Unit 5: Marketing PDF

Unit 5: Marketing - Marketing starts with identifying who the customers is and then figuring out what and how to sell to them - Marketing is not making a product or figuring out who to sell it to Customer Profile: - Detailed description of the typical customer - Con...

Unit 5: Marketing - Marketing starts with identifying who the customers is and then figuring out what and how to sell to them - Marketing is not making a product or figuring out who to sell it to Customer Profile: - Detailed description of the typical customer - Contains - Demographic - Geographic - Psychographic - Like an avatar - When making decisions - “What would Rachel like?” Product - Anything that can be bought or sold - Can be a good or service - Product Features - Identify the unique features - What sets it apart from competitors - Ex. All smartphones have a camera, what is unique about the camera on your smartphone (or your parents)? Product Elements - All products have certain elements that may be changed to meet customer needs - These elements can be organized into three categories - features - Usage - Protection Features - Facts about a good or service - A feature of a tablet computer as a good is the size of its display screen - A service for the tablet can be technical support of data services Price - The amount of money requesting in exchange for a product - The price of the good must: - Cover the costs of producing and selling the product - Generate the desired level of profit for the business - Be what the customers are willing to pay for the product Pricing objective  - The price of a product plays a major role in determining whether the product and the company are successful - Goals defined in the business and marketing plans for the overall pricing policies of the company - Can be based on both the short and long term goals of a company Price Factors - Many factors influence the price of a product - Factors include company goals, expenses, customer perception, competition, supply and demand, economic conditions and product life cycle Pricing strategies - Demand based - Looks at demands - What are people willing to pay - Cost based - Identify the costs that go into producing a product directly (materials) - Wood to a pencil, Labor to produce pencil, cost of erasers etc - Price above the direct cost - Competition Based - Identify what competitors are selling similar products for and use the same price Place - Aka the channels of distribution - Questions to ask before the product appears on the market: - Who will the product appeal to? - How much should it cost? - Where should it be sold? - What is the best way to tell people about it? - Definition of Place: - The aspect of how selling a product that relates to where and how a company delivers a product to its customers - This includes the distribution channels a company uses, how they transmit and store goods and a products placement within a retail outlet - Place in the marketing mix encompasses the entire process of taking a product for the manufacturer and making it accessible to the consumer, which can include all intermediaries and distributors - This can include both in-person and online places, such as storefronts and warehouses - Marketers must decide how and where the right customers will buy their goods and services - What kind of location to sell the product? - Does the product need to be at a fast-food restaurant or gas station? - Does the product need to be in a large department store or boutique?  - Why is place important? - The place is important in marketing because customers often buy items that are convenient f0r them to purchase - Making a product available and accessible to consumers in the correct location may increase the likelihood that they buy that product - Marketers consider the characteristics of their audience and details and about their products to find the most optimal locations, distribution channels and methods of delivery - Ex. A high end clothing company may choose to open retail location in wealthy neighborhoods Promotion - The process of communication with potential customers in an effort to influence their buying behavior - Product Promotion - Used to get people to buy your product - Institutional Promotion - Used to create a positive image of your company Types of Promotion - Personal selling - Direct contact between salesperson and the customer - Advertising - Paid communication about products and how to buy them - Direct Marketing - A type of advertising directed to a targeted group of prospects and customers rather than to a mass audience - Sales Promotion - Activities that are used to stimulate consumer purchasing and sales effectiveness - Public Relations - Create a positive image of the company Chapter 12.2: Advertising Advertisement - A well written advertisement includes a call to action that encourages readers to respond to the message Creating and advertisement - Creative plan that outlines that goals, primary message, budget, and target market for different ad campaigns  - After planning process is complete, the advertisement message can be created Classic Structure: - Has four elements - Headline - Copy - Graphics - Signature Headline: - Consists of words designed to grab attention so viewers will read the rest of the ad - Usually appear in large type of have some other attention-getting graphic element - A general rule recommends that headlines have no more than seven words - A subheading may also be used Copy - Ad test that provides information and sells the product - Copy refers to the words in the ad - Body copy is often used or referred to the words that explain the product and give additional information - Be brief and clearly give people reasons to purchase the product - Provide information needed to locate the product and make the buying decision - Effective Advertising Copy should: - Create intrigue - Appeal to the senses - Sound newsworthy - Use action words - Meet goals Graphics - Provided visual interest - Often the first part of the ad a reader notices, especially when colorful or unusual - Graphics include typography, art, and layout Signature - Identifies the person of company paying for the ad - Usually include the company name and logo - It may also include the company slogan or tagline SWOT Analysis: Competition Competitive analysis: - It is important to analyze competing companies and determine how to best compete with each one - This information will help you decide how to market the business based on your USP SWOT - After analyzing the competition, it is time to conduct a SWOT analysis of your company and its products - SWOT helps a company decide its strengths, weaknesses, opportunities, and threats - This helps to decide if a business is competitive and ready for the marketplace S: Strengths - Internal factors that give your company a competitive advantage W: Weaknesses - Internal factors that place your company at a disadvantage relative to its competitors O: Opportunities - External factors that provide chances for your company to increase profits T: Threats - External factors that threaten your companies growth or ability to make profits