Develop marketing strategies to guide marketing tactics.   3.01

OVERVIEW Marketing strategies are designed and implemented for the overall purpose of achieving planned goals. The business's goals and strategies for achieving those goals may change frequently. Changing the business's image, increasing its profits, or improving management techniques might be specific goals at any point in time. Choosing distribution channels is a consideration in the place element of marketing. The place element of marketing focuses on considerations in getting the selected product in the right place at the right time. Some of the other place considerations are storage, transportation, inventory handling and control, and choice of specific outlets to offer the products. Sales promotion is an aspect of the promotion element. Extending credit is a consideration of the price element. Warranties and guarantees are considerations in the product element. Specific actions best describes the role of tactics in marketing strategies. Tactics are the specific actions that a business uses to carry out its marketing strategies. A marketing strategy is the plan of action or road map the business uses to accomplish its marketing goals. Goals are desired outcomes. An option is a choice among two or more alternatives.

marketing mix Marketing Mix Product Price Place Promotion  The combination of the four elements of marketing—product, price, place, and promotion.

Marketing Mix Marketers adapt their marketing mix to suit each situation.  The marketing mix elements are interrelated: A change to one element affects the other elements Examples: Improving product features will probably result in price increases. Simplifying the place element will probably result in price decreases. When marketers assemble the mix, they carefully determine which elements to include and to what degree—keeping in mind that the mix words as a unit.

product The goods, services, or ideas a business will offer its customers

Product Marketers conduct research and use their creativity to determine what customers need and how they will meet that need. Questions marketers ask to answer the question: 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 company’s image? How might customers view this product in relation to others? Should the company offer a warranty, maintenance contract, or other support services? Marketers have succeeded with the product element when customers view the product as the best solution to their needs.

Place Getting a selected product in the right place at the right time

Place Considerations marketers address: Which businesses to buy from When to buy the product How much of the product to order How to protect the product from damage How to store the product until it’s needed Where to make the product available How to get the product where it’s needed How to process customer orders Which businesses to involve in the process How to answer customer questions How to coordinate all the steps involved Marketers are successful with the place element when customers can buy a desired product when and where they want.

Promotion Letting customers know the product’s value and its benefits that meet customers’ current needs and refers to the various types of communication that marketers use to inform, persuade, or remind customers about their products

Promotion Seeks a positive response from customers—they buy. Types of communication included: Advertising Personal selling Publicity/Public relations Sales promotion Factors marketers need to consider to use communication channels effectively: 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 Advertise Here

price The amount of money a business asks in exchange for its products

pRICE Marketers must find a good balance between customer value and satisfaction and between company cost and profit. Marketers start by determining their pricing objectives: Getting their products into more customers’ hands—might be accomplished by lowering the price Helping customers view the business as distinct from its competitors—might offer something unique Bringing in the amount of income they need/want—involves pricing the product high enough to cover expenses and provide a profit Raising the product’s value in the customer’s eyes—involves getting customers to view the product as higher quality Matching the product’s value with what customers expect to receive—setting prices at the level customers expect Marketers also determine how they will accept payment—cash, credit, debit, or check? They decide whether they will offer discounts. Marketers know they’ve been successful with the price element when customers feel that the benefits they receive outweigh the costs, and the business is bringing in enough revenue to make a profit, while keeping prices low enough to encourage sales.

Goals Objectives they plan to fulfill Desired Outcomes Where it is they want to be What they want to achieve

Goals Since marketers have many options to choose from to reach their goals/objectives, they try to select the best option available to them by considering the following: How the marketing concept applies to their situation When they want to reach their goal Which resources are on hand

strategies A marketing strategy is the plan of action or road map the business uses to accomplish its marketing goals. Marketers customize their strategies based on their goals/objectives and environment. They adjust and/or combine strategies to achieve their desired results. Strategies are carried out with tactics—the specific actions used to carry out the strategy.

The process marketers follow when they plan their strategies They find out their company’s overall plan. They figure out specifically where their firm needs to be by a particular date. They write down agreed upon goals—where it is they want to achieve. Example: A restaurant wants to increase this year’s sales by 10% over last year’s sales. They lay out their plan of action—their strategy—to show how they will reach their goal. Example: The restaurant evaluates its many options and decides to add a kids’ menu to increase sales. To be efficient, marketers choose their short-term actions—tactics—to carry out their strategy. The tactics must be in line with their goal/objectives and strategy. Example: Tactics that the restaurant might use: Introduce meals which kids like. Offer a free ice-cream cone to each child selecting a kids’ meal.

factors that may cause marketing strategies to change Business situations change, which requires marketers to look for challenges/opportunities along the way. Examples: Finding out that the company can’t handle distribution on its own Hearing about a new product with better features than the one currently offered Figuring out that the price is slightly high for customers Seeing the company’s ad in the back of the newspaper instead of in the section in which it was expected Learning of new government regulations that impact the business Watching the economy improve/worsen Marketers must react quickly and accurately to changes to be able to achieve their goals/objectives. They must remain alert to changes in their environment.

tactics Tactics are the specific actions that a business uses to carry out its marketing strategies

the relationship of goals, strategies, and tactics Strateties Tactics are the specific actions that a business uses to carry out its marketing strategies. A marketing strategy is the plan of action or road map the business uses to accomplish its marketing goals. Goals are desired outcomes. An option is a choice among two or more alternatives. It is very important to identify goals and objectives before identifying strategies and tactics so that marketers know what they are trying to achieve before determining how they’re going to go about it. For marketers to achieve their desired results, they plan where they need to go and how to get there efficiently. Then, they do what it takes to achieve those results.

Performance ACTIVITIES Imagine that you are the marketing manager for your school’s play or other school activity. Identify strategies that you would use to market the play/activity. Explain why you would use them, and summarize your plan in a brief presentation for the play/activity directors. Conduct research into the marketing strategies used by local businesses that offer products similar to those that you plan to sell. Identify the goals, strategies, and tactics that you believe each firm is using. Find out as much as you can about each firm’s marketing mix, and compare it to the mixes of other firms. Determine whether each marketing mix supports the goals and strategies of its firm. Record your findings, and present your research to the class for discussion. Then, insert your written findings in your VIP portfolio.