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Marketing Powerpoint
Marketing Powerpoint
Presented by:
Leslie Kendrick
JHU Marketing Lecturer
January 2007
Marketing 101 For Business Plans
Presenter’s Bio:
What is marketing?
What is market segmentation and how do I use it to better
quantify my target market?
What is a SWOT analysis and how will it help me?
How is marketing to consumers versus businesses different?
What is the marketing mix and what “mix” decisions do I have
to make, budget for?
What are the differences between the promotional mix
elements in terms of characteristics, costs, response rates?
What type of market research should I conduct to support my
business idea (that is quick, cheap, but credible)?
What Is Marketing?
Hypothetical Example:
Source: AMA Ob/gyn counts from MMS, Inc. 2006 Healthcare List Catalog .
What Is Market Segmentation (con’t)?
Hypothetical Example:
A strong SWOT
analysis allows you to
leverage off the internal
strengths of the
company and match
them to opportunities in
the external
environment.
SWOT Handout.
How Does My Marketing Effort Differ
For Consumers vs. Businesses?
Product:
Defined as a good, a service, an idea
(“recycle”), or any combination of these.
Business products & consumer products.
Considerations—brand name, packaging,
labeling, trademark, warranties.
Price:
Revenue (price times units sold) is what pays
for every activity of the company: production,
finance, sales, distribution, etc.
Key: choose a price that will earn a fair
profit, and that equates to the perceived
value to target customers.
Source: Marketing, 7th ed., by Lamb et al, 2004.
What Is The “Marketing Mix”?
Pricing Objectives:
Profit Oriented
--Profit Maximization: setting prices so that total revenue is as large as
possible relative to total costs.
Break-Even Pricing
--Determines what sales volume must be reached before the company breaks even (total
costs=total revenue).
--Advantage: tells the firm how much it must sell to break even and how much profit can be earned
if a higher sales volume is obtained.
--Limitations: some costs are hard to classify as fixed or variable & also, this method ignores
demand.
Promotion:
Consists of 4 elements known as the
Promotional Mix:
--Advertising (print, TV, radio, internet)
--Public Relations (press releases)
--Sales Promotion (contests, rebates)
--Personal Selling (face-to-face, sales rep.)
Source: Marketing, 7th ed., by Lamb et al, 2004.
What Is The “Promotional Mix”?
Factors to consider:
What your objectives are in terms of sales
the first 3-5 years (i.e. sales should be
derived from response from marketing
vehicles chosen such as direct mail, personal
selling, trade shows).
What industry competitors are spending.
What Should My Total Promotion
Budget Be?
E-Mail Campaigns
--Cost averages 9 cents per contact (Zeller,
DMA), but you must first build a list (“spam”
issue).
Costs for Promotion Vehicles
Trade Shows/Exhibits (lead generation for B to B sales)
--Space rental average is $14.12/square foot; but can be as high as
$42.85 (according to Tradeshow Week’s 1998 survey).
--Average cost for 10 x 10 ft. booth is $1,500-$2,700.
--Add another $2,600 for exhibit transportation, drayage, electricity,
booth table and booth lighting.
--Travel, food & hotel expenses for company Sales Reps not included
above.
--Cost to mail (prior to exhibit) to prospects, registered attendees not
included. This is strongly recommended in order to attract traffic to
your booth.
--Cost for brochure or catalog to hand out at book not included.
Depends on quantity, use of color, type of printing.
Source: M.Ferelli., V.P. Marketing & Sales, Two Hands (a jewelry company), 2004.
Costs for Promotion Vehicles
Personal Selling
--Average total compensation is $110,206
($70,553 base salary plus $39,653 in
bonus/commission), with Top Sales Executives
earning $145,978. Excludes healthcare &
benefits costs.
Source: “The 2005 Compensation Survey”, Sales & Marketing Management, May 2005,
p. 25.
Costs for Promotion Vehicles
Google AdWords
--AdWords ads are displayed along with search
results on Google, as well as on search and content
sites (AOL, Earthlink & others).
--Cost per click pricing which you set (1 cent to $100
per click).
--Click through rate not guaranteed (for an expert’s
tips, see Nielsen’s “Designing Web Ads Using Click-
Through Data”.
Source: Google web site, 2006.
Costs for Promotion Vehicles
Google AdSense
--AdSense is a quick way for website publishers to display
relevant Google ads on their site’s content pages and earn
money.
--It also allows web site publishers to provide Google search to
their site users and earn money by displaying Google ads on
the search results page.
--Advertisers pay when users click on ads (CPC), or when their
ad is shown on your site (impressions). You earn a portion of
the amount paid for either activity on your site.
Source: Google web site, 2006.
What Is The “Marketing Mix”?
Placement (Distribution):
For consumer products and B to B products,
there are 2 possibilities:
--Direct (product sold by producer to
consumer). Includes direct sales via the
Internet.
--Indirect (product sold by producer to
intermediary, who then sells to consumer).
What Type of Market Research Should
I Conduct?
One-on-One Interviews
(qualitative):
Source: Contemporary Market Research, 3rd ed., McDaniel & Gates, 1996.
What Type of Market Research Should
I Conduct?
Questions?