5 ENTREPRENEURSHIP: Starting and Operating a Small Business, 3/e Steve Mariotti and Caroline Glackin...
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Transcript of 5 ENTREPRENEURSHIP: Starting and Operating a Small Business, 3/e Steve Mariotti and Caroline Glackin...
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5
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
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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
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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.
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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.
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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
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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.
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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.
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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
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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
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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.
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5 Use Integrated Marketing Communications for Success
Reinforce the Company’s Unique selling Proposition
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5 Promotional Planning
Determines a Promotional Budget
- Percentage of sales
- Competitive spending
- Excess funds
- Objective and Task
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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
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5 Sales Promotion Solutions
When to Use Promotional Tools
Advertising Specialties
Trade Show Exhibits
Mall Carts or Kiosks
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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.
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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
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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.
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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
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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
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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
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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.
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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
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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
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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
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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