Unit Plan - Marketing
The objective of all business enterprises is to satisfy the _______________ & ______________
of the society.
Marketing is the activities of a company associated with buying and selling a product or service.
It includes advertising, selling and delivering products to people.
The Marketing Mix
The marketing mix holds that the key to achieving organizational goals consists in
determining the needs and wants of target markets and delivering the desired satisfactions
more effectively and efficiently than competitors. The consumer is the pivot point and all
marketing activities operate around this central point. It is, therefore, essential that the
entrepreneurs identify the customers, establish a rapport with them, identify their needs and
deliver the goods and services that would meet their requirements.
In order to cater to the requirements of identified market segment, an entrepreneur has to
develop an appropriate marketing mix. The _________________________ is a systematic and
balanced combination of the four inputs which constitute the core of a company’s marketing
system.
These are popularly known as “Four P’s” of marketing…
1.
2.
3.
4.
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The 4 “P’s” is universal speak for the _____________________________ (a blending of these
elements to reach a target market):
_________________________: A product is anything that can be offered to a market for
purchase, use, or consumption that might satisfy a want or need. Products include physical
objects, services, events, persons, places, ideas or mixes of these.
________________________: Place is another key marketing mix tool, which stands
for the various activities the company undertakes to make the product or service available to
target customers.
_______________: Another element is the price, which affects the volume of sales. It is one of
the most difficult tasks of the marketing manager to fix the right price. The variables that
significantly influence the price of a product are: demand of the product, cost of the product,
competition and government regulation.
__________________________: Promotion refers to the various activities undertaken by the
enterprise to communicate and promote its products to the target market. The different
methods of promoting a product are through advertisement, personal selling, sales promotion
and publicity.
Details of the Four P’s
Product
____________ _________ is the different products (or services) a business sells. For
example…Ralph Lauren sells shirts, shoes, hats, pants, socks, umbrellas, coats, etc.
________________________ are the different colors, sizes, qualities of the products which
make up the product mix.
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___________________________ is placing a product in a certain market to get a desired
customer response.
Place
___________________________________________ are the routes that products and services
take from the time they are produced to the time they are consumed.
The entrepreneur needs to find the most __________________ way to ship products to desired
locations in a timely manner
By having efficient channels of distribution a business owner should be able lower his/her
costs…these savings may be passed onto their customer in the form of lower prices or the
business owner could choose not to pass the savings onto the customer, but instead increase
his/her profitability
Channels of Distribution for retail goods include:

_________ (nights/weekends)

Catalogs, Fliers and ads for non-area customers

Take orders by ____________ /fax and send to customers

Create a _______________ for your business
o Lets you to provide Product Information and allows your customers to place an
order through the Internet
Receiving Goods to Sell:
•
All businesses need to buy supplies, _____________________, and goods
and services to resell…You need to locate distributors, wholesalers, and
manufacturers through:
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Physical Distribution:
•
Includes not only _______________, but also _______________and
handling of products within a channel
•
It is important for storage facilities to be _______________________
Price
•
Your pricing must be _______________enough to compete with competition
BUT
•
_______________enough to cover costs and earn a profit
•
Before you can select a pricing strategy, you will need to establish objectives for your
pricing program. Examples of pricing objectives include:
•

___________________________

___________________________

___________________________

___________________________

___________________________
Once you have considered your pricing objectives you must then determine the possible
prices to charge…there are 3 possible pricing methods:
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
__________________-Based Pricing - pricing is determined by how much
customers are willing to pay for the product or service.

___________________-Based Pricing - pricing is determined by using the
wholesale cost of an item as the basis for the price charged.

_________________ - Based Pricing- pricing is determined by considering what
your competitors charge for the same product or service

____________________________ - price is determined by adding an amount to
the wholesale cost of an item. The formula you use is:
•
Wholesale Cost X Percentage Markup = Markup Amount
then
•
Wholesale Cost + Markup Amount = Retail Price
Example of Markup Pricing…
Assume a can of artichokes hearts costs you $1.77 and you decide to add 40% to
your wholesale cost to determine your retail price that you charge your
customers…
_____________________________ X Percentage Markup = Markup Amount
$1.77 X .40 = $.71
then you add the markup amount to your wholesale cost
Wholesale Cost + Markup Amount = _________________________
$1.77 + .71 = $2.48
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•
____________________________ - price is determined by subtracting an
amount from the retail price of an item
Pricing a Service:
______________-Based Pricing is when the price you charge your customers for the service is
based on how long it takes to complete the service. (lawyers, plumbers, cleaning service)
Example…assume you are a lawyer and you charge your clients $150.00 per hour. Next,
assume that you spent 22 hours on Mr. Slob’s case…how much do you charge him?
_______________________ is when you bundle or combine a number of services and charge
one price for all of the services instead of charging the customer separately for each service
(Triple Play)
___________________________ is the lowest price identified in the price range is based on the
costs of the product or service sold to the seller. When using this method you must include all
of the expenses involved in making and selling the service or product.
To determine the breakeven point you…
Total fixed costs / (selling price - variable costs) = breakeven point
Promotion
The _______________________________ is a strategy for promoting your business by using
some or all of the following:

___________________________

___________________________
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
___________________________

___________________________
____________________________ is a paid form of communication sent out by a business
about a product or service. Advertising should help a business convey a positive image. Public
Relations is the act of establishing a favorable relationship with customers and the general
public.
Advertising should clearly communicate your intended message and image you want. For
example, if you want to be known as the business with the lowest prices then you should make
sure that your advertising highlights your good prices.
There are different forms of advertising some include:

____________________ Advertising – best way to reach a large number of people
quickly, but it costs a lot and often reaches a too broad.

________________Advertising – reaches a lot of people and you can target the channel
that plays to the same group of people that you consider your target market. It has the
disadvantage of being purely audio message and you can’t show your products.

____________________ Advertising – good for small businesses because it:
o Is relatively inexpensive
o Targets a limited geographic area
o Reaches a large number of people

_______________________ Advertising – Disadvantage is that people only look in the
directory when they are already in search of the particular type of business.

______________________ Advertising

______________________ Advertising

______________________________ Advertising

______________________ Advertising
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__________________________ - free promotion generated by media coverage

________________________ – a written statement meant to inform the media of an
event or product
__________________________ is direct communication between a prospective buyer and a
sales representative in which the sales representative attempts to influence the perspective
buyer in a purchase situation.
Sales representatives should know:
1. ___________________________________ – sales rep must understand the features of
the product and the benefits that the buyer will enjoy if they make the purchase.
2. ___________________________________ – sales rep must know what needs or wants
will be fulfilled by buying the product.
Other Types of Promotion
_________________________________ is the act of offering an incentive to customers in
order to increase sales. Sales promotion might take the form of:

___________________________

___________________________

___________________________

___________________________

___________________________
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
___________________________

___________________________

___________________________

___________________________
_________________________________ is using the phone to market your product or service.
Miscellaneous Marketing Concepts and Terms
_______________________________ is the percentage of a market owned by a business. The
total market for a product must be known in order for a market share to be determined.
Your market share will depend on the level of competition in your market. If you create a
market for an entirely new product or service you will have 100% of market share…at least for a
while until other competitors enter the market.
There are many ways to increase your Market Share…some of the ways are…

___________________________________________________

___________________________________________________

___________________________________________________

___________________________________________________

___________________________________________________
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But there is also…
______________________ is establishing informal ties with
people who can help your business grow. Joining organizations
like the Rotary Club, trade associations, local sport leagues, the
Chamber of Commerce, the alumni association of your college.
Branding – Logo & Slogan
______________________– A logo is a graphic mark or emblem commonly used by commercial
enterprises, organizations and even individuals to aid and promote instant public recognition.
Logos are either purely graphic (symbols/icons) or are composed of the name of the
organization
______________________– A slogan is a memorable motto or phrase used in a political,
commercial, religious, and other context as a repetitive expression of an idea or purpose.
Slogans vary from the written and the visual to the chanted and the vulgar. Their simple
rhetorical nature usually leaves little room for detail, and a chanted slogan may serve more as
social expression of unified purpose, than as communication to an intended audience.
______________________– A trademark is a recognizable sign, design or expression which
identifies products or services of a particular source from those of others. The trademark owner
can be an individual, business organization, or any legal entity. A trademark may be located on
a package, a label, a voucher or on the product itself.
______________________– Copyright is a legal concept, enacted by most governments, giving
the creator of an original work exclusive rights to it, usually for a limited time. Generally, it is
"the right to copy", but also gives the copyright holder the right to be credited for the work, to
determine who may adapt the work to other forms, who may perform the work, who may
financially benefit from it, and other related rights. It is a form of intellectual property (like the
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patent, the trademark, and the trade secret) applicable to any expressible form of an idea or
information that is substantive and discrete.
______________________– A patent is a set of exclusive rights granted by a sovereign state to
an inventor or their assignee for a limited period of time, in exchange for the public disclosure
of the invention. An invention is a solution to a specific technological problem, and may be a
product or a process. Patents are a form of intellectual property.
Stages in Product Life Cycle
The product moves through the four stages namely…

___________________________

___________________________

___________________________

___________________________
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As the product moves through different stages of its life cycle, sales volume and profitability
change from stage to stage as shown in the figure below. The entrepreneur’s emphasis on the
marketing mix elements also undergoes substantial changes from stage to stage. A brief
discussion of the marketing strategies in different stages of the PLC is given below:
__________________________: The first stage of a product life cycle is the introduction or
pioneering stage. Under this stage the fixed costs of marketing and production will be high,
competition is almost non-existent, markets are limited and the product is not known
much. Prices are relatively high because of small scale of production, technological
problems and heavy promotional expenditure. Profits are usually non-existent as heavy
expenses are incurred for introducing the product in the market.
_________________________: as the product is accepted in the market. The promotional
expenses remain high although they tend to fall as a ratio to sales volume. Quite often, smaller
firms move into the market during the growth phase. With their flexibility they can move very
quickly and capture a valuable part of the market without the huge investment risks of the
development phase. In this stage, the competition increases and distribution is greatly
widened. The marketing management focuses its attention on improving the market share by
deeper penetration into the existing markets and entry into new markets. Sometimes major
improvements also take place in the product during this stage.
____________________: The product enters into maturity stage as competition intensifies
further and market gets stabilized. There is saturation in the market as there is no possibility of
sales growth. The product has been accepted by most of the potential buyers. Profits come
down because of stiff competition and marketing expenditures rise. The prices are
decreased because of competition and innovations in technology. This stage may last for a
longer period as in the case of many products with long-run demand characteristics.
But sooner or later, demand of the product starts declining as new products are
introduced in the market. Product differentiation, identification of new segments and
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product improvement are emphasized during this stage.
In order to lengthen the period of maturity stage, the following strategies may be adopted:
a. Product may be differentiated from the competitive products and brand image
may be emphasized more.
b. The warranty period may be extended.
c. Reusable packaging may be introduced.
d. New markets may be developed.
e. New uses of the product may be developed.
__________________________: This stage is characterized by either the product’s gradual
displacement by some new products or change in consumer buying behavior. The sales fall
down sharply and the expenditure on promotion has to be cut down drastically. The decline
may be rapid with the product soon passing out of market or slow if new uses of the
product are found. Profits are much smaller and companies need to assess their
investment policies, looking towards investing in newer and more profitable product
lines.
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