share (referred to as
   co-op ads)?
  Should electronic methods of distribution be
   used?
  Are there physical distribution and logistical
   issues to deal with?
  What will it cost to keep an inventory of
   products on store shelves and in channel
   warehouses (referred to as filling the
   pipeline)?

				
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