Marketing Indicator 1.04 – Employ marketing information to develop a marketing plan

Marketing Plans Begin with... Goals – established often must be measurable must have a deadline Strategies –developed to accomplish goals the method to achieve the goal (what to do). Tactics –developed to accomplish strategies daily actions.

Example: Goal: Sell 500 boxes of Girl Scout Cookies this “season” Strategies: Increase consumer awareness Make purchases more enticing Tactics: Place flyers with phone number on cars and homes in and around neighborhood Sell cookies outside of local businesses Give out free samples Include a free pint of milk with purchase of two boxes.

Activity: Create your own example Possibilities: Achieving an “A” in Marketing. Getting a license and a car. Winning the game tonight. Goal: Strategies: Tactics:

MARKETING STRATEGIES CHANGE…… What factors cause that change? Different Goals Economic conditions change New consumer attitudes Environmental changes Advancements in technology Actions of Competitors

ACTIVITY Think of 5 products that have “changed” in your lifetime How did they change? Why did they change?

THE MARKETING MIX Four basic strategies the 4 P’s For each strategy, decisions have to be made for each product the business offers to best reach their target market. Product Place Price Promotion

1. Product Product Mix – all of the products a business offers Questions: quality features branding packaging service warranty

2. Place Where the customer can obtain the products. Questions: store locations website Catalogs Channels of Distribution

3. Price What to charge for the products Questions: Cost Competition Market Profit Discounts

4. Promotion Promotional Mix : Advertising Sales Promotion Selling Publicity Questions: How to reach target market? How much to budget?

IMPORTANCE OF THE 4 P’S Product = target market. Place = contact with your customers. Direct impact on loyalty and repeat customers. Price = profit and quality Promotion = communication

ACTIVITY Choose a product that you use frequently (toiletry items are good). List suggestions for improvements to the product and the marketing mix. Explain how the improvements would increase satisfaction of the customer and the business.

WHY ARE MARKETING STRATEGIES IMPORTANT IN THE MARKETING MIX? Marketing plan is created with marketing strategies for the marketing mix. Marketing strategies are important because they are the framework of conducting business. They guide the allocation of a business’s resources. It unites the marketing activities throughout the business and everyone is on the same page. Eliminates chaos and confusion.

Mass Marketing Single marketing plan to reach all consumers (Everybody!) All Products, all promotion, all advertising Ex: bottled water, foods, soda, phones

MASS MARKETING Advantages One product One plan One promotional message Lower costs Easy Disadvantages: Everyone is the same??? Non-personal Low profit margins High competition

WHAT IS A TARGET MARKET? Customers that the business want to sell to. Have specific characteristics. Unique wants and needs that can be targeted. Strategies can be very effective to reach and sell to.

Target Marketing?

IMPORTANCE OF TARGET MARKETS People most likely to buy your product. Focus of promotion and advertising

SEGMENTATION Market Segmentation the process of dividing a market into smaller parts. Market Segment is a subgroup of a larger market share one or more characteristics.

MARKET SEGMENTATION Advantages: Providing the products customers want Effective Loyal customers Personal Disadvantages: More expensive More difficult to produce Expensive Requires more marketing research

WHY IS MARKET SEGMENTATION BEING USED MORE? Matching of customer’s needs More profit Repeat customers More efficient

Types of Market Segmentation Demographic Consumer statistics and characteristics Geographic Where consumers live and work Psychographic What consumers do and like Behavioral Why consumers buy a product

DEMOGRAPHIC SEGMENTATION Personal characteristics: Age Gender Income Marital status Ethnicity/Race Education Occupation.

Geographic Market Segmentation Location Work/Live/Play

Psychographic Market Segmentation Activities Interests Lifestyle What a person likes to do.

Psychographic Examples

BEHAVORIAL SEGMENTATION Based on the way customers use a product or why they purchase. Product Benefits Usage Loyalty Occasions

Commercials with Music Old Navy: Windows: Rolling Stones, Madonna, Aerosmith, All-State: G-Star Raw: Go Pro: Beats: Tropicana: Budweiser: Bud Light:

Car Companies KIA: Buick: Hyundai: Chevrolet: Cadillac: Ford:

Music in Commercials Windows: Gap: JC Penny: Coca-Cola: Pepsi: Mountain Dew:

ACTIVITY Choose a partner! Cut out ads from magazines for 3 products of your choice. Create a small poster with the products listing the target market the product and ad are designed to attract. For EACH product – you need to identify the following market segmentation for that product: Demographics Geographics Psychographics Behavioral You may use the internet to research product information

ACTIVITY Cut out ads from magazines. Create a poster with the ads listing the target market the product and ad are designed to attract. Be specific! Include all 4 types of market segmentation!