1.  Day 11

2.  By the end of the day, all students will gain an understanding of the components of the MARKETING MIX.  Students will select a pricing strategy for his/her product, calculate the price, and predict its effect on sales.

3.  Word of the day: advertise  Look up the word’s meaning and use in a sentence of your own  E-mail to Mr. Kramer  $8,350 @ 5.5%  Work out on paper  Prove answer in Excel  Provide years 1 and 10

4.  Bell Work  As a class, create a KWL Chart on Marketing Mix  Review demographics  Introduce the marketing mix  Carefully observe product and price  Students use a pricing method to calculate a price for his/her school store item and predict its effect on sales  Last 10 minutes – check stock gains/losses

5.  As a class, we will create a KWL chart together.  You will be given 5 minutes to fill out as much information as you can in your KWL chart.  Use 3 columns and leave yourself space.  We will be covering Product and Price today.  Let’s do an example together…..

6. What are they? Why are they important? How do they affect our equilibrium point?

7.  DEMOGRAPHICS: Statistical data relating to the population and particular groups within it.  Included in demographics are age, race, gender, financial status, etc.  Demographics help define a group of people.  What are the demographics of our students at the school store?  Demographics help define our TARGET AUDIENCE.

9.  PRODUCT  PRICE  PLACE  PROMOTION  PEOPLE  PROCESS  PHYSICAL ENVIRONMENT

10.  Items that satisfy a customer’s needs or wants.  Can be tangible or intangible  Have life cycles (phases): Growth, maturity, and decline.  Marketers must watch these cycles closely and adjust marketing strategies when needed. (Spy Pen currently in decline phase).

11.  Is it a product?  Is it tangible or intangible?  Who is its target market?  Do you remember the ticker symbol?  Do you think the company has been successful in its marketing? Why?  Which stage of the life cycle is it in?

12.  DESIGN

13.  TECHNOLOGY

14.  USEFULNESS  CONVENIENCE  VALUE  QUALITY  PACKAGING  BRANDING  ACCESSORIES  WARRANTIES

15.  STRATEGIES:  1. SKIMMING: A product pricing strategy by which a firm charges the highest initial price that customers will pay. As the demand of the first customers is satisfied, the firm lowers the price to attract another, more price-sensitive segment.  2. PENETRATION: A strategy adopted for quickly achieving a high volume of sales and deep market penetration of a new product.

16.  3. PSYCHOLOGICAL:  Odd Pricing-The most widely used in the world ($4.99 vs. $5.00)  Prestige Pricing-Aims to price at a round number to avoid looking cheap ($100 vs. $99.99. BOGO-Buy One Get One  4. COST-PLUS: A company takes the base price of an item and adds a percentage to calculate the final price. $1.00 + 25% = $1.25  AB company sells a product at a loss to encourage profits from other sales. A common Black Friday strategy. Also a strategy that will be used during clearance sales.

17. PRICE (contd.)  5. LOSS LEADER: A company sells a product at a loss to encourage profits from other sales. A common Black Friday strategy. Also a strategy that will be used during clearance sales.

18.  CHOOSE A NUMBER FROM THE CUP  YOUR NUMBER IS YOUR PRICING STRATEGY  YOU ARE TO WRITE AN ADD INTRODUCING YOUR ITEM AND ITS PRICE STRATEGY  USE YOUR PRICING STRATEGY TO CALCULATE A PRICE BASED ON THE COST OF THE ITEM

19. ACTIVITY (contd.)  PREDICT YOUR OUTCOME ON SALES EFFECT. WE WILL TRACK THESE IN EXCEL  HAND BACK AND COMPLETE KWL CHARTS.

20.  ADD TO KWL CHART AND CREATE USING EXCEL  LOOK AT PLACE AND PROMOTION  STORE SALE  ANNOUNCEMENTS  POSTERS