Marketing Fundamentals | Marketing | Intellectual Property

eLearning University

SmallBizU

Marketing 101: The Fundamentals
Presented By SmallBizU Online eLearning Classroom
http://www.smallbizu.org

© copyright 2002 SmallBizU

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Objectives of this course…
 To help you understand what marketing is.  To help you learn how to conduct market research.  To help you understand how to analyze your market environment and determine your target market.  To help you determine how to position your product.  To educate you on the 4 P’s (product, price, place & promotion) and how to apply them to marketing.  To show you the basics on how to create a marketing plan.
SmallBizU

Marketing 101: The Fundamentals

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Course Outline
1. What is marketing? 2. Conducting market research 3. Analyzing the market environment 4. Selecting your target markets 5. Market positioning 6. Designing products & services 7. Pricing products & services 8. Placing products & services. 9. Promoting products & services 10. Creating a marketing plan
SmallBizU

Marketing 101: The Fundamentals

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| COURSE OUTLINE

What Is Marketing?

SmallBizU

Marketing 101: The Fundamentals

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| COURSE OUTLINE

What is marketing?
 Most people mistakenly identify marketing with selling and promotion.  While selling and promotion are a part of marketing, they are not most important part.  In Principles of Marketing Philip Kotler stated:
– If the marketer does a good job of identifying consumer needs, developing appropriate products, and pricing, distributing, and promoting them effectively, these goods will sell very easily.
SmallBizU

Marketing 101: The Fundamentals

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SmallBizU ™ Marketing 101: The Fundamentals Slide 7 of 153 .| COURSE OUTLINE Defining Marketing…  Marketing can be defined as an activity directed at satisfying needs and wants through exchange processes.  The ultimate goal of marketing is to make selling nonessential.  To know and understand the customer so well that the product or service fits him or her and sells itself.

services. SmallBizU ™ Marketing 101: The Fundamentals Slide 8 of 153 . services.| COURSE OUTLINE Goods.  For this course.  A service is providing an intangible benefit to customers. Services. & Ideas…  Marketing deals with goods.  An idea can include concepts or images. we will use the word product to refer to goods.  A good is something someone can touch. and ideas. and ideas.

Basic human needs include food.| COURSE OUTLINE Needs. clothing. wants and demands. & Demands…  One of the underlying concepts of marketing is trying to satisfy a customer’s needs.  Wants are simply needs shaped by culture and the individual. Wants.  Demands are simply the wants of a consumer when backed by the ability to pay for that want. SmallBizU ™ Marketing 101: The Fundamentals Slide 9 of 153 . safety and belonging.  Needs are plentiful. warmth.

SmallBizU ™ Marketing 101: The Fundamentals Slide 10 of 153 .| COURSE OUTLINE Exchange Processes…  Marketing usually occurs to help facilitate an exchange between a buyer and seller.

including: – – – – Competition Laws and Regulations Economic and Social Conditions Cultural Factors  These forces can be dramatic and difficult to predict.  Be aware of these forces because they can create threats and generate opportunities for your business.| COURSE OUTLINE Dynamic marketing environment…  There are many forces that affect the marketing environment. SmallBizU ™ Marketing 101: The Fundamentals Slide 11 of 153 .

| COURSE OUTLINE The marketing mix…  The marketing mix is another important concept when it comes to marketing. SmallBizU ™ Marketing 101: The Fundamentals Slide 12 of 153 .  The marketing mix refers to activities that a firm can control to produce the response it wants from the target market.  These variables can be categorized into four groups. also know as the four P’s of marketing.

4. SmallBizU ™ Marketing 101: The Fundamentals Slide 13 of 153 . 3. Promotion – How you raise awareness with your target market. 2. Price – The amount you will charge for your product.| COURSE OUTLINE The 4 P’s of marketing… 1. Product – This is what you are offering to your target market. be it a tangible product or a service. Place – Channels your product will go through to reach the customer.

 Positioning  Positioning is not dealing with where you will place your product in the market.| COURSE OUTLINE The 5th P of marketing…  While the previous four P’s are important to the marketing mix. there is one that is left out.  Marketing Mix worksheet SmallBizU ™ Marketing 101: The Fundamentals Slide 14 of 153 . but where you will place you product in the mind of the consumer.

| COURSE OUTLINE Conducting Market Research SmallBizU ™ Marketing 101: The Fundamentals Slide 15 of 153 .

consists of information collected for the specific purpose at hand.| COURSE OUTLINE Marketing research data…  There are two main types of data that will help you in researching your market.  The first is secondary data. Secondary data is information that already exists somewhere.  Primary data. It was collected for another purpose. SmallBizU ™ Marketing 101: The Fundamentals Slide 16 of 153 .

 When collecting secondary data evaluate it carefully to make sure that it is: – – – – Relevant Accurate Current Impartial ™ SmallBizU Marketing 101: The Fundamentals Slide 17 of 153 .| COURSE OUTLINE Start with secondary data…  Researchers will usually start by collecting secondary data.  Secondary data can be obtained quicker and at lower costs.

 The following sources should help you in getting started: – – – – NAICS Code Hoovers Standard & Poor’s Trade Associations SmallBizU ™ Marketing 101: The Fundamentals Slide 18 of 153 .| COURSE OUTLINE Researching your industry…  With all the resource outlets that exist today. there are many opportunities for you to gather secondary information on the industry you will be participating in.

SmallBizU ™ Marketing 101: The Fundamentals Slide 19 of 153 .| COURSE OUTLINE Researching your customer…  Before you start researching your customer. it is important that you determine whether they will be individuals in a particular area or if they will be other businesses.

– – – – Consumer expenditure surveys Census data Demographics Psychographics • VALS – (Values. Attitudes. & Lifestyles Surveys) • Zip code psychographics SmallBizU ™ Marketing 101: The Fundamentals Slide 20 of 153 .| COURSE OUTLINE Researching consumers…  There are many secondary data sources for researching consumers.

the following links may be helpful in conducting research: – Business expenditure survey – Economic census – IRS data SmallBizU ™ Marketing 101: The Fundamentals Slide 21 of 153 .| COURSE OUTLINE Researching businesses…  If your target customers are other businesses.

SmallBizU ™ Marketing 101: The Fundamentals Slide 22 of 153 . and Dun & Bradstreet are all sources that can help you estimate your target market size. Census.  You need to estimate the size of your target market. RMA.| COURSE OUTLINE Estimating your market size…  After you have determined who your customer will be and found some of their characteristics.  IRS.

SmallBizU ™ Marketing 101: The Fundamentals Slide 23 of 153 .| COURSE OUTLINE Collecting primary data…  Since primary data does not already exist it can become very costly and time consuming to gather.  These methods can be done by mailings. survey. telephone calls.  The most common methods are observation. and experiment. and personal interactions to name a few.  There are several ways to collect primary data.

| COURSE OUTLINE The three research approaches…  Data is gathered in the observational approach by watching people in either a natural or artificial setting. and then measuring the effects. SmallBizU ™ Marketing 101: The Fundamentals Slide 24 of 153 .  The survey approach is best suited for those who are looking to gather descriptive information.  The experimental approach involves selecting two groups. giving them different treatments.

 Individual interviewing is another way of gathering information.  Telephone interviewing costs more than mail questionnaires but can provide more information quickly.  Gathering a group of people together to discuss certain topics with a trained interviewer is known as group interviewing.| COURSE OUTLINE Contacting research subjects…  With mail questionnaires you can collect a fairly large amount of information at a low cost. SmallBizU ™ Marketing 101: The Fundamentals Slide 25 of 153 . This type of interviewing may require an incentive to get people to participate.

SmallBizU ™ Marketing 101: The Fundamentals Slide 26 of 153 . – Carefully choose your wording of each question. – The sequence of the questions is also important.| COURSE OUTLINE The anatomy of a questionnaire…  When developing a questionnaire keep the following in mind: – Take your time to make sure that it is carefully developed and tested. – Make sure that all the questions included in the survey are necessary.

 Make sure that you report only major findings. SmallBizU ™ Marketing 101: The Fundamentals Slide 27 of 153 .  Do not use too many statistical analyses just for the sake of using them.  Put your findings into simple terms so that even someone not familiar with the survey will be able to understand them.| COURSE OUTLINE Interpreting market research…  Interpreting data can easily become overwhelming if you are not careful.

| COURSE OUTLINE Analyzing The Market Environment SmallBizU ™ Marketing 101: The Fundamentals Slide 28 of 153 .

 The microenvironment is the immediate environment that effects the companies ability to serve customers.  The macroenvironment consists of larger social forces that affect all players in the microenvironment. SmallBizU ™ Marketing 101: The Fundamentals Slide 29 of 153 .| COURSE OUTLINE Macro and micro environments…  The marketing environment is made up of two environments.

SmallBizU ™ Marketing 101: The Fundamentals Slide 30 of 153 .Accounting.  For this reason. Manufacturing.  All these departments will have an impact on the marketing decisions and actions of the company. R&D.| COURSE OUTLINE Analyzing your company…  All groups in a company . the marketing manager should try to work closely with these departments and others when establishing a marketing plan. Top Management – are part of a company’s microenvironment.

SmallBizU ™ Marketing 101: The Fundamentals Slide 31 of 153 .| COURSE OUTLINE Distribution channels.. warehouses and transporters are just a few of the factors that will effect the business.  Distribution channels will also play a role in the microenvironment. middlemen.  Be aware of these factors and how they will affect your market planning and decisions..  Suppliers.

| COURSE OUTLINE Analyzing your customers…  Which customer market will the company operate in? – – – – – Consumer Industrial Reseller Government International  Each of these markets’ characteristics should be analyzed on how they will effect the company. SmallBizU ™ Marketing 101: The Fundamentals Slide 32 of 153 .

SmallBizU ™ Marketing 101: The Fundamentals Slide 33 of 153 . you should then analyze competitive tools that will set you apart from the competition or give the competition an advantage over you.  Once you determine the number of competitors.| COURSE OUTLINE Competitive forces…  The number of firms that supply a similar product will play a role in the competitive environment.  The first competitive tool most companies will use is price.

 Also develop an understanding of the market you are participating in.| COURSE OUTLINE Monitoring competition…  Be aware of the actions of your competitors.  and what the customers in this market want. SmallBizU ™ Marketing 101: The Fundamentals Slide 34 of 153 .

 SEPTE stands for… – – – – – Social environment Economic environment Political and legal environment Technological environment Environmental issues SmallBizU ™ Marketing 101: The Fundamentals Slide 35 of 153 .| COURSE OUTLINE SEPTE analysis…  A SEPTE analysis is a process that helps in analyzing the macroenvironment.

 Some social factors include: – – – – population growth rates population shifts age structure (youths.| COURSE OUTLINE Social environment…  Social environmental factors include demographics and cultural aspects.  These factors affect customer needs and the size of potential markets. young adults. etc. retirees.) the changing in family structure ™ SmallBizU Marketing 101: The Fundamentals Slide 36 of 153 .

| COURSE OUTLINE Economic environment…  Economic trends can affect the marketing environment in several ways. SmallBizU ™ Marketing 101: The Fundamentals Slide 37 of 153 .  Also take into account the income distribution and the average income of your target market.  Fluctuations in real income determine how much consumers will have to spend on discretionary goods and services.

| COURSE OUTLINE Other economic factors…  Other economic factors include income. SmallBizU ™ Marketing 101: The Fundamentals Slide 38 of 153 .  These factors can have a substantial impact on the marketplace. and savings and borrowing patterns. interest rates. cost of living.

FCC.| COURSE OUTLINE Political and legal environment…  Developments in the political and legal environment can have serious consequences on your marketing efforts. – Growth of public interest groups that positively or negatively affect your business. SmallBizU ™ Marketing 101: The Fundamentals Slide 39 of 153 . or EPA on your company.  Be aware of: – Legislation regulating business – The affects of government agencies such as the FDA.

automation and rate of technological change. SmallBizU ™ Marketing 101: The Fundamentals Slide 40 of 153 .| COURSE OUTLINE Technological environment…  Technological factors can lower barriers to entry and influence outsourcing decisions.  Some examples of technological factors include R&D activity.  Another factor that may affect the technological environment is if a company concentrates only on minor improvements or major innovations.

increased levels of pollution. SmallBizU ™ Marketing 101: The Fundamentals Slide 41 of 153 . and government regulations and intervention all play a role in the environmental marketplace.| COURSE OUTLINE Environmental issues…  In our ever changing world.  Impending shortages on raw materials. increased cost of energy. marketers should pay close attention to certain environmental factors that could create tremendous impacts on the marketplace.

 The following worksheet will help you through the process. apply it to your own marketplace.| COURSE OUTLINE SEPTE analysis…  Now that you have walked through the steps of the SEPTE analysis.  SEPTE analysis worksheet SmallBizU ™ Marketing 101: The Fundamentals Slide 42 of 153 .

| COURSE OUTLINE Selecting Your Target Markets SmallBizU ™ Marketing 101: The Fundamentals Slide 43 of 153 .

| COURSE OUTLINE Consumer vs. Business…  The first step in selecting your target market is to determine whether your customers are consumers or businesses and industries. then ask yourself:  Is there really more than one target market here? SmallBizU ™ Marketing 101: The Fundamentals Slide 44 of 153 .  Keep in mind that you can have more than one target market. However. if you find the description of your market too broad or general.

national or international level?  You also need to decide what the geographic makeup of your target market will be. suburban. SmallBizU ™ Marketing 101: The Fundamentals Slide 45 of 153 .  You can classify your target market as either rural. or a mix of any of these.  Will your customers be mostly at the local.| COURSE OUTLINE Geographic location…  Next consider the geographic level you will target. state. urban.

| COURSE OUTLINE Demographic variables…  What characteristics will your target market share that will differentiate them from others?  These variables should be measurable and can include any of the following: Age Gender Race Ethnicity Income ™ .Family Size .Occupation .Social Class SmallBizU Marketing 101: The Fundamentals Slide 46 of 153 .Marital Status .Education .

– U.S. Census Bureau – Consumer Spending Surveys – Business Expense Surveys – American Factfinder – State and County Quick Facts – EasiDemographics SmallBizU ™ Marketing 101: The Fundamentals Slide 47 of 153 .| COURSE OUTLINE Demographic resources…  Many resources are available to help you define the demographics of your target market.

 Value. personality.  One of the most popular surveys of psychographics is known as the VALS. Attitude. Lifestyle Surveys SmallBizU ™ Marketing 101: The Fundamentals Slide 48 of 153 . and social class.| COURSE OUTLINE Psychographics of your market…  Psychographics help define characteristics of a group based on their lifestyle.

 For more information go to: – http://www.sric-bi.com/VALS/ SmallBizU ™ Marketing 101: The Fundamentals Slide 49 of 153 .| COURSE OUTLINE VALS…  VALS place consumers into certain segments based on their responses to a particular survey.  These segments are then defined by certain characteristics and traits that they share.  There are eight segments that they may be placed into.

wjsp?System=WL SmallBizU ™ Marketing 101: The Fundamentals Slide 50 of 153 .claritas.| COURSE OUTLINE Zip code psychographics…  People with similar lifestyles tend to live in the vicinity of one another.  Zip code psychographics can help you define characteristics of a region by just knowing its zip code  For more information go to: – http://cluster2.com/YAWYL/Default.

– – – – Are you targeting consumers or a business/industry? What is the geographic makeup of your target market? What are the demographics of your target market? What are the psychographics of your target market? SmallBizU ™ Marketing 101: The Fundamentals Slide 51 of 153 . when selecting your target market it is easiest to start broad and then move to more narrow to define your market.| COURSE OUTLINE Selecting your target market…  To recap.

| COURSE OUTLINE Market Positioning SmallBizU ™ Marketing 101: The Fundamentals Slide 52 of 153 .

| COURSE OUTLINE The concept of positioning…  One of the best-known names in American advertising circles is David Ogilvy. Ogilvy listed 32 things his ad agency had learned. SmallBizU ™ Marketing 101: The Fundamentals Slide 53 of 153 .  He claimed that marketing results depended less on how advertising was written than how the product or service was positioned.  After spending several billion dollars on advertising. he said that the single most important decision involved positioning the product.  Of the thirty-two.

not products. the concept really is about positioning that product in the mind of the customer. Al Ries and Jack Trout describe how positioning is used as a communication tool to reach target customers in a crowded marketplace. In other words.  While positioning begins with a product.  Not long thereafter. marketing is a battle of perception. SmallBizU ™ Marketing 101: The Fundamentals Slide 54 of 153 . Positioning: The Battle for your Mind. Madison Avenue advertising executives began to develop positioning slogans for their clients and positioning became a key aspect of marketing communications.| COURSE OUTLINE The origins of positioning…  In their 1981 book.

not the marketplace. SmallBizU ™ Marketing 101: The Fundamentals Slide 55 of 153 .  This approach is needed because consumers are bombarded with a continuous stream of high-volume advertising.| COURSE OUTLINE What is positioning?  Ries and Trout explain that the concept is really about positioning a product in the mind of the customer.  The consumer's mind reacts to this high volume of advertising by accepting only what is consistent with prior knowledge or experience. Strategy is therefore planned in the mind.

the advertiser should present a simplified message and make that message consistent with what the consumer already believes by focusing on the perceptions of the consumer rather than on the reality of the product.  In an over-communicated environment.  Consumers cope with information overload by oversimplifying and are likely to shut out anything inconsistent with their knowledge and experience. SmallBizU ™ Marketing 101: The Fundamentals Slide 56 of 153 .| COURSE OUTLINE How positioning works…  It is quite difficult to change a consumer's impression once it is formed.

SmallBizU ™ Marketing 101: The Fundamentals Slide 57 of 153 . Even if the second entrant offers a better product.  However.| COURSE OUTLINE The importance of being first…  The easiest way of getting into someone's mind is to be first. a firm effectively can cut through the noise level of other products. and much more difficult to remember who is second. all is not lost for products that are not the first. By being the first to claim a unique position in the mind of the consumer. the first mover has a large advantage that can make up for other shortcomings.  It is very easy to remember who is first.

 Similarly. but Beck's Beer successfully carved a unique position using the advertising: "You've tasted the German beer that's the most popular in America. Lowenbrau was the most popular German beer sold in America. complete with a name to support that position." SmallBizU ™ Marketing 101: The Fundamentals Slide 58 of 153 .| COURSE OUTLINE A few positioning examples…  Miller Lite was not the first light beer. Now taste the German beer that's the most popular in Germany. but it was the first to be positioned as a light beer.

‖  Volkswagen was not the first small car.| COURSE OUTLINE Finding your unoccupied position…  If a product is not going to be first. but they were the first to claim that position in the mind of the consumer. Volkswagen introduced the Beetle with the slogan "Think small.  At a time when larger cars were popular. SmallBizU ™ Marketing 101: The Fundamentals Slide 59 of 153 . it then must find an unoccupied position in which it can be first.

") ™ SmallBizU Marketing 101: The Fundamentals Slide 60 of 153 ."the one beer to have when you're having more than one.| COURSE OUTLINE Other positioning examples…  Other positions that firms successfully have claimed include: – – – – – – age (Geritol) high price (Mobil 1 synthetic engine lubricant) gender (Virginia Slims) time of day (Nyquil night-time cold remedy) place of distribution (L'eggs in supermarkets) quantity (Schaefer .

| COURSE OUTLINE Repositioning the competition…  Sometimes there are no unique positions to carve out.  Tylenol successfully repositioned aspirin by running advertisements explaining the negative side effects of aspirin. Ries and Trout suggest repositioning a competitor by convincing consumers to view the competitor in a different way. SmallBizU ™ Marketing 101: The Fundamentals Slide 61 of 153 . Consumers are not likely to be receptive to such a tactic. Comparative advertising seeks to convince the consumer that one brand is simply better than another.  Repositioning a competitor is different from comparative advertising. In such cases.

S.  Stolichnaya Russian vodka successfully repositioned its Russian-sounding competitors by exposing the fact that they all actually were made in the U. were made in the U.S.| COURSE OUTLINE Repositioning Stoli…  Consumers tend to perceive the origin of a product by its name rather than reading the label to find out where it really is made.. Russia.  Such was the case with vodka when most vodka brands sold in the U.S. and that Stolichnaya was made in Leningrad. SmallBizU ™ Marketing 101: The Fundamentals Slide 62 of 153 . but had Russian names.

with consumers complaining that Pringle's tasted like cardboard. Wise potato chips successfully repositioned Pringle's in the mind of consumers by listing some of Pringle's non-natural ingredients that sounded like harsh chemicals. contained only "Potatoes.  However. Salt. most likely as a consequence of their thinking about all those unnatural ingredients.  Wise potato chips of course.| COURSE OUTLINE Repositioning Pringles…  When Pringle's new-fangled potato chips were introduced.―  As a result of this advertising. even though they were not. Vegetable oil. SmallBizU ™ Marketing 101: The Fundamentals Slide 63 of 153 . Pringle's quickly lost market share. they quickly gained market share.

Rather. "Avis is only No. consumers finally were able to relate Avis to Hertz. 2 in rent-acars. If a brand is not number one. then to be successful it somehow must relate itself to the number one brand. which was number one in their minds. SmallBizU ™ Marketing 101: The Fundamentals Slide 64 of 153 ."  After the campaign.  A campaign that pretends that the market leader does not exist is likely to fail. Whether Avis actually tried harder was not relevant to their success. Finally. so why go with us? We try harder. it began using the line.| COURSE OUTLINE Avis tries harder…  Consumers rank brands in their minds. pretending that the number one Hertz did not exist. Avis quickly became profitable. Avis tried unsuccessfully for years to win customers.

 Services. SmallBizU ™ Marketing 101: The Fundamentals Slide 65 of 153 . and even careers can benefit from a well-developed positioning strategy that focuses on a niche that is unoccupied in the mind of the consumer or decision-maker.| COURSE OUTLINE Applying positioning…  Sun Tzu stated. countries."  The concept of positioning applies to products in the broadest sense. "battles are won or lost before they are ever fought. your business itself. tourist destinations.

| COURSE OUTLINE To position your product or service…  Ask yourself. instead find a position that they already believe to be true or have trouble being in opposition to such as the ―Clean Air Act. your consumer's mind reacts by accepting only what is consistent with their prior knowledge or experience.  Don’t try to change their mind.‖ SmallBizU ™ Marketing 101: The Fundamentals Slide 66 of 153 .‖  What exactly is my positioning message?  Remember. ―How can I be the first to claim a unique position in the mind of my customer.

then decrease the size of niche until you can.| COURSE OUTLINE Finding your niche…  Remember.  If you can’t own it.  If somebody else occupies your chosen space try to reposition them. especially from a marketing expenditure outlay. No one else can occupy your space. you must own your niche and own it outright. SmallBizU ™ Marketing 101: The Fundamentals Slide 67 of 153 .

 To be effective. let’s consider your message…  Your positioning message is what you will consistently reinforce to your selected niche. and remember your position. For example: Just do it—Nike. understand.| COURSE OUTLINE Finally.  You should also try to let go of the intangibles such as your product features and price points and speak to your customer’s emotions. SmallBizU ™ Marketing 101: The Fundamentals Slide 68 of 153 .  The message should help your customer identify. your message needs to be short—usually under five words—three or less is better.

 Now. narrow down the key difference between your business and your competitors in a single word. SmallBizU ™ Marketing 101: The Fundamentals Slide 69 of 153 .  Try to list about three to five reasons listed in the order of importance.| COURSE OUTLINE To craft your message…  Begin by listing why your customers choose to do business with you rather than your competitors.

| COURSE OUTLINE Be very careful…  When you listed why your customers choose to do business with you. SmallBizU ™ Marketing 101: The Fundamentals Slide 70 of 153 .  Repeat this to yourself: These words represent boring. it is probably true that you included words like: quality. or location. they are probably the exact words that your competitor would list as well. In fact. selection. expertise. customer service. rational argument.

 To do this you need to appeal to their emotions. in effect. create an argument in the customer’s mind. try moving your message from the customer’s head to their heart.| COURSE OUTLINE Avoiding rational logic…  When you appeal to rational thought you.  To solve this issue. SmallBizU ™ Marketing 101: The Fundamentals Slide 71 of 153 .

 Remember.99.| COURSE OUTLINE An example of selling emotions…  A grass seed company tried an experiment. feeling.  They took their seed and put it into two separate packages: – One simply said Grass Seed and the price of $. SmallBizU ™ Marketing 101: The Fundamentals Slide 72 of 153 . the Lawn Seed outsold the grass seed by a factor of 4:1. But nonetheless. and aspiration of having the beauty of that pictured lawn— and that’s really what they are paying for. The price was $3.  People don’t want grass seed but rather the hope. – The second was named Lawn Seed and showed a beautiful lawn flowing down toward a river.99. the seed inside the packages was identical.

 Remember Nike didn’t say. rational argument or does it sell emotional hope and aspiration?‖  Start by re-writing your message in a sentence and then whittle your message down to three words or less.| COURSE OUTLINE Consider your message again…  Go back and review your positioning message and ask yourself. durable. ―Does it create boring. they said: ―Just do it. and offered at an excellent price point.‖  No. ―We have the highest quality shoes made through state-of-the-art processes of the best procured materials meaning they are long-lasting.‖ SmallBizU ™ Marketing 101: The Fundamentals Slide 73 of 153 . be very clear.

| COURSE OUTLINE Designing Products & Services SmallBizU ™ Marketing 101: The Fundamentals Slide 74 of 153 .

| COURSE OUTLINE What is it that you sell?  One of the first questions to ask yourself is what does your product do?  Other questions that you should address are: – What need is addressed by the product? – What are its features and benefits? – Who supplies the products or materials?  Whether you make or resell a product. SmallBizU ™ Marketing 101: The Fundamentals Slide 75 of 153 . these questions are important to answer.

the following questions need to be addressed: – – – – – How is it produced? What materials and labor are required? How will its quality be measured and controlled? What is its technological lifespan? What research and development has been conducted and what still needs to be done? SmallBizU ™ Marketing 101: The Fundamentals Slide 76 of 153 .| COURSE OUTLINE Manufacturing a product…  If you manufacture a product.

 Some questions to address may include: – – – – – – What services do you offer? How do they work? What materials or equipment is needed? What are your labor needs for these services? What are the steps in your service process? What benefit(s) do you provide customers? ™ SmallBizU Marketing 101: The Fundamentals Slide 77 of 153 .| COURSE OUTLINE Selling a service…  Delivering a service can be quite different then manufacturing a product.

 For more information on intellectual property visit the World Intellectual Property Organization. ideas and concepts. SmallBizU ™ Marketing 101: The Fundamentals Slide 78 of 153 .| COURSE OUTLINE Intellectual property…  Intellectual property is any product of the human intellect has some value in the marketplace.  In some cases it can be worth more to a business than tangible assets.  Intellectual property can include business strategies. images.

trademarks & copyrights…  An important issue that comes up when discussing intellectual property is how to protect it. trademarks and copyrights go to… – United States Patent and Trademark Organization – United States Copyright Office SmallBizU ™ Marketing 101: The Fundamentals Slide 79 of 153 .| COURSE OUTLINE Patents.  Protection can be obtained through a trademark.  For information on patents. patent or copyright.

however. packaging is becoming an increasingly important marketing tool. you should then consider how you will package it?  The primary function of packaging use to be to hold and protect the product.| COURSE OUTLINE Packaging your product…  After you have addressed questions about your product. SmallBizU ™ Marketing 101: The Fundamentals Slide 80 of 153 .  Today.

 Be sure that the packaging is consistent with the product you are offering. visual and consumer tests when developing the packaging. SmallBizU ™ Marketing 101: The Fundamentals Slide 81 of 153 . shape. color. and label.  Also reevaluate the packaging frequently after it has been introduced into the market.| COURSE OUTLINE Designing the packaging…  Many decisions are needed about the packaging – size.  Run engineering. material.

| COURSE OUTLINE UPC barcodes…  Once a company has designed the packaging for a product.  You can obtain a UPC barcode through the Uniform Code Council. Inc. SmallBizU ™ Marketing 101: The Fundamentals Slide 82 of 153 . many want to include a UPC barcode on their product.

| COURSE OUTLINE Product liability insurance…  Americans initiate more product liability lawsuits than do customers in any other country in the world.  A few famous cases you might recognize… – Firestone Tire/Ford Explorer (tire blowouts) – Mrs. Liebeck vs.  There has been a 983 percent increase in product liability cases heard by federal courts since 1974. McDonald’s (hot coffee) SmallBizU ™ Marketing 101: The Fundamentals Slide 83 of 153 .

| COURSE OUTLINE Product liability insurance…  Product liability may occur when a customer suffers harm from using the product. SmallBizU ™ Marketing 101: The Fundamentals Slide 84 of 153 .  A competent professional can help you determine what level of insurance your business will need.  Everyone down the supply chain (including the wholesaler and retailer) could be affected.  To incur liability you don’t necessarily have to be the manufacturer.

 To find out what regulatory issues apply to your product visit the following agencies: – Federal Trade Commission – Food and Drug Administration – Consumer Product Safety Commission SmallBizU ™ Marketing 101: The Fundamentals Slide 85 of 153 .| COURSE OUTLINE Regulatory issues…  Depending on what type of product you will offer plays an important role in regulatory issues that will apply.

most companies try to diversify themselves by offering a product mix.| COURSE OUTLINE Product Mix…  While some companies only offer one product or service.  A product mix is the set of all product lines and items that a particular seller offers to buyers.  Use the worksheet below to help you organize your product mix. – Product Mix Worksheet SmallBizU ™ Marketing 101: The Fundamentals Slide 86 of 153 .

| COURSE OUTLINE Product life cycle…  A new product will go through a four stage process throughout its lifetime.  The Product Life Cycle Diagram SmallBizU ™ Marketing 101: The Fundamentals Slide 87 of 153 .

 Sales fall rapidly in the decline stage.  During the growth stage the company is seeking to increase their market share by building preference over their competitors.  In the maturity stage growth slows as similar products appear on the market. SmallBizU ™ Marketing 101: The Fundamentals Slide 88 of 153 .| COURSE OUTLINE Stages of the product life cycle…  In the introduction stage the firm is seeking to build awareness and develop the market.

| COURSE OUTLINE Pricing Products & Services SmallBizU ™ Marketing 101: The Fundamentals Slide 89 of 153 .

competition and the economy.  Some of the internal factors may include pricing objectives.| COURSE OUTLINE Pricing decisions…  There are a number of internal and external factors that will come in to play when setting prices.  External factors may include nature of the market and demand. SmallBizU ™ Marketing 101: The Fundamentals Slide 90 of 153 . strategy and costs.

| COURSE OUTLINE Pricing objectives…  Pricing objectives help answer the question: What are you trying to achieve with your pricing strategy? – – – – – – – Survival Profit Return on Investment Market Share Cash Flow Status Quo Product Quality ™ SmallBizU Marketing 101: The Fundamentals Slide 91 of 153 .

edu/uscode/15/12.law.  For more information on the Clayton Act go to: – http://www4.| COURSE OUTLINE Pricing strategy…  Once you have determined your objectives you should then focus on the methods you will use to determine your prices.  Keep in mind laws that regulate pricing and pricing strategies such as the Clayton Act.html SmallBizU ™ Marketing 101: The Fundamentals Slide 92 of 153 .cornell.

Set your price low to discourage competition and appeal to a larger market segment. – Skim Pricing .Establishes only a few prices for all the items within a given product line.Set your price high with the goal of capturing short-term profits. – Price Lining . SmallBizU ™ Marketing 101: The Fundamentals Slide 93 of 153 .Price is negotiated between buyer and seller.Price is set by manufacturer or middleman and not subject to negotiation. – Keystone Pricing . – Penetration Pricing . – Fixed Pricing .| COURSE OUTLINE Types of pricing strategies…  There are several basic pricing strategies.percentage markup applied to the product’s cost. – Variable Pricing .

set price at the considered standard level for the product.encouraging consumers to equate pricing with quality and status.strategies that try to make the product’s price more desirable.charging different prices for different regions of geography. SmallBizU ™ Marketing 101: The Fundamentals Slide 94 of 153 . – Pricing Leader . – Geographic Pricing . – Prestige Pricing . – Psychological Pricing .| COURSE OUTLINE More pricing strategies…  Other pricing strategies include: – Customary Pricing .determining if you will be a price leader or follower.

 Avoid establishing where the costs will outweigh the benefits. and consumers will no longer buy your product.  The ceiling is set by the market and its demand.  Set your price between these two points but keep in mind consumers will compare the price of the product against the value of owning it.| COURSE OUTLINE The nature of the market…  Be aware of the floor and ceiling prices in your market. SmallBizU ™ Marketing 101: The Fundamentals Slide 95 of 153 .  The costs of the product will set the floor for the marketer.

 Learn the prices and quality of your biggest competitors.| COURSE OUTLINE Competition and their prices…  Consumers will compare the price and value of a product to that of comparable items. SmallBizU ™ Marketing 101: The Fundamentals Slide 96 of 153 .  Use this information in helping you to establish a pricing point of your own.

 These economic turns will affect the costs to produce and consumers’ sensitivity to price and benefits of the product.| COURSE OUTLINE Economic factors…  Booms. SmallBizU ™ Marketing 101: The Fundamentals Slide 97 of 153 . inflation and interest rates all effect the pricing of a product.  Be aware of the current economic conditions and the economic forecast for the future when establishing a price. recessions.

SmallBizU ™ Marketing 101: The Fundamentals Slide 98 of 153 .| COURSE OUTLINE Determining gross margins…  Once you have set the cost you can then determine the gross margin for the product. minus equals Product Price (to consumer) Product Cost (to you) Gross Margin of Product  Compare your product’s gross margin with industry standards from sources such as RMA.

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Placing Products & Services

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Placing decisions…
 Placing your product is the third of the four P’s.  It encompasses channels of distribution that serve as a transporter for getting your product to your customers.  Decisions you will need to make in placing your product include market coverage, channel member selection, logistics, and location.

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Market coverage…
 You must first determine which markets you are going to reach and with what objectives.  Be sure to include items such as the desired level of service and functions to be performed by channel members.  Constraints to developing your objectives may come from several sources.
– Customers, products, intermediaries, company policies, competitors, and the environment.
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 They may go directly from producer to buyer. Producer Wholesaler Retailer Consumer Slide 102 of 153 SmallBizU ™ Marketing 101: The Fundamentals . Producer Consumer  Or the may have several steps between production to consumers.| COURSE OUTLINE Channel member selection…  Marketing channels direct the flow of products from producers to consumers.

if any? – – – – – – – Warehousing Order processing Inventory management Packaging Materials handling Receiving Transportation and shipping ™ SmallBizU Marketing 101: The Fundamentals Slide 103 of 153 .| COURSE OUTLINE Part of the process…  What part of the distribution process does your business handle.

it may become unclear what your distribution channel will look like. to wholesaling and so on.  Often. SmallBizU ™ Marketing 101: The Fundamentals Slide 104 of 153 . retailers believe that they do not have a distribution channel.| COURSE OUTLINE Retailers in the distribution channel…  As you move down the marketing channel from manufacturing.  The fact is a retailer’s location is their distribution channel.

but fewer than the intensive distribution. It requires more than one intermediary.stocking your product in as many outlets as possible. SmallBizU ™ Marketing 101: The Fundamentals Slide 105 of 153 .  Limited dealers will be granted the rights to distribute your product with exclusive distribution.  Selective distribution stands in the middle.| COURSE OUTLINE Number of channel members…  You must decide how many intermediaries will be in the marketing channel.  Several middlemen will be needed for intensive distribution .

costs.  Supply chain management refers to the long-term partnerships among channel members to reduce inefficiencies. SmallBizU ™ Marketing 101: The Fundamentals Slide 106 of 153 .| COURSE OUTLINE Supply chain management…  An important function of the marketing channel is the joint effort of all members to create a supply chain. a competitive advantage can be established. and redundancies in the market channel.  If managed correctly.

– – – – What will the ordering process look like? Where will inventory be located? How much inventory should be kept on hand? How should goods be shipped? SmallBizU ™ Marketing 101: The Fundamentals Slide 107 of 153 .| COURSE OUTLINE Logistics of your channel…  When planning your distribution channel you should be able to answer the following questions.

 FOB Factory Pricing: The costs of transporting the product from seller to buyer are borne by the buyer.  Uniform Delivered Pricing: A standard price charged regardless of location.| COURSE OUTLINE Shipping options…  There are several ways to handle shipping.  Freight Absorption Pricing: Paying some of the transportation costs in order to bring the price in line with competitors. SmallBizU ™ Marketing 101: The Fundamentals Slide 108 of 153 .  Zone Pricing: Charging different prices for different regions of geography.

etc. (check with your state Department of Transportation)  Choosing a Successful Location for Your Business SmallBizU ™ Marketing 101: The Fundamentals Slide 109 of 153 . location needs. accessibility needs.  Also check to see what traffic counts the facility experiences.| COURSE OUTLINE Location of your business…  An important decision that you need to make is where will your business be located.  Make sure the location you select fulfills the needs of your business. space needs.

| COURSE OUTLINE The cost of your location…  What will it cost to lease or buy the needed facility?  Make sure that you can afford the location that you choose.  Also find out the term and duration of the lease of the desired location. go to: Finding and Renting Space for Your Business SmallBizU ™ Marketing 101: The Fundamentals Slide 110 of 153 .  For more information.

SmallBizU ™ Marketing 101: The Fundamentals Slide 111 of 153 .| COURSE OUTLINE Channel regulations…  There are a multitude of federal. and local laws governing channel management. the government is trying to make sure that free trade and competition are protected.  Through such laws as the Sherman Antitrust Act and the Federal Trade Commission Act. state.

| COURSE OUTLINE Promoting Products & Services SmallBizU ™ Marketing 101: The Fundamentals Slide 112 of 153 .

– – – – Advertising. Personal selling. Sales promotion and Publicity  By identifying these tools you will be able to lay out the basis of a media plan and promotional budget for your company.| COURSE OUTLINE The promotional mix…  The promotional mix consists of four main tools. SmallBizU ™ Marketing 101: The Fundamentals Slide 113 of 153 .

SmallBizU ™ Marketing 101: The Fundamentals Slide 114 of 153 .| COURSE OUTLINE Advertising and its various forms…  Advertising deals with communicating with your customers in a very public way. they do not have to pay attention to it.  By advertising you are able to repeat your message to customers numerous times in various formats. be aware that while you are able to get your message to customers.  However.

| COURSE OUTLINE The various forms of advertising… (Click on a link below)           Direct mail Trade shows Yellow pages Newspaper Magazines Radio Television Outdoor advertising Email advertising Telemarketing ™ SmallBizU Marketing 101: The Fundamentals Slide 115 of 153 .

 Direct mail is one of the least expensive methods of marketing on a per-sale basis.the-dma.| COURSE OUTLINE Direct mail…  Direct mail allows for the most careful aim of your target.  For help on direct mailings go to: – http://www.  But be aware that an expected response rate for a general direct mailing can be as low as 2%.org SmallBizU ™ Marketing 101: The Fundamentals Slide 116 of 153 .

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Trade shows…
 Trade shows provide an opportunity to make contacts with purchase-minded people.  Identify objectives and locations for shows that you believe will generate the most leads for your business.  For help identifying trade shows go to:
– http://www.tsnn.com

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Yellow pages…
 In the yellow pages you are on level playing ground with your competitors because your ad can appear as big as theirs.  If you cannot stand out from your competitors never tell your customers to ―Find us in the yellow pages.‖  Instead, direct them to your listing in the white pages where every listing in the same size.  To advertise in the yellow pages call:
– 1-800-249-4449

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Newspaper…
 Newspapers are great for broadcasting news.  Ad types, dates, frequency and sizes are all important issues you need to address.  However, try not to let the newspaper design or write the copy for your ad. If they do, your ad may appear like all of the other ads in the paper, including your competitors.  For a listing of newspapers go to:
– http://newsdirectory.com/ – http://www.mediapost.com
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com – http://www.  For a listing of magazines go to: – http://www.com SmallBizU ™ Marketing 101: The Fundamentals Slide 120 of 153 .mediapost.  With magazines you can reach a more specific target than with newspapers.newsdirectory.| COURSE OUTLINE Magazines…  An ad placed in a properly produced magazine can give high credibility to a small business.

| COURSE OUTLINE Radio…  Radio advertisements can bring you into more intimate contact with prospects than a newspaper can.com/ SmallBizU ™ Marketing 101: The Fundamentals Slide 121 of 153 .  The response rate is usually equivalent to that of television. and length of spots are all issues to keep in mind when developing a radio ad. but with lower costs.  For a listing of radio stations go to: – http://www.mediapost. time of airing. demographics of that base.  Estimated listener base.

etc. television ads must placed in front of audiences on a regular basis.| COURSE OUTLINE Television and cable…  While television can be highly effective.mediapost. it can also be very costly.  To be effective. ESPN.  With cable you can have the advantage of being able to pick which subscriber areas you want to target and picking particular stations you want to advertise on.)  For a listing go to http://www.com. (CNN. SmallBizU ™ Marketing 101: The Fundamentals Slide 122 of 153 .

with outdoor advertising there is no audience selection.edu/world/index.  However.| COURSE OUTLINE Outdoor advertising…  Outdoor advertising is effective at reminding people.utexas.  For a listing go to: http://advertising.  It offers high repeat exposure and flexibility.asp?pageid=Outdoor SmallBizU ™ Marketing 101: The Fundamentals Slide 123 of 153 .

com/cong106/spam/Default.  For a summary of these laws go to: – http://www.htm SmallBizU ™ Marketing 101: The Fundamentals Slide 124 of 153 .| COURSE OUTLINE Email Advertising…  Emails are similar to direct mailings in that they allow for the most careful aim of your target.  Be sure to be aware of the laws that govern email advertising.techlawjournal.

 However. be aware that many consumers today see telemarketing as a nuisance. SmallBizU ™ Marketing 101: The Fundamentals Slide 125 of 153 .  They may also be leery of telemarketing fearing that it is a possible scam.| COURSE OUTLINE Telemarketing…  Telemarketing can be a convenient way to educate customers about your products and services while offering a great deal of flexibility.

 Make sure that you are aware of the laws that govern telemarketing.  For more information go to: http://consumer.| COURSE OUTLINE Telemarketing fraud…  The Federal Trade Commission (FTC) estimates that fraudulent telemarketers swindle American consumers out of more than one billion dollars each year.net/telemarketing/tcpainfo.asp SmallBizU ™ Marketing 101: The Fundamentals Slide 126 of 153 .

– When face-to-face with a salesperson. the customer is more likely to respond. SmallBizU ™ Marketing 101: The Fundamentals Slide 127 of 153 .  While personal selling is an effective tool.| COURSE OUTLINE The pros & cons of personal selling…  Personal selling may be the most effective tool at certain times due to… – Personal selling involves face-to-face communication. – Lasting relationships can be established with personal selling. its cost can be overwhelming to a company.

a sales force will be needed.| COURSE OUTLINE Selecting a sales force…  If you decide to take part in personal selling.  Be sure to ask yourself how you will handle the following: – – – – Recruitment and selection of sales personnel Training sales personnel Compensation and motivation Controlling and evaluating sales force performance SmallBizU ™ Marketing 101: The Fundamentals Slide 128 of 153 .

SmallBizU ™ Marketing 101: The Fundamentals Slide 129 of 153 . They provide information and help gain attention. They provide an incentive to the customer. 3.| COURSE OUTLINE Sales promotion…  Sales promotions usually have three distinctive characteristics that help to set them apart. They encourage the consumer to buy quickly. 2. 1.

demonstrations.  These forms include coupons. SmallBizU ™ Marketing 101: The Fundamentals Slide 130 of 153 . free samples. point-of-purchase displays. frequent-user incentives.| COURSE OUTLINE Consumer sales promotions…  Sales promotions for consumers can come in various forms. money refunds or rebates and contests or sweepstakes.

| COURSE OUTLINE Business sales promotion…  There are also numerous ways to offer sales promotions to businesses or industries.  When targeting these types of customers try offering quantity discounts. SmallBizU ™ Marketing 101: The Fundamentals Slide 131 of 153 . buy-back allowances. free merchandise. dealer listings or cooperative advertising.

 Part of the appeal of publicity is that it can offer high credibility.| COURSE OUTLINE The appeal of publicity…  A well planned publicity campaign along with other promotional tools can be highly effective and help you save money at the same time. SmallBizU ™ Marketing 101: The Fundamentals Slide 132 of 153 . it can catch people off guard and help dramatize a product or company.

| COURSE OUTLINE Types of publicity tactics…  What types of publicity tactics will you employ?  A press release is one option. SmallBizU ™ Marketing 101: The Fundamentals Slide 133 of 153 . Some reasons to issue a press release include: – – – – Support of a social cause Winning of quality awards New product launches Speeches of top management  Other types of publicity include public speaking engagements and public events.

| COURSE OUTLINE What comes next?  After you decide on which tools from the promotional mix you want to use. you then need to develop a promotional budget. they may not know how to allocate money to properly use them. SmallBizU ™ Marketing 101: The Fundamentals Slide 134 of 153 .  This is usually a major obstacle for companies because while they may know what tools they want to use.

 While other companies mirror their budget to that of their competitors.| COURSE OUTLINE Setting the promotional budget…  Many companies set their budget as a percentage of current or forecasted sales. SmallBizU ™ Marketing 101: The Fundamentals Slide 135 of 153 .  Still some companies will approximate their budget by how much the objectives they wish to meet will cost in advertising dollars.

| COURSE OUTLINE A percentage of sales…  For retail or location based service companies. the following formula will usually work in helping to estimate a promotional budget. times minus equals Projected Gross Sales 12% (.12) Cost of Rent Advertising Budget SmallBizU ™ Marketing 101: The Fundamentals Slide 136 of 153 .

| COURSE OUTLINE Creating A Marketing Plan SmallBizU ™ Marketing 101: The Fundamentals Slide 137 of 153 .

 But energy alone is not enough.  Intelligent marketing is marketing that is first and foremost focused on a core idea. SmallBizU ™ Marketing 101: The Fundamentals Slide 138 of 153 . Energy must be directed by intelligence.  All your marketing must be an extension of this idea—it isn’t enough to have a better idea—you need to have a focused strategy.| COURSE OUTLINE Why have a formal plan?  Many entrepreneurs insist that hustle is all that is required in the marketing of their business.

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The plan’s structure…
 A complete marketing plan includes the following three sections:
– The marketing plan identifies the market and your strategy. – The creative plan is similar to the marketing plan but is limited to the content of your marketing materials. – The media plan which sets forth and details your selected media weapons and media calendar.

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Let’s start with the marketing plan…
 The marketing plan identifies the market and your overarching positioning strategy.  The length of your final marketing plan is up to you and depends on your organizational culture and the audience that will read and use the plan.  At first, though, try to state it in just one paragraph.  According to Jay Conrad Levinson, author of Guerilla Marketing, a simple plan can be created in just seven sentences.

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A simple marketing plan…
 Sentence one explains the purpose of the strategy.  Sentence two explains how you’ll achieve this purpose. It describes your competitive advantage and benefits.  Sentence three describes your target market—or markets.  Sentence four, the longest, outlines the marketing weapons you’ll employ.  Sentence five describes your niche—your positioning.  Sentence six reveals the identity of your business.  Sentence seven states your budget, which should be expressed as a percentage of projected gross revenues.
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| COURSE OUTLINE The creative plan…  Almost any marketing person worth his or her salt will tell you that marketing is not creative unless it sells. SmallBizU ™ Marketing 101: The Fundamentals Slide 142 of 153 .  Advertising legend Leo Burnett used to remind his staff that a person can be creative by coming downstairs with his or her socks in their mouth—but what’s the point?  There must be a reason for your creativity. and your creativity should never detract from your message.

 A creative plan can be written in as little as three sentences which detail: – The purpose of the creative message – How the purpose will be achieved – The mood. tone.| COURSE OUTLINE Developing the creative plan…  A creative strategy is similar to a marketing plan but is limited to the marketing materials only— and directed solely at their content. or personality of the advertising SmallBizU ™ Marketing 101: The Fundamentals Slide 143 of 153 .

SmallBizU ™ Marketing 101: The Fundamentals Slide 144 of 153 .  This can best be accomplished by the third and final section of your marketing plan: the marketing calendar. logical manner.  A marketing calendar indicates whether or not you can use these methods properly because it forces you to come to terms with the costs and realities of the media you select. be sure you use them in an orderly.| COURSE OUTLINE Your marketing calendar…  Once you’ve selected the marketing media and weapons that can propel you to your goal.

| COURSE OUTLINE A more complex plan…  In some cases you may need a more in-depth marketing plan.  This plan can be structured in the following format. – – – – – – – – Executive Summary Challenges Situation Analysis Market Segmentation Selected Marketing Strategy Short & Long-Term Projections Conclusion Appendix ™ SmallBizU Marketing 101: The Fundamentals Slide 145 of 153 .

| COURSE OUTLINE Executive summary & challenge…  The executive summary is simply a summary of the marketing plan. SmallBizU ™ Marketing 101: The Fundamentals Slide 146 of 153 .  The challenge should also include associated goals such as sales figures and strategic goals.  It should highlight the main points of your plan.  The challenge section of the marketing plan should include a brief description of the product that will be marketed.

culture.Number and type of customer. – Competitor Analysis – Market position. – Customer Analysis .| COURSE OUTLINE Situation analysis…  The situation analysis should include the following: – Company Analysis . value drivers and decision process. weaknesses and market share of competitors.Goals. strengths. SmallBizU ™ Marketing 101: The Fundamentals Slide 147 of 153 . strengths and weaknesses.

 A SEPTE analysis will help in measuring the: – – – – – Social and cultural environment Economic environment Political and legal environment Technological environment Environmental issues SmallBizU ™ Marketing 101: The Fundamentals Slide 148 of 153 .| COURSE OUTLINE Situation analysis…  The situation analysis should include a section on collaborators such as subsidiaries. etc. distributors.  A SEPTE may also be included in the situation analysis.

 SWOT analysis worksheet SmallBizU ™ Marketing 101: The Fundamentals Slide 149 of 153 .  The internal factors are the strengths and weaknesses of the business.| COURSE OUTLINE SWOT analysis…  A SWOT analysis is the last section of the situation analysis.  This type of analysis helps to determine internal and external environmental factors.  The external factors are the opportunities and threats in the market.

SmallBizU ™ Marketing 101: The Fundamentals Slide 150 of 153 .  Included in this segmentation are: – – – – – – – A description of the target market Percent of sales for this group What they want How they use the product Support requirements How to reach them Price sensitivity  Include a segment analysis for each market segment you are targeting.| COURSE OUTLINE Market segmentation…  The purpose of the market segmentation section is to help describe the segment(s) of the market you are targeting.

 Be sure to include things such as brand name. scope of product line. distribution channels and advertising issues in this section. payment terms. and promotion).  It should include decisions you have made regarding each of the 4 P’s (product. SmallBizU ™ Marketing 101: The Fundamentals Slide 151 of 153 . price. place. list price.| COURSE OUTLINE Selected marketing strategy…  This section of the marketing plan should include a discussion of the strategy you have selected.

SmallBizU ™ Marketing 101: The Fundamentals Slide 152 of 153 .  This section may also include a forecast of revenues and expenses related to the plan.  A conclusion should be placed at the end of the plan to summarize the plan’s contents.  Any other information that may pertain to the marketing plan should be paced in the appendix.| COURSE OUTLINE Finishing up your plan…  The short and long-term projections should include immediate and future desired results and how these results will be achieved.

Peter Drucker emphasized the importance of marketing when he said: – ―There are only two functions of a business: marketing and innovation.| COURSE OUTLINE Just how important is marketing?  The Father of Modern Management.‖  Remember. there is no business without first a customer. SmallBizU ™ Marketing 101: The Fundamentals Slide 153 of 153 .

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