THE MARKETING PLAN- CHAPTER 10
IDENTIFY the purpose of the marketing plan
DESCRIBE the part marketing tactics play in
the marketing plan
NAME the five marketing strategies that make
up the marketing mix
Marketing the iPad and iPad Apps
WHAT DO YOU NEED BEFORE YOU START
MARKETING?
Marketing Plan
Blueprint used by a business to guide its marketing
activities to a desired conclusion.
It should include:
Target Market
Objectives
Mix of Marketing Strategies
Marketing Budget
Marketing Tactics
Marketing Tactics
Activities that need to be taken to carry out the marketing plan
MARKETING DEFINITIONS
Target Market
The group of people you plan to market your product to.
(Demographics)
Marketing Objectives
Goals a business wants to accomplish through its
marketing efforts.
MARKETING MIX
FIVE “P”s of Marketing
Product
Price
Place
Promotion
PEOPLE!
PRODUCT STRATEGY
What goods and services is your business going
to provide consumers?
Your product will be identified by…
1. Brand: Name, symbol, or design used to
identify a product
2. Package: Physical container or wrapper that
holds the product
3. Label: Part of package used to present
information
PRODUCT STRATEGY
Product Positioning
How consumers view your product compared to the
competitions product.
 Prestigious?
 Good Bargain?
 Equal in Quality?
Product Mix
All of the products a company makes and sells.
EX: Kim Kardashian
PLACE STRATEGY
How are you going to deliver your goods and
services to customers? Will your product be for
sale where and when your customers what it?
Channel of Distribution
Path your product takes from producer (manufacturer)
to consumer
Direct Distribution: Move from producer to consumer
with NO ONE in between
Indirect Distribution: Intermediaries move products
between producer to consumer.
1) PRODUCER
Business that gathers raw goods.
 Materials gathered in their original state from natural
resources.
T-SHIRT
Cotton & Polyester
2) PROCESSOR
Changes raw materials into a more finished
product.
T-SHIRT
Turn cotton and polyester into thread
Create Twill for seam binding
3) MANUFACTURER
Business that makes finished products out of
processed products.
T-SHIRT
Creates the t-shirt of out the thread and seam
binding
4) INTERMEDIARY
Business that moves goods from one business
to another.
 It buys goods, stores them, and then resells them.
T-SHIRT
Buys the ready-made t-shirts in very large quantities and
stores them. They sell these shirts to wholesalers
5) WHOLESALER (DISTRIBUTOR)
Distributes goods by dividing large quantities
into smaller ones and sells them to retailers.
T-SHIRT
Divide and distribute the t-shirts in smaller quantities to stores
6) RETAILER
Purchases goods from a wholesaler and sells them to
consumers, the final buyers of the goods.
T-SHIRT
Consumers buy the t-shirt from a retailer.
Kohl's
American Eagle
GRAPHIC ORGANIZER
1.
Wholesaler
2.
Processor
3.
Manufacturer
4.
Retailer
5.
6.
Producer
Intermediary
Group 1:
 Selecting a Channel of Distribution (229)
Group 2:
 Intensity of Distribution (230)
Group 3:
 Transportation (230-231)
Group 4:
 Location, Layout, Availability (231)
Group 5:
 Questions to Ask About Place Decisions (232)
Group 6:
 Impact of Technology on Place Strategy (232 & Figure 10.3)
THE PRICE STRATEGY- CHAPTER 11
• IDENTIFY factors that affect pricing strategy
• SUMMARIZE the marketing objectives related
to pricing
• DESCRIBE the components that go into
making price strategy decisions
PRICE STRATEGY
Setting a price for a good or service is not easy.
Things to take into consideration:
COSTS
SUPPLY AND DEMAND
CONSUMER PERCEPTIONS
COMPETITION
GOVERNMENT REGULATIONS
TECHNOLOGICAL TRENDS
Fixed Expenses: Costs that DO NOT vary with the
number of units sold
Variable Expenses: Costs that DO vary with the
number of units sold
THINK/PAIR/SHARE--- 3 examples of each!
SUPPLY AND DEMAND
Inelastic Demand:
 Customers will buy a product
regardless of price
Elastic Demand:
 Prices are sensitive to
demand
Dominick's and Jewel
Price Fixing Article
CONSUMER PERCEPTIONS
Prices too
?
 Consumers may believe your product lacks quality
Prices too
?
 Consumers may believe your product is of higher quality
and status
What should your prices be for your specific target
market?
GOVERNMENT REGULATIONS
Price Gouging
Practice of pricing above the market with no
alternatives
Price Fixing
An illegal practice in which competing
companies agree on specific prices
Unit Pricing
Required pricing of goods on the basis of the
cost per unit of measure (pound, ounce)
SETTING A BASIC PRICE
Cost-Based Pricing
You must consider your business costs and profit
Objectives
Markup: The amount added to your cost to cover
expenses
Demand-Based Pricing
Only used if your product is inelastic AND your
Product has a greater value than competitors
Competition-Based Pricing
Find out what your competition charges and then
decide if your price should be lower, the same, or
higher
PRICING POLICIES
Flexible-Pricing Policy
Allows customers to bargain for a price
 Advantages and Disadvantages?
 Examples?
One-Price Policy
All customers are charged the same price
 Advantages and Disadvantages?
 Examples?
PRICING TECHNIQUES
Discount Pricing
 Cash Discounts (2/15, n/30)
 Quantity Discounts
 Seasonal Discounts
Psychological Pricing
 The customers perception of the product are strongly influenced by
price
PRICING WORKSHEET!
CALCULATING PRICES
Break-Even Point– When the cost to make the item
equals how much you made
(Fixed Cost/Unit Selling Price)-Variable Costs
Markup- Amount added to the cost of an item to
cover expenses and ensure a profit $$
Price – Cost = PROFIT!
Markdown- The amount of money taken from the
original price
Price X Markdown % = $ Markdown
THE PROMOTION STRATEGY- CHAPTER 12
 EXPLAIN the role of the promotion strategy
 EXPLAIN how to formulate promotional plans
 IDENTIFY considerations for putting together
a promotional mix
 DESCRIBE the elements of a promotional mix
PROMOTIONAL STRATEGY
Communication intended to persuade, inform,
and remind a target market about a business
and its products
Promotional Plans
Preopening Plan
 Establish a positive image
 Let customers know you are opening for business
 Bring in customers/have them contact you
 Make customers interested
Ongoing Plan
SELECTING A PROMOTIONAL MIX
Combination of different promotional elements
that a company uses to reach and influence
potential customers
Considerations that need to be made:
Target Market
Product Value
Promotional Channels
Time Frame
Cost
ADVERTISING
Paid non personal presentation of ideas, goods,
or services.
Advertising Campaign- Series of related
promotional activities with a similar theme
Successful Advertising Campaigns
DIFFERENT TYPES OF ADVERTISING










Newspapers
Magazines
Direct Mail
Outdoor Advertising
Directories
Transit Advertising
Specialty Items
Television
Radio
Internet
INTERNET ADVERTISING
** #1 Fastest growing medium for advertising **
Advantages
Disadvantages
Expanded Markets
Buyers do not have an
opportunity to physically see
the product
No Geographic Location
Security
Cost Savings
Quick Turn Around Time
Website Goals:
1. Attract Visitors
2. Convert Visitors
SALES PROMOTION
The use of incentives or interest-building
activities to stimulate traffic or sales.
Premiums- Anything of value that a customer
receives in addition to the product purchased
(ex.- coupons and gifts)
Rebates- a return of part of the purchase
price
SALES PROMOTION CONT.
Displays
Samples- Free trial
size samples or in
store samples
(Costco!)
Sweepstakes and
Contests
 Sweepstakes: a simple
game of chance
 Contest: Customer has
to do something to win
CUSTOMER KNOWLEDGE
Rational Buying Motive
•
•
•
•
•
•
•
•
•
A conscious, logical
reason to make a
purchase
Product dependability
Time or money savings
Convenience
Comfort
Health or safety issues
Recreational value
Service
Quality
Emotional Buying Motive
•
A feeling a buyer associates
with a product
•
•
•
•
•
Social approval
Recognition
Power
Affection
Prestige
PUBLICITY
Placement in the media of newsworthy items about a
company or product
Ways to draw attention to your business:
1. Write news releases- brief newsworthy story sent to
the media
2. Write Feature Articles
3. Submit captioned photos
4. Call a press conference
5. Seek interviews
6. Public Relations- activities designed to create
goodwill toward a business
BUDGETING FOR PROMOTION
Industry Average- Standard used to compare
costs from promotional expenses
Not Creative? GET HELP!
1.
All major media advertising companies have advertising
departments
2.
Cooperative Advertising- Advertising costs are divided between two
+ parties
3.
Advertising Agency- Company that acts as an intermediary between
the business and the media to communicate a message to the
target market
4.
Web Designers
PEOPLE STRATEGY
How will your business assemble, prepare, and maintain
the people who will help you achieve success?
 Basic Hiring Criteria
 Developing Employees
 Establishing a productive environment
 Rewarding Employees
COMMERCIALS
Add relevant commercials and discuss the 5 “P”s of marketing.