Weekly Marketing Inputs for the Biz-Cafe Machine Ted Mitchell

The Concept of A Marketing Machine The Marketing Machine Inputs to The Marketing Machine Price Tags Product Quality Promotion Place Outputs from The Marketing Machine Revenues Quantity of Goods Sold Profits Demand I am the manager of this machine

What choice of ingredients do you have for the Promotion Mix? The Coffee Shop Machine Promotion Outputs from The Marketing Machine Revenues Quantity of Goods Sold Profits Demand Now I must choose the Promotion mix

Many Ingredients for the Promotion and Communication Mix The Inputs for Marketing Machines have been classified as the 4 P’s of the marketing mix Possible elements of the Promotion mix for the Coffee Shop are: Print advertising, (how many, how much $) Radio Spots,(how many, how much budget) Coupons, Cups with Logos (Number of Servers, if they are salespeople, total server hours)

Many Ways to measure amounts of Promotion effort and expense in Marketing Theory In General: Measuring the amount of Promotion might include Number of insertions, TV spots, attention episodes Square footage of ad facing Number of households reached Number of Calls made by sales people Number of views, of click-throughs (Number of languages used?)

What choice of ingredients do you have for the Pricing Mix? The Coffee Shop Machine Pricing Ingredients Outputs from The Marketing Machine Revenues Quantity of Goods Sold Profits Demand Now I must choose the pricing mix

Ingredients in the Pricing mix Possible elements of the Pricing mix for the coffee shop are: Price Tag for each size cup of coffee Price Tag for a pastry In general acceptance of credit/debit cards, loyalty rewards, student discounts, cashing checks, different currencies, cumulative discounts, etc. Bundling delivery, assembly, insurance, product features, returns, trade-ins

What choice of ingredients do you have for the Product/Service Mix? The Coffee Shop Machine Product Ingredients Outputs from The Marketing Machine Revenues Quantity of Goods Sold Profits Demand Now I must choose the Product mix

Ingredients for the Product Mix Possible elements of the Product/Service mix for the coffee shop are Quality of coffee, sizes of coffee, number of servers, quality of the servers, amount of ambiance, amount and type of entertainment In general, wi-fi, related product lines, alcohol, foods, server training, assembly, up-grades, trade-ins

What choice of ingredients do you have for the Place/Time Mix? The Coffee Shop Machine Place and Time Ingredients Outputs from The Marketing Machine Revenues Quantity of Goods Sold Profits Demand Now I must choose the Place mix

Ingredients for the Place Mix Possible elements for provision of Place and time utilities for the coffee shop Hours of Operation, Days of Operation, Furnishings, Location In general it would include, channels of distribution, direct or indirect, the number distribution tiers, packing, storage, transportation, logistics, SCM

In the Biz-Café Practice Games: Take advantage of the ‘groundhog day’ effect Only change one of the 4 P’s at a time and monitor the results over a range changes in the input You can monitor the changes in several outcomes at the same time

Example of A Marketing Machine The Coffee Shop Machine Inputs to The Marketing Machine Price Tags Product Quality Promotion Place Outputs from The Coffee shop Machine Revenues Quantity of Goods Sold Profits Demand Now I am the manager of this coffee shop machine

Marketing Decisions For Week 1 Managers Weekly Salary$610Not a direct P Number of Servers to Hire/FireTotal 20 serversProduct/Service Input Server Hourly Wage$9.00Not s direct P Price Tag for a Medium Cup$3.50Price Tag input Type of Newspaper AdGeneral Awareness, $200 per day Promotion Input Number of Daily Radio Spots5 per $40 per spot Promotion input Hours per Day (starts with a Five day week) 8 am to 10 pmPlace and Time Utility Input Quality of CoffeeBest, $6 per poundProduct/Service Input Pounds of Coffee40 poundsNot a P Number of Cups20,000 medium cups with Logo Promotion Input???

Basic Marketing Machine Inputs Number of Servers to Hire/FireTotal 20 serversProduct/Service Input Price Tag for a Medium Cup$3.50Price Tag input Type of Newspaper AdGeneral Awareness, $200 per day Promotion Input Number of Daily Radio Spots5 per $40 per spot Promotion input Hours per Day (starts with a Five day week) 8 am to 10 pmPlace and Time Utility Input Quality of CoffeeBest, $6 per poundProduct/Service Input

Any Questions about The Inputs for Marketing Machines have been classified as the 4 P’s of the marketing mix What are the possible ingredients in each of the Four P’s Pricing Mix Product/Service Mix Mix of Place and Time Utilities Promotion/Communication Mix