yc marketing principles -ppt3

Marketing Plan-Part 3

Marketing Tactics to accomplishmarketing strategies--use these for next assignment

1. Collateral Material—print/electronic tools2. Advertising3. PR4. Direct Mail Marketing5. Company website6. Internet marketing and social media7. Word of mouth©Blue Sky Marketing Consulting LLC

Collateral materials

•Product support literature•Capability brochure--company overview•Case studies--testimonials•Newsletters•Videos

©Blue Sky Marketing Consulting LLC

Advertising--upside

•Great for awareness, build rep•Enables some targeting of audiences•Paid placement guarantees desired

schedule•Supports integrated communications

campaign•Media will work with you•May supply PR placement©Blue Sky Marketing Consulting LLC

Advertising--downside

• Big bucks--once is not enough• Can’t guarantee placement location• Not for information intensive messages• “Noise” factor• Difficult to measure success• PR has challenged effectiveness of ads

©Blue Sky Marketing Consulting LLC

What will $1,000 ad budget buy?

•3-5 60-second radio commercials•30-second TV spot reaches 40,000•1-column X 3-inch B&W ad in major

newspaper•100,000 online impressions with

banner ad•Magazines/billboards--$$$

Public Relations•Has grown in importance•Build your credibility among customers•3rd party endorsement aspect•Foster relationships among

media/customers•Very low-budget tool•Electronic component•Supports integrated campaign©Blue Sky Marketing Consulting LLC

PR includes:

•Press releases--print/electronic

•Events and tradeshows–Build awareness –Builds relationships and leads--Supports product intros--Promotional items

•Sponsorships--builds relationships©Blue Sky Marketing Consulting LLC

Direct Mail Marketing

•Good tool to reach small businesses•Excellent for lead generation•Allows for precise targeting of audiences•Contributes to customer database—gather

information•Relationship building element•Softens customer for salesperson contact•Postcards, letters, amenities, etc.

©Blue Sky Marketing Consulting LLC

Company Website

• Critical marketing tool• Expected by customers today—Gen X• Good for lead generation• Electronic product info source• Easy point of contact• Order taking• Media section, newsletters, white papers• Supports integrated marketing

communications©Blue Sky Marketing Consulting LLC

Internet Marketing•Email blasts--lead generation•Customer surveys•Advertising, banners•Social media

--blogs

--twitter

--myspace, facebook, facebook fan

--youtube

©Blue Sky Marketing Consulting LLC

SOCIAL MEDIA STATS

• Biggest users: Australia, U.S. UK

• 24 of 25 largest newspapers decline in circulation

• Advertising: 70% users trust peer recs vs. only 14% trust ads

www.socialmediatoday.com

Google and Facebook

Google•1+ billion searches/daily•20% for local info•Maps guided users 12 billion miles in 2010

Facebook•#1 visited site•500+ million members; spend 55 minutes/day•200+ million access via mobile device•Average user generates 90 pieces of content/monthwww.socialmediatoday.com

Blogs

• 181 million blogs

• 34% post opinions about products/brands

• 18-44 years—major users

• 2/3rds are males

• 14% are corporate accountswww.socialmediatoday.com

Twitter

• 200+ million users

• 40+ tweets/year

• 140 million/day

• 80% use on mobile device

www.socialmediatoday.com

Inc. 500 and Social Media

• 71% of companies have Facebook page• 59% have Twitter accounts• 50% have corporate blog• 44% believe Facebook is most efficient SM tool• 56& think SM very important to marketing strategy• 83% use at least one SM tool

Center for Marketing Research

University of Massachusetts Dartmouth Center

Word of Mouth Marketing

•Trendsetters to carry message•Form network hubs •Suits products that are innovative,

personal experience required, complex, expensive, exciting or

observable•Reaches hubs/creates “buzz” through cross-promotions, place-based promos, sponsorships•Rose,Emanuel, The Anatomy of Buzz.

Integrated Marketing Communications (IMC)

•Tie all elements of promotional mix together to insure consistent message•Graphic look is similar•Copy supports all pieces•Synergy created•Usually produced as a campaign©Blue Sky Marketing Consulting LLC

Setting the budget

4.Affordable method--accomplish what you can with budget you receive from company

•Most often used by new or small firms

•Track results so that can demonstrate need for appropriate increase next year

Break-even Analysis (p. 271 in text)

1. Determine (est.) Fixed costs to include rent, insurance, executive salaries

2. 3. Est. price of your product (one unit)

4. Est. total cost of your product (one unit)

5. Plug into formula = BEP©Blue Sky Marketing Consulting LLC

Break-even ExampleThe Robert Company’s fixed costs for

year are $200,000. Its product sells for $250. The variable cost per unit is $200.

What is the break-even point?

BEP = total fixed cost= ? Units

Unit price - unit variable cost©Blue Sky Marketing Consulting LLC

Break-even Example

BEP = $200,000 = 4,000 units

$250-$200 =$50.00

©Blue Sky Marketing Consulting LLC

Marketing Plan-Part 3

• Develop and describe 3-4 promotional strategies to use with the target customer profiles you identified; why did you chose them?

• Choose a marketing budget method—why you chose it—see class PPT

• Provide a BEP for one of your products• Write one-page summary of your total plan