AOF Entrepreneurship Unit 3, Lesson 6 The Role of Marketing Copyright © 2009–2012 National Academy Foundation. All rights reserved.

What is marketing? Marketing is the strategy used by a business to promote a product or service. Marketing includes advertising, promotion, public relations, and sales. Marketing is critical to the growth and success of most businesses and organizations. What are some ways that a new company can promote its product or service?

Successful marketing is made up of many elements Successful marketing involves developing a plan that includes: Industry and market research Analysis of the competition Deep understanding of targeted customers Where do you think you could find information on market and industry research?

Organizations attempt to achieve a competitive advantage over their competitors The two most common types of competitive advantage include: Cost advantage Differential advantage Think about your own business idea. What type of competitive advantage can your company provide?

The 4 Ps represent a company’s marketing mix These four categories reflect a company’s marketing mix, or strategy: Product Place (distribution) Price Promotion How can each of these four categories help companies gain a competitive advantage?

Marketing materials can be used for public relations, promotions, advertising, or sales pitches Public relations—courting the media Marketing materials— reaching out to customers and potential customers Advertising—promoting products and company branding Would you be more interested in a product you read about in a news article rather than an advertisement? Why?

The marketing budget needs to match the marketing goals and the company’s realistic financial forecasts Before identifying how to promote the products and services, entrepreneurs need to consider financial restrictions. The size of the budget might restrict the types of advertising and promotion that can be accomplished. Promotion is easier than ever, because the Internet offers many low-cost marketing opportunities.

Make your marketing goals specific and measurable, and be prepared to adjust your expectations as you go Marketing plans should have specific goals that can be measured and assessed at key milestones. Many marketing plans include financial projections, and a calculable ROI, or return on investment. Short-term goals are important, but make room for longer-term goals. The plan should be adaptable as the market changes.