Marketing and the Marketing Plan


What is marketing and how important is it to my business?

What is the societal marketing concept?

Who is going to buy my product or service? Who is my Target Market
What price should I charge?
How do I let the target Market know I exist?
How do I get my product to be accessible to The Target Market

THE SOCIETAL MARKETING CONCEPT Task is to determine needs, wants, and interests of target markets and deliver the desired satisfactions more effectively than COMPETITORS in away that preserves or enhances the consumer's and society's well-being.
(Identify--satisfy +competition+ social aspect)
=changing the behaviour of potential customers so they buy from you

 

The Four P’s Of Marketing


Product: What Product do I have to offer for sale?
Place: At what Place do I make my product available and how does it get there?
Promotion: How do I promote the sale of my product/service?
Price: What price should I charge?


To answer these questions Marketing Research is necessary.
Should you pay or do your own research?


Paying to get research: Neilson’s, Marketing Research, Marketing Consultants


Do you really have to do Marketing Research?

Who should do the research?

Doing Marketing Research Yourself
Primary Research

Secondary Research


PRODUCT

Is there Market/Product Demand? Is it a new product?

Is it a product category that exists?

Two Types of DEMAND
PRIMARY DEMAND: demand for product category
ex: demand for camcorders must be positive, if declining more money will be necessary for marketing promotion

SELECTIVE DEMAND: demand for a specific product (brand) within a product category
Is selective demand positive? Is it a new brand? You will need to demonstrate demand?


COMPETITIVE ADVANTAGE: what makes the product unique/desirable

How do I demonstrate competitive advantage?

a) Demonstrate Superiority-compare versus others in category
b) Product Innovation- the product has something new and unique; example vacuum seal coffee
c) Hidden Qualities- is there something else the product gives you? example Juice has Vitamin C, certs retsyn
tums-calcium
d) Lifestyle Association- Does the product fit into a desirable lifestyle?


Access COMPETITIVE ENVIRONMENT


RELATIONSHIP WITH MARKETING:UNDERSTANDING CUSTOMERS

A. MARKET SEGMENTATION:


B. APPLICATION OF SEGMENTATION--3 applications:

1. Positioning the product: The place the brand occupies in the minds of consumers; Advertising is a vehicle to secure position in mind.-favourable/lasting impression
Think fast food--Why does Burger King, McD’s come to mind?
combo marketing+advertising

2. Media Strategy--Selecting the right media; Selecting most effective reach/efficient cost to reach target; Segmentation information assists. Media Research

3. Creative Strategy--Creating the messages
Knowledge about consumers and their habits (activities, interests, opinions A.I.O s) influence the nature of the message (tone, style, mood)
What triggers response? Appeal-rational, emotional,celebrity;info from market segmentation

 

C. CONSUMER BEHAVIOUR -What precedes and determines buying?

1. Psychological factors: needs, motives, perceptions and attitudes
--make consumer recognize need, provide stimulation to satisfy
Needs: a state of deprivation, absence of something useful through appeal, benefits
Motives: conditions which prompt action to satisfy need-purchase

Maslow's Theory of Needs and motivation has impact on marketing
Based on 2 assumptions:
1) when lower level needs satisfied, individual moves to higher level need
2) Satisfied needs do not motivate-move to other needs;

Maslow's theory of Needs

SELF-ACTUALIZATION
fulfillment, realizing your potential
example: "Be all you can be.." Lotto

ESTEEM
recognition, achievement, status, to excel
example:First class travel
SOCIAL
belonging, love from family/friends
example: deodorant, breath mints
SAFETY
security, protection, comfort
example: tires, life insurance
PHYSIOLOGICAL
hunger, thirst, sex, shelter
example:.Pepsi-thirst on beach



Perceptions: how individuals receive and interpret messages; varies from person to person
3 Levels of Perception:

Selective Exposure- only notice that of interest
Selective Perception- screening out messages in conflict with previously learned attitudes and beliefs
Selective Retention- Only what we want to remember
Challenge is to break through perceptual barriers in customers minds


Attitudes:

D. DEMOGRAPHIC SEGMENTATION (target market on age, gender, income, occupation, education, marital status, household formation, cultural mix)

TRENDS:

Age:

traditional target 18-34 but now aging population, boomers
By 1996 28% of pop over 50-- different than previous-health conscious, retaining spending patterns-expect new product+ product repositioning
Gender:
Increasing economic power of women (workers)
example:car market targeting women as buyers BMW specifically aimed at women Cabriolet
Income, Occupation, Education
Higher degree of affluence
-dual income, healthier lifestyle average household income Canada 1990--$57,000 ---white, blue collar and professional
example:Older healthier Light products, fat free
Marital Status/ Household formation
-delay of marriage, divorce,$5% children will see divorce, single parent-- common law;% in family shrinking 83% versus 87% 20 years ago
family cycle also who is dominant purchaser
Singles market growing
Cultural Mix
me generation-->yuppies value changes
birth rate declining--> immigrants will account for growth--Ethnic diversity
Population in cities more cosmopolitan --Culture role


E. PSYCHOGRAPHIC SEGMENTATION

F. GEOGRAPHIC SEGMENTATION: dividing Market into distinct geographic regions Canada: Atlantic, Quebec, Ontario, Prairies, BC


G. BEHAVIOUR-RESPONSE SEGMENTATION

H IDENTIFYING AND SELECTING TARGET MARKETS

Target marketing involves 3 steps:
1. Identifying Market Segments--developing a consumer profile based on demographics, psychographics, geographics Who is Primary User-- Secondary User?
2. Selection of Opportunity Targets--determining which segments have best potential to pursue
Where is perceived profit potential greatest?
3. Positioning Strategies to appeal to Target--developing a product to meet needs and then an image to instill in the minds of consumers. Advertising plays a key role in positioning.

Positioning is strategy based on competition -a product distinguished from competition

What Image for product?

I. POSITIONING AND ADVERTISING
Positioning involves designing and marketing a product to meet the needs of a target market, and creating appropriate appeals (usually through advertising) to make the product stand out from the competition.


HOW CAN I TEST FOR A MARKET OF MY PRODUCT


PRICE
From test sample you may have some idea
Set an interim price
If you are selling product to store, both have to make a profit
BREAK EVEN CALCULATION: How much business do you have to do to break even?
1. What is your monthly cost of operation?
2. What is your profit per unit?
3. Divide profit per unit into Monthly cost to determine how many units you need to sell to break even
4. Now multiply number of units by selling cost of each unit to determine total sales needed to break even

Marketing Test For Stores
Will your product sell in stores? To do this you will have to spend to produce product and then do a test in store.
Will be difficult to get big store to help-try smaller type and set up display in a couple of locations- get friends and family to help. Get feedback on product, cost, reaction. Write down all comments

PLACE
Where do you locate product and how do you get it there?
Initial Order: if you get an initial order, you must set delivery date that gives you time to produce/deliver goods
Size of Order:you will have to pay for the initial order without having any assurance of sales, yet must be enough in case there is demand
How do you reach your target market?


THE MARKETING PLAN

THE MARKETING PLAN
Positioning Statement, marketing objectives, marketing strategies and tactics-budget allocation-financial summary-calendar details Positioning Statement: the concept that motivates purchase-image
-should be realistic, specific, uncomplicated
example -Ruff dog food (dry) the only dry dog food that combines four flavours in every package and offers complete balanced nutrition

Marketing Objectives: statements identifying what product will accomplish in year
-should be specific, quantifiable, accountable
-objectives consider problems and opportunities from first section
example:
Sales Volume: to increase 15% over last year to 100 000 units
Market Share: to increase to 20% up 2 points
Distribution: to improve level in Quebec from 50% to 60%
Product: to test new product in BC in 3rd quarter


Marketing Strategies:


Marketing Plan Background Analysis
BACKGROUND ANALYSIS
purpose :



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copyright 2001 Karen E.Hamilton