2012-2013 Overview Of Marketing

2012-2013Overview of MarketingPresented by Ann Walenski1

The Big Idea!Marketing Story of Sliced Bread Otto Frederick Rohwedder – “The Jeweler” Developed in 1912 – Bread Slicing Machine Prototype/Blue Prints Destroyed in 1928 Adopted in 1930 by Wonder Bread Feature – Sliced Bread Benefit – Stayed Fresh18 years of MarketingMarketing is an ongoing process and Failure is an Option!

You have developed your ”Big Idea”Review your Business Plan andfigure out how to make it aMarketing success!.

Your Business Plan.OperationsFinanceMarketingWhat isyour Purpose?BusinessTextOwnerWhat isyour Plan?

Raise Your Hand if You have a new product orservice for the market.You’re not sure how to get itinto the marketplace.5

MARKETING PROCESSThe key togettingstarted inMarketingis askingthe rightquestions.What is your : Product/Service Vision Goal Purpose Budget

Tonight:UnderstandMarketingComponentsWHATWrite theMarketingPlanHOW?Developingthe MarketingPlanWhy?DEVELOP A ROADMAP

MARKETING PROCESSRaise your hand if you have asked 1. How can I set my business apart from thecompetition?2. How Can I Market an Unknown Product?3. What's the Best Way to Acquire Customers.

PART 1 – MARKETING PLANMARKETINGCOMPONENTS

Part 1 - Marketing ComponentsMarketing is the process forcreating, communicating,delivering, and exchanginggood and services transactional eventPutting the right product in the right place,at the right price, at the right time.10

Marketing The “5 P’s”Product – Place – PricePromotion - People

The Product or Service1.2.3.4.What are you selling?Are you providing a service?How does the product work?What does the product looklike?5. What type of packaging does ithave?These are all aspectsof your product.The product categorycan extend tothings like thetype of warrantyyou offer, serviceand installation.

Place1. When/where is your product is available2. Are there time limitations due to store hours?3. Are there shipping times associated with thepurchase? Does the distance from the customer create anobstacle for the purchase?4. Is a retail location reselling your product? What typeof store is it? Does the store have a regular customerbase? Does partnering with the store make sense?

Price 1. How much your customer is willing to pay forwhatever product/service your businessprovides.2. What is the cost to manufacture & distribute.3. What are Production and Non-Production Costs?

Promotion - How will youcommunicate with your customers?

PeopleRelationshipsdevelop Establishduration –Create loyalty –Create repeatsales

More than selling goods and servicesMarketing is an“exchange” – THE TRANSACTIONAL PROCESS

(CRM) Customer Relation ManagementAcquisitionWinning BackRetention

Avoid “Marketing Myopia”19

See Clearly - Your Purpose of Marketing AcquisitionWinning BackIncreasedProfitabilityRetention

PART 2 – MARKETING PLANWRITING THEMARKETINGPLAN

Part 2 - Writing the PlanDeveloping a marketing plan is one of the mostimportant things you can do to ensure that yourbusiness will make a profit.22

In the beginning.Key questions to ask yourself 1. What does my business stand for?Mission2. What do I need to know about mybusiness market? Research3. Who is my ideal customer? TargetAudience4. What are my sales objectives? Profits

STRUCTURE OF A MARKETING PLANThere are many ways to develop and format a marketingplan. The approach taken here is to present a 7-step planthat includes:1.2.3.4.5.6.7.Purpose and MissionProduct/Service Identity - Market ResearchTarget Audience and Product ObjectivesCompetition Analysis – PricingDistribution – Promotional MixSales Objectives, ForecastingAction Plan - Production

Purpose of Marketing PlanOffer brief explanation for why this plan was producedIt forces you to identify: Target market. Short and long-term marketing goals. Your business as a whole and tiestogether market objectives. Allocate limited resources for greatestreturn. Guide to measure progress and outcome.

Develop Mission StatementIdentifies long-run vision of the organization:1. Why is the company in business?2. What markets do we serve?3. What are the main benefits we offer our customers?“Practical and highly affordable business solutions”4. What does this company want to be known for?5. What is the philosophy for doing business?6. What products/services does the company offer?

IDENTIFY - Product/Service - Offered1. Identify each service and productspecifically.2. Differentiate products/services in terms ofspecialty.3. Describe product lines, and newproducts/services that will be introduced.4. Give cost of each product/service.5. Give the price you plan to charge for eachproduct/service

Conduct Market ResearchMarket Research Should Answer These Questions1. Who are your customers and potentialcustomers?2. Identify Demographics - Geographic3. Can/will consumers buy the productyou're offering?4. Are your prices consistent withwhat the buyers view as a value?5. Who are your competitors?

The Marketing ResearchProcessDefineProblemPlan Design/Primary CollectDataAnalyzeDataFollow UpChapter 7 Version 3e29

EFFECTIVE MARKET RESEARCHPopular SectionsPopulationIncomeBirths & DeathsLabor ForceSummary StatisticsUSA Statistics in BriefHistorical StatisticsState RankingsThematic MapsOther ResourcesStates & Local AreasUSA CountiesQuickFactsStatisticalAbstract of theUnited StatesSurvey MonkeyUS CensusChamber ofCommerceSitesCountyOfficesMultiple WebResources

Research your Target AudienceIdentify who your best customers are in theterms of total value they represent to yourprofitability and their loyalty to yourbusinessDetermine Common CharacteristicsDemographics – Age – Income – Education – Marital Buying Habits – Product Use –Time of Use – LoyaltyPsychographics – Values – Life Styles – Interests - AttitudesGeography – Climate - Consumption PatternsTarget these customers in the marketplace and you have discovered your“TARGET AUDIENCE”

Research Product UsageQuestions related to customersusage. Who is using the product? Why do they use the product? When do they use the product? How is the product used? Needs/benefits sought by market

Target Market Buying ROCESSBUY /DON’T BUY

ASK YOURSELF. IS THERE DEMAND?Target Market –How many consumers are there in your target market?Geographic Territory –How many consumers are in your defined area?Consumption Constraints –What consumption habits exist that limit potential?Average Purchase Per Year –Company Share of the Market –How much to expect to attain?

Competition – Direct1. Identify the top five competitors inyour market.2. Determine their similarities anddifferences to the business you areplanning.3. Identify and compare your company'sand your competitors' strengths andweaknesses.

Competition – Indirect1. Identify methods for making youroperation better than theirs.2. Determine whether their business isincreasing, decreasing or level.3. Compare your marketing techniqueswith those of your competitors.

Pricing and Production CostsPricing a product or service begins with anunderstanding of the total cost of theproduct/service.Production costsLabor costs - Material costs –Your timeNon-production costsRent, utilities, postage, telephone,supplies, marketing expenses, etc.

Product Pricing for PromotionProduct Pricing(Total cost x % increase price).Calculating the total cost allows you tolook at the price point that you want toobtain.This is limited by the retail price of the competition.

Product DistributionIdentify the most effective methods forgetting products/services to customersin the target market. Will it require shipping- Wait time Packaging Identify need for warehousing ofproducts Identify distribution channels if not sold direct tobuyer. Are new methods of distribution emerging?.

Product: Promotion MixDescribe potential advertising programs discuss the following:1.2.3.4.Media choices, how selected and targetaudienceSeasonalProject expenditures for each medium andproduct/service.Describe potential public relations/publicityactivities - i.e. business opening

Product Sales ObjectivesDevelop Sales Objectives common goals that areidentified throughmarketing.Includes: Profit margins Revenue targets Distributionmethods Targeted demographicsInform targetaudiencethrough socialmedia aboutfeatures andbenefits of ourproduct and itscompetitiveadvantage,leading to a 10percentincrease insales in oneyear.

.Sales Forecasting - P11. Project sales for each product/service.2. Develop a close estimate of totalpotential sales volume.Sources can Include: Census Data – Government Websites Marketing Research Data Local Chamber of Commerce Data from a custom designedmarketing research project – surveys etc.

Sales Forecasting – P21. Review sales history of competitorsthrough secondary research.2. Show recent sales trends in industry.3. Make any seasonal adjustments.4. Project sales and income for nextfour quarters.

Action Plan.1. Lists and prioritize all the marketingstrategies and activities you have identified. E.Q. - Creating business cards2. Your action plan will include at least ayearlong schedule of activities3. Realistic projection of your production andcustomer service capabilities.

Product: DevelopingMarketing MixThe marketing campaign should be at least a year induration, taking into account the many seasonalfactors that affect customers’ purchasing habits.1. You need to find the best medium (social media,newspaper/radio/other) to get the message topotential customers.2. Plan advertising messages to emphasize thestrengths of the products, services, and the peopleof your business to your potential customers.

PART 3 – MARKETING PLANAREAS FORCONSIDERATION

Part 3 - Areas For ConsiderationYour marketing campaign should be at least a year induration, taking into account the many seasonalfactors that affect customers’ purchasing habits.1. You need to find the best medium (social media,newspaper/radio/other) to get the message topotential customers.2. Plan advertising messages to emphasize thestrengths of the products, services, and the peopleof your business to your potential customers.

Analysis: The Business NameCatchy names mayseem clever, butthey often tellnothing about theservice or product ofthe business. Thebusiness name is aprimary marketingtool and shouldcontain a clearmessage of theproduct or serviceprovided.

Analysis: The Business ImageFirst ImpressionsImage is of utmost importance in their decision topurchase products or services from you.1. Color, scheme, logo, or trademark should appearon all stationery, advertisements, signage, andany other promotional efforts.2. Includes internet and website marketing efforts.You must be consistent in all your promotion andadvertising materials to strengthen your image relative toyour competitors.

Analysis: Customer ServiceCustomer serviceCustomer service is a part of thecustomer’s total concept of your business andproduct/service.While it is not visible, it is part of your image.Customers expect friendly, prompt, courteousservice.Good customer service may be the mostcritical aspect of any marketing campaign.

Analysis: Location1. High Exposure Location – Marketing effort should be used tocreate customer demand.2. Low Exposure Location – Marketing effort should be used to create awareness –how can I find you?3. Marketing from a home. Ease and speed of distribution would become the primaryfactor in Marketing.

Analysis: ProductionDetermine the level of productionnecessary to meet sales forecasts.Impact - capital needs, equipmentexpenditures, personnel needs, and otherbusiness demands

Summary - Marketing Plan OutlineAs with the overall business plan, themarketing plan must be used, evaluatedand revised.Frequent evaluation - Revisions Marketing success.

MARKETING PROCESSMARKETINGPLANAction PlanPurpose &MissionDistribution &Promotional MixProduct/ServiceMarket ResearchSales Objectives& ForecastingTarget AudienceProduct ObjectivesCompetitionAnalysis& Pricing

Offer brief explanation for why this plan was produced Purpose of Marketing Plan It forces you to identify: Target market. Short and long-term marketing goals. Your business as a whole and ties together market objectives. Allocate limited resources for greatest return.