Principals of business

SWOT Analysis

  • Great marketing relies on good plans

    • When you fail to plan, you plan to fail

    • Businesses must plan for the future in order to be successful

  • A business must take a critical look at itself and its business environment in order to be successful

  • A S.W.O.T analysis lists areas that can foster the business’s success and what could make it fail

  • Strengths, Weaknesses, Opportunities, Threats


Internal factors of SWOT

  • Internal factors of swot are

    • Strengths and weaknesses

  • A business must look at itself internally to understand what it is doing well and where to improve


External factors of SWOT

  • External factors of swot are

    • Opportunities and threats

  • A business must look at itself externally to understand what it ould do in the future and what it must avoid in order to be successful



Promotion Strategies

  • Promotion is the process of communicating with potential customers to influence their buying behavior

  • One of the four Ps of marketing

  • Product promotion is to promote specific products

  • Institutional promotion focuses on promoting the company rather than its products

  • Promotion exposes the business to future/potential customers

  • The message

    • Informs

      • Reach out to customers

    • Persuades

      • Uses persuasion to make people take a certain action

    • Reminds

      • Show up multiple times

  • The communication process is a series of actions on the part of the sender and the receiver of a message and the path the message follows. 

  • Six elements of the process

    • Sender -> message -> channel -> receiver -> translation -> feedback

  • The receiver is the person who reads, hears, or sees the message

  • Decoding is the translation of a message into terms the receiver can understand

  • Feedback is the receiver's response to the sends and is the final process


Promotional Mix

  • Promotional mix is a combination of the elements used in a promotional campaign

  • Advertising is any nonpersonal communication paid for and buy an identified sponsor

    • Must aim the ad at the target market

  • Public relations + Advertising + Personal selling + Sales promotion

  • Sales promotion is to encourage customers to buy a product as soon as possible

  • Visual merchandising is the process of creating floor plans, displays, and fixtures to attract customer attention and encourage purchases. 

    • The point of purchase (POP) displays are often used in this.

    • A marquee is an overhanging structure containing a sign at the entrance of the store

  • Public relations apply communication skills to promote goodwill between a business and the public

  • A press release is a story featuring useful company information

  • A formal speech is a speech which is scripted

  • Reactive public relations are used to counteract a negative public perception about the company.

  • Personal selling is any direct contract between a salesperson and a customer.Price

    Price

    • The amount of money requested or exchanged for a product

    • Price is an important element of the marketing mix

    • The price of a good or service must:

      • Cover the cost of producing and selling the product

      • Generate desired level of profit

      • Be what customers are willing to pay for the product

    Value

    • Is the relative worth of something to a person

    • Businesses use price to establish and communicate the value of products

    Value Proposition

    • The explanation of the value of the value of a certain product over others that are similar

    • Customers may be willing to pay more if they believe in the value of the goods or service.

    • Individual customers often place different values on the same product

    List Price

    • Most businesses have several tiers, or levels, of pricing

    • List price of a product is the established price printed in a catalog on a price tag or on a price list

    • The list price does not include discounts

    Selling Price

    • The actual price a customer pays for a product after any discounts or coupons are deducted

    MSRP

    • Manufacturer’s suggested retail price

    • The price recommended by the manufacturer

    • Retailers do not have to sell items at the MSRP

    Pricing Objectives

    • The price of a product plays a major role in determining whether the product and the company are successful

    • For the reason, it is important that companies set pricing objectives

    • The price must be at a level that encourages customers to purchase the product, but also generates profits for the business

    Price Factors

    • Many factors influence the price of a product

    • Company goals, Expenses, Customer perception, Competition, Supply and demand, Economic conditions, Product life cycle

    Pricing Product

    • Selling price is the amount a customer pays for an item

    • In order to set a selling price that generates profits, the costs of creating the product have to be considered

    • All products have costs related to creating and delivering them to the end user

    • For manufacturers, the selling price must cover the cost of making the goods and marketing them to customers

    • For retailers, the price must cover the cost of buying the goods and reselling them to consumers

    • Operating expenses, which include wages and utilities, are included in the cost of the product

    Break-Even Point

    • Products start making profit after reaching the break-even point, or the point which revenue from sales equals the cost of the items that is necessary to recover the money spent to create or buy them

    • At this point the company is not losing or making money, it is breaking even

    • ANy revenue made from sales after the break-even point is profit

      Product


      Product

      • Is what a business sells to satisfy customer needs

      • It is one of the four P’s of marketing which are product, place, price, and promotion

      • Without product marketing would not be necessary

      Product elements

      • All products have certain elements that may be changed to meet customer needs.

      • These elements can be organized in three categories:

        • Features

          • Facts about a good or a service

          • Size of a tablet computer

          • Option is a feature that can be added to a product by customer request

            • Optional features

        • Usage

          • Means the way something is used

          • Product usage includes the available instructions, installation, and technical support

            • Instructions

            • Installation

            • Technical support

        • Protection

          • Is broad category which includes

            • Safety inspections

            • Packaging, warranties

            • Maintenance and repair services

      Packaging

      • Protects products until customers are ready to use them

      • Some items, such as fresh food products, require special packaging to keep them fresh and healthful

      • Packaging also contain information about the product such as contents, nutritional information, and weight

      • Some packaging contains safety precautions

      Warranties and Guarantees

      • Warranty is a written document that states the quality of a product with a promise to correct certain problems that migh occur

      • The warranty promises that the manufacturer will replace or repair faulty items

      • A guarantee is a promise that a product has a certain quality or will perform in a specific way

      • A guarantee is similar to a warranty, but is not a written document


      Introduction to Marketing


      Importance of Marketing

      • Marketing

        • The activity set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

        • Consists of dynamic activities that identify, anticipate, and satisfy the customer demand while making a profit

        • Itt is one of the four functions of business

      Marketing concept

      • Marketing activities are aimed at the customer

      • An approach to business that focuses on satisfying customers as the means of achieving profit goals

        • The three elements of the marketing concept

          • Customer satisfaction

          • Total company approach

          • Profit

      Four P’s of Marketing

      • Marketing is much more than just advertising

      • Successful businesses consider each of the four P’s to provide customer satisfaction.

        • Product

        • Price

        • Place

        • Promotion

      Functions of Marketing

      • Channel management

      • Marketing-information management

      • Market planning

      • Pricing

      • The product/service management

      • Promotion

      • Selling

      Marketing Strategies

      • A plan that helps a business meet its overall goals and objectives

      • A well designed strategy first addresses the target market

      • Next it addresses the four Ps of marketing

      • Marketing strategies provide the groundwork for writing the marketing plan.

      Market Plan

      • A document describing business and marketing objectives and the strategies and tactics to achieve them

      • Marketing plans are generally written each year and updated throughout the year, as needed.


      Target the Market

      • The first step in developing a marketing strategy is to identify the target market

      • Aka market identification

      • A market is the group of people who might buy a product

      • A target market is the specific group of people at which a company aims to promote its goods and services

      Market segmentation

      • After the target market is selected the next step is the process of dividing the market into smaller groups

      • The segments are determined by different variables

      • THe variables used for market segmentation are geographic, demographic, psychographic, and behavioral

      Segmenting the market

      • Research has found that customers in the same market segments have similar buying patterns and behaviors

        • Geographic segmentation

          • A market based on where customers live, region, climate, and/or population density

        • Demographic segmentation

          • Personal statistics, a census of the number of people in a country. A marketer based off age, gender, income, ethnicity, education level, occupation, marital status, and family size

        • Psychographic segmentation

          • Preferences or lifestyle choices on choices they make, individual values, attitudes, activities, and interests that affect purchasing decisions.

        • Behavioral segmentation

          • The process of sorting and grouping customers based on relationships between customers and the good/service, behavioral variables include benefits sought, usage rate, buying status, brand loyalty, and special occasions.

      Segments

      • Once marketers have divided a market into segments, they choose which segments to target for marketing purposes

      • When the market segments are chosen, a customer profile is created for each segment

      • A customer profile is a detailed description of the typical consumer in a market segment