Session6_Marketing-Plan.pdf

MARKETING PLAN  OBJECTIVES: Create value proposition to product/service; enumerate the significance of marketing mix; Describe the 7Ps of marketing mix Marketing process ❑Starts with identifying the customers' needs where you are tasked to create a meaningful...

MARKETING PLAN  OBJECTIVES: Create value proposition to product/service; enumerate the significance of marketing mix; Describe the 7Ps of marketing mix Marketing process ❑Starts with identifying the customers' needs where you are tasked to create a meaningful value proposition. ❖ Simply states why a customer should buy a certain product or service.  TIPS ON HOW TO CREATE VP: Value Proposition 1. Prepare a situation analysis that details the problem(s) of the customers. 2. Make your value proposition straight to the point, simple, and specific; in short there should be no complications. Your value proposition has to target your major objective. 3. Highlight the value of your product/service so that customers will easily get what benefits you can provide. 4. Adapt to the language of your market. 5. Add credibility-enhancing elements such as testimonials from customers, partners and other stakeholders. 6. Differentiate your value proposition with your competitors. Value Proposition Example: “Tindahang maaasahan, bukas kahit anong oras!”  Marketing mix Refers to the combination of elements that shape how a business delivers value to its customers. Is a widely accepted strategic marketing tool that combines the original 4P’s (product,place,price, promotion) with the additional 3P’s (people, packaging and process) – in formulating marketing tactics for a product or service.  Marketing mix Refers to the combination of elements that shape how a business delivers value to its customers. Is a widely accepted strategic marketing tool that combines the original 4P’s (product,place,price, promotion) with the additional 3P’s (people, packaging and process) – in formulating marketing tactics for a product or service.  Importance: 1. It helps in a clean mix creation. 2. Marketing mix helps new product development. 3. It helps increase the product portfolio. 4. It is a guide to improve the business. 5. It helps in differentiation. 6. It helps you being dynamic. Performance Task: Make your OWN product/service value proposition. 1. Product Is any physical goods, service or idea that is created by an entrepreneur or an innovator in serving the needs of the customers and addressing their existing problems.  1. Product 3 Level Concept: 1. Core Benefits of the Product or Service Why a customer buys a product or services? 2. Physical Characteristics of the Product or Service Customer looks for second layer of selection 3. Augmented Benefits of Product or Service Only because of additional benefits 2. Place Refers to the location or medium of transactions. 3. Price Is the peso value that the entrepreneur assigns to a certain product or service after considering its costs, competition, objectives, positioning and target market. It is the only P in the 7P’s that generates revenue for the business. Most common pricing strategies: A. Bundling ✓Refers to two or more products or services in one reduced price. e.g 3 in 1 Coffee for e.g Manicure and P10 Pedicure for P150 B. Penetration pricing Refers to setting low prices to increase market share, but will eventually increase the price once desired market share is achieved. e.g a mobile app-based transaction service offering reduced booking fee for P15 as its introductory price. C. Skimming This is the opposite of penetration pricing where prices initially high and they are lowered to offer the product or service to a wider market. e.g a real estate company offering top-tier projects is now offering low-cost housing of same quality to serve the middle market segment. D. Competitive pricing This refers to benchmarking prices with the competitors. e.g milktea prices are competitively priced E. Product line pricing Refers to pricing different products or services within a parallel product array using varying price points. e.g LED Tv is more expensive than the LCD Tv even if under the same brand. F. Psychological pricing This considers the psychology and positioning of price in the market. e.g price of haircut service is at P199 instead of P200 (consumers think that odd prices are considerably lower than what they are) G. Premium pricing Refers to setting a very high price to reflect elitism and superiority. e.g prices of signature clothes, bags, perfumes H. Optional pricing Refers to adding an extra product or service on top of the original to generate more revenue. e.g meals on top of the air fare I. Cost-based pricing Basis of markup is the cost of sales. e.g cost of coconut juice by adding the cost of juice (P10) and the plastic container (P4) and set the price at P20 to earn (P6). J. Cost plus pricing Markup is based on a certain percentage of cost. e.g the entrepreneur wants to set a 50% markup on the coconut juice which is P14x50%=P7; new price is P14+P7=P21. 4. Promotion Involves presenting the products or services to the public and how these can address the public’s needs, wants, problems, or desires. 4. Promotion A. Advertisement This type of communication that influences the behavior of a customer to choose the product/service of the entrepreneur over the competitors. television internet print radio Mobile phones Out of home (billboards, buses, bus stops, trains, taxis, street advertisement) 4. Promotion B. Selling This is the act of trading a product or service for a price or a fee. The entrepreneur must identify the target customers who will likely buy the product/service. Once identified, he must do further research on the target customers to know their profile and behavior to come up with convincing way to sell the product/service.  4. Promotion C. Sales Promotion (below-the-line) These are short-term promotional gimmicks wherein practical incentives and appealing activities are incorporated to entice customers to buy the product/service. Sales discounts/discounts Product/service Sales distribution/free Contests and games coupon bundles taste Premium (free toys for Raffles Promo items Trade fairs/exhibit fast food meals) Point-of-purchase promotions Advertising (bags,calendars) Reward cards 4. Promotion D. Public Relations These are image-building initiatives of the entrepreneur to make the name of the business reputable to stakeholders, such as target customers, government agencies, business partners, media and public. Strong media relations Lobbying (good relationships with Press conferences gov’t officials) through press kits Launching events Web public relations (blogs,social Social responsibility events media, emails, word of mounth) (charitable/community events) 5. People Is one of the three additional Ps in marketing mix. People play a vital role in servicing customers eventhough the entrepreneurs sells only physical goods. 6. Packaging Is how the product/service is presented to customers. It is the overall identification (look and feel) of the product or service. 7. Process Is defined as the step-by-step procedure or activity workflow that entrepreneur or employees follow to effectively and efficiently serve customers. Performance Task 1: Make your marketing plan applying the information's discussed in the presentation. Applying the concept of marketing mix in the development of marketing strategy, choose a product and make a three- minute video clip advertisement. Send your video clip via cd to your teacher. Your video clip will be assessed base on this rubric: Criterion Description Logical Content Content (1-10 points) Clarity of the topic Technical Content Documentary sources Creativity Originality (1-10 points) Technical resources Audio quality How did the video Image quality communicate message (1-10 Language and vocabulary points) Setting the expected time The length of the video does not (1-10 points) exceed 3 minutes · Final submission is made on time Submission within the specified time (1-10 points) Fundamentals of Brand Management  OBJECTIVES: Create own brand name.  Brand ❑Refers to the identity of a company, of a product, of a service or of an entrepreneur himself or herself. ❑Is a symbol of promise or assurance from entrepreneur that what it purports to the customer will happen.  Brand Management ❑Is the supervision of the tangible and intangible elements of brand. TANGIBLE ELEMENT INTANGIBLE ELEMENT ❑Include product ❑Include perception itself,its packaging, and relationship of its price and location. customers with the brand.  Branding ❑Is the process of integrating the strategies formed from the marketing mix to give identity to the product/service. ❑ includes: 1. Establishing to target customers that the business is reliable and trustworthy and that product/service is superior solution to their current problem; 2. Differentiating with competitors; 3. Driving customer loyalty and retention.  Characteristics of Good Brand 1. Unique 5. Can be converted to other dialects/language. 2. Extendable 6. Can describe a product category 3. Easy to remember 6. Can describe a concrete 4. Can describe the benefits qualities of the product/service 6. Positive and Inspiring Performance Task: Create your own Product/Service brand name applying the characteristics of good brand mentioned in the presentation. (20 points)