DEVELOPING THE RIGHT MARKETING MIX AND PLAN UNIT 2 • INTEGRATED MARKETING DEVELOPING THE RIGHT MARKETING MIX AND PLAN Class Name Instructor Name Date, Semester

Performance Objectives After this lecture, you should be able to complete the following Performance Objectives 1. Combine the Four P’s—product, price, place, promotion—into a marketing mix. 2. Choose the attributes of your product or service. 3. Price your products for success. 4. Find the best location for maximum efficiency and effectiveness of distribution. 5. Determine the mix of promotion to use for your business. 6. Find a way to add the Fifth P, philanthropy, to your business. 7. Understand the importance of a marketing plan. 8. Identify the critical components of a marketing plan. 9. Use breakeven analysis to evaluate your marketing plan.

5 Marketing Mix = the 4 Ps Product Price Place Promotion Goal: Bring the right product to the right place at the right price with the right promotion.

5 Create Your Total Product or Service Concept A product is something that exists in nature or is made by human industry, usually to be sold. A service is intangible –work, skills, or expertise provided in exchange for a fee.

5 Focus Your Brand The key to building a successful brand is to focus tightly on the primary benefit you want customers to associate with your business. Even entertainers can become a brand. Ford’s Costly Failure: The Edsel – lacked focus, too many features  failure Ford’s Focus on Success: The Mustang – tightly focused on target market of 20-30 year olds  success

5 How to Build Your Brand Choose a business name that is easy to remember, describes your business, and helps establish mindshare. Create a logo that symbolizes your business to the customer. (Trademark your creation) Develop a good reputation. Create a brand personality. Communicate your brand personality to your target market.

Seven Things to build and Maintain Your Brand and Its Reputation 5 Seven Things to build and Maintain Your Brand and Its Reputation Provide a high-quality product or service. Maintain the highest ethical standards. Define your product or service clearly - focus. Treat your employees well. Make all your advertisements positive and informative. Associate your company with a charity. Become actively involved in your community.

PRICE: What It Says about Your Product/Service? 5 PRICE: What It Says about Your Product/Service? Strategies & Tactics for Effective Pricing: Value Prestige Cost-Plus Mark-Up Penetration Skimming Meet-or-Beat-the-Competition Follow-the-Leader Personalized Variable Price Lining

5 Place: Location, Location, Location! Key Factors in Deciding upon Location Access for customers Access to suppliers Climate and geography Convenience Cost of facilities Demographics Economic conditions and business incentives Governmental regulations and laws, including environmental impact Labor pool Proximity to competitors Visibility

5 Promotion: Advertising + Publicity Using advertising + publicity to get your market message to your customers Advertising (purchased): billboards, TV ads, magazine ads Publicity (free): mentions in media such as articles, stories on TV, etc.

Use Integrated Marketing Communications for Success 5 Reinforce the Company’s Unique selling Proposition

5 Promotional Planning Determines a Promotional Budget - Percentage of sales - Competitive spending - Excess funds - Objective and Task

5 The Advertising Advantage Building brand and image Providing information Persuading Stimulating action Reinforcing the purchasing decision Types of Advertising - Institutional advertising - Product advertising Media Planning & Buying: Focus on Your Customer Marketing Materials Should Reinforce Your Competitive Advantage

5 Sales Promotion Solutions When to Use Promotional Tools Advertising Specialties Trade Show Exhibits Mall Carts or Kiosks

5 Alternative Marketing Guerilla Marketing Buzz Marketing Product Placement/Branded Entertainment Lifestyle Marketing In-Store Marketing - Samples or Demonstrations - Point-of-purchase and shelf placement Other Media Venues Edutainment-a combination of education and entertainment used to in promotion to make a more lasting impression on an audience.

5 Other Media Venues Exhibit 5-4 Other Media Venues Ambient Advertising Indoor Advertising Other Advertising Parking Lots Movie Theaters Carry-Out Menus Tunnels Video Games Shopping Bags Escalators Bathroom Stalls Advertising on Clothing Benches (Bus Stops) Commercial Trucks Brochure Racks Airline In-Flight

5 E-Active Marketing E-Active Marketing- combination of the two major components of Internet marketing – e-commerce and interactive marketing. E-C0mmerce Interactive Marketing Online Advertising Brand Spiraling-the integration of a company’s conventional offline branding strategy with its internet strategy, which uses conventional approaches to drive traffic to its online sites.

5 E-Active Marketing Blogs- a journal that appears on the internet periodically (often daily) and is intended for the public (short for Web log) Blogosphere-the aggregate term for all the blogs on the Internet Blogger www.blogger.com LiveJournal www.livejournal.com Twitter www.twitter.com (micro blogging) TypePad www.typepad.com Vox www.vox.com WordPress www.wordpress.com Xanga www.xanga.com

5 E-Active Marketing Online Social Networks- social networks such as Facebook, MySpace, and LinkedIn. Stealth Marketing-undercover or deceptive marketing efforts that are intended to appear as if they happened naturally. Mobile Social Networking- the updating of social network sites via mobile handsets. Consumer Generated Advertising Viral Marketing- the process of promoting a brand, product, or service though an existing social network, in which a message is passed from one individual to another

5 Publicity Potential Generating Publicity - Pitch Letter - Press Release Telling the Story (make the connection of: Who, What, When, Where, & How) Sample Press Release Follow Up a Press Release Public Relations - Special Events - Sponsorships - Networking - Public Speaking

5 The Fifth P: Philanthropy - Philanthropy – Foundation - Not-For-Profit Organization Cause Related Marketing Gaining Goodwill Teach for America and Upromise What Entrepreneurs Have Built You Have Something to Contribute Pledge a percentage of your profits to a nonprofit organization you have researched, believe, and respect. Become a mentor to a younger entrepreneur Volunteer for an organization that helps your community. Sell your product to a charity that you support at discount. You will realize that you have a lot to give…not always money.

5 Developing a Marketing Plan The roles of the marketing plan includes: convincing skeptical investors that your plan has merit. using and disclosing market studies. identifying the target market for the organization evaluating the competition demonstrating the pricing strategy detailing the advertising plan

5 Market Analysis Marketing analysis-an analysis of the market is the heart of the marketing plan that brings the various strategic and tactical components of the promotional efforts together into a single comprehensive section

5 Marketing as a Fixed Cost Calculate Your Breakeven Point: this is why calculating the breakeven point will tell you if your marketing plan will work. Fixed Cost = Breakeven Units Gross Profit per Unit

Key Terms blog blogosphere brand spiraling buzz marketing cause-related marketing cost-plus pricing e-active marketing edutainment follow-the-leader pricing foundation goodwill guerilla marketing institutional advertising logo markup pricing meet-or-beat-the-competition pricing mobile social networking not-for-profit organization penetration pricing personalized pricing philanthropy pitch letter press release prestige pricing price lining product advertising stealth marketing trademark skimming prices strategy value pricing variable pricing strategy viral marketing