February 8, 2011 Objective: Students will identify the importance of developing a marketing plan for their business.

While I Was Gone… Well while I’ve been gone you’ve been working on Unit 1 of your Business Plan. Those should have been turned in to my drop box YESTERDAY. We will not be having any more class time to work on Unit 1 of the Business Plan. Metro: Unit 2 of Metro was due Sunday. Heather Nelson from Metro said not many have turned everything in, I explained I was out so we have extended the Unit 2 deadline till February 9 th.

Market Segmentation

Developing a Marketing Plan We have evaluated our competition and identified our target market, now it’s time to develop a marketing plan to build on this information. 4 Ps of Marketing

P #1 - Product Basic to marketing is understanding your product or service. – Product is tangible thing, it can be seen and touched – Service is provided by one party for another, it cannot be seen or touched You can provide related products and services to meet customers needs. What products and services does your business offer?

P #2 - Place A company ensures their product or service gets to the customer at the right location and in the right manner. – Can be expanded to include methods of distribution as well as business location.

P #3 - Price Pricing is a marketing decision combined with financial analysis. To be successful, a business owner must establish prices for goods and services that will allow for a profit margin, be competitive with similar businesses, and will be acceptable to the customer. Pricing can make or break a business! So there are two important factors to keep in mind when developing a pricing structure.

Price Ceiling Price Ceiling: The most a customer will pay for your product or service. – Often this has been set by your competition – Market research will help you to determine the amount. – Products and services are bought on the basis of perceived value, NOT on the basis of what it costs you to purchase a product or provide a service. – Explain?

Price Floor Even though your cost to produce does not factor into how much a customer is willing to pay, that cost is extremely important to you as the business owner… why? You must consider ALL your costs and expenses to establish a price floor Successful businesses operate between the price floor and price ceiling.

P #4 - Promotion Using the most cost-effective and appropriate promotional methods to enable you to attract customers, make sales, and keep repeat customers.

Assignment 4.1 Need an excuse to eat out? Order a sandwich at two different fast-food restaurants; then answer the following questions. OR, think back to 2 of your most recent experiences at two different fast food restaurants and answer the following questions. – Did you observe any differences in how the employees handled your order? Describe them. – Describe what you believe to be the marketing vision of each restaurant based on what you observed. Write a positioning statement for each restaurant. Analyze the market for each restaurant using the four methods of market analysis: geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation. Integrate your answer into an essay covering all of the areas above for BOTH of your fast food restaurants experienced.