Introduction to Marketing

Marketing: the 5Ps

The on-going process of planning and executing the:

(1) the product

(2) the pricing

(3) the promotion

(4) the placement

of ideas, goods or services to meet and satisfy

(5) (People's) needs or wants

The Marketing MixThe 5 P’s

1. Product /Service/ Idea description / purpose what are you selling?

2. Placement where are you going to sell it Location, Location, Location

Geographic location in what forum: store/online/a selected

retailer

3. Price how much is it worth how valuable is it to TM how can you make a profit: Mark-up % What is your pricing strategy compared to

competition Demand and Price relationship (elastic/inelastic)

4. Promotion What forms of promotions will you use how will you reach you TM how will you convince your TM to buy this service

or good

People– Who is the Target Market?

• Know the Demographics:' population characteristics'

– Age Range– Gender– Education Level– Income Range– Where are these people located?– Psychographics : personality traits / likes and

dislikes

– Accurate Information can be attained through the US Census Bureau: http://www.census.gov/

Demographic Data Source– http://

quickfacts.census.gov/qfd/states/42000.html

Target Market Segmentation:breaking down your TM

into smaller groupsVariables

1. Demographics2. Geography3. Psychographics

Key questions

1. What do they buy?

2. How do they buy?3. Where do they

buy?4. When do they

buy?5. Why do they buy?6. Who buys?

One Product Marketed to Many Segments

Market Panera Bread to 5 different Segments

1. 2. 3. 4. 5.

Market Research

• understanding consumers and their needs/wants• Psychology of who is the TM• the core competence at the heart of any

company with a vision for the future. • the process of collecting and analyzing

information about the customers you want to reach, called your target market. – This information provides you with the business

intelligence you need to make informed decisions.

• Google Analytics as an excellent, leading market research tool

Most Popular Market Research Methods

1. Google Analytics – ONLINE….where is your TM shopping, what are they reading, what are they “clicking” on!

2. Surveys 3. Focus Groups – putting together a

TM and asking for feedback4. Personal Interviews

Google Analytics

Calculate the Market Potential:

Market Potential: The amount of customers that are potentially willing to buy your product/service

Math CalculationThe total amount of customers that are willing to purchase the product*% of market you could own

% of Market Ownership

• You must look at who are you competing with– Use www.yellowpages.com

• List them• Break down who owns what % of the

market• See where you could fit in

Calculate the Sales Potential

Sales Potential: The maximum percentage of Revenue that can be earned

Math Calculation:Market Potential*usage rate (how many units sold per month / per year)*$$/per unit

Advertising and Promotions

• a “paid for” way of promoting products, services or information

• It is a form of communication between the company (manufacturer, organization, etc) and consumer or the targeted market

• Use all known media forms and constantly seek new media, new channels of communication.

Types of Promotions

Direct Promotions– Website– Emails– TV commercials– Magazine ads– Newspapers ads– Internet ads on

relevant websites– Billboards

Indirect Promotions

– Product Placement in movies, tv shows, video games, celebs• Every award

show…”who are you wearing tonight?”

• Have celebrities wear your clothes/use your product…

Public Relations

• Helps raise awareness about the company through a variety of different means

• the management of relationships between an organization and the public

• Image development and control

Internet / E-Commerce

• Advertising your business through the internet, email and Social Networking

• Reaching your TM through YOUR website AND websites that your TM uses

• Selling your product / service online instead of OR in addition to, a physical location

• Expert in website design• Expert in knowing where your TM is

“clicking”

Primary Marketing Tool: Your Website

• Important Pages– Homepage– About Us– Contact Us– Product/Service List

Other Marketing “Musts” online

1. Search Engine Results!• What Google Looks for:

• Link Popularity • Content of Page• Domain Name• If you “pay them an extra fee” to be on top results

• Pay Per Click (pay Google/Yahoo everytime your link is clicked on)

• Pay for Performance (pay to be on top of reulsts page)

2. Banners and Pop-up Ads on OTHER websites where your TM goes

3. Online video commercials on OTHER websites where your TM goes

• Primarily news websites (before a person would watch a video, they’d have to see your commercial)

Important Qualities for your Website

1. Strong Brand Awareness– Logo and slogan in the same place on every

page2. Appeal to Many Segments within your Target

Market3. Promotions offered to get them in the door and

keep them checking your website for updates4. Easy navigation and menu bars (left and bottom)5. Many ways to contact them

– Email, phone, address, social networks6. Clear pricing strategy (inexpensive, moderate, or

premium) or have actual prices listed