Professional Documents
Culture Documents
Presenters Bio:
B.A., Advertising, M.B.A., Marketing. 12 years as a marketing practitioner. Worked in Sales and Marketing Management for 2 major publishers (Harper & Row, LWW Medical) and a major apparel manufacturer (Londontown). 3 years experience in business-to-business sales support (sold to pharmaceutical companies). 5 years experience reviewing JHU student business plans, attending finalist presentations & hearing judges feedback!
If you answered TRUE to any of the statements on the prior slide, you need to stay for this presentation! If you answered FALSE to ALL of the statements and you can explain why they are false, youre ready to go without listening to me for the next 30 minutes!
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?
American Marketing Assn. Definition: The process of planning and executing the conception, pricing, promotion an distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.
Source: Marketing, 7th ed., by Lamb et al, 2004.
Source: AMA Ob/gyn counts from MMS, Inc. 2006 Healthcare List Catalog.
Source: National Association of Home Builders counts from web site (www.nahb.org), 2005.
A snapshot of your companys current internal strengths & weaknesses (management, personnel, financial marketing, manufacturing, R&D) AND Your assessment of future opportunities and threats relating to all the environments external to the firm (technological, social, political/legal, economic, competitive, natural).
Source: Strategic Marketing, 8th ed., Kerin & Peterson, 1998 and Strategic Marketing for Nonprofit Organizations, 5th ed., Kotler & Andreason, 1996.
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.
Purchase volume
# of customers Location of buyers
Large
Fewer Geogr. concentrated
Smaller
Many Dispersed
Distribution structure
Nature of buying Buying influence
More direct
More professional Multiple
More indirect
More personal Single
Type of negotiations
Use of reciprocity Use of leasing
More complex
Yes Greater
Simpler
No Lesser
Personal selling
Advertising
Status Quo Pricing --Seeks to maintain existing prices or meet competitions prices. --Requires minimal planning. --Often occurs with firms competing in an industry with an established price leader.
Profit Maximization Pricing --Occurs when marginal revenue equals marginal cost. 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.
What Should My Total Promotion Budget Be? 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.
Direct Mail (to consumers) --Cost averages .55 cents/piece or more (Ann Zeller, V.P., Direct Mktg. Assn.). Includes printing, copywriting, list rental & postage. --Response rates average 1%-1.5% (of total number of pieces mailed).
Direct Mail (lead generation for B to B) --Response rate for customer data form mailing to develop opt-in list (8-10%). This rate reflects the use of an incentive (additional cost).
E-Mail Campaigns --Cost averages 9 cents per contact (Zeller, DMA), but you must first build a list (spam issue).
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 Weeks 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.
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.
Web Site (awareness & lead generation) --Cost of Dreamweaver is $199 (Amazon.com); add cost of web site developers time. --Hiring an outside firm much more costly and total cost, plus monthly costs vary based on sites complexity and functionality.
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 experts tips, see Nielsens Designing Web Ads Using ClickThrough Data.
Google AdSense --AdSense is a quick way for website publishers to display relevant Google ads on their sites 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: Contemporary Market Research, 3rd ed., McDaniel & Gates, 1996.
Questions?