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AOF Entrepreneurship

Lesson 6The Role of Marketing

Student Resources

Resource Description

Student Resource 6.1 Matching Activity: Slogans

Student Resource 6.2 Organizer: The Role of Marketing

Student Resource 6.3 Reading: The Role of Marketing

Student Resource 6.4 Advertisement Activity: Competitive Advantage

Student Resource 6.5 Group Activity: Consumer Profile

Student Resource 6.6 Organizer: Marketing Mix

Student Resource 6.7 Reading: Marketing Mix

Student Resource 6.8 Culminating Project Organizer: Marketing Mix

Copyright © 20092015 NAF. All rights reserved.

AOF EntrepreneurshipLesson 6 The Role of Marketing

Student Resource 6.1

Matching Activity: SlogansStudent Names:_______________________________________________________ Date:___________

Directions: Each company and/or organization in the table is associated with one of the slogans listed below. Read each slogan and write the appropriate company and/or organization that it belongs with on the blank line. If you are unsure of which company the slogan belongs with, make your best guess or leave it blank.

McDonald’s Pringles United States Army Disneyland Nintendo 64

Verizon Apple iPod Nike Kellogg’s Frosted Flakes

Rice Krispies

Nokia M&Ms Energizer Batteries Sony PlayStation Coca-Cola

1. I’m lovin’ it _______________________

2. Once you pop, you can’t stop _______________________

3. Can you hear me now? _______________________

4. The milk chocolate that melts in your mouth and not in your hand _______________________

5. They’re grrrreat! _______________________

6. It keeps on going, and going, and going… _______________________

7. Just do it _______________________

8. It’s the real thing _______________________

9. Be all that you can be _______________________

10. Connecting people _______________________

11. The happiest place on Earth _______________________

12. 1,000 songs in your pocket _______________________

13. Snap, crackle, pop _______________________

14. Live in your world, play in ours _______________________

15. Get N or get out _______________________




Organizer: The Role of MarketingStudent Name:_______________________________________________________ Date:___________

Directions: As you watch the presentation on the role of marketing, fill in the charts below.

Types of Marketing Strategies

Marketing Strategy What Is It?

Public Relations

Marketing Materials

Advertising

Branding

Competitive Advantage



Give examples of each one of the 4 Ps and a short description of what each one means.

The 4 Ps of Marketing

Product

Place

Price

Promotion

Other Notes:




Reading: The Role of Marketing

This presentation introduces the role of marketing in developing and promoting products.



Marketing is the process of introducing and promoting a product or service to the public. Marketing, in its broadest sense, includes advertising, public relations, and sales. The goal of marketing is to make a product or service widely known, needed, and recognized by people outside the organization whose actions could positively affect the organization’s performance.

There are many different and effective marketing techniques that are used today, and each strategy is influenced by a variety of different factors. Some of these factors include identifying the targeted customer, the company’s budget, the type of product or service developed, and the competition.



As you have learned, the first step in launching a business or a new marketing plan is to research the industry, the competition, and potential customers. Entrepreneurs must understand how their product compares with those of competitors and identify the advantages they can offer customers. Advantages come in many forms—such as lower price, better quality, important features, and convenience. Entrepreneurs must also identify the audience that will be interested in those specific features and understand what this target audience is looking for in a product.

Once these key goals are identified, a marketing plan can be built around them. Every choice marketers make—from the product’s name to the font used in the packaging to the types of advertising that are used—should be designed to reach the goal of getting the attention of the right customers, suppliers, stockholders, government agencies, and so on, motivating those entities to make decisions favorable to the business.



A company’s goal is to achieve a sustainable competitive advantage over its competitors. Generally this can be achieved in the following ways:

• Cost advantage refers to a company’s ability to produce a product or service at a lower cost than its competitors. This gives the company an advantage because it can then sell the product or service for less. Competing on price is a risky strategy, because other companies can always undercut your price. However, cost advantage is often the best starting strategy for a new business. Customers know they are taking a risk with an untested product or service, and a great deal is usually the only way to “get in the door” when you don’t have a track record. Once you have established a customer base, a differential strategy can be considered.

• Differential advantage is a type of competitive advantage that differentiates a company’s product or service from its competitors’. Differential advantages include those special characteristics or benefits offered by a product or company that set it apart and above its competitors. Differential advantage is a challenge for competitors to overcome unless they have the dedication to quality you have and significant funds to invest in changing their product offering, especially if your company offers extraordinary advantage consistently.



These 4 Ps represent both a company’s business model and its marketing mix. By developing the business model around these variables, an entrepreneur can decide which parts of the business model will be the most attractive to customers and then select the ones he or she wants to highlight in marketing materials, sales pitches, and promotions:

Product—The product’s name, packaging, and features should differentiate it from the competition and provide benefits to customers.

Place—The products should be made available for sale in a place where customers will notice and expect them, and where it’s convenient to purchase them. For example, customers may not expect to find high-quality products at a discount store, and if the store is far away, customers might not come by.

Promotion—In addition to selling the right item, with the right packaging and at the right places, companies also need to think about how they inform the customer about the product. Promotions help to let customers know the product exists and educate them about their options and the benefits of the product. Promotions also remind customers of the products, even if they aren’t buying right away.

Price—Finally, price is an important selling point in many cases. For a price to be competitive, the product has to be cheaper than the competition or provide extra benefits the competition doesn’t offer, such as more convenience or better features or quality.



You can see that creating a marketing mix means more than just drawing up advertisements. Companies try to create a consistent look and feel for all of their materials, from print ads and building logos to media advertisements to signs they hang at conferences or events. The look, feel, and overarching message of these materials is called branding. Creating a cohesive brand helps companies make their names and products instantly recognizable so that customers want to buy their products. Companies can use the following to market their products or services:

• Public relations is key to an effective marketing campaign. It mainly focuses on maintaining a positive public image for a company. For example, a company might explain to a journalist why its products are unique, and the journalist might create a news segment o write a blog post that generates interest. Trends in public relations include blogs, social networking sites, and discussion forums.

• Marketing materials are the materials a company uses to reach out to its customers. An example is a monthly email newsletter sent to customers and potential customers, which explains the benefits of the company’s products.

• Advertising is a major means of promotion. Companies can buy advertising slots in a variety of media, from online radio to website ads or online directories or billboards or even slots on public benches. They could even buy ads on grocery carts, taxi cabs, and bus-stop shelters.



Before deciding you want to buy radio and television advertising slots to promote your new business, think about your marketing budget. The budget will limit and dictate your options in advertising and promoting the business.

Many professional marketers consider the return on investment of a marketing budget—that is, they track responses from each marketing channel.

Today more than ever there are low-cost marketing alternatives. Low-cost websites and social networking and profile websites can spread your message affordably. Many other avenues are also available, ranging from apps to business cards and flyers that are posted locally. Websites that have keyword-rich copy that provides content—not just sales information—will rank higher with search engines and are likelier to be read by potential customers. Instructional how-to videos on YouTube can position you as an expert in your field and bring viewers to your website.



Many businesses develop a financial marketing plan complete with a budget and the amount they hope to gain by launching the marketing campaign. While a financial plan should be measured in dollars, a marketing plan should be measured in responses to marketing content. The entrepreneur should also prepare for the eventuality that the market will change and the competitors will reposition their own products, so the marketing plan will need to be adjusted in accordance with these market changes.

A marketing plan is one part of a strategic business development plan. Sales forecasts are compared to the amount, and the type, of marketing content delivered. A marketing plan will need to make projections and forecasts about the effectiveness of the marketing content.

A marketing plan’s goals should be measured in actions the audience takes in response to the marketing content they receive. Results can be measured in website clicks, calls made in response to a flyer, or sign-ups made at the end of a promotional workshop. Be specific and provide a clear path for expanding later on.




Advertisement Activity: Competitive AdvantageStudent Name:_______________________________________________________ Date:___________

Directions: Carefully examine the different advertisements that you see. Decide which type of competitive advantage the ad is focusing on and explain your reasoning. An example has been provided for you as a reference.

Example

Company: High-Tek Kites

Product or service: High-Tek Kites provides kite rentals, sales, and kite supplies to customers.

Type of competitive advantage: Differential advantage

Characteristics of the product or service that match the competitive advantage: High-Tek provides kite rentals and supplies to consumers right on the beach. The location fills a niche that no other retailer in the area is filling. High-Tek Kites also stands out from its competitors because employees will be extremely knowledgeable in the field of kiting. The company will focus only on kite sales and services and will not carry any other products, whereas most other kite stores carry an array of random products in addition to kites.

Advertisement #1

Company:

Product or service:

Type of competitive advantage:

Characteristics of the product or service that match the competitive advantage:



Advertisement #2

Company:

Product or service:



Advertisement #3

Company:

Product or service:






Group Activity: Consumer ProfileStudent Names:_______________________________________________________ Date:___________

Directions: Review your market research results from Lesson 4 to help you describe the ideal customer for your business idea. Below, write out a description of this ideal customer by imagining the customer’s characteristics, preferences, and lifestyle. Explain how each choice you make about the customer relates to the product’s characteristics and why the product meets the customer’s needs.

Note: Your business may appeal to more than one target market and therefore have more than one type of ideal customer. The founders of High-Tek Kites realized that they had several potential target markets to reach. For this activity, just focus on one of your target markets and know that it doesn’t mean your marketing campaign can’t also be aimed at others.

Male or female:

Age:

Married or single:

How many people live in the household and their ages:

Household income:

Highest education level completed:

Type of work and job title (part time or full time, etc.):

Hobbies or interests pursued in spare time:

Types of newspapers, magazines, and newsletters read:

Awareness of the product and competition:

Existing interest in the product:



Personal values that influence purchasing decisions:

Explain your reasoning. Remember to cite the results of your market research. How did you decide to describe your customer and why does your product meet this customer’s needs?

Check to make sure your work meets the following assessment criteria: The work carefully considers and describes the demographic information about target customers.

The work carefully considers and describes the lifestyle and product preferences of target customers.

Each description of the customer corresponds to the product’s characteristics and benefits.

The work gives solid reasoning why the product meets the customer’s needs.

The work is legible and professional and uses proper spelling and grammar.




Organizer: Marketing MixStudent Name:_______________________________________________________ Date:___________

Directions: As you watch the presentation about the marketing mix, record the format, characteristics, pricing, and other information about each type of marketing media. Examples for each appear in the spaces below.

Press Releases

o Format: An announcement written in prose and sent to a blogger, newspaper, or TV or radio news outlet, that details an interesting new trend, event, product, or other news story.

o Characteristics

o Pricing

o Other Information

Marketing Materials and Collateral (Brochures, Business Cards, Newsletters)

o Format

o Characteristics: Contain both promotional and informational material, use visual elements and written materials to communicate a brand image, and attempt to persuade customers.

o Pricing

o Other Information

TV and Radio Ads

o Format

o Characteristics

o Pricing

o Other Information: Unlike the other types of ads, most companies won’t have the necessary staff talent to produce these ads and must hire contractors outside the company to create them.

Website

o Format

o Characteristics

o Pricing: Varies depending on the size and position of the ad on the site. May range from a small, static sidebar banner ad to an expandable, top-of-the-page advertisement that uses



Flash. Pricing also varies depending on the site’s traffic (e.g., how many readers it has) and frequency (how often it’s updated). Ads placed on small, local websites will be cheaper than ads placed on large national websites.

o Other Information

Social Networking/Profile Websites (e.g., Facebook, Twitter, LinkedIn)

o Format

o Characteristics

o Pricing

o Other Information

Web Promotions and Viral Marketing

o Format

o Characteristics

o Pricing

o Other Information

Apps

o Format

o Characteristics

o Pricing

o Other Information




Reading: Marketing Mix

This presentation introduces different components of a marketing mix, such as different avenues for advertising and promotion.



Public relations is an important category of marketing that doesn’t cost much for a new business. Local journalists need material to write about, and the opening of your new business may be exactly what they need for a topic. An article in the local paper or an interview with you on a local radio show is excellent publicity. People often trust news sources more than they do advertising, so an article praising your business can bring you customers.

It’s also a good idea to expand a business network by letting people around you know about your new venture. They may become customers, alert their friends about you, or be interested in working with you in the future.

By having business cards, informational brochures, and signs in relevant places, businesses can promote themselves just for the cost of creating the materials. Brochures and ads can be mailed to people who have expressed interest; these contacts are the beginning of your customer mailing list. Postage can be costly, however. You can also create an email newsletter and send out new issues regularly. Keep your newsletter interesting, short, and relevant to your readers. Otherwise your emails might seem like spam instead of effective marketing.



Newspapers, magazines, and yellow pages are fairly economical forms of print advertising. Radio and television commercials are much more expensive; many new businesses don’t have the budget required to produce them. However, some local, smaller cable and radio stations may provide lower-cost advertising options for small businesses.

Other ad venues are numerousfor example, billboards, bus and train stops and signs, benches, and grocery carts. It is a good exercise to notice in your daily life where ads are being placed and what types of products are being advertised.

Most important when choosing where to place advertising is to understand customers’ reading and buying habits. Buying ad space in a small, local magazine may be cheap, but you are wasting money if that isn’t something your customers read, because they won’t see your ad.

Targeted marketing relies on finding the small, niche places customers do pay attention to and advertising there. It may take experimentation and market research to find out what customers read.

Print advertising may seem traditional or even old-fashioned. Isn’t everyone online these days? On the other hand, print ads are everywhere. They remain effective for reaching the right customers, or companies wouldn’t buy print ad space any more. Depending on your new business, print advertising might be a key component of your marketing strategy.



Nowadays it can be cheap and easy to set up a website. Use the site to show off your products or explain your skills and provide information about your business. If you have a storefront, provide information about your hours, where you’re located, and a phone number. If you have an online catalog, make sure visitors see good photos of your products that they can purchase online quickly and easily.

You can also participate in social networking sites such as Facebook, Twitter, and industry forums to generate interest in your business, promote your services, and update customers. By offering discounts, giveaways, or free information online, you can entice people to visit your website or store.

Another relatively new way to get people excited about what you do is to launch a viral marketing program. If you can make a video related to your business that people find entertaining, they will pass it along to their friends, and you may gain new customers! These campaigns are called “viral” because of the way they can spread.



Another increasingly important form of marketing is the use of apps. Short for applications, apps are programs designed to serve specific purposes but work equally well on different devices: computers, tablets, and smartphones. Some apps only work on Android phones, some only work on iPhones, and some work on both.

You are already using apps in your marketing if you have a Facebook, Twitter, Pinterest, or Instagram account. But you can also use apps that are more specific to your new business. For example, if your business is a restaurant, you can take advantage of apps like Urbanspoon, OpenTable, or OpenEats. This way a hungry tourist who finds herself in the neighborhood of your new restaurant can read your menu, read reviews, make a reservation, and post a review afterward. Apps can be a powerful form of publicity—both good and bad.

Apps can also help you run your business and save you lots of time and money. There are apps for paying employees and bills; apps for accepting payments anywhere, right from your phone; apps that generate invoices and keep them organized; and apps to help you analyze who is visiting your website and what they’re doing once they get there. Many apps are free, too.



Marketing and advertising are key factors in making potential customers aware of your company brand and products or services, but often one more step is needed to convert your prospects into customers. Personal selling is an effective way of attracting and keeping customers. Sales personnel can range from business owners talking to clients, retail store clerks, wait staff, customer service phone operators, and telemarketers who are calling potential customers.

Personal selling lends a human touch to the marketing and sales strategy. Customers still want personal interaction with someone from the company. They can ask questions, see and handle the product, and learn why they want to buy it.

As an entrepreneur, you are going to be the first, last, and best salesperson for your business. While advertising and other marketing channels have a greater reach for accessing more people, in-person sales has the greatest impact. Your own enthusiasm for your product or service will become one of the best marketing tools your business will ever have.




Culminating Project Organizer: Marketing MixStudent Names:_______________________________________________________ Date:___________

Directions: Work with your project team to develop a marketing plan for your business using the following template questions. For your business plan, you will need to describe your target market, competitors, and marketing channels, and the main benefits of the product or the service.

Answer each statement here, and then rewrite your answers into paragraphs on a separate sheet of paper.

The 4 Ps of Marketing Strategy First, think about how your marketing strategy fits into your overall business strategy.

Price How do you think your price of your product or service will compare with competitors’ prices?

How important is price to your customers? Remember, it depends on the characteristics of the customers you are targeting.

Product How does your product or service compare with competitors in terms of quality, service,

convenience, and other factors?

o Quality

o Service

o Convenience

o Other factors



What features and associated benefits can you emphasize in your marketing?

o Feature

Benefit

o Feature

Benefit

o Feature

Benefit

Place Where would you like your products to be sold or distributed (online, in stores, home delivery)?

If you have a service, discuss how you will deliver this service to your customers and where you will be located.

What image do these delivery channels give the product (for example, discount outlets versus high-end stores)?

What image strategies can you use for a service (consider such things as the physical facility, access, response rate)?



Promotions What are your ideas for marketing materials?

How will you try to reach your customers (e.g., Internet, flyers, personal selling) to let them know about your products or services?

Target MarketBriefly describe your ideal customers:

What are the important characteristics (such as demographics or lifestyle choices) that will influence your customers’ buying decisions?

What features and benefits will they look for in your products or service?

Competitive Advantage Think about your product or service in terms of your marketing strategy. What is your stated

competitive advantage?

How will you emphasize this in your marketing strategy (e.g., through your slogan, text in your brochure or website, graphics)?

Marketing Material Selection and Image Think about the advertisements, flyers, newsletters, business cards, and other marketing materials you will develop. What sort of image will you convey for your product? How will you use graphic elements such as images, colors, fonts, and style to get your marketing message across?



Check to make sure your work meets or exceeds the following assessment criteria: The work displays evidence of careful research and planning surrounding the competitors and

industry.

The work shows careful consideration of the role of pricing in the overall marketing strategy.

The work shows careful consideration of the product’s or service’s benefits and competitive advantage in the overall marketing strategy.

The work shows careful consideration of the role of place and delivery channels in the overall marketing strategy.

The work shows careful consideration of the role of promotions and budgeting in the overall marketing strategy.

The work displays careful consideration of the business’s target market by reflecting customers’ characteristics and preferences.

The work is neat, legible, and presentable.


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