Marketing
Oh, tell me more!!
Marketing
► Set
of processes for creating,
communicating, and delivering value to
customers for improving customer
relationships….ok now in my terms
► The process of promoting, selling, and
distributing a product or service
Target Market
Target Market
► Marketing
Strategy – selecting a target
market and create, price, promote &
distribute (place) products in the market
► Target Market – Groups of customers who
are or will be interested in your product
Market Segments (Targets)
► Demographic
 Age, income, # of children, religion, education
► Geographic
 Climate, region, population density
► Behavioral/Psychographic
 Attitude toward product, user status, usage
rate
 Interests, activities, values
Lets Look at Some Ads
► Denver
Water Company
Suplicy Cafe
Fiji Water
Burger King
iPhone
Marketing Concept
► Using
the needs of customers as the
primary focus during planning, production,
pricing & distribution & promotion of a
product.
Marketing Concept
► Business
needs 3 things to happen
 Identify what will satisfy customer’s needs
 Develop products that customers think are
better products
 Business must operate profitably
Marketing Concept
► Two
Steps
 Identify target markets
 Develop marketing mix
►Product
►Pricing
►Placing
(Distribution)
►Promotion
Product
► Things
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to consider about your product
Design
Technology
Usefulness
Convenience
Quality
Packaging
Branding
Accessories
Warranties
Relevance – Time frame – Product Life Cycle
Product
► Different
methods can be
used to improve/differentiate
the product and increase
sales or target sales more
effectively to gain a
competitive advantage like
 Specialized versions
 New/Limited editions
 Improvements
 Changed packaging
 Technology, etc.
Product Life Cycle (PLC)
Think of Examples of PLC
► Video
► Cars
Games
3 Levels of a Product
Pricing
► How
should you price your product
 High?
 Low?
 Where do you start?
Pricing Strategies
► Skimming
Pricing – Initially offers product at
the highest price, lowering it eventually to
increase demand again
► Penetration Pricing – Charging a low price
to gain market share & lose competition
► Cost-based Pricing – Cost of product + a
reasonable mark-up usually a percentage
► Demand-based Pricing – Charging the price
that people are willing to pay for the
products
Pricing Strategies
► Target
costing – Working backwards, how
much customers will pay and subtract from
profit – this is how much to invest
► Prestige pricing – Pricing high to project
high quality
► Odd-even (Psychological) pricing – Pricing
a few cents under an even number
► Economy pricing - This is a no frills low
price. Marketing costs are kept to a
minimum.
49.99
2.59
15.49
15,967
195.49
3,299
25.99
49.99
2.59
15.49
15,967
195.49
3,299
25.99
Price
Important to
 Know the market
 Price elasticity
►Definition
 Know your
competition’s prices
Price Elasticity
►A
measure to show the responsiveness,
or elasticity, of the quantity demanded of a
good or service to a change in its price.
► Are these products’ prices elastic?
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Toilet Paper
Gas
Picture Frame
$500 pizza
Placing/Distribution
► All
activities involved in getting the right
quantity to the right customer at the right
time at a reasonable cost.
Distribution/Placing
► Indirect
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vs Direct
Manufacturer
Wholesaler/Distributor
Internet
Catalog/Mail Order
Sales Team
Dealer
Retail
Multi-channel
Distribution/Placing
► Determining
the best ways for customers to
locate, obtain, and use the
products/services
► Things
to consider
 Cost of shipping
 Cost of distribution channel
 Ease/best way to get the product to customer
Marketing Plan – 11/5/13
► How
you will break down your target
market based on the 3 segmentations?
 Be specific
► In
depth strategy on how you will price your
product
 Explain why the strategy, factors behind pricing,
future price changes
► In
depth distribution strategy
 What channels you will use and why
 Factors/problems that may arise in distribution
Promotion
I've been told of some crazy schemes and
I've come up with even crazier ways of
promoting them.
Max Markson - Media Man of Australia
Marketing Communications
Promotions Mix
► Personal
Selling
► Sales Promotion
► Public Relations
► Direct Mail
► Trade Fairs & Exhibitions
► Advertising
► Sponsorship
► Online Promotions
► Website
Personal Selling
► Examples?
 Used Cars
 Vacuum Cleaners
Sales Promotion
► Examples?
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BOGOF
Coupons
Money Off (Rebates)
Competitions
Free Accessories
Introductory Offers
Public Relations (PR)
► The
deliberate, planned & sustained effort
to establish & maintain communication
between an organization & the public
► “All attention is good attention”
► Examples?
 Airlines
 Celebreties
Direct Mail/Email Marketing
► Examples?
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Emails
Mailing lists
18 Free Wings for your B-day!
Free Ice Cream from Cold Stone!
►Part
email promotion, part direct mailings
Trade Fairs & Exhibitions
► Examples?
 Video Games
 Boat Shows
Advertising
► “Paid
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for” communication
Commercials
Billboards
Online
Radio
► Obscure
 Buses
 Cinema
 Tatoos
Examples?
Sponsorship
► Very
powerful
► Examples?
Online Promotions
► Examples?
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Pay per click
Sponsor a website
Email
Social Media
►Google
 Websites
Analytics
The Marketing Mix
►Blend
of the mix depends upon:
 Marketing objectives
 Type of product
 Target market
 Market structure
 Rivals’ behaviour
 Global issues – culture/religion, etc.
 Marketing position
 Product portfolio
Evaluating Your Marketing Mix
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1) Look at your sales (or fee income).
2) Ask your clients.
3) Does your advertising and/or promotional activity produce
direct responses?
4) Do your networking activities create new opportunities for
you?
5) Do your marketing tactics make it easier to sell your
services?
6) Check your sales conversion rate.
 The best approach here is to look at your historical records and determine whether
your conversion (or closure) rate has improved.
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7) Does your plan have a positive return on investment (ROI)?
 Does it bring in enough new/repeat business to justify the expense?