Download Market - Cambridge College Secondary Humanities

Marketing Part 1:
“Getting the World to Beat a Path to Your Door”
June 2007 & March 2009
Santa Fe Small Business Development Center &
Cambridge College
Introduction - Unit 16 IGCSE Business Studies
You must make your own notes from the text book to
supplement this presentation and discussion .
http://www.youtube.com/watch?v=RlmzwZXa-Ww
Adapted by John Bell
from presentation by
Jan Zimmerman
Author, Web Marketing for Dummies
Watermelon Mountain Web Marketing
www.watermelonweb.com
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© 2011 JCB & Watermelon Mountain Web Marketing
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What We’ll Consider
• Types of Market
• To be a “Product” or “Market” lead business
• How to Create or Improve Your Marketing Slogans
or Tags
• How to Apply the 4Ps of Marketing
• How to Identify Your Target Audience
• What You Can Learn from Competition
• Defining the Marketing Mix for Business
• What It Will Cost to Market
• What It Will Cost Not to Market
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Marketing is Not Rocket
Science
If it works,
keep doing it.
If it doesn’t,
change!
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A Word About Words
• Marketing everything you do to build
awareness of your company and
products
• Sales everything you do to convert
marketing interest to a purchase
• Advertising one technique used for
marketing and sales promotion
© 2011 JCB & Watermelon Mountain Web Marketing
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Why You Need to Market
• To Survive
– Against competitors
• To Grow
– Access new markets
– Access resources
• To Thrive
– Increase profits
– Develop new products
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What Is Marketing?
Marketing is only
part of a
business, but all
of business is
marketing.
© 2011 JCB & Watermelon Mountain Web Marketing
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Some other definitions
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Some Marketing Principles
• Customers are valuable – establish
•
•
•
•
and keep good relationships
Define Mass or narrow, niche, markets
Go after 1 market at a time
Know your audience and forget the
rest
Fish where the fish are
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The Marketing Process
• Analyze Your Situation (SWOT)
• Set Marketing Goals & Objectives
• Develop Marketing Strategies
– Define target markets
– Tailor strategies to each market
• Implement Strategies
• Monitor Results
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SWOT
• Strengths (internal)
– what sets your company apart
• Weaknesses (internal)
– areas that may affect ability to perform
• Opportunities (external)
– outside factors you can take advantage of
• Threats (external)
– risks you face (e.g. lack of sources of capital)
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see text book
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Marketing Statements or Tags
•
•
•
•
Have a clear Mission Statement
5-7 words that describe your business
May be descriptive or a slogan
May include a value proposition - what
sets your company apart i.e. U S P’s
• Appears on marketing materials
Remember USP = Unique Selling Point i.e. what makes your product different and
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A few Mission Statements
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Product or Market Lead
Product
Market
• Can win a large market,
lead your competitors and
make big profits
• More risky as customers
may not want it!!
• Follow, copy or steal other
peoples successful ideas
• Will not be able to lead
Market
• Less risky but more
competition
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The 4 P’s of Marketing
• Product or Service
• Price
• Place or Position
(distribution)
• Promotion
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Product or Service
• Physical product(s)
or service(s) being
sold
• Includes packaging,
associated services,
e.g., tech support
© 2011 JCB & Watermelon Mountain Web Marketing
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Price
• Price point for
product or service
• Includes discounts,
special offers,
warranties
• Compare to
competitors
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Position or Place
•
•
•
•
Where distributed
When distributed
How distributed
Business 2 Business vs.
Business 2 Customer
• How customers buy
– Where
– When
– How (catalog, phone,
online, in-store)
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Promotion
•
•
•
•
Advertising
Promotion
Publicity
Public Relations
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Targeting Your Audience
•
•
•
•
•
•
•
•
Who buys your product or service?
Who does not buy it?
What need or function does it serve?
What else do your customers buy to satisfy that need
or function?
What price do they pay?
When do they buy?
Where do they buy?
Why do they buy ?
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Segmenting Your Audience
•
•
•
•
•
Demographics
Maslow’s Hierarchy
Adoption Cycle
Life Cycle
Psychographics
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Demographics
•
•
•
•
•
•
•
Age distribution
Gender
Income
Ethnicity
Education
Occupation
Geography
© 2011 JCB & Watermelon Mountain Web Marketing
Watch for trends:
fewer married
couples, smaller
family size, changing
roles of women,
higher incomes, etc.
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Who Buys and why?
Some Factors effecting choice and ability to buy
Self-actualization
External/Internal
Esteem
Social
Safety
Physiological
Maslow’s Hierarchy of Needs
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Do not confuse with organisational hierarchy
Shows a typical medium to large organisation – remember a Sole Trader has to do everything!!
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Product Adoption Cycle
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Product Life Cycle –
Another view
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Segmentation by age and life status
Single Stage Newlyweds
Young, Not
Young, No
Living at Home Children
Full Nest 1
Youngest
Child Under
Six
Full Nest 2
Youngest
Child Over
Six
Full Nest 3 Empty Nest
Older
No Children
Married
at Home
Couples
Not Retired
Few Financial
Obligations
Better off
financially than
they will be in
near future.
Dissatisfied with Financial
financial position position
and savings
improving.
Fashion Opinion
Leaders
Highest
purchase rate &
highest average
purchase of
durable goods.
Home
purchasing
peak, liquid
assets low.
Less influenced Hard to
by advertising. influence with
Buy large sized advertising.
packaging.
Home
ownership at
peak. Not
interested in
new products.
Recreation
Oriented
Recreation
Oriented
Interested in
new products.
Time limited.
Buy Basic
Furniture, Cars,
Entertainment,
Clothes
Buy Basic
Buy durable
Furniture, Cars, goods and
Entertainment, childrens toys.
Clothes
Interested in
travel,
recreation,
health, selfeducation.
Buy vacations, Buy medical
luxury home
supplies and
improvements. health aids.
Buy many
foods, cleaning
materials, home
supplies.
Financial
position
improved.
Upgrade
home,
furniture,
appliances,
cars
Most satisfied
with financial
position and
savings.
Retired
Drastic cut in
income,
concerned
about wealth
preservation.
Solitary
Survivor
Limited income,
sell home.
Special need for
attention,
affection and
security.
Buy medical
supplies and
healthcare.
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Psychographics
–
Lifestyle
Attitudes or characteristics
• Grouping people according to attitudes,
values, or lifestyles
http://www.sric-bi.com/VALS/presurvey.shtml
• Porsche example i.e. who buys:
–
–
–
–
–
Top Guns (27%): Ambition, power, control
Elitists (24%): Old money, car is just a car
Proud Patrons (23%): Car is reward for hard work
Bon Vivants (17%): Car is for excitement, adventure
Fantasists (9%): Car is form of escape
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An Example of Segments &
how they can change
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Learn from Your
Competitors
• Decide what information you need
• Identify what companies already serve
this market with similar product
• For potential markets, identify
companies that sell an alternative
solution to estimate demand
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Collecting Data
• Watch other advertising
• Survey existing or prospective
customers
• Consumer rating panels
• Observation usage
• Focus groups
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Choosing a Marketing Mix
• Purpose of the marketing campaign
– Branding vs. Selling
• Target Market - Segmentation
• Timing
– When will marketing take place
• Budget
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Make Marketing Mix Fit
• Establish Marketing Goals & Objectives
• Develop Marketing Strategies
• Select marketing mix (tactics) for each
strategy
• Implement Tactics
• Monitor Results & Revise
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Key Factors Affecting the
Marketing Mix
• Purpose of your marketing campaign
• Timing - when marketing will take place
• Budget - how much do you have to spend?
• Where are your fish? What tactics are
used by or appeal to your audience?
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What It Will Cost to
Market – a guidline
• Needs to fit with your
business plan
• Estimate costs at 20-25% of
projected revenues for new
business, product or market
• After established, estimate
costs at 10% of projected
revenues
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What It Will Cost NOT
to Market some thoughts
• Missed opportunity
• You can only make a
first impression once
• Reduced revenues
• Longer to profitability
• If sales sag, increase
marketing
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Review
• What idea most stuck in your mind?
• Which concept is the most confusing
for you?
• What would you like to see covered
next week?
• What will you try to learn during the
coming week?
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Mmmmhhhh
• “the End”
…. or at least
• “the end of the beginning
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