Transcript 1.04 Marketing 1 PPT

Indicator 1.04 – Employ marketing
information to develop a marketing plan
Marketing
Part 1
THE MARKETING MIX
 Includes four basic
strategies called the 4 P’s
or elements of marketing.
For each strategy, decisions
have to be made for each
product the business offers
to best reach their target
market.
 Product
 Place
 Price
 Promotion
The 4 P’s
 Product - decisions include what to
make or obtain as the business’s
product mix.
 Level of quality, features, branding,
packaging, service, and warranty are
items to decide and develop for each
product.
PRODUCT Examples:
 Product: the goods, services, or ideas a business will offer its
customers.
 Marketers conduct research and use their creativity to figure
out what customers need and how they will meet those needs
The 4 P’s
 Place - decisions include where the
customer can obtain the products.
Many businesses utilize multiple
channels of 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 Example:
 The place element can make or break the buying experience.
 Getting a product in the right place at the right time is all
about creating convenience for the customer.
The 4 P’s
 Price - decisions include determining
what a customer is willing to pay
 What competition is charging, determining seasonal
discounts and allowances, and credit terms.
 Determine how to accept payment:
 Cash, debit, credit, check, or combination
PRICE Example:
 Price is the amount of money a firm asks in exchange for its
products.
 To be successful, a good balance between customer value and
satisfaction, as well as company cost and profit must be
found.
The 4 P’s
 Promotion - decisions include the
promotional mix (advertising, sales promotion,
selling, and publicity)
 These decisions are based on the budget a business
sets for the promotional mix.
 The ultimate goal of promotion is to generate a
positive response from customers.
PROMOTION Example:
 Promotion refers to the various types of communication that
marketers use to inform, persuade, or remind customers
about their products.
 Advertising
 Personal selling
 Publicity
 Public relations
 Sales promotion
IMPORTANCE OF THE 4 P’S
 Product is important to
obtain or develop the best
product mix within your
market and your target
market.
 Place is important because
it is the avenues you come
into contact with your
customers. This is the
element that has direct
impact on loyalty and
repeat customers.
 Price is important because
it establishes your profit
and set the quality level of
your products/services.
 Promotion is important
because it communicates
with your customers so
they know about your
product mix.
ACTIVITY
 Choose a product that you use frequently
(toiletry items are good).
 List suggestions for improvements to the
product and the marketing mix.
 Explain how the improvements would increase
satisfaction of the customer and the business.
RELATIONSHIP OF GOALS, TACTICS, &
STRATEGIES TO THE MARKETING MIX
 Mission Statement – the guiding principle for all business
decisions and provides direction for planning.
 Goals/Objectives – established on a yearly basis and
support the mission statement. Goals must be measurable
and have a deadline.
 Strategies – are then developed to accomplish goals and
it reflects the method to achieve the goal (what to do).
 Tactics – are then developed to accomplish the
strategies; it is the how things will be done, daily
actions.
Goal: What is the marketer’s
destination?
 A goal is an objective you plan to fulfill
 SMART:(Specific, Measureable, Action, Realistic, Timebound)
 Determine where your firm needs to be by a particular date
and agree upon goals
 A family-style restaurant wants to increase sales
 Agree to increase annual sales by 10% over last years sales
 Goal is specific and can be evaluated for success or failure at the
end of a given time frame.
Strategy: Which route will the marketer
take to get there?
 A strategy is a plan of action for achieving your goals and
objectives.
 Create the plan of action (route) believed to be most
efficient.
 Example:
 Strategy #1: add a kids’ menu in order to increase sales to
young parents in the area
Tactics: What small steps are needed
to make it happen?
 Tactics are specific actions used to carry out strategies
 Marketers carefully choose the short-term actions, or tactics,
they use to carry out their strategy.
 Tactics must line up with where they plan to go –their goaland how they plan to get there
 They pay attention to every detail – their strategy
MARKETING STRATEGIES CHANGE……
 What factors cause that change?
 Different Goals
 Economic conditions change
 Political or influence of governmental agencies changes
 Demand changes reflecting new consumer attitudes
 Environmental changes
 Advancements in technology
 Actions of Competitors
ACTIVITY
Think of 5 products that have
“changed” in your lifetime
How did they change?
Why did they change?