Summary Chapter 11

Chapter 11

Unique Marketing Issues

Selecting a Market and Establishing a Position 

·         Segmenting the Market : to study the industry in which the firm intends to compete and determine the different potential target markets in that industry. 

·         Selecting a Target Market

A niche market is a place within a market segment that represents a narrow group of customers with similar interest.

·         Crafting a Unique Market Position

Branding

Brand management is a program used to protect the image and value of an organization’s brand in customers’ minds.

Creating buzz means creating awareness and a sense of anticipation about a company and its offerings.

Brand equity is the term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm’s valuation. 

The 4Ps of Marketing for New Ventures

Marketing mix is the set of controllable, tactical marketing tools that uses to produce the response it wants in the target market. 

Product : The good or service it offers to its target market. 

A service is an activity or benefit that is intangible and does not take on a physical form. 

Price : the amount of money consumers pay to buy a product. 

Most entrepreneur use one or two methods to set the price for their products:

1.      Cost based pricing : the list price is determined by adding a markup percentage to a product’s cost.

2.      Value based pricing : the list price is determined by estimating what customers are willing to pay for a product and then backing off a bit to provide a cushion. 

Promotion : the activities the firm takes to communicate the merits of its product to its target market. 

Advertising is making people aware of a product in hopes of persuading them to buy it.
the major goals of advertising:

1.      Raise customer awareness of a product

2.      Explain a product’s comparative features and benefits

3.      Creates associations between a product and a certain lifestyle

The steps that involved in putting together an advertisement

1.      Identify the purpose of the ad: clearly identify one or more purposes that you expect the advertisement to achieve

2.      Determine the target audience : identify who you want to see the ad

3.      Select a medium : select a medium for the ad, such as television, radio, or newspaper

4.      Create the ad : create an ad that is appropriate for your audience, product, and budget

5.      Select a place and time for the ad to appear : select the specific place and the specific time of day for an ad to appear

6.      Fulfill expectations : make sure to have enough product on hand if the ad is successful.

Public relations : the efforts to establish and maintain a company’s image with the public.

Social media : to consist primarily of blogging and establishing a presence and connecting with customers and others through social networking sites.

Other promotion related activities

For example give away free samples of their products.

Place (or Distribution)

Place or distribution, encompasses all the activities that move a firm’s product from its place of origin to the customer.

A distribution channel is the route a product takes from the place it is made to the customer who is the end user.

Selling direct : selling directly to the customers.

Selling through intermediaries : to pass off their products to wholesalers or distributors that place them in retail outlets to be sold.

Sales process and related issues

Sales process depicts the step it goes through to identify prospects and close sales.

Sales process:

1.      Prospect for (or gather) sales leads

2.      Make the initial contact

3.      Qualify the lead

4.      Make the sales presentation

5.      Meet objections and concerns

6.      Close the sales

7.      Follow up