Developing a Business Plan - Marketing Plan

Vocabulary flashcards related to the key terms and concepts from the Marketing Plan chapter.

Marketing

• Encompasses all activities that a company undertakes to promote and facilitate the buying or selling of its products or services.

• This critical business function involves advertising and other promotional strategies aimed at reaching consumers, other businesses, and organizations.

7P's of Marketing

1. Product

2. Prices

3. Promotion

4. Place

5. Packaging

6. Positioning

7. People

Product

• Product refers to an item or items that the business plans to offer to customers.

• The product should seek to fulfill an absence in the market or fulfill consumer demand for a greater amount of a product already available.

General Types of Products

• Breakthrough Products

• Differentiated Products

• Copycat Products

• Niche Products

Breakthrough Products

Work to create a new, never-before-seen product or service, introduce it to new markets, and create a competitive advantage for the organization.

Differentiated Products

The goal of this product is to create a competitive advantage or to make your product superior to alternatives on the market.

Copycat Products

• These products does not make much impression on the consumer’s minds.

• Aggressive advertising may add to market demand but at a greater cost than the leading bands.

Niche Products

Has a specific target market. It is also known as a focused product.

Price

• Price is the only element of the 7Ps that generates revenue for a business.

• Refers to the monetary value customers pay for a product or service.

Promotion

• Function of informing, persuading, and influencing the consumer’s purchase decision.

• Raising customer awareness of a product or brand, generating sales, and creating brand loyalty.

Types of Promotions

• Advertising

• Sales Promotion

• Personal Selling

• Public Relations

• Direct Marketing

Advertising

Any paid form of non personal presentation and promotion of ideas, goods, or service by an identified sponsor.

(Broadcast, print, internet, mobile.)

Sales Promotion

Short-term incentives to encourage the purchase or sale of a product or service. (Discounts, displays, coupons, demonstrations)

Personal Selling

Personal presentation by the firm sales force for the purpose of making sales and building customer relationship.

(Sales Presentation, Trade shows, Incentive programs)

Public Relations

Building good relationships with the company's various publics by obtaining favorable publicity, building good corporate image, and handling or heading off unfavorable humor, stories, and events.

(Press releases, sponsorships, events, web pages.)

Direct Marketing

Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. (Catalogs, direct-response, TV, Kiosks, internet, mobile marketing)

Place

• Place refers to where consumers buy your product, or where they discover it.

• Refers to all the ways customers search for, choose, buy and use a company's products or services. Companies need to consider these “places,” which may be physical or online, when developing their marketing plan.

Factors in Determining Location

• Image and Location Condition

• Exact fit to target customers

• Fiscal and Regulatory Requirements

Packaging

The process of putting the product in a package or container. It can also mean the bundle of products or services that are put together to attract the customers.

Positioning

The act of designing the company’s offer and image to occupy a distinct and valued place in the target customer’s minds.

Branding Serves 3 Purposes

1. To be different

2. Avoid commodity image

3. Fill a space in the consumer’s mind

People

• They underpin the customer relationship between the company and the consumer.

• It is mainly the customer contact employees who are the face of the organization and they translate the quality into a service.

Breakthrough Products

New and innovative products that create a competitive advantage for the organization.

Differentiated Products

Products designed to create a competitive advantage by being superior to alternatives in the market.

Copycat Products

Products that do not significantly impress consumers, often relying on aggressive advertising.

Niche Products

Products targeted at a specific market or segment, known as focused products.

Advertising

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Sales Promotion

Short-term incentives to encourage the purchase of a product or service.

Personal Selling

Direct personal presentation by the firm's sales force aimed at making sales and building customer relationships.

Public Relations

Efforts to build favorable relationships with various publics and handle unfavorable stories or events.

Direct Marketing

Direct connections with targeted consumers to obtain immediate responses and cultivate lasting relationships.