2012-2013

Overview of Marketing

Presented by Ann Walenski

1
 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 Fresh
18 years of Marketing

Marketing is an ongoing process

and Failure is an Option!
You have developed your Big Idea

Review your Business Plan and

figure out how to make it a
Marketing success! .
Your Business Plan..

Operations

Marketing Finance

Business
Text
What is Owner What is
your Purpose? your Plan?
Raise Your Hand if

You have a new product or

service for the market.

Youre not sure how to get it

into the marketplace.

5
MARKETING PROCESS

The key to What is your :

getting Product/Service
started in
Vision
Marketing
is asking Goal
the right Purpose
questions.
Budget
Tonight:
Understand
Marketing
Components
WHAT
Write the Developing
Marketing the Marketing
Plan Plan
HOW? Why?

DEVELOP A ROADMAP
MARKETING PROCESS

Raise your hand if you have asked

1. How can I set my business apart from the

competition?

2. How Can I Market an Unknown Product?

3. What's the Best Way to Acquire Customers.

 PART 1 MARKETING PLAN

MARKETING
COMPONENTS
Part 1 - Marketing Components

Marketing is the process for

creating, communicating,
delivering, and exchanging
good and services -
transactional event

Putting the right product in the right place,

at the right price, at the right time.
10
Marketing The 5 Ps
Product Place Price
Promotion - People
 The Product or Service
1. What are you selling?
2. Are you providing a service? These are all aspects
of your product.
3. How does the product work? The product category
4. What does the product look can extend to
things like the
like? type of warranty
you offer, service
5. What type of packaging does it and installation.
have?
 Place
1. When/where is your product is available
2. Are there time limitations due to store hours?
3. Are there shipping times associated with the
purchase? Does the distance from the customer create an
obstacle for the purchase?
4. Is a retail location reselling your product? What type
of store is it? Does the store have a regular customer
base? Does partnering with the store make sense?
 Price -

1. How much your customer is willing to pay for

whatever product/service your business
provides.
2. What is the cost to manufacture & distribute.
3. What are Production and Non-Production Costs?
Promotion - How will you
communicate with your customers?
People-
Relationships
develop -
Establish
duration
Create loyalty
Create repeat
sales
More than selling goods and services
Marketing is anexchange THE TRANSACTIONAL PROCESS
(CRM) Customer Relation Management

Acquisition

Winning Back
Retention
Avoid Marketing Myopia

19
See Clearly - Your Purpose of Marketing

Acquisition

Increased
Profitability
Winning Back Retention
 PART 2 MARKETING PLAN

WRITING THE
MARKETING
PLAN
Part 2 - Writing the Plan
Developing a marketing plan is one of the most
important things you can do to ensure that your
business will make a profit.

22
In the beginning...

Key questions to ask yourself

1. What does my business stand for?

Mission
2. What do I need to know about my
business market? Research
3. Who is my ideal customer? Target
Audience
4. What are my sales objectives? Profits
 STRUCTURE OF A MARKETING PLAN
There are many ways to develop and format a marketing
plan. The approach taken here is to present a 7-step plan
that includes:

1. Purpose and Mission

2. Product/Service Identity - Market Research
3. Target Audience and Product Objectives
4. Competition Analysis Pricing
5. Distribution Promotional Mix
6. Sales Objectives, Forecasting
7. Action Plan - Production
 Purpose of Marketing Plan
Offer brief explanation for why this plan was produced

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.
Guide to measure progress and outcome.
Develop Mission Statement
Identifies 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 - Offered

1. Identify each service and product

specifically.
2. Differentiate products/services in terms of
specialty.
3. Describe product lines, and new
products/services that will be introduced.
4. Give cost of each product/service.
5. Give the price you plan to charge for each
product/service
 Conduct Market Research
Market Research Should Answer These Questions
1. Who are your customers and potential
customers?
2. Identify Demographics - Geographic
3. Can/will consumers buy the product
you're offering?
4. Are your prices consistent with
what the buyers view as a value?
5. Who are your competitors?
 The Marketing Research
Process
Define
Problem
Plan Design/
Primary Data Specify
Sampling
Procedure Collect
Data
Analyze
Data
Prepare
Marketing
Report
Follow Up
Chapter 7 Version 3e 29
EFFECTIVE MARKET RESEARCH

Statistical Survey Monkey

Abstract of the
Popular Sections United States
Population
Income
Births & Deaths
Labor Force
Summary Statistics
US Census Chamber of
USA Statistics in Brief
Historical Statistics
Commerce
State Rankings Sites
Thematic Maps
Other Resources
States & Local Areas County
USA Counties
QuickFacts Offices Multiple Web
Resources
Research your Target Audience
Identify who your best customers are in the
terms of total value they represent to your
profitability and their loyalty to your
business
Determine Common Characteristics

Demographics Age Income Education Marital -

Buying Habits Product Use Time of Use Loyalty
Psychographics Values Life Styles Interests - Attitudes
Geography Climate - Consumption Patterns

Target these customers in the marketplace and you have discovered your
TARGET AUDIENCE
Research Product Usage
Questions related to customers
usage.

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 Decisions

Demographics Geographic
Factors Factors CONSUMER BUY /
DECISION-
MAKING DONT BUY
Psycho- PROCESS
Product
logical
Usage
Factors
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 Direct

1. Identify the top five competitors in

your market.
2. Determine their similarities and
differences to the business you are
planning.
3. Identify and compare your company's
and your competitors' strengths and
weaknesses.
Competition Indirect

1. Identify methods for making your

operation better than theirs.
2. Determine whether their business is
increasing, decreasing or level.
3. Compare your marketing techniques
with those of your competitors.
 Pricing and Production Costs
Pricing a product or service begins with an
understanding of the total cost of the
product/service.
Production costs
Labor costs - Material costs
Your time

Non-production costs
Rent, utilities, postage, telephone,
supplies, marketing expenses, etc.
Product Pricing for Promotion

Product Pricing

(Total cost x % increase= price).

Calculating the total cost allows you to

look at the price point that you want to
obtain.
This is limited by the retail price of the competition.
Product Distribution
Identify the most effective methods for
getting products/services to customers
in the target market.

Will it require shipping- Wait time

Packaging Identify need for warehousing of
products
Identify distribution channels if not sold direct to
buyer.
Are new methods of distribution emerging?
.
 Product: Promotion Mix

Describe potential advertising programs -

discuss the following:

1. Media choices, how selected and target

audience
2. Seasonal
3. Project expenditures for each medium and
product/service.
4. Describe potential public relations/publicity
activities - i.e. business opening
 Product Sales Objectives
Develop Sales Objectives - Inform target
audience
common goals that are
through social
identified through media about
marketing. features and
benefits of our
Includes:
product and its
Profit margins competitive
Revenue targets advantage,
Distribution leading to a 10
methods percent
Targeted demographics increase in
sales in one
year.
.
Sales Forecasting - P1
1. Project sales for each product/service.
2. Develop a close estimate of total
potential sales volume.
Sources can Include:
Census Data Government Websites
Marketing Research Data
Local Chamber of Commerce
Data from a custom designed
marketing research project surveys etc.

.
Sales Forecasting P2
1. Review sales history of competitors
through secondary research.

2. Show recent sales trends in industry.

3. Make any seasonal adjustments.

4. Project sales and income for next

four quarters.
 Action Plan
.

1. Lists and prioritize all the marketing

strategies and activities you have identified.
E.Q. - Creating business cards

2. Your action plan will include at least a

yearlong schedule of activities

3. Realistic projection of your production and

customer service capabilities.
 Product: Developing
Marketing Mix

The marketing campaign should be at least a year in

duration, taking into account the many seasonal
factors that affect customers purchasing habits.

1. You need to find the best medium (social media,

newspaper/radio/other) to get the message to
potential customers.

2. Plan advertising messages to emphasize the

strengths of the products, services, and the people
of your business to your potential customers.
 PART 3 MARKETING PLAN

AREAS FOR
CONSIDERATION
 Part 3 - Areas For Consideration

Your marketing campaign should be at least a year in

duration, taking into account the many seasonal
factors that affect customers purchasing habits.

1. You need to find the best medium (social media,

newspaper/radio/other) to get the message to
potential customers.

2. Plan advertising messages to emphasize the

strengths of the products, services, and the people
of your business to your potential customers.
 Analysis: The Business Name

Catchy names may

seem clever, but
they often tell
nothing about the
service or product of
the business. The
business name is a
primary marketing
tool and should
contain a clear
message of the
product or service
provided.
Analysis: The Business Image
First Impressions

Image is of utmost importance in their decision to

purchase products or services from you.

1. Color, scheme, logo, or trademark should appear

on all stationery, advertisements, signage, and
any other promotional efforts.
2. Includes internet and website marketing efforts.
You must be consistent in all your promotion and
advertising materials to strengthen your image relative to
your competitors.
Analysis: Customer Service

Customer service
Customer service is a part of the
customers total concept of your business and
product/service.

While it is not visible, it is part of your image.

Customers expect friendly, prompt, courteous
service.
Good customer service may be the most
critical aspect of any marketing campaign.
 Analysis: Location

1. High Exposure Location

Marketing effort should be used to
create 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 primary
factor in Marketing.
Analysis: Production

Determine the level of production

necessary to meet sales forecasts.

Impact - capital needs, equipment

expenditures, personnel needs, and other
business demands
Summary - Marketing Plan Outline

As with the overall business plan, the

marketing plan must be used, evaluated
and revised.

Frequent evaluation - Revisions

= Marketing success.
MARKETING PROCESS

MARKETING
PLAN
Purpose &
Action Plan
Mission

Distribution & Product/Service

Promotional Mix Market Research

Sales Objectives Target Audience

& Forecasting Product Objectives

Competition
Analysis
& Pricing