Marketing and the Marketing MixAn e-book for Entrepreneurship I10th 12th Grades

1MarketingIts the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.What is it?

The Marketing ConceptThis is the philosophy that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired products/services more effectively and efficiently than competitors do.

The Marketing MixThe combination of the four strategies for product, price, place and promotion the 4 Ps of marketing. These decisions make up a businesss marketing mix strategies that work together to affect the marketplace.

Check out A New Look at the 4 Ps of Marketing videoThe Marketing Mix SongClick HereClick Here

Product ConsiderationsChallenge time!Before we discuss nine different product considerations, do this quick scatter game to see if you can define the four Ps!

Table of ContentsMarketingThe Marketing ConceptThe Marketing MixProductPricePlacePromotionLets ReviewResources

Product ConsiderationsChoice of productsProduct consistency is vital.Do all of the products/services fit together?

Promotion Considerations

Challenge time!Before we discuss five different promotion considerations, do this quick crossword puzzle on the nine product considerations!

Lets Review!Read over The Marketing Mix and the 4PsPlay this Marketing Mix memory gameQuizlet1 - Review using the flash cards, playing the scatter game and taking a testQuizlet2 - Review using the flash cards, playing the scatter game and taking a test

Thanks to These Great Resources!QuizletMicrosoft ClipArtNC Department of Public InstructionThe Free DictionaryYouTubeProduct ConsiderationsA warranty provides assurance to the buyer that the product is as it is represented to be or that it will be as it is promised to be.A certain level of performance is expected from all products; however, some products may not meet customer expectations.What steps will the business take to back up the products and ensure customer satisfaction?

Product ConsiderationsLevel of quality relates to customer perception of product valueIf the customer perceives higher quality, a higher price will be accepted.Interpretation of customer perceptions must be accurate to succeed with higher prices.

Product ConsiderationsBusiness image is the mental picture customers have of the business. How do you want customers to view your business?Discount (Wal-Mart): Image is built on low prices everyday.Popular-priced (Target, Marshalls): Image is built on the concept of quality designer brand merchandise at lower prices.Exclusive (Nordstroms): Image is built on the superiority of the products carried by the business.Specialty (Victorias Secret): Image is built on the single brand or single type of merchandise carried.

Product ConsiderationsProduct research and development is necessary in order to remain competitive. An organization must consistently strive to improve products and services for customers and to keep up with trends, technology and customer spending patterns.

14Product ConsiderationsPositioning is the perceived standing of a business or product in the minds of its customers as compared to the competition.

15Price ConsiderationsPrice setting What are your goals?Price below the competition?Ensure a 15% (or some other established rate) profit?Just break even?

Price ConsiderationsTerms are the conditions of purchase and payment between suppliers and buyersWhen does the bill have to be paid in full?Who will pay shipping charges?

Price ConsiderationsDiscounts are reductions in the price of goods, which are sometimes negotiatedSeasonal discounts are given for buying products during the off-season.Quantity discounts are for buying in large quantities.Cash discounts may be allowed for paying the bill early.

Place ConsiderationsSpecific stores Is this product sold anywhere else? Does this business have exclusive rights to distribute the product? Some products, like Yankee Candles and Snow Babies, require retailers to sign a licensing agreement to distribute these items.

21Place ConsiderationsTransportation What carrier will you choose to move your products? Remember, the more people that touch the product between the manufacturer and the consumer, the higher the cost of the product will be to the final customer.Common carrier: Provides transportation services for any business in its operating area for a fee.Contract carrier: For-hire carriers that provide equipment and drivers for specific routes according to contracts between the carrier and the shipper. Private carrier: Transports goods for an individual business. Equipment can be purchased or leased to meet the specific transportation needs of the business.

Promotion ConsiderationsAdvertising - Non-personal promotional messages paid for by an identified sponsor utilizing media such as television, radio, magazines, newspapers, billboards, and direct mail.

Promotion ConsiderationsPersonal Selling - Communication between a salesperson and a customer intended to influence the customers buying decision.High labor cost is involved, thus it may be expensive.Salespeople can be one of the most powerful promotional tools. Train them well and treat them well.

Promotion ConsiderationsPublicity - Information about a business or its products distributed through various media at no cost to the business and often not controlled by the business.Publicity is free, but since it is often not within the control of the business it can cost the business in a variety of ways.News articles as well as negative press coverage fall into the category of publicity.

Promotion ConsiderationsPublic Relations - Activities designed to create a favorable image for the business, its products, or its policies. Sponsorship of a local charitable activity would be public relations.

Promotion ConsiderationsSales Promotion - All promotional activities other than advertising, personal selling, publicity, and public relations designed to stimulate sales and sales effectiveness. Coupons, contests, rebates, displays, and other short-term incentives are considered sales promotion activities.