Weekly Marketing Inputs for
the Biz-Cafe Machine
Ted Mitchell
The Concept of A Marketing Machine
Inputs to The Marketing Machine
Place
Promotion
Price Tags
Product Quality
The
Marketing
Machine
Quantity of Goods Sold
Revenues
Demand
Profits
Outputs from The Marketing Machine
I am the
manager
of this
machine
What choice of ingredients do you
have for the Promotion Mix?
Now I must
choose the
Promotion
Promotion
mix
The
Coffee
Shop
Machine
Quantity of Goods Sold
Revenues
Demand
Profits
Outputs from The Marketing Machine
Many Ingredients for the Promotion
and Communication Mix
• The Inputs for Marketing Machines have been
classified as the 4 P’s of the marketing mix
• Possible elements of the
• Promotion mix for the Coffee Shop are:
• Print advertising, (how many, how much $)
• Radio Spots,(how many, how much budget)
• Coupons,
• Cups with Logos
• (Number of Servers, if they are salespeople, total
server hours)
Many Ways to measure amounts of Promotion
effort and expense in Marketing Theory
• In General: Measuring the amount of Promotion
might include
• Number of insertions, TV spots, attention
episodes
• Square footage of ad facing
• Number of households reached
• Number of Calls made by sales people
• Number of views, of click-throughs
• (Number of languages used?)
What choice of ingredients do you
have for the Pricing Mix?
Now I
must
choose
the
Pricing Ingredients
pricing
mix
The
Coffee
Shop
Machine
Quantity of Goods Sold
Revenues
Demand
Profits
Outputs from The Marketing Machine
Ingredients in the Pricing mix
• Possible elements of the Pricing mix for the
coffee shop are:
• Price Tag for each size cup of coffee
• Price Tag for a pastry
• In general acceptance of credit/debit cards,
loyalty rewards, student discounts, cashing
checks, different currencies, cumulative
discounts, etc.
• Bundling delivery, assembly, insurance, product
features, returns, trade-ins
What choice of ingredients do you
have for the Product/Service Mix?
Now I
must
choose
the
Product
mix
Product Ingredients
The
Coffee
Shop
Machine
Quantity of Goods Sold
Revenues
Demand
Profits
Outputs from The Marketing Machine
Ingredients for the Product Mix
• Possible elements of the Product/Service mix
for the coffee shop are
• Quality of coffee, sizes of coffee, number of
servers, quality of the servers, amount of
ambiance, amount and type of entertainment
• In general, wi-fi, related product lines, alcohol,
foods, server training,
assembly, up-grades, trade-ins
What choice of ingredients do you
have for the Place/Time Mix?
Place and Time Ingredients
The
Coffee
Shop
Machine
Quantity of Goods Sold
Revenues
Demand
Profits
Outputs from The Marketing Machine
Now I
must
choose
the Place
mix
Ingredients for the Place Mix
• Possible elements for provision of Place and
time utilities for the coffee shop
• Hours of Operation, Days of Operation,
Furnishings, Location
• In general it would include, channels of
distribution, direct or indirect, the number
distribution tiers, packing, storage,
transportation, logistics, SCM
In the Biz-Café
• Practice Games:
• Take advantage of the ‘groundhog day’ effect
• Only change one of the 4 P’s at a time and
monitor the results over a range changes in
the input
• You can monitor the changes in several
outcomes at the same time
Example of A Marketing Machine
Inputs to The Marketing Machine
Place
Promotion
Product Quality
Price Tags
The
Coffee
Shop
Machine
Quantity of Goods Sold
Revenues
Demand
Profits
Outputs from The Coffee shop Machine
Now I am
the
manager
of this
coffee
shop
machine
Marketing Decisions For Week 1
Managers Weekly Salary
$610
Not a direct P
Number of Servers to Hire/Fire
Total 20 servers
Product/Service Input
Server Hourly Wage
$9.00
Not s direct P
Price Tag for a Medium Cup
$3.50
Price Tag input
Type of Newspaper Ad
General Awareness,
$200 per day
Promotion Input
Number of Daily Radio Spots
5 per day @ $40 per
spot
Promotion input
Hours per Day (starts with a Five
day week)
8 am to 10 pm
Place and Time Utility
Input
Quality of Coffee
Best, $6 per pound
Product/Service Input
Pounds of Coffee
40 pounds
Not a P
Number of Cups
20,000 medium cups Promotion Input???
with Logo
Basic Marketing Machine Inputs
Number of Servers to Hire/Fire
Total 20 servers
Product/Service Input
Price Tag for a Medium Cup
$3.50
Price Tag input
Type of Newspaper Ad
General Awareness,
$200 per day
Promotion Input
Number of Daily Radio Spots
5 per day @ $40 per
spot
Promotion input
Hours per Day (starts with a Five
day week)
8 am to 10 pm
Place and Time Utility
Input
Quality of Coffee
Best, $6 per pound
Product/Service Input
Any Questions about
• The Inputs for Marketing Machines have been
classified as the 4 P’s of the marketing mix
• What are the possible ingredients in each of
the Four P’s
• Pricing Mix
• Product/Service Mix
• Mix of Place and Time Utilities
• Promotion/Communication Mix