Introduction to Marketing

Use this website to find FACTS about your Target Market

• http://www.census.gov/population/www/ – Click on the Population Finder link on

the left– Enter the zipcode of your business– Click on Fact Sheet

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

Did you Know!?Social Media Marketing 2012

• http://www.youtube.com/watch?v=XVQ1ULfQawk

• http://www.youtube.com/watch?v=wgQNZa3C7BU

The Trilogy of Social Media1. Blogging

1. Interaction

2. Be on search engines

3. Email addresses of TM = power

2. Twitter1. 2012: 500 million registered users

2. Real-time audience and info

3. Networking

3. FB Fan page1. 2012: 955 million registered users

2. More fans = social likeability of you!

Other Social Media Tools1. Youtube Account and videos

1. Commercials

2. Tour of your Store

3. About us…Your compelling story as the Entrepreneur ; interviews with Customers/Employees: Testimonials

2. Linked In:1. Professional networking and relationship

management website

2. 175 million other professionals who are sharing connections, ideas, and opportunities. And it's free

3. You have to build a profile

KitchenAid tweet about Obama’s grandmother brings apology

– Story• http://news.yahoo.c

om/blogs/lookout/kitchenaid-tweet-obama-dead-grandmother-brings-apology-130031473.html

• Video:– http://news.yahoo.c

om/blogs/lookout/kitchenaid-tweet-obama-dead-grandmother-brings-apology-130031473.html

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 : TARGET MARKET 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/

Part 5: The Market Analysis

• Market Analysis– Actual assessment of the target population,

competition, and needs for promoting a product or service

– This is the 1st step in determining if there is a NEED or WANT for your business in your proposed location

Analysis of Target Market (TM)

Who is my tm and why?What are their personal demographics?

• Age range• Gender• Income range• Educational attainment

What are their geographical demographics?• City and town your TM can be found in• Population of this city

Is my tm businesses or private consumers?Is the current market saturated?

• How many competitors do I have in my area?

Demographic Data Source– http://quickfacts.ce

nsus.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. Parents 2. Seniors3. Business People 4. College/Grad School 5. Health Phanatics

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

Segment your TM!http://www.youtube.com/watch?v=pxcNVrwkroU&feature=related

1.

2.

3.

4.

The New Look at the 4 Ps

• http://www.youtube.com/watch?v=JIirzTdaey4&feature=related

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 REASONABLY own

This is called FORECASTING

Why is this necessary?

• To determine if your selected geographic location to open your business, has the target market to support your business by covering all of your expenses and making a profit

• Do the demographics you need to support your business, exist in this location?

% 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

Promotions• a “paid for” way of promoting

products, services or information • a form of communication between

the company and the targeted market

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

Types of Promotions Watch: www.youtube.com/watch?v=F5ftoHwsBbA

Direct Promotions– WORD OF MOUTH– Website– Emails– TV commercials– Magazine and

Newspaper ads– Internet ads on

relevant websites– Billboards– Paid Celebrity Endorser– Sponsor local and

national events

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…

• Watch• http://www.youtube.co

m/watch?v=4LFQIoc49ZM

• http://www.youtube.com/watch?v=eQ5uztI9EvI

Federal Donuts in Philly

• Success Story

• Now at 2 locations• http://www.uwishunu.com/2011/03/federal-donuts-a-donuts-

and-fried-chicken-shop-from-chef-michael-solomonov-to-open-in-south-philadelphia-this-summer/

• http://federaldonuts.com/main/

Ten brands that may disappear in 2013

• Read– http://www.marketwatch.com/Story/story/

print?guid=6FCAE664-09BA-11E2-95D5-002128049AD6

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• If a negative story comes out, how are

you going to RESPOND??

PR Stars

• Michael Vick: The Path to Redemption – http://www.youtube.com/watch?v=go0riZ_DfHQ

• Toyota– http://www.youtube.com/watch?v=GWsAnlFZVrY

• Five Minute Guru – http://www.youtube.com/watch?v=zTmQXsw-NSc

• Merrymead Farms

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”

Marketing Mix Case Study

• Introduction• NIVEA® is an established name in high

quality skin and beauty care products. It is part of a

• range of brands produced and sold by Beiersdorf. Beiersdorf, founded in 1882, has grown to

• be a global company specialising in skin and beauty care.

• http://www.thetimes100.co.uk/downloads/nivea/nivea_13_full.pdf

Business Nightmares: Marketing Mess-Ups Pt 1 of 4 • http://www.youtube.com/watch?

v=9CtM0vCOCDg

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