Download Developing a Marketing Plan

Marketing
THE ACTIVITY, SET OF INSTRUCTIONS, AND PROCESS FOR CREATING,
COMMUNICATING, DELIVERING, AND EXCHANGING OFFERINGS THAT
HAVE VALUE FOR CUSTOMERS, CLIENTS, PARTNERS, AND SOCIETY.
Functions of Marketing

Product & Service Management


Distribution

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Budgeting for marketing activities, obtaining the necessary funds needed for operations, and
providing financial assistance to customers (Loans).
Pricing


Obtaining, Managing, and using market information to improve business decision-making and the
performance or marketing activities.
Financial Analysis


Communicating directly with the potential customers to determine and satisfy their needs.
Marketing Information Management


Determining the best ways for customers to locate, obtain, and use the products and services of an
organization
Selling


Designing, developing, maintaining, improving and acquiring products and services that meet
consumer needs.
Setting and communicating the value of products and services.
Promotion

Communicating information about products and services to potential customers.
Check for Understanding
Discuss
the definition of
marketing and the different
factors of marketing.
Marketing Strategy: How a company will
use marketing to achieve its goals

Developing a Marketing Strategy is a 2 part process:

Step 1: Identify a Target Market: Specific group of consumers who have
similar wants and needs

Step 2: Create a Marketing Mix: Blending of 4 marketing elements—
product, distribution, price, and promotion

A successful marketing mix will fulfill the wants and needs of the target
market, while providing profit to the company.
Understanding Customers



Two Types of Customers

Final Consumers: Persons that buy products and services mostly for their own use

Business Consumers: Persons, companies, and organizations that buy products and services
for operation of a business, for incorporation into other products ad services, or for resale to
their customers.
Consumer Decision Making Process
1.
Recognize a need
2.
Gather information
3.
Select and evaluate alternatives
4.
Make a purchase decision
5.
Determine the effectiveness of the decision
Buying Motives: Understanding buying motives helps a company develop a
marketing mix

Emotional buying motives: Based on feelings, beliefs, attitudes

Rational buying motives: Guided by facts and logic
Describe
the Consumer
Decision-Making Process and
the importance of
understanding buying motives.
Researching the Target Market


Steps in Marketing Research
1.
Define the marketing Problem
2.
Study the Situation
3.
Develop a data collection procedure
4.
Gather and analyze information
5.
Propose Solutions
Types of Research Studies

Surveys: Planned set of questions

Focus Groups: Gathering ideas, experiences and opinions from consumers

Observations: Recording the actions of consumers rather than ask them
questions

Experiment: Present alternatives to consumers and observe choices
Justify
the importance of
Marketing Research.
Product Planning: Developing Brand Name
and Packaging

Idea Development


Ideas Screening


If product idea is workable, the next step is developing a full marketing strategy
Production and Financial Planning


New ideas are evaluated to determine which ones have the best chance of success.
Strategy Development


New ideas come from a number of inspirations, but more times that not a product
idea is for an improvement of a current product
A company now needs to identify the factors and cost of production and promotion
Limited Production and Test Marketing

A company testing the production, promotion, and distribution of a product on a
smaller scale before making a bigger investment.
Pricing a Product

Factors of Pricing

Supply and Demand

Quality

Uniqueness

Age

Season

Complexity

Convenience
How Does a Company Decide
How Much to Charge?????

A company needs to look at a few things before deciding on a final price.
1.
Product Cost: How much does it cost to produce a product?

2.
Operating Cost: How much does it cost the company to operate?

3.
Or how much did we pay the company that produces it?
Salaries, facilities, storage, utilities, taxes, etc.
Desired Profit: How much does the company realistically want to make off the sale of
the product?
Selling Price Formula
Product Cost + Operating Cost + Profit = Selling Price


The amount added to make a profit is call “Markup”

If a company doesn’t sell enough of a product at the desired profit margin, the may
“Markdown” the price
Predict some potential causes for a markdown…..
Communication with Consumers
and Promotion of Products
Justify
the importance of
communication in marketing.
Ways Companies Can
Communicate with Consumers
Promotion: communication used to inform, persuade, or remind.
 Personal Promotion is most effective and most expensive form of
marketing communication

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Personal Selling: Direct, individualized communication with prospective
customers to assess their needs and assisting them to fill those needs
Mass Promotion is directed to many people at same time, hopefully the
target market

Advertising is the most known form of Mass Promotion. Other Types are
publicity, public relations and sales promotions

Merchandising includes a set of promotional activities designed to generate
sales in the retail settings.
Companies will often use these in conjunction with each other. Mass
promotion to draw people in, then personal promotion to make the
sale.
Ways Companies Can
Communicate with Consumers

Mass Communication
 Mass
 Mail
Emails
Outs—Promotions, flyers, upcoming events
 Social
Media—Facebook, Twitter, other
examples????
 Commercials—Radio,
 Printed
Television
ads—newspapers, billboards, online
banners
Identify
the describe the
common types of promotion.
Marketing Group Project
You,
with a group of your
class mates, will develop a
marketing plan for your
business.