Bài giảng Designing Business Plan - Unit 4: Marketing plan

NGO QUY NHAM MARKETING PLAN Ngô Quý Nhâm Email: quynham@gmail.com Web: sites.google.com/site/ngoquynham Unit 4: NGO QUY NHAM Lecture outline F  Overall marketing strategy F  Marketing Mix §  Product §  Pricing §  Place §  Promotion NGO QUY NHAM Marketing Strategy F  Marketing strategy §  ...firm’s approach to marketing its products and services stated in broad term, which firm the basis of all its marketing-related activities. NGO QUY NHAM Discussion What are key elements of a marketing strategy? NGO QUY NHAM Overall Marketing Strategy Marketing strategy components: F  Target consumers F  Positioning §  Gives a product a clear, distinctive and desirable place in the minds of target consumers compared with competing products. F  Positioning involved selecting competitive advantages: §  Differentiation §  Low Cost NGO QUY NHAM Customer Value Proposition NGO QUY NHAM Product strategy: Three levels of products •  Physical good, service or most often some of both •  Branding •  Packaging •  Service •  Product-ine NGO QUY NHAM Core benefit or service Packaging Features Styling Quality Brand name Installation After- sale service Warranty Credit Core Product Actual Product Augmented product Product strategy: Three levels of products Payment Delivery NGO QUY NHAM Product strategy: Individual Product Decision F  Product attributes (product quality, feature, design) F  Branding F  Packaging decisions F  Product-support services decisions NGO QUY NHAM Product strategy: Product Line Decision F  Product line-length decisions NGO QUY NHAM Product strategy: Product Line Decision F  Product line-filling decisions F  Product line modernization decisions NGO QUY NHAM •  Pricing objectives •  Pricing Policies –  Price Flexibility –  Levels over PLC –  Discounts and allowances –  Geographic terms •  Legal factors •  Markup chain in channels •  Costs •  Demand (price sensitivity) –  Competition/Substitutes •  Price of other products in line Pricing strategy NGO QUY NHAM Pricing Objectives Sales Oriented Dollar or Unit Sales Growth Profit Oriented Status Quo Oriented Growth in Market Share Target Return Maximize Profits Meeting Competition Nonprice Competition Pricing Strategy: Pricing objectives NGO QUY NHAM Price Quantity Price Skimming Sell at high price before reducing to next price level and repeat Initial Price Second Price Final Price In price skimming, initial price is set high--at top of the demand curve Most sensible when: •  Demand is inelastic •  There is an “elite market” that is less price sensitive •  Barriers to entry (patents, etc.) •  Gradually working down the demand curve with lower priced marketing mixes over time. Price Level Policies NGO QUY NHAM Price Quantity Penetration Pricing Whole market price Penetration pricing means entering the market with a low initial price: •  Capture market share quickly •  Take advantage of growth •  If competition is likely to follow quickly, or if •  A low price will give competitors less incentive to enter Price Level Policies NGO QUY NHAM Value Pricing NGO QUY NHAM Trade Quantity Seasonal Discount Pricing Sale Cash Discounts are usually defined as a percentage off of a list price Discounts Reduce the Price Paid NGO QUY NHAM Cost = 24.00 = 80% Cost = 21.60 = 90% Cost = 30.00 = 60% Markup = 2.40 = 10% Markup = 6.00 = 20% Markup = 20.00 = 40% Producer Wholesaler 24.00 30.00 50.00 Markup is usually stated as a percent of the selling price, not of the cost Markups NGO QUY NHAM Fixed Costs Variable Costs Raw materials Component parts Hourly wages Packaging & freight Sales commisions Rent Depreciation Manager’s salaries Property taxes Insurance Types of cost NGO QUY NHAM To ta l R ev en ue a nd C os t Units of Production Break-Even Point Profit Area Total Cost Curve Total Revenue Curve Loss Area More 0 Higher Break Even Analysis NGO QUY NHAM Consumer Demand is Related to Price Sensitivity MR NGO QUY NHAM The Price Elasticity of Demand F  As price decreases §  Revenue rises when demand is elastic. §  Revenue falls when it is inelastic. §  Revenue reaches it peak when elasticity of demand equals 1. NGO QUY NHAM Availability of Substitutes Comparison Difficulty Key Issues Who Pays? Size of Total Expenditure Significance of End Benefit Sunk Investment Switching Costs Consumer Demand is Related to Price Sensitivity NGO QUY NHAM •  Distribution availability goals •  Ideal market exposure level •  Distribution customer service level •  Channel type (direct, indirect) •  Who manages the overall channel •  How to manage transportation, storage and materials handling •  Kinds of middlemen Place Strategy NGO QUY NHAM Strategy decisions to blend: •  Personal Selling •  Sales Promotion •  Advertising •  Publicity Promotion Strategy Integrated Marketing Communications NGO QUY NHAM Promotion Plan Promotion objectives What is content of the message? Where does it take place? When does it? Who are your audience? Determine which communication channels? 26