Introduction to Marketing
Wendy's pigtails get first
touch-up since 1983
http://www.philly.com/philly/busine
ss/homepage/173679491.html
Marketing: the 4 Ps
The on-going process of
planning and executing the:
(1) product,
(2) price,
(3) promotion,
(4) placement
of ideas, goods or services to meet and
satisfy (People's) needs or wants
Marketing is about…
• Psychology:
– Understanding who
and why and
how…
• Reaching your TM
The Marketing Mix
The 5 P’s
1. Product /Service/ Idea
 description / purpose
 what are you selling?
2. Placement
 where are you going to sell it
 Location, Location, Location
 Geographic location
 in what forum: store/online/a selected retailer
3. Price





how much is it worth
how valuable is it to TM : TARGET MARKET
how can you make a profit: Mark-up %
What is your pricing strategy compared to competition
Demand and Price relationship (elastic/inelastic)
4. Promotion



What forms of promotions will you use
how will you reach you TM
how will you convince your TM to buy this service or good
People
–
Who is the Target Market?
•
Know the Demographics:' population characteristics'
–
–
–
–
–
–
Age Range
Gender
Education Level
Income Range
Where are these people located?
Psychographics : personality traits / likes and dislikes
–
Accurate Information can be attained through the US Census
Bureau: http://www.census.gov/
Use this website to find FACTS about
your Target Market
• http://www.census.gov/population/www/
– Click on the Population Finder link on the left
– Enter the zipcode of your business
– Click on Fact Sheet
The Market Analysis
• Market Analysis
– Actual assessment of the target population,
competition, and needs for promoting a product or
service
– This is the 1st step in determining if there is a NEED
or WANT for your business in your proposed
location
Analysis of Target Market (TM)
1.
2.
Segment description: (as specific as possible)
What are their personal demographics?
• Age range
• Gender
• Income range (low, middle, high)
• Educational attainment (elementary, high school,
college)
3. What are their psychographic demographics?
• Likes/Dislikes
• Cultural influence
4. What are their geographical demographics?
• City and town your TM can be found in
• Population of this city
Demographic Data Source
– http://quickfacts.ce
nsus.gov/qfd/states
/42000.html
Target Market Segmentation:
breaking down your TM into smaller groups;
convince as many people as possible to be in your
market
Key questions
1.
2.
3.
4.
5.
6.
What do they buy?
How do they buy?
Where do they buy?
When do they buy?
Why do they buy?
Who buys?
An identifiable group of individuals, families, businesses, or
organizations, sharing one or more characteristics or needs
Why Segment a Market?
1. Better matching of customer needs
• Customer needs differ. Creating separate
offers for each segment makes sense and
provides customers with a better solution
2. Enhanced profits for business
• Customers have different amounts of
disposable income. They are sensitive to
price. Convince each segment to buy p/s for
different reasons
One Product Marketed
to Many Segments
Market Panera Bread
to 5 different Segments
1.
2.
3.
4.
5.
Parents Seniors
Business People
College/Grad School
Health Phanatics
Did you Know!?
Social Media Marketing 2012
•
http://www.youtube
• http://www.youtube
.com/watch?v=wg
.com/watch?v=XV
QNZa3C7BU
Q1ULfQawk
Social Media Marketing
1. Twitter
– 2012: 500 million registered users
– Real-time audience and info
– Networking, send promotions, get
customers in your store NOW
2. FB Fan page
–
–
–
–
2012: 955 million registered users
More fans = social likeability of you!
Promotions
Access to Customers, aka “friends”
Other Social Media Tools
3. Youtube Account and videos
1. Commercials
2. Tour of your Store
3. About us…Your compelling story as the Entrepreneur ; interviews
with Customers/Employees: Testimonials
4. Linked In:
1. Professional networking and relationship
management website
2. 175 million professionals who are sharing
connections, ideas, and opportunities.
3. You have to build a profile
KitchenAid tweet about Obama’s
grandmother brings apology
– Story
• http://news.yahoo.c
om/blogs/lookout/kit
chenaid-tweetobama-deadgrandmotherbrings-apology130031473.html
• Video:
– http://news.yahoo.c
om/blogs/lookout/ki
tchenaid-tweetobama-deadgrandmotherbrings-apology130031473.html
Market Research
• Smarter Business Decisions Begin with the Best
Information and Analysis.
• understanding consumers and their needs/wants
• the process of collecting and analyzing info about the
customers you want to reach, your TM.
– This information provides you with the business intelligence you
need to make informed decisions.
• Rely on:
1. Neilson
2. Google Analytics
as an excellent, leading market research tools
Most Popular
Market Research Methods
1. Google Analytics – ONLINE….where is
your TM shopping, what are they reading,
what are they “clicking” on!
2. Neilson
1. Surveys
2. Focus Groups – putting together a TM and
asking for feedback
3. Personal Interviews – word of mouth
Google Analytics
Neilson!
• In 100 countries around the world, Nielsen
provides clients the most complete
understanding of what consumers watch
and buy.
• ASK NEILSON!
– Where do senior citizens shop?
– Where do Moms get their news?
– What tv shows do pre-teens watch/
• http://www.youtube.com/watch?feature=pl
ayer_embedded&v=FxH0PUwDCaw
Nielsen Ratings 101:
Introduction
• http://www.youtube.com/watch?v=r4jyhQnl
5Vo
Neilson Case Studies:
http://www.nielsen.com/us/en/industries/consumer-packaged-goods/consumer-casestudies.html
1.
2.
3.
4.
5.
•
Nestle
Hormel
Nice n’ Easy
Best Buy
Ball Park
Read the case study with your group.
You will present the company, the
problem, and the solution…
Part 5:The Marketing Plan
Segment your TM!
http://www.youtube.com/watch?v=pxcNVrwkroU&feature=related
http://www.youtube.com/watch?v=JIirzTdaey4&feature=related
1.
2.
3.
4.
The New Look at the 4 Ps
• http://www.youtube.com/watch?v=JIirzTda
ey4&feature=related
• Hand-out notes template
– Watch video and complete
Calculate the Market Potential:
Market Potential:
The amount of customers that are potentially willing to buy
your product/service
Math Calculation
The total amount of customers that are willing to purchase
the product
*
% of market you could REASONABLY own
This is called FORECASTING
Why is this necessary?
• To determine if your selected geographic
location to open your business, has the
target market to support your business by
covering all of your expenses and making
a profit
• Do the demographics you need to support
your business, exist in this location?
Market Saturation
• Good for Consumer
• Bad for Entrepreneur: more work, more
competition
% of Market Ownership
• You must look at who are you competing with
– Use www.yellowpages.com
• List them
• Break down who owns what % of the market
• See where you could fit in
Calculate the Sales Potential
Sales Potential: The maximum percentage of Revenue that can
be earned
Math Calculation:
Market Potential
*
usage rate (how many units sold per month / per year)
*
$$/per unit
Promotions
• a “paid for” way of promoting products,
services or information
• a form of communication between the
company and the targeted market
• Use all known media forms and constantly
seek new media, new channels of
communication.
Types of Promotions
Watch:
www.youtube.com/watch?v=F5ftoHwsBbA
Direct Promotions
–
–
–
–
–
WORD OF MOUTH
Website
Emails
TV commercials
Magazine and
Newspaper ads
– Internet ads on relevant
websites
– Billboards
– Paid Celebrity Endorser
– Sponsor local and
national events
Indirect Promotions
–
Product Placement in
movies, tv shows, video
games, celebs
• Every award show…”who
are you wearing tonight?”
• Have celebrities wear your
clothes/use your product…
• Watch
•
•
http://www.youtube.com/wa
tch?v=4LFQIoc49ZM
http://www.youtube.com/wa
tch?v=eQ5uztI9EvI
How do you measure
Promotion effectiveness?
• Views per 1000 people
• Example:
– Haverford Township Day
• Teens: 2000
• Cost of table: $200
• Cost per 1000: 5 cents per person
Federal Donuts in Philly
• Success Story
• Now at 2 locations
• http://www.uwishunu.com/2011/03/federal-donuts-a-donutsand-fried-chicken-shop-from-chef-michael-solomonov-toopen-in-south-philadelphia-this-summer/
• http://federaldonuts.com/main/
Ten brands that may
disappear in 2013
• Read
– http://www.marketwatch.com/Story/story/pri
nt?guid=6FCAE664-09BA-11E2-95D5002128049AD6
Public Relations
• Helps raise awareness about the company
through a variety of different means
• the management of relationships between an
organization and the public
• Image development and control
• If a negative story comes out, how are you
going to RESPOND??
PR Stars
• Michael Vick: The Path to Redemption
– http://www.youtube.com/watch?v=go0riZ_DfH
Q
• Toyota
– http://www.youtube.com/watch?v=GWsAnlFZ
VrY
• Five Minute Guru
– http://www.youtube.com/watch?v=zTmQXswNSc
• Merrymead Farms
Internet / E-Commerce
• Advertising your business through the
internet, email and Social Networking
• Reaching your TM through YOUR website
AND websites that your TM uses
• Selling your product / service online instead
of OR in addition to, a physical location
• Expert in website design
• Expert in knowing where your TM is
“clicking”
Marketing Mix Case Study
• Introduction
• NIVEA® is an established name in high
quality skin and beauty care products. It is
part of a
• range of brands produced and sold by
Beiersdorf. Beiersdorf, founded in 1882,
has grown to
• be a global company specialising in skin
and beauty care.
•
http://www.thetimes100.co.uk/downloads/nivea/nivea_13_full.pdf
Business Nightmares:
Marketing Mess-Ups Pt 1 of 4
• http://www.youtube.com/watch?v=9CtM
0vCOCDg
Primary Marketing Tool: Your
Website
• Important Pages
–
–
–
–
Homepage
About Us
Contact Us
Product/Service List
Local SB with or without
Websites
1. C&M Sporting Goods
2. Testa’s Bakery
3. Havertown Pizza
• Google it and Discuss
Read articles
• The Importance of your Website…
• Understand the value of an effective
Website…
• Watch: The Top 10 Small Business Web
Design Mistakes
– http://www.youtube.com/watch?v=BPgZAUHV
zdU
Other Marketing “Musts” online
1. Search Engine Results!
•
What Google Looks for:
•
•
•
•
Link Popularity
Content of Page
Domain Name
If you “pay them an extra fee” to be on top results
•
•
Pay Per Click (pay Google/Yahoo everytime your link is clicked on)
Pay for Performance (pay to be on top of reulsts page)
2. Banners and Pop-up Ads on OTHER websites where
your TM goes
3. Online video commercials on OTHER websites where
your TM goes
•
Primarily news websites (before a person would watch a
video, they’d have to see your commercial)
Important Qualities for
your Website
1. Strong Brand Awareness
– Logo and slogan in the same place on every page
2. Appeal to Many Segments within your Target Market
3. Promotions offered to get them in the door and keep
them checking your website for updates
4. Easy navigation and menu bars (left and bottom)
5. Many ways to contact them
– Email, phone, address, social networks
6. Clear pricing strategy (inexpensive, moderate, or
premium) or have actual prices listed
Millionaire By 25 - Spencer Costanzo
In the last year, 18-year-old Spencer Costanzo
and his team of nine developers and designers
have successfully built and brought to market 40
iPhone apps — eight of which rank high up on
iTunes’ list of top 200 reference apps.
"The idea that I could create applications for a
device as amazing as the iPhone was major
motivation,” says Costanzo, the founder of the
Princeton, N.J.-based Malibu Apps. “I still can’t
explain the feeling of seeing apps I’ve created
on iTunes top charts.”
Spencer Costanzo, the founder of Malibu Apps,
is YoungEntrepreneur.com’s Startup of the
Month.
Millionaire By 25 - Spencer
Costanzo Interview
• Check out his
website:
– http://www.malibuap
ps.com/
• Interview:
– http://www.youtube.c
om/watch?v=GulRDj
-6tbU
Office Basics: Growing a Father’s Legacy
•
https://www.officebasics.com/CGIBIN/lansaweb?webapp=WOBHOMPGE+webrtn=WRDISPLAY+ml=LANSA:XHTML+partition=PRD+language=ENG
+sid=
• Office Basics is an independently owned and operated distributor of office
products, furniture, breakroom, technology, and janitorial products.
• We have been in business since 1987 and we have grown to be one of the
largest independent office products dealers in the nation. Our main office
and distribution center is located just outside the city of Philadelphia in
Boothwyn, PA.
• This state of the art 100,000 square foot distribution center serves as the hub
for our distribution capabilities. We have three other facilities (Bethlehem,
PA, Lancaster, PA, and Moorestown, NJ) to increase the efficiency of our
operations and better serve our customers within their local markets.
• Office Basics focus has always been our customer’s success. We define our
success by providing our customers with consistently low prices and high
levels of service.
Monitoring Employee Internet Use—
Where to Draw the Line With Privacy
• http://www.nfib.com/business-resources/business-resources-item?cmsid=52370
• Question of the Week #6
How to Keep Your Monitoring Legal
• Employers generally have access to employee communications while on the job, but there are a few
steps to always take before monitoring employee communications:
• Establish a Policy : don't let there be any confusion about whether a particular form of
communication will be monitored or not. Create a clear policy that outlines what forms of
communications are monitored, why they are monitored and under what circumstances they are
monitored. To be extra careful, consider having employees sign a consent form acknowledging that
they understand and agree that their workplace communications will be monitored.
• Have a Justification for Monitoring : courts are far less likely to find you liable for violating an
employee's right to privacy if you had a good, work-related reason for monitoring communications. If
you've had past experiences that prompted monitoring or have received complaints, these all qualify as
perfectly good justifications for monitoring employee communications.
• Be Reasonable : be smart about how and when you monitor employee communications. If you create a
draconian atmosphere of surveillance or implement a system that seems excessive given the potential
problems, a court is much more likely to find that you are violating employee privacy rights. Ensure
that your monitoring system is proportional to any potential problems because overreaching is a good
way to ensure a lawsuit from a disgruntled employee.
Email, Phone and Social Media Monitoring in the
Workplace – Know Your Rights as an Employer
•
READ:
– http://www.sba.gov/community
/blogs/email-phone-andsocial-media-monitoringworkplace-%E2%80%93know-your-rights-employer