Marketing
Marketing Set of processes for creating, communicating, and delivering value to customers for improving customer relationships….ok now in my terms The process of promoting, selling, and distributing a product or service
Target Market
Target Market Marketing Strategy – selecting a target market and create, price, promote & distribute (place) products in the market Target Market – Groups of customers who are or will be interested in your product
Market Segments (Targets) Demographic Age, income, # of children, religion, education Geographic Climate, region, population density Behavioral/Psychographic Attitude toward product, user status, usage rate Interests, activities, values
Lets Look at Some Ads Denver Water Company
Suplicy Cafe
Fiji Water
Burger King
iPhone
Marketing Concept Using the needs of customers as the primary focus during planning, production, pricing, distribution & promotion of a product.
Marketing Concept Business needs 3 things to happen Identify what will satisfy customer’s needs Develop products that customers think are better products Business must operate profitably
Marketing Concept Two Steps Identify target markets Develop marketing mix Product Pricing Placing (Distribution) Promotion
Product Things to consider about your product Design Technology Usefulness Convenience Quality Packaging Branding Accessories Warranties Relevance – Time frame – Product Life Cycle 14
Product Different methods can be used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage like Specialized versions New/Limited editions Improvements Changed packaging Technology, etc. 15
Product Life Cycle (PLC)
Think of Examples of PLC Video Games - Atari Cars – 1966 Pontiac GTO
3 Levels of a Product
Pricing How should you price your product High? Low? Where do you start?
Pricing Strategies Skimming Pricing – Initially offers product at the highest price, lowering it eventually to increase demand again Penetration Pricing – Charging a low price to gain market share & lose competition Cost-based Pricing – Cost of product + a reasonable mark-up usually a percentage Prestige pricing – Pricing high to project high quality Odd-even (Psychological) pricing – Pricing a few cents under an even number Economy pricing - This is a no frills low price. Marketing costs are kept to a minimum.
49.99
2.59
15.49
15,967
195.49
3,299
25.99
49.99
2.59
15.49
15,967
195.49
3,299
25.99
Important to Price Know the market Price elasticity Definition Know your competition’s prices 42
Price Elasticity A measure to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price. Are these products’ prices elastic? Toilet Paper Gas Picture Frame $500 pizza
Placing/Distribution All activities involved in getting the right quantity to the right customer at the right time at a reasonable cost.
Distribution/Placing Manufacturer Wholesaler/Distributor Internet Catalog/Mail Order Sales Team Dealer Retail Multi-channel
Distribution/Placing Determining the best ways for customers to locate, obtain, and use the products/services Things to consider Cost of shipping Cost of distribution channel Ease/best way to get the product to customer
Marketing Plan How you will break down your target market based on the 3 segmentations? Be specific In depth strategy on how you will price your product Explain why the strategy, factors behind pricing, future price changes In depth distribution strategy What channels you will use and why Factors/problems that may arise in distribution
Promotion I've been told of some crazy schemes and I've come up with even crazier ways of promoting them. Max Markson - Media Man of Australia
Marketing Communications
Promotions Mix Personal Selling Sales Promotion Public Relations Direct Mail Trade Fairs & Exhibitions Advertising Sponsorship Online Promotions Website
Personal Selling Examples? Used Cars Vacuum Cleaners
Sales Promotion Examples? BOGOF Coupons Money Off (Rebates) Competitions Free Accessories Introductory Offers
Public Relations (PR) The deliberate, planned & sustained effort to establish & maintain communication between an organization & the public “All attention is good attention” Examples? Airlines Celebreties
Direct Mail/Email Marketing Examples? Emails Mailing lists 18 Free Wings for your B-day! Free Ice Cream from Cold Stone! Part email promotion, part direct mailings
Trade Fairs & Exhibitions Examples? Video Games Boat Shows
Advertising “Paid for” communication Obscure Examples? Commercials Billboards Online Radio Obscure Examples? Buses Cinema Tatoos
Sponsorship Very powerful Examples?
Online Promotions Examples? Pay per click Sponsor a website Email Social Media Google Analytics Websites
The Marketing Mix Blend of the mix depends upon: Marketing objectives Type of product Target market Market structure Rivals’ behaviour Global issues – culture/religion, etc. Marketing position Product portfolio 64
Evaluating Your Marketing Mix 1) Look at your sales (or fee income). 2) Ask your clients. 3) Does your advertising and/or promotional activity produce direct responses? 4) Do your networking activities create new opportunities for you? 5) Do your marketing tactics make it easier to sell your services? 6) Check your sales conversion rate. The best approach here is to look at your historical records and determine whether your conversion (or closure) rate has improved. 7) Does your plan have a positive return on investment (ROI)? Does it bring in enough new/repeat business to justify the expense?