Developing a Marketing Plan Unit 3

 The 5 P’s (formerly “the 4 P’s”)  Product  Place  Price  Promotion  People The Marketing Mix

 Deals with goods and services provided by your business  Product features and benefits  Branding, packaging, and labeling  Product selection  Consider potential costs and revenues  Test it  Product positioning  Product mix – all of the products/services offered  Impact of Advances in Technology  Product quality, packaging, new products/services The PRODUCT Strategy

 How you will deliver your goods and services to customers  Channels of Distribution – path the product takes from producer to consumer  Direct and Indirect Channels – producer to consumer  Intermediaries – between producers and consumers  Selecting a Channel of Distribution  Affects your product cost, risk of damage, delivery time The PLACE Strategy

 Intensity of Distribution  Intensive = placement of product in all suitable sales outlets  Selective = limits the number of sales outlets  Exclusive = limits the number of outlets to one per area  Transportation  Truck? Airplane? Ship? Pipeline?  Location, layout, and availability  Designed to match the needs and opportunities of potential customers  Technology Impact – use of Internet replaces expensive guesswork The PLACE Strategy Cont…

 Assembling, preparing, and maintaining the people who will help you  Basic Hiring Criteria  Establish qualifications  Developing Employees  Orientation and Training  Establishing a Productive Environment  One with a healthy atmosphere  Rewarding Your People  Recognize achievement and positive contributions The PEOPLE Strategy

 It is a financial decision that ensures costs are covered and a profit is made  Is a marketing strategy that affect’s the customer’s motivation to buy  Prices too high = may turn away customers  Prices too low = customers may think that your product lacks quality The PRICE Strategy

 Designed to tell potential customers about your products/services  Tells about characteristics, benefits, and availability  Should be used to enhance your company’s image  This strategy coordinates all aspects of a product  Involves planning, determining the right mix, and selecting specific activities The PROMOTION Strategy