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ENTREPRENEURSHIP: Starting and Operating a Small Business, 3/e

Steve Mariotti and Caroline Glackin

DEVELOPING THE RIGHT MARKETING MIX AND PLAN

UNIT 2 • INTEGRATED MARKETING

Class NameInstructor NameDate, Semester

1. Combine the Four P’s—product, price, place, promotion—into a marketing mix.2. Choose the attributes of your product or service.3. Price your products for success.4. Find the best location for maximum efficiency and effectiveness of distribution.5. Determine the mix of promotion to use for your business.6. Find a way to add the Fifth P, philanthropy, to your business.7. Understand the importance of a marketing plan.8. Identify the critical components of a marketing plan.9. Use breakeven analysis to evaluate your marketing plan.

Performance ObjectivesAfter this lecture, you should be able to complete the following Performance Objectives

5 Marketing Mix = the 4 Ps

1. Product

2. Price

3. Place

4. Promotion

Goal: Bring the right product to the right place at the right price with the right promotion.

5 Create Your Total Product or Service Concept

A product is something that exists in nature or is made by human industry, usually to be sold.

A service is intangible –work, skills, or expertise provided in exchange for a fee.

5 Focus Your Brand

The key to building a successful brand is to focus tightly on the primary benefit you want customers to associate with your business.

Even entertainers can become a brand.

Ford’s Costly Failure: The Edsel – lacked focus, too many features failure

Ford’s Focus on Success: The Mustang – tightly focused on target market of 20-30 year olds success

5 How to Build Your Brand

Choose a business name that is easy to remember, describes your business, and helps establish mindshare.

Create a logo that symbolizes your business to the customer. (Trademark your creation)

Develop a good reputation.

Create a brand personality.

Communicate your brand personality to your target market.

5 Seven Things to build and Maintain Your Brand and Its Reputation

1. Provide a high-quality product or service.

2. Maintain the highest ethical standards.

3. Define your product or service clearly - focus.

4. Treat your employees well.

5. Make all your advertisements positive and informative.

6. Associate your company with a charity.

7. Become actively involved in your community.

5 PRICE: What It Says about Your Product/Service?

Strategies & Tactics for Effective Pricing: Value Prestige Cost-Plus Mark-Up Penetration Skimming Meet-or-Beat-the-Competition Follow-the-Leader Personalized Variable Price Lining

5 Place: Location, Location, Location!

Key Factors in Deciding upon Location• Access for customers

• Access to suppliers

• Climate and geography

• Convenience

• Cost of facilities

• Demographics

• Economic conditions and business incentives

• Governmental regulations and laws, including environmental impact

• Labor pool

• Proximity to competitors

• Visibility

5 Promotion: Advertising + Publicity

Using advertising + publicity to get your market message to your customers

Advertising (purchased): billboards, TV ads, magazine ads

Publicity (free): mentions in media such as articles, stories on TV, etc.

5 Use Integrated Marketing Communications for Success

Reinforce the Company’s Unique selling Proposition

5 Promotional Planning

Determines a Promotional Budget

- Percentage of sales

- Competitive spending

- Excess funds

- Objective and Task

5 The Advertising Advantage

Building brand and image

Providing information

Persuading

Stimulating action

Reinforcing the purchasing decision

Types of Advertising

- Institutional advertising

- Product advertising

Media Planning & Buying: Focus on Your Customer

Marketing Materials Should Reinforce Your Competitive Advantage

5 Sales Promotion Solutions

When to Use Promotional Tools

Advertising Specialties

Trade Show Exhibits

Mall Carts or Kiosks

5 Alternative Marketing

Guerilla Marketing

Buzz Marketing

Product Placement/Branded Entertainment

Lifestyle Marketing

In-Store Marketing

- Samples or Demonstrations

- Point-of-purchase and shelf placement

Other Media Venues

Edutainment-a combination of education and entertainment used to in promotion to make a more lasting impression on an audience.

5 Other Media Venues

Exhibit 5-4 Other Media Venues

Ambient Advertising Indoor Advertising

Other Advertising

Parking Lots Movie Theaters Carry-Out Menus

Tunnels Video Games Shopping Bags

Escalators Bathroom Stalls Advertising on Clothing

Benches (Bus Stops) Commercial Trucks

Brochure Racks

Airline In-Flight

5 E-Active Marketing

E-Active Marketing- combination of the two major components of Internet marketing – e-commerce and interactive marketing.

E-C0mmerce

Interactive Marketing

Online Advertising

Brand Spiraling-the integration of a company’s conventional offline branding strategy with its internet strategy, which uses conventional approaches to drive traffic to its online sites.

5 E-Active Marketing

Blogs- a journal that appears on the internet periodically (often daily) and is intended for the public (short for Web log)

Blogosphere-the aggregate term for all the blogs on the Internet

Blogger www.blogger.com

LiveJournal www.livejournal.com

Twitter www.twitter.com (micro blogging)

TypePad www.typepad.com

Vox www.vox.com

WordPress www.wordpress.com

Xanga www.xanga.com

5 E-Active Marketing

Online Social Networks- social networks such as Facebook, MySpace, and LinkedIn.

Stealth Marketing-undercover or deceptive marketing efforts that are intended to appear as if they happened naturally.

Mobile Social Networking- the updating of social network sites via mobile handsets.

Consumer Generated Advertising

Viral Marketing- the process of promoting a brand, product, or service though an existing social network, in which a message is passed from one individual to another

5 Publicity Potential

Generating Publicity

- Pitch Letter

- Press Release

Telling the Story (make the connection of: Who, What, When, Where, & How)

Sample Press Release

Follow Up a Press Release

Public Relations

- Special Events

- Sponsorships

- Networking

- Public Speaking

5

The Fifth P: Philanthropy

- Philanthropy – Foundation - Not-For-Profit Organization

Cause Related Marketing

Gaining Goodwill

Teach for America and Upromise

What Entrepreneurs Have Built

You Have Something to Contribute

- Pledge a percentage of your profits to a nonprofit organization you have researched, believe, and respect.

- Become a mentor to a younger entrepreneur

- Volunteer for an organization that helps your community.

- Sell your product to a charity that you support at discount.

- You will realize that you have a lot to give…not always money.

5 Developing a Marketing Plan

The roles of the marketing plan includes:

convincing skeptical investors that your plan has merit.

using and disclosing market studies.

identifying the target market for the organization

evaluating the competition

demonstrating the pricing strategy

detailing the advertising plan

5 Market Analysis

Marketing analysis-an analysis of the market is the heart of the marketing plan that brings the various strategic and tactical components of the promotional efforts together into a single comprehensive section

5 Marketing as a Fixed Cost

Calculate Your Breakeven Point: this is why calculating the breakeven point will tell you if your marketing plan will work.

Fixed Cost = Breakeven UnitsGross Profit per Unit

KEY TERMS

blogblogospherebrand spiralingbuzz marketingcause-related marketingcost-plus pricinge-active marketingedutainmentfollow-the-leader pricingfoundationgoodwillguerilla marketinginstitutional advertisinglogomarkup pricingmeet-or-beat-the-competition pricing

mobile social networkingnot-for-profit organizationpenetration pricingpersonalized pricingphilanthropypitch letterpress releaseprestige pricingprice liningproduct advertisingstealth marketingtrademarkskimming prices strategyvalue pricingvariable pricing strategyviral marketing