4.2 Marketing Planning

Marketing Planning Marketing doesn't just happen! The process of formulating appropriate strategies and preparing marketing activities to meet marketing objectives. SMART objectives Sales forecasts Marketing budget Marketing strategies Detailed plan of action Marketing doesn't just happen!

Marketing Mix Effectively combining key decisions in the areas of product, price, promotion, and place to successfully market a product.

Product Price Promotion Place The 4 P’s of Marketing (Marketing Mix) The 4 P’s of Marketing Video: http://www.youtube.com/watch?v=JIirzTdaey4

The 3 other P’s There are 3 more P’s – related to Service People: Selling services require people to create a positive experience for the customer (restaurants, hair salons) Process: Satisfying customer needs as part of marketing services (automatically renewing a membership) Physical Evidence: Customers can see for themselves the quality of the product (a clean lobby at a hotel, table clothes used a nice restaurant)

Successful Marketing Mix The marketing mix must be consistent in order to be successful in sending a clear message to customers. Example: Product: Rolex watch Price: Expensive Promotion: “Hi-line” magazine ads Place: Upscale jewelry stores

What is wrong with this picture? An expensive well-known brand of perfume for sale by a street-vendor. Saks Fifth Avenue wrapped your fine china purchase in newspaper. Lamborghini sports cars are advertised in Seventeen magazine.

Market Segmentation Identifying different segments within a market and targeting different products or services to them. Hewlett-Packard sells computers for office and home use. They also make laptops for people who travel. Coca-Cola makes regular soda, diet soda for weight conscious consumers, and athletic drinks for athletes.

How are markets segmented? Geographic Tastes may very by geographic location Demographic Most common way to segment Age, gender, family size, ethnic background, income, weight, job Psychographic Differences in lifestyle, hobbies, personalities, values Sports fans, athletes, fisherman, church-goers

Consumer Profile A quantified picture of the consumers in your market segment for the products you expect to sell: Proportions of age Income levels Location Gender Social class

Niche Market vs Mass Market Niche Market: A small and specific part of a larger market. The Dollar Store – sells inexpensive items only Versace – only sells to very upscale clients Mass Market: A market for products that are often standardized and sold in large quantities. Toothpaste Printer paper

Product Positioning Map A graph that analyses consumer perception of each group of competing products in respect of two characteristics. Establish 2 important features of the competing products such as Price/Quality Then place products on a graph .

Product Positioning Map High Calorie Women Men No Calorie

Product Positioning Map Analyzing a Product Positioning Map May indicate a potential gap in the market May identify key features of a product that are being under promoted Repositioning existing brands may be needed by the use of advertising techniques, or new packaging.

Unique Selling Point (USP) The factor that makes your company’s product unique…designed to motivate customers to buy. Product: Dyson’ vacuum cleaner with cyclone technology Price: Walmart – always low prices Place: Dell Computers – first computer manufacturer to utilize Internet sales Promotion: FedEx….when it absolutely, positively has to be there overnight.