1. Managing Market Strategies

2. Forming Marketing Objectives
Marketing-Process of developing, promoting, and distributing products
Marketing Plan-Used by a business to guide its marketing process
Research to get info, focus on target market
Marketing Objectives-What a business wants to accomplish through its marketing efforts
Product Introduction
Sales/ Market Share
Profitability
Pricing
Distribution
Advertising
Team Organization
Objectives Must be measurable---Limit # of objectives so you can monitor them

3. The Marketing Mix
Objectives-Specify WHAT you want to accomplish through your goals
Marketing Mix-Maps out HOW you’re going to accomplish them
5 Marketing strategies (4 P’s, plus a fifth)
Product
Price
Place
Promotion
People Strategy

4. Product Strategy Goods/Services provided Features and Benefits
List them! These are your main selling points!!!!
What does your product offer?
Branding, Packaging, Labeling
How do you identify your product? Logo?
All 3 can be used to maintain customer loyalty
Product Positioning
How do consumers view your product?
Prestigious? A value, or bargain? Equal to your competition?
Quality, availability, pricing, and uses have an effect on this.
Product Mix
All of the products your company sells makes up the product mix
Do they relate to one another?
This will depend on the market(s) you are trying to target

5. Price & Promotion Strategies
Pricing-impacts a business two ways.
1) Financial decision that ensures costs get covered and profit is made
2) What is the customer’s motivation to buy?
Promotion-how potential customers come to find out about your products, characteristics, benefits, and availability

6. Factors that Affect Price
Costs & Expenses
To make a profit, prices must exceed costs and expenses
Fixed costs-Do not change depending on # of units sold
Examples ?
Variable costs-Change based upon number of units sold
Examples?
Law of Supply & Demand
When demand is high, supply is low, you can price it high
Just the opposite is true (low demand, high supply) lower prices
Elastic vs. Inelastic Demand
Elastic- Examples?
Inelastic- Examples?

7. Government Regulations
Consumer Perceptions
Your price creates the image in the minds of your customers.
Too low-Lacks Quality, Too high-Turn customers away
Competition
Your competitors pricing will influence your prices
Government Regulations
Federal and State laws affect your prices
Price Gouging-Pricing above the market when no other retailer is available
Price Fixing-Illegal, competing companies agree to keep prices within a range
Bait and Switch-Illegal, when customers are attracted to an item and then referred to an inferior or higher priced item

8. Pricing Objectives Obtaining a Target Return on Investment
ROI (Return on Investment)
Amount earned as a result of that investment
Invest $20,000 in t-shirt sales and want a 20% return
$20,000 x .20 = $4,000 expected profit on top
Obtaining Market Share
If you want more market share, you will have to adjust your prices to attract customers who are doing business with your competitors
Other Objectives
Social/Ethical considerations. These help establish your image

9. Pricing Strategies Competition-Based Pricing Cost-Based Pricing
Find out what your competitors charge, then decide to price yours above or below theirs
Cost-Based Pricing
Consider business costs and your profit objectives.
Figure out your cost to make/buy your product. Then, figure out the cost of doing business. Last, add your profit margin. (Markup)
Demand-Based Pricing
Find out what your customers are willing to pay for your product, then set price accordingly
Useful only when certain conditions exist.
Inelastic demand, or when customers think your product is better than the competitions

10. Product Life Cycle Pricing
Stage 1, Introduction
Profits are low or negative. 2 methods are commonly used. Price skimming, or Penetration pricing
Skimming-Charge a high price to recover costs and maximize profits
Penetration-Build sales by charging a low initial price
Stage 2, Growth
Sales climb rapidly, costs decrease, and you show profit
Make adjustments
Stage 3, Maturity
Stretch the life cycle of the product- Sales slow, profits peak
Identify new markets or make improvements, if not, then decline stage
Stage 4, Decline
Sales and profits continue to fall
Businesses should cut prices to generate sales or clear inventory
If it is no longer profitable, then phase it out!

11. Pricing Techniques Psychological-Based on customers’ perceptions
Most often used by retail businesses
Prestige Pricing-Higher than average prices are used to suggest status and prestige
Odd/Even Pricing-Technique in which odd numbers are used to suggest bargains. $19.99
Price Lining-Items in a certain category are priced the same. Jeans priced at $25, $50, $75
Promotional Pricing-Lower prices are offered to stimulate sales for a short period of time
Multiple-Unit Pricing-Items are priced in multiples. 3 for $10, 2 for $15
Bundle Pricing-Several complementary products are sold at a single price. Tv & DVD combo for $599

12. Pricing Techniques
Discount Pricing- offers customers reductions from the regular price
Encourages customers to buy
Cash Discounts-Given to customers for prompt payment.
Example: 2/10, N/30 2 % off bill if paid within 10 days, net amount due in 30 days
Quantity Discounts-Encourages buyers to order large quantities than they normally would buy.
Example: If you buy $50,000 this year, we’ll give you 20% off
Trade Discounts-Given to distribution-channel members who provide functions for the manufacturer.
Example: 30% off for companies who have a relationship with the manufacturer
Promotional Discounts-When manufacturers want to pay wholesalers or retailers for carrying out their promotional activities
Seasonal Discounts-Used for products that have a high seasonal demand
Example: Heavy coats in the middle of the summer.

13. Place Strategy How will you deliver your goods/services to customers?
Distribution strategy-the movement of your product
Channel of Distribution-path a product takes from producer to consumer
This is important to consider---It will affect your cost on the product.
More importantly, how quickly your customers can get it
Intensity of Distribution
Intensive-placement of a product in all suitable sales areas
Selective-limits the number of sales outlets in an area
Exclusive-limits the number of outlets to one per area
Location, Layout, Availability-Where are your products/services located?

14. People Strategy
People: assembling, preparing, and maintaining the people involved in running your business
Basic Hiring Criteria-Does your business require specific skills?
What is the bare minimum qualification to work for you?
Developing Employees-Contains two parts
Orientation-Gets them on the same page as you. Share your vision
Training-For skills and knowledge they need now and in the future
Establishing a Productive Environment
All about the atmosphere.
Employees need to feel comfortable, respected and trusted. This will bring pride, cooperation and team spirit = Positive Results!
Rewarding your People
When people know their efforts are appreciated, they are more likely to stay.
Recognize their contributions and achievements with awards or incentives