What is Marketing? Some theories of communications:o Linear Model.o Two-step Model.o Multi-step Model. Marketing laws. Sample Marketing Plan Outline. References.2
Marketing must be understood not in the oldsense of making a sale - selling - but in thenew sense of satisfying customer needs. Manypeople think of marketing only as selling andadvertising. Marketing deals with identifying and meetinghuman and social needs. Marketing can be looked at as anorganizational function and a set of processesfor creating, delivering and communicatingvalue to customers, and managing customerrelationships in ways that benefit theorganization.3
Linear Model (Interactive in case we included thefeedback)4
The Law of LeadershipIt is better to be first than be betterThe Law of the LadderThe strategy to use depends on which rungyou occupy on the ladderThe Law of the CategoryIf you can’t be the first in a category, set up anew category that you can be first inThe Law of DualityIn the long run, every market becomes a twohorse raceThe Law of the MindIt’s better to be first in the mind than to be firstin the marketplaceThe Law of the OppositeIf you’re shooting for second place, yourstrategy is determined by the leaderThe Law of PerceptionMarketing is not a battle of products, it’s abattle of perceptionsThe Law of DivisionOver time, a category will divide andbecome two or more categoriesThe Law of FocusThe most powerful concept in marketing isowning a word in the prospect’s mindThe Law of PerspectiveMarketing effects take place over anextended period of timeThe Law of ExclusivityTwo companies cannot own the same wordin the prospect’s mindThe Law of Line ExtensionThere’s an irresistible pressure to extend theequity of the brand7
The Law of SacrificeYou have to give up something in order toget somethingThe Law of SuccessSuccess often leads to arrogance, andarrogance to failureThe Law of AttributesFor every attribute there is an opposite,effective attributeThe Law of FailureFailure is to be expected and acceptedThe Law of CandorWhen you admit a negative, the prospect willgive you a positiveThe Law of HypeThe situation is often the opposite of the wayit appears in the pressThe Law of SingularityIn each situation, only one move will producesubstantial resultsThe Law of AccelerationSuccessful programs are not built on fads,they are built on trendsThe Law of UnpredictabilityUnless you write your competitor’s plans, youcan’t predict the futureThe Law of ResourcesWithout adequate funding an idea won’t getoff the ground8
91. The Law of Leadershipo The law of leadership is convincing people that you are the first in aparticular market.o It is easier to convince someone that you are first rather thanconvince them that you have a better product.o The leading brand in a category are usually the first in the mind ofconsumerso People tend to stick with what they’ve got.2. The Law of the Categoryo If you are not the first product in the market, you should try to find anew category and be the first in that categoryo IBM was the first in computers, but DEC was the first inminicomputerso Dell was not the first computer seller, but they were the first in sellingcomputers over the phoneo Everyone is interested in what is new, not necessarily what is better
103. The Law of the Mindo The problem is getting the idea or concept into the person’s mind.o You cannot change a person’s mind – once they perceive acompany of being one thing, they forever feel that it is that thingeg: Xerox will always be a photocopier company and never acomputer company, no matter how hard they try.o Sometimes a simple and easy way of getting into a prospect’smind is to have an easy to remember name, such as Applecomputers as opposed to the MITS Altair 8800.4. The Law of the Perceptiono The product itself is not central to the marketing, it is the perceptionin the mind of the consumers that is the important thing.o If you tell someone in Japan that you bought a Honda, they wouldautomatically assume that you are talking about a motorcycle – ifyou told someone in New York that you bought a Honda theywould assume that you are talking about a car. Honda isperceived differently in different markets.
11I. Mission Statement:A. Purpose of the marketing plan.B. Why are we in business, personal and business goals?C. Business goals and objectives as well as specific strategies toreach them.II. Product/Service:A. Identify product/service in terms of name, trademark, color,shape, and other characteristic, including packaging andlabeling.B. Describe product/service weaknesses.C. Describe product lines, and new products/services that willbe introduced.D. Give cost of each product/service.E. Give the price you plan to charge for each product/serviceF. Identify percent of annual sales and total dollar amounteach product/service represents.
12III. Market:A. Identify your customers - include all demographicand lifestyle information.B. Identify location of customers (local, regional,national or international).C. Identify the size of the total market.D. Identify market trends, including information aboutmarket studies and test marketing.E. List factors that affect purchasing such as: seasons,price, availability, service, emotionalconsiderations, etc…F. Will promotional activities be concentrated inspecific markets?
13IV. Competition (Direct and Indirect):A. Identify competitors by divisions, product lines and markets.B. Identify and compare your companys and your competitorsstrengths and weaknesses.C. Compare your marketing techniques with those of yourcompetitors.V. Pricing:A. Product/service costs including all variable and fixedexpenses.B. Be sure all products/services carry their share of expenses plusprovide for profit.C. Compare prices for your products/services with similarproducts/services in the industry.1. If your prices will be higher, they need to provide the necessary"added value" to justify.2. If your prices are lower, explain why in terms of your marketingstrategy.
14VI. Distribution:A. Identify the most effective methods forgetting products/services to customersin the target market.VII. Promotion Mix:A. Use of ad agency and/or in-house addepartment.B. Media choices, how selected andtarget audience.
15VIII. Sales Forecasting:A. Show recent sales trends in industry.B. Project sales and income for next fourquarters.IX. Action Plan:A. List all marketing strategies/activities.B. Prioritize all strategies by levels ofimportance.X. Production:A. Determine level of production/servicenecessary to meet demand generated bymarketing.
Principles of Marketing The 22 immutable laws of marketing University of Missouri Small Business Start-upKit Materials (http://extension.missouri.edu/p/CD31)16