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The Art of Successful Marketing

May 1, 2002

Bob Salyer Director, Business Development Raytheon Missile Systems

The Art Of Successful Marketing


Marketing Theory What Is Marketing? What Is a Target Market? Marketing Mix (5Ps) Product Positioning Place Price Promotion

The Art Of Successful Marketing


What Is Marketing? How You Define Your Product How You Promote Your Product How You Distribute Your Product How You Maintain a Relationship With Customers Marketing Is More Than Sales, Its a Set of Activities Used: To Get Your Potential Customers Attention To Motivate Them to Buy To Get Them to Actually Buy To Get Them to Buy Again

The Art Of Successful Marketing


Marketing Versus Selling Characteristics Comparison Selling
Sales Oriented Output Sold to Consumers One Way Process Short Run Goals Volume Oriented Emphasis on Individual Consumers Narrow View of Customer Needs

Marketing
Consumer Oriented Marketing Research Determines Output Two-way Process (Interactive) Long Run Goals Profit Oriented Emphasis on Groups of Consumers Broad View of Customer Needs
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The Art Of Successful Marketing


What Is a Target Market? Market Definition Potential Customers

A Market Defined: An Arena for Organizing and Facilitating Business Activities Location Local, State, Regional, National, International Time Summer Movie Season, Christmas Poinsettias,
Winter Snow Removal Service

Level Wholesale, Retail, Discount, Luxury, Manufacturing Customer Government, Industry, Small Business, Consumer Age or Gender Group
Children, Young Adults, Adults, Senior Citizens
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The Art Of Successful Marketing


Target Market Is the Group of Potential Customers Selected for Marketing
% of Buying Population
Stages of Consumer Adoption Process - Awareness - Interest - Evaluation - Trial - Adoption

Early Majority

Late Majority

Consumer Innovators

Early Adapters

Laggards

Time of Adoption
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The Art Of Successful Marketing


Marketing Research Yields More That 5 Ps Product Positioning Place Price Promotion Packaging Persuasion Performance Power Passion Perspective Perception
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The Art Of Successful Marketing


Product: The Item or Service That You Have to Offer to Customers Description Name/Brand Functionality, Features, Benefits Life Cycle Adaptability Questions to Answer: What Are You Marketing? Who Needs It? Who Knows They Need It?
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The Art Of Successful Marketing


Positioning: How Your Target Market Defines You in Relation to Your Competitors Message to Target Audience Benefit Compelling Reason Why

Questions to Answer: What Makes Your Product or Service Unique? What Are the Positions of Your Competition? How Is the Market Place Not Satisfying Customers?

The Art Of Successful Marketing Customer Satisfaction


Value Added

Product/Service

Expectations Met

AT

LO YA L

AD VO CA TE

Expectations Not Met

G O NE

SE AR CH IN G

RI SK

Dissatisfied

Satisfied

Dazzled
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Process to Extract The Product/Service

The Art Of Successful Marketing


Place: The Method for Making Your Product or Service Available to the Consumer Distribution Strategies range from Ubiquity to Exclusivity Distribution Channels Retail Outlets Telemarketing Wholesale Outlets Cyber Marketing Sales Force TV and Cable Direct Direct Mail Marketing
Questions to Answer: Where Is It? How Does the Customer Get It? How Can It Be Seen? How Do Competitors Distribute It?

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The Art Of Successful Marketing


Price: The Amount of Money Charged for a Product Or Service; The Monetary Transaction That Reflects Value As Perceived by the Customer Strategies Product Line, Captive Product, Optional Product New Products Market Skimming, Market Penetration Adjustments Promotional, Geographical, Psychological Questions to Answer: How Much Does It Cost? Who Sells for More/less? How Does the Customer Perceive Value?

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The Art Of Successful Marketing


Packaging/Pricing - Example Average Retail Pricing
Instant Coffee 8 oz. Jar = $2.79 16 oz. Jar = $5.59 Initial Market Test Coffee Singles 20 ct. Box = $2.99 40 ct. Box = $5.99 Revised Market Test Coffee Singles 19 ct. Box = $2.69 38 ct. Box = $5.49

Market Share (Instant Coffee Market)

.5%

5%

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The Art Of Successful Marketing


Promotion: The Specific Mix of Advertising, Selling and Public Relations a Company Uses to Pursue Its Marketing Objectives; to Communicate Your Message to Your Potential Customers Forums: Advertising Public Relations In-Store Displays Sales Coupons Personal Selling Worldwide Web Telephone Direct Mailings Packaging

Questions to Answer: Who Knows About Your Product? How Do They Know About Your Product? Where and for How Much Will You Promote Your Product?

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The Art Of Successful Marketing


Promotion - Example The Many Uses of Bounce Fabric Softener Sheets: Bounce Will Chase Ants Away When You Lay a Sheet Near Them Bounce Takes the Odor Out of Books and Photo Albums That Dont Get Opened Too Often Bounce Repels Mosquitoes. Tie a sheet of Bounce Through A Belt Loop When Outdoors During Mosquito Season Bounce Dissolves Soap Scum From Shower Doors. Clean With a Sheet of Bounce
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The Art Of Successful Marketing


Promotion - Example (Continued) The Many Uses of Bounce Fabric Softener Sheets: Collect Cat Hair. Rubbing the Area With a Sheet of Bounce Will Magnetically Attract All the Loose Hairs Prevent Musty Suitcases. Place an Individual Sheet Of Bounce Inside Empty Luggage Before Storing Freshen the Air in Your Car. Place a Sheet of Bounce Under the Front Seat Eliminate Odors in Wastebaskets. Place a Sheet of Bounce at the Bottom of the Wastebasket
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The Art Of Successful Marketing


Summary: Ultimately in Almost Every Transaction, the Customer Is a Person People Shop for Highest Value (Product Benefit and Intrinsic Value) Marketing Is an Art, Not a Science. It Requires Your Creativity to Adapt Market Theory and Marketing Mix Tools to the Specific Needs of Your Business.

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The Art Of Successful Marketing


References:
Barron's Marketing by Richard L. Sandhusen, 2000 The Marketing Game, How The World's Best Companies Play to Win by Eric Schulz, 2001 Business Owner's ToolKit, Total Know-How for Small Business by CCH Incorporated, 2002 Proctor and Gamble Website (www.pg.com/) Bounce Website (www.theBounceHouse.com/)
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