Transcript 4.2 Marketing Planning

4.2 Marketing Planning
Chapter 25
Part 1
Marketing Planning
A formal document which outlines the
details of how a business plans to
achieve its marketing objectives as
derived from its corporate objectives.
Marketing Mix
Effectively combining key decisions in
the areas of product, price, promotion,
and place to successfully market a
product.
The 4 P’s of Marketing
Product
Price
Promotion
Place
Product
The right product could include:
An existing product
An updated existing product
A new product
Price
The right price must be set for the product
Too low – the product quality may be perceived
as low quality
Too high – the customer may not be able to
afford the product
Can you identify a product that fits into a too LOW
price and a too HIGH price category?
Promotion
Telling your customer about your product and
convincing them to buy
Packaging is considered part of promotion and
can reinforce image or create a product
preference.
Can you think of any promotion activities that
encouraged you to make a purchase?
Can you think of any creative packaging that would
make you purchase one product over another?
Place
Distributing the product to the proper
PLACE so customers can make a
purchase.
If your product is not available at
the right time and place, customers
cannot buy it.
Where might you make purchases?
How is “PLACE” changing?
The 3 other P’s
There are 3 more P’s – related to Service
People: Selling services require people to
create a positive experience for the customer
(restaurants, hair salons)
Process: Satisfying customer needs as part of
marketing services (automatically renewing a
membership)
Physical Evidence: Customers can see for
themselves the quality of the product (a clean
lobby at a hotel, table clothes used a nice
restaurant)
Successful Marketing Mix
The marketing mix must be consistent in
order to be successful in sending a clear
message to customers.
Example: McDonald’s
Product: Fast Food
Price: Inexpensive to moderate
Promotion: Billboards, road signs, TV
commercials
Place: Convenient, busy streets
People: FAST service
Physical Evidence: Clean
What is wrong with this picture?
An expensive well-known brand of
perfume for sale by a street-vendor.
Saks Fifth Avenue wrapped your fine
china purchase in newspaper.
Lamborghini sports cars are
advertised in Seventeen magazine.
Marketing Ethics
Ethical marketing issues are
increasing with the globalization of the
world’s markets.
What do you think of these situations?
Sell a printer cheaply or give it away to
sell expensive ink cartridges.
Advertise low airfare then add taxes and
surcharges after the purchase has been
made?
What do you think?
Advertise toys to children and not
clearly distinguish between and
advertisement and children’s
programming.
Close retail stores and only sell on the
Internet when your customer base
historically does not use computers.
Buy cheap raw materials to decrease
a products price.
Marketing Audit
A regular review of the cost and
effectiveness of a marketing plan
including the analysis of external and
internal influences.
Marketing Audit
A marketing audit answers the question:
What is our current situation?
3 Factors:
Examine INTERNAL strengths and
weaknesses
Examine EXTERNAL opportunities and threats
Review progress of the plan:
Market share – how does it compare with the
objective
Actual sales performance – is it meeting original sales
goals
Is the company meeting its SMART objectives
Market Research
The process of collecting, recording,
and analyzing data
about customers,
competitors,
and the market
Why conduct market research?
1. Reduce the risks of launching a new
product
2. Predict future demand changes
3. Explain patterns in sales of existing
products and market trends
4. To identify the favored designs,
flavors, styles, promotions, and
packaging