Transcript Indicator 1.02 – Employ marketing information to develop a

WARM UP: 1.01 – 1.02 Review
A personal data sheet that provides a summary of
information about an individual is a:
1.

Resume
Kate’s company needs a new package design for its
crackers. What marketing career category would be
responsible for creating the new package?
2.

Product service mgmt
What marketing career involves catching customers’
attention, informing them of products and
persuading them to buy?
3.

Advertising
Nate is graduating in May; this is what type of goal?
4.

Short term
What’s next?
Work on Project for 20 minutes
Lesson 1.04
Review
Clock Buddies
Indicator 1.04 – Employ marketing
information to develop a marketing plan
Marketing
(CHANGE PAPER TO 1.04)
THE MARKETING MIX
 Includes four basic strategies
called the 4 P’s or elements of
marketing. A combination of
decisions a business makes in
order to best reach its target
market.
 It is called a Marketing Mix
because the 4 P’s can each be
adjusted to better meet the
needs of the customers and
company
 Product
 Place
 Price
 Promotion
The 4 P’s
 Product - Businesses
must decide which
products to offer
customers.
 Level of quality, features,
branding, packaging,
service, and warranty are
items to decide and
develop for each product.
PRODUCT
 Marketers as themselves questions such as:
 Should we offer one product-or more than one?
 Is the product a good, service, or idea?
 Does the product have special features?
 Does the product have multiple uses?
 What resources are necessary to research and develop the product?
 What level of quality should be produced or provided?
 Which brands should be used?
 How should the product be packaged?
 How might the product affect the firm’s image?
 How might customers view this product in relation to others?
 Should we offer a warranty, maintenance contract, or other support
services?
The 4 P’s
 Place - Having the
product available at the
right time and location.
 Also known as channel
management/ distribution.

For example, store locations,
website, and catalogs are the
standard for most retailers
today. Decisions of direct
distribution or indirect
distribution
(intermediaries/middlemen)
must be made.
PLACE
 Consider the following:
 Which firms to buy the product from?
 When to buy the product?
 How much of the product to order?
 Where to make the product available?
 How to process customer orders?
 Which firms to involve in the process?
 How to answer customer questions?
 How to coordinate all of the steps involved?
The 4 P’s
 Price - The amount a business charges
customers for a product.
 What competition is charging, determining seasonal
discounts and allowances, and credit terms.
PRICE
 Determine pricing objectives:
 Getting their product into more customers’ hands.
 Helping customers view their firm as distinct from
competitors
 Bringing in the amount of income they need or
want.
 Raising the product’s value in the customer’s eyes
 Matching the product’s value with what customers
expect to receive
The 4 P’s
 Promotion - Informing and reminding
customers of the products available to them and
persuading them to purchase. Promotional Mix
includes advertising, personal selling, sales
promotion, and publicity.
 These decisions are based on the budget a business
sets for the promotional mix.
PROMOTION
 Consider the following:
 Which messages to send?
 Which media to use?
 When they want messages delivered?
 How often they want messages delivered?
 How to coordinate communication efforts?
 How to evaluate results?
The ultimate goal of promotion is to generate a positive
response from customers.
DO YOU KNOW??
Identify whether the following question pertains to
A: Product, B: Place, C: Price, D: Promotion
 How should the product be packaged?
Product
 Should we offer credit and layaway?
Pricing
 Should we allow our product to be sold by a
wholesaler?
Place
 How often should we advertise?
Promotion
Identify whether the following question pertains to
A: Product, B: Place, C: Price, D: Promotion
 Which celebrity could we use to entice customers into the store
Promotion
 Should we offer guarantees or warranties?
Product
 Which type of transportation should we use to move the
product?
Place
 What should be offered for sale?
Product
 How often should we put the product on sale?
Price
 How many sales people should we hire?
Promotion
RELATIONSHIP OF GOALS, TACTICS, &
STRATEGIES TO THE MARKETING MIX
 Goals/Objectives: Specific statements that clearly
communicate what the business expects to achieve.
 Established to fulfill the mission statement
 Must be single-minded, realistic, specific, measurable,
consistent with each other and with overall company goals,
and must include a time frame for completion
 Strategies: Specific statements indicating how the business
expects to accomplish its objectives taking the demands of the
target market(s) into account.
 Identify target markets
 Identify appropriate marketing mix choices
 Utilize information obtained during SWOT analysis
RELATIONSHIP OF GOALS, TACTICS,
& STRATEGIES TO THE MARKETING
MIX
 Tactics:
 Tangible, measurable tasks that have to be
completed to accomplish the strategic
objectives.
 Tactics are the day-to-day activities that step
the company toward its goals.
 Tactics are used to reach the strategies that
then meet the goals.
Coming up w/ Marketing Strategy
You own a RESTAURANT
 Goal: A family-style restaurant wants to increase sales
 Strategy: Add a kids’ menu in order to increase sales to young
parents in the area
 Tactics : To introduce the new kids’ menu, the family style
restaurant might decide to use the following tactics:
 1. Introduce kid-tested meals
 A)spaghetti & meatballs
C) hot dog w/chips
 B) macaroni & cheese
D) hamburger w/fries
 2. Offer a free ice cream cone to each child
Activity 1
Get with your 6 o’clock
appointment
Complete Fit For Success
and Mix and Match Review
(front and back)
You have 10 minutes.
Warm UP – WHAT would YOU do?
Read the scenarios and identify what marketing mix(es)
needs to be put in place. Also, out of the following choices in
purple, which sounds like the best idea for the business to
do and why? Write in paragraph form:
 Lower prices throughout the store
 Offer some products exclusive to the store
 Mail flyers to every household in the neighborhood
Scenario 1: A small computer business realizes that it needs to
improve something to gain more customers. The large competitor
in town is able to offer a variety of products and lower prices, too.
What would help the small computer business distinguish itself
from its competitor.
Scenario 2: A pet store has just moved into the community. Although
there are several pet stores in the area, this pet store offers goods and
services that can’t be found anywhere else. What do you think would
help the new pets store communicate its benefits to the pet owners in
the neighborhood.
What is a Market?
 Market: The group of all potential
customers who have similar needs and
wants and have the ability to buy the
product. Businesses must understand who
the potential consumers are in order to
effectively meet their needs and wants.
WHAT IS A TARGET MARKET?
 Identified segments of the
market that a business
wants to have as their
customers. For example,
teenagers, mothers-to-be,
single mothers, American
Family, men .vs. women,
or college freshman. Each
example has wants and
needs that can be targeted
and utilized to develop
effective strategies to reach
existing and/or potential
customers.
IMPORTANCE OF TARGET MARKETS
 A target market represents
the people most likely to
buy what you sell. These
people have something in
common that solidifies
their desire for your
product or service. And
that something
distinguishes them from
the market at large.
MASS MARKETING
 A single marketing plan used to reach
all consumers.
 Ex. Chewing gum & light bulbs
MASS MARKETING
 Advantages
 Don’t have to pay for the
production of similar
products
 Can price and distribute one
type of product more easily
than many
 Can send one promotional
message to everyone
 Easier to manage, cost
effective
 Predictable response rates
 Easy to set up.
 Disadvantages:
 Diversity of the audience
 Unable to track return,
low response rates
 Nonpersonal
 Beliefs that everyone is the
same
 Low profit margins
 High competition
SEGMENTATION
 Market Segmentation is the
process of dividing a larger
market into smaller parts.
 Market segment is a
subgroup of a larger
market that share one or
more characteristics.
MARKET SEGMENTATION
 Advantages:
 Disadvantages:
 Providing the products
 More expensive, more
customers want
 Effective communication
 Higher response rate,
 Repeat and loyal customers
 Personal
difficult to produce
 Expensive to set up
 Requires more marketing
research
4 TYPES OF MARKET SEGMENTATION
Demographic
Psychographic
Geographic
Behavioral
DEMOGRAPHIC SEGMENTATION
 Gender: indicates
purchase preferences
 Origin or heritage: race,
ethnicity, nationality
 Religion
 Social or economic
status: education level,
occupation, income
 Life stage: age, generation,
marital status, family life
cycle, family size.
GEOGRAPHIC SEGMENTATION
 Markets divided by where
the customer lives.
 It is valuable information
because businesses can
tailor their product mix
based on location.
Characteristics are nations,
states, regions, counties,
cities, or neighborhoods.
PSYCHOGRAPHIC SEGMENTATION
 Defined: Markets divided by
social and psychological
characteristics.
(value/morals, attitude
Lifestyles, and interests)
 Characteristics reflect
consumer buying behaviors.
The characteristics are
Interests, Habits, Activities,
Lifestyles, Opinions, &
Hobbies. These reflect who
your customers are.
Businesses that use Marketing
principles to guide their
decision making must
evaluate and reevaluate their
customer’s wants and needs
continuously to stay ahead in
the game.
BEHAVORIAL SEGMENTATION
 Dividing the market into
groups based on what they
are looking for in a product
and why they buy the
product
 Types of behavioral
segmentation:
 Product Benefits
 Usage
 Loyalty
 Occasions
DO YOU KNOW?
 Matt will only buy a car
w/ a two or more year
warranty – which seg.?
 Behavioral
 Race Care Digest runs
advertisements that appeal
to racing enthusiasts –
which mkt segmentation?
 Psychographic
 General Mills dividing groups
of people into smaller, more
similar groups is called:
 Market segmentation
 TV Guide’s potential
subscribers are its:
 Market
 Sierra Mist is giving away a free
can of soda to the first 250
guests at the next Bobcats
game. This is an example of
which mkt mix?
 Promotion
 A marketing plan that is
used to reach all
customers at one time is:
 Mass marketing
 Producers of Go-Gurt
decide to put their
product in a unique easyto-carry container. This is
an example of which mkt
mix?
 Product
 How will inventory be
stored- which mkting
mix?
 Place
 Targeting Dallas Cowboy
Cheerleaders – seg.?
 Demographic AND
 Psychographic
 Claire wants to raise
$1000 for her bakery;
this is an example of a:
 Goal
ACTIVITY 2
 Find a partner and complete the following:
 Pick a person to be your target audience and decide the
following about that person:
 Demographic – what age, gender, race, income level
 Geographic – where does s/he live: east, west, suburbs, urban, etc
 Psychographic – what does this person like to do? Run, dance, hang, etc
 Behavioral – specifics; runs three miles, works out daily, looking for a
shoe that’s stylish, etc.
 Type a description of person on computer.
 Go to Nikeid.nike.com and customink.com and create a shoe and
shirt that would appeal to that specific segmentation. (make sure you
follow printing directions or you will get points taken off).
 Cut out pictures and description and paste to separate sheet
of paper; label “MARKETING SEGMENTATION”