Marketing BME TEST - Marketing Mix (4 Ps), Market Plan, Costumer/Consumer profiling.

Simple Marketing Plans:

• 1. Market Position

• 2. Current Market

• 3. Competitor analysis

• 4. Target market analysis

• 5. Marketing goals

• 6. Marketing strategy

• 7. Costing

1. Market position

• Summary of the current situation

• The product we sell

• The place we sell it

• The people in our business

• Our current promotion and physical appearance (building, uniform, furniture etc.)

2. Current Market

• Which broad industry we fall under?

• Physical

• Economic

• Social/Cultural

• Technological

• Eg. Agriculture

  Mining

  Manufacturing

  Electricity/water

  Wholesale

  Retail

  Accommodation/cafes/restaurants

  Transport

  Communication

  Finance

  Property

  Government

  Education

  Health/community

  Cultural/recreational

  Personal and other

3. Competitor Analysis

   Competitors:

   • People: who are they?

   • Product: what do they sell? Quality?

   • Price: How much are they charging and can we beat it?

• SWOT Analysis: Strengths, Weaknesses, opportunities, threats

  • Out internal strengths and external opportunities

  • Our internal weaknesses and external threats.

4. Target Market Analysis

• Who will be our market segment be?

• Remember a target market is:

  • Demographics

  • Geographics

  • Lifestyle

  • Behaviour

• Barries to entry - what is stopping us from entering the market?

5. Marketing Goals

• What are we trying to achieve for this period of time?

  • Expand new markets?

  • How many new costumers?

  • How many existing costumers retained?

  • How often to advertise a new menu?

  • What niche market can we try to fill?

6. Marketing strategy

• The 7 Ps + new 8th P:

  • Product, Price, Promotion, Place, People, Process, Physical, Performance

7. Costing

   What does each of our products cost to make?

   What does each of our products sell for?

   What profit do we make from each?

   Use this info to figure out which products are pulling their weight and which products are not.

Marketing Mix - AKA the four Ps

• Product, Price, Place and Promotion

• Mainly applied to goods

Product:

The goods or service that the business sells to meet the needs and wants of the target market.

Brand (images  you

see)

• Name, symbol or design that is used to identify a product and differentiate it from that of the competitor.

Branding (words that is associated with it)

• Creating a unique identity for a product or service so that customers can identify with it.

Product differentiation

• Brands and branding helps a business make its product stand out compared to competitors

Brand design

Brands must have unique elements to stand out

• Font

• Colour

• Sound

• Graphic design

• Brands need to be Trademarked to protect other companies from using it.

Packaging

• Packaging is used for the containment, protection, handling, delivery and presentation of goods

  • Primary packaging is used to package the product as it is purchased

  • Secondary packaging is used to package the product for display in teh store

  • Tertiary packaging is used to handle and transport the product.

• Does packing protect the product?

• What does packaging cost per item?

• What does the target market want?

• How can teh brand be included?

• How to minimised waste/make packaging recyclable?

Labelling

To market the product (Optional)

• Slogans

• Blurbs

• Branding

To inform the consumer (if legally required)

• Ingredients and origins

• Nutritional information

• Warnings

• Used-by-date

Market growth

• Market penetration: Selling more of teh same goods/services to teh same costumers

• New market: Sells the same goods/services to a new market

• New product: sell new goods/services to you existing market

• Diversification: New products to new markets.

Price:

• How much will consumer pay?

• How much do you need to charge to stay to cover costs

Methods:

Competitor - Price set in response to competitors prices (Milk)

Market - Increase price if demand goes up, Decrees price if demand goes down. (petrol)

Discount - Stimulate sales if demand is low or to clear stock (clothes)

Cost + Margin - Cost of production is covered and then a % margin is added to give a profit. (insurance)

Target - A sales target is required by higher management and price is made accordingly. (Franchises)

Value Based - Price is set based on value to the consumer, compared to the competitors.

Pricing strategies:

1. Skim Pricing - Setting a high price because customers are happy to pay more. (Luxury goods)

2. Penetration Pricing - Setting a low price to attract a higher number of costumers.

3. Psychological Pricing - Odd-even pricing or pricing that is just below a whole number value. 

4. Premium Pricing - Setting the price above the market price to create a sense of exclusivity.

5. Price leadership - Dictating when price should increase or decrease.

6. Loss Leadership Pricing - Selling a product below cost.

Promotion:
Promotion:
The communication of information about the product to the target market. Also attempts to influence the behaviour and attitudes of the consumer.

Public Relations:
Managing the connections between businesses and their customers or clients

Promotional Methods:

Personal selling: Saes personnel discuss product with costumers. Attempt to make sales

Publicity: Media runs stories about the product, not paid for. (TV, newspaper, Internet, viral social media, or YouTube etc.)

Sales incentives: Sales through special deals. (Sales, discounts for certain people, coupons, etc.

Advertising: Promotion in advertising media, paid for. (TV, newspaper, Internet, viral social media, or YouTube etc.)

Promotional Strategies:

Push Promotion strategy:

Retailers promote a product to customers. Selling the product to the costumers based on features etc. (Can lead to quick sales and increased visibility, but may not build strong customer relationships.)

Pull Promotion Strategy:

The business promotes product to create demand for it. The customer demands the product. (Advertising) (Builds stronger customer relationships and brand loyalty, but may take longer to see results.) 

Promotion: Promotional Strategies:

Farmer sets up a fruit and veg stall at the Sunday markets - PUSH

Apple talking about the features of the new iPhone. - PULL

Viral video of students using fidget spinners - PULL

Hungry Jacks put discount coupons into letter boxes. - PULL

Salesperson in a car showroom tell you about the new models - PUSH

Display in IGA of a newly released chip flavour - PUSH

Place

Place: The method that teh business uses to distribute the product or service to the consumers.

How the product gets from producer to consumer:

Manufacturer (Creates G&S) -> Wholesaler (Buys from manufacturer)  -> Retailer (Sells to consumers) -> Consumer (Purchasing based on teh 4 Ps

The internet is changing how these distribution chains work.

Wholesalers are dying? Internet has affected the chain.

Costumer Profiling:

Collection information about the business’ costumers. (They are consumer who want to buy their product or service. ) Business should define the specific gorup of costumers in relation to target market.

Elements: Demographics, Location, lifestyle, behaviour, buying motives.

Buying motive: Their initial motive is to satisfy a need or want. Their buying patterns are focused into two separate focus areas - rational or emotional. E.g. Car - buys for heavy items (Rational), Buys it to flex power (emotional)

Competitor Profiling:

Collect information from competitors who are producing a similar good or service. Most info is not available in teh public domain, especially if company is not public.

A basic competitor analysis: A SWOT Analysis. (Strengths, weaknesses, opportunities and threats).

 A simple competitor analysis is a table comparing main competitors along a range of elements.

A complex competitor profile can be divided into analysis of management, marketing, operations, human resources and financing.  For each of these, the competitor needs to be described.

What is the competitor's mission statement and what does it reveal about the strategic plan of the business?

Who makes the decisions in the business?

How is the competitor positioned in the market?

Are there any elements of their product development evident?

What are their human resource needs?

What is known about how the business is financed, assets it owns and so on?