Download Introduction to Marketing .5 credit, unleveled business elective

Introduction to Marketing
Marketing: the 5Ps
The on-going process of planning and executing the:
(1) the product
(2) the pricing
(3) the promotion
(4) the placement
of ideas, goods or services to meet and satisfy
(5) (People's) needs or wants
The Marketing Mix
The 5 P’s
1. Product /Service/ Idea
 description / purpose
 what are you selling?
2. Placement
 where are you going to sell it
 Location, Location, Location
 Geographic location
 in what forum: store/online/a selected retailer
3. Price

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how much is it worth
how valuable is it to TM
how can you make a profit: Mark-up %
What is your pricing strategy compared to competition
Demand and Price relationship (elastic/inelastic)
4. Promotion



What forms of promotions will you use
how will you reach you TM
how will you convince your TM to buy this service or good
People
–
Who is the Target Market?
•
Know the Demographics:' population characteristics'
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Age Range
Gender
Education Level
Income Range
Where are these people located?
Psychographics : personality traits / likes and dislikes
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Accurate Information can be attained through the US Census
Bureau: http://www.census.gov/
Demographic Data Source
– http://quickfacts.ce
nsus.gov/qfd/states
/42000.html
Target Market Segmentation:
breaking down your TM into
smaller groups
Variables
1. Demographics
2. Geography
3. Psychographics
Key questions
1.
2.
3.
4.
5.
6.
What do they buy?
How do they buy?
Where do they buy?
When do they buy?
Why do they buy?
Who buys?
One Product Marketed
to Many Segments
Market Panera Bread
to 5 different Segments
1.
2.
3.
4.
5.
Market Research
• understanding consumers and their needs/wants
• Psychology of who is the TM
• the core competence at the heart of any company
with a vision for the future.
• the process of collecting and analyzing information
about the customers you want to reach, called your
target market.
– This information provides you with the business
intelligence you need to make informed decisions.
• Google Analytics as an excellent, leading market
research tool
Most Popular
Market Research Methods
1. Google Analytics – ONLINE….where is
your TM shopping, what are they reading,
what are they “clicking” on!
2. Surveys
3. Focus Groups – putting together a TM and
asking for feedback
4. Personal Interviews
Google Analytics
Calculate the Market Potential:
Market Potential:
The amount of customers that are potentially willing to
buy your product/service
Math Calculation
The total amount of customers that are willing to
purchase the product
*
% of market you could own
% of Market Ownership
• You must look at who are you competing with
– Use www.yellowpages.com
• List them
• Break down who owns what % of the market
• See where you could fit in
Calculate the Sales Potential
Sales Potential: The maximum percentage of Revenue that can
be earned
Math Calculation:
Market Potential
*
usage rate (how many units sold per month / per year)
*
$$/per unit
Advertising and Promotions
• a “paid for” way of promoting products,
services or information
• It is a form of communication between the
company (manufacturer, organization, etc) and
consumer or the targeted market
• Use all known media forms and constantly
seek new media, new channels of
communication.
Types of Promotions
Direct Promotions
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Website
Emails
TV commercials
Magazine ads
Newspapers ads
Internet ads on
relevant websites
– Billboards
Indirect Promotions
–
Product Placement in
movies, tv shows, video
games, celebs
• Every award
show…”who are you
wearing tonight?”
• Have celebrities wear
your clothes/use your
product…
Public Relations
• Helps raise awareness about the company
through a variety of different means
• the management of relationships between an
organization and the public
• Image development and control
Internet / E-Commerce
• Advertising your business through the
internet, email and Social Networking
• Reaching your TM through YOUR website
AND websites that your TM uses
• Selling your product / service online instead
of OR in addition to, a physical location
• Expert in website design
• Expert in knowing where your TM is
“clicking”
Primary Marketing Tool: Your
Website
• Important Pages
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Homepage
About Us
Contact Us
Product/Service List
Other Marketing “Musts” online
1. Search Engine Results!
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What Google Looks for:
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Link Popularity
Content of Page
Domain Name
If you “pay them an extra fee” to be on top results
•
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Pay Per Click (pay Google/Yahoo everytime your link is clicked on)
Pay for Performance (pay to be on top of reulsts page)
2. Banners and Pop-up Ads on OTHER websites where
your TM goes
3. Online video commercials on OTHER websites where
your TM goes
•
Primarily news websites (before a person would watch a
video, they’d have to see your commercial)
Important Qualities for
your Website
1. Strong Brand Awareness
– Logo and slogan in the same place on every page
2. Appeal to Many Segments within your Target Market
3. Promotions offered to get them in the door and keep
them checking your website for updates
4. Easy navigation and menu bars (left and bottom)
5. Many ways to contact them
– Email, phone, address, social networks
6. Clear pricing strategy (inexpensive, moderate, or
premium) or have actual prices listed