Download Marketing Mix

Name__________________________ Date_________________
Introduction to Business Marketing
Marketing is the process of planning and executing the pricing, promotion
and distribution of ideas, goods, and services to create exchanges between
buyers and sellers.
"Exchange" occurs when two parties each have something of value to
the other: A buyer buys clothes from a department store. The "value"
acquired by the store is profit and the customer acquired clothes - both
gaining something to accomplish their goal.
The Marketing Mix (4 P's)
The marketing mix is the unique combination of pricing, promotion,
product offerings and distribution system (place) to reach a specific group
of consumers (the target market).
Target Market - the customers who are most likely to buy the firm's
products. Also called target audience.
Product
Promotion
Price
Place
Target Market
The Right Principle: companies try to get the right goods to the right
people at the right place at the right time at the right price using the right
promotional strategies.
"The 4 P's"
Product - is the firm's goods or services they are selling. This includes not
only physical unit, also package, warranty, and brand and company image.
Price - price is determined by demand for the goods and the cost of the
goods. Examples of various pricing strategies: introductory prices, sale
prices, odd pricing ($9.99 vs. $10.00).
Place/Distribution: How a product flows from producer to customer.
Wholesalers link the producer of the goods to the customer.
Promotion: different elements that help increase the sale of the product.
Examples: advertising, sales, public relations.
Key points to discuss:
1. Successful companies have different marketing mixes for different
products.
2. Marketing is vital to companies because it stimulates what makes the
company stay alive - sales revenue. Without Marketing, consumers don't
know about the product, therefore, the company cannot sell their product.
3. Correctly identifying your target market is key to success.
Examples: NFL vs. local ballet company has very different target
audiences.
Name__________________________ Date_________________
Marketing Worksheet
Directions: fill in the blanks below with the correct vocabulary word.
exchange
target market
marketing
product
price
distribution
promotion marketing mix
right principle
__________ is the process of planning and executing the pricing,
promotion and distribution of ideas, goods, and services to create
exchanges between buyers and sellers.
__________ is the firm's goods or services they are selling.
__________ are different elements that help increase the sale of the
product.
__________ is determined by demand for the goods and the cost of the
goods.
__________ occurs when two parties each have something of value to
the other: A buyer buys clothes from a department store.
__________ is how a product flows from producer to customer.
__________ are the customers most likely to buy the firm's products.
__________ is the unique combination of pricing, promotion, product
offerings and distribution system to reach a specific group of
consumers.
__________ are companies who try to get the right goods to the right
people at the right place at the right time at the right price using the
right promotional strategies.
Name__________________________ Date_________________
Starting a Business: Knowing your Market
In an earlier lesson we learned that your market is the people who you expect will be
buying your product or paying for your service. In any place you will see all types of
people each with their specific needs and wants. You certainly can’t be expected to
meet everybody’s needs- that would be impossible! Look at your school. You have the
students, the teachers, the lunchroom staff, the janitors, the school nurse, the principal.
Each of these people has very different needs. The specific group of people that you
want to sell to is called your target market. An example might be if you were selling
skateboards. I doubt your target market would be retired people. It would likely be kids.
Knowing your target market makes it easier for you to come up with marketing
strategies, or the way in which you will sell your product and get people to want to buy
it.
Exercise One
In Group A there is a list of various products and services that a business might sell. In
Group B there are various target markets. Draw lines to match the product or service to
a target market. Note, not all products and services have one target market and not all
target markets have one product or service.
GROUP A GROUP B
Math tutoring Women over 70
Lipstick 10 year old girls
$0.10 candies Middle aged men
Lawn mowing service Single mothers
Rainbow backpacks Teenagers
Popsicles Rich Men over 60
French cuisine restaurant Elementary school kids
Baseball cards 12 year old boys
2 There are many kinds of marketing strategies. You might decide that the best thing
for your product is to rent a shop and sell from those premises. You might decide to sell
your product by going door to door asking people if they want to buy. Or you might need
to sell only to shop keepers so that they stock your item and customers buy from them.
You might decide it’s a good idea to advertise in the local newspaper or it might be
better to advertise in a national, glossy magazine. Your marketing strategy will be
decided by your target market.
If for example, you have a lawn service business where you mow people’s lawn, clip
their hedge and rake up leaves, a door-to-door approach may be an excellent marketing
strategy for you.
Exercise Two
a) Kelly has a business that manufactures two types of lunch boxes. The first type is a
basic silver, metal lunch box with a thermos inside. The other type of lunch box is plastic
with different scenes from the Harry Potter movies both outside and on the thermos
inside.
a) Describe her target market for each of these lunch boxes.
b) Can you suggest a few marketing strategies that could be effective for these two
lunch boxes.
3. You always need a product that has good enough quality that someone will part with
their hard earned cash to buy it, but people buy for different reasons. Some are looking
for the best price and some are looking for the best quality and price is not an option.
Pricing your product or service must take this into consideration. You also must know
what price your competition is selling the same or similar product. Pricing is part of your
marketing strategy. Of course, a low price means that you will have to sell many to
break even. Can your target market buy the amount that your break even point is
demanding?
Exercise Three
Chico is starting a hamburger joint. He believes that his main target market will be the
teenagers from the nearby high school. He hopes that they will pile in at lunchtime, after
school and on weekends. He calculated his break even point when selling his
hamburgers at $6.00 each, at a 1000 hamburgers a month which works out that he
must sell about 40 burgers a day. He also knows that three blocks away the burgers are
sold at $2.50 each. If Chico lowers his price $1.50 for each burger and makes them a
little bit smaller he can get a break even point of 1600 per month or about 66 burgers a
day.
A) What do you think Chico should do?
B) Can you help him with a marketing strategy?
C) Design a poster to attract Chico’s target market to his hamburger joint.
Conclusion
Successful business people know their market. They know which product has which
target market and they create marketing strategies to attract their targeted customers to
buy their service or product. Pricing is also another important part of a business owner’s
marketing strategy.
Glossary of New Terms
Target Market: The exact group of people who would be most likely to buy a product or
service .
Marketing Strategy: The way in which a product or service is sold to the target market.
It includes such things as the method of selling, the way it is advertised, and the pricing.