CHAPTER 5 MARKET YOUR BUSINESS Our way of making our products reach our customer's hands LESSON Key takeaways: Develop the Marketing Plan The Marketing Mix - Products The Marketing Mix - Price IDEAS IN ACTION Turning Creative Fun into Dollars What do you Know? 1. Why do you think Jibbitz is so popular? 2. How important do you think the decision to market Jibbitz on the Internet was to the success of the company? 3. What do you think is different for the Schmelzers since they sold Jibbits to Crocs, Inc.? 5. 1 Develop the Marketing Plan EXPLAIN THE IMPORTANCE OF MARKETING A BUSINESS DISCUSS HOW TO DEVELOP A MARKETING STRATEGY FOR A BUSINESS DESCRIBE WHAT INFORMATION IS INCLUDED IN A MARKETING PLAN TERMS marketing marketing concept marketing mix marketing strategy marketing plan WHAT IS MARKETING? "Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders". -American Marketing Association MARKETING CONCEPT Identify what will satisfy the customers' needs and wants develop and market products or services that customers consider better than other choices Operate profitability Marketing Mix a blending of the product, price, distribution, and promotion used to reach a target market. MARKETING STRATEGY SHORT - TERM GOALS MEDIUM-TERM GOALS short-term goals are what you want your business to achieve in the next year. They can be stated in terms of number of customers, Medium-term goals describe what you want your business to achieve in the next two to five years LONG-TERM GOALS Long-term goals show where your business will be 5,10, and even 20 years from now. Write your Marketing Plan Investors will expect your marketing plan to answer the following questions. What product or service will I offer? Who are my prospective customers? Is there a constant demand for this product or service? How many competitors are providing the same product or service? Can I create a demand for the product or service I want to offer? Can I compete effectively in the price, quality, and delivery of my product or service? Write Your Marketing Plan TO ANSWER THE PREVIOUS QUESTIONS EFFECTIVELY, THE MARKETING PLAN FOR YOUR BUSINESS MUST INCLUDE INFORMATION ON THE FOLLOWING TOPICS: 1. Product or Service 2. Target market 3. Competition 4. Marketing budget 5. Business Location 6. Pricing Strategy 7. Promotional Strategy 8. Distribution Strategy TO EXAMINE PERFORMANCE QUARTERLY Am I meeting sales forecasts? Is my promotional campaign reaching the target market? is it easy for my customers to locate my product and is it competitively priced? 5.1 ASSESSMENT MATH Akeo Goto has opened a pet grooming business. He estimates the annual sales of the pet grooming market in his community to be about P325,000. There are two pet grooming businesses in town already. If Akeo achieves his five-year goal of capturing 45 percent of the market, how much will he earn in his fifth year? COMMUNICATION MAKE ACADEMIC CONNECTIONS Think of a local business with which you are familiar. Make a list of questions you would like to ask the owner about the marketing plan for the business. Contact the business owner and make an appointment to discuss the questions. Report your findings to your classmates.