1. MARKETING
Bill Taylor
Northeast Area
Community Development
Educator
University of Wyoming
The University of Wyoming is an equal opportunity/affirmative action 1
institution.

2. What is marketing?
Marketing is everything you do to promote
your business, from the moment you
conceive of it to the point at which
customers buy your product/service and
begin to patronize your business on a
regular basis.
Jay Conrad Levinson – Guerrilla Marketing
University of Wyoming 2
HANDOUT: Slides

3. University of Wyoming 3

4. University of Wyoming 4

5. The Marketing Process
• Research
– Gather information about industry,
customers, competitors, and market
potential.
• Market Analysis
– Helps you decide on strategies
• Market Plan
– Implementation of the strategies
University of Wyoming 5

6. Analyzing the Customer
• Determining your customer “profile”
– Demographics – physical characteristics
which segment people
• Age groups, income levels, number of
homeowners, shift workers vs. salaried
professionals, ethnic and racial groups
– Psychographics – mental characteristics
which motivate people to buy
• Vegetarians, interested in the arts, outdoors
oriented, confident, fearful
University of Wyoming 6

7. Analyzing the Customer
(cont.)
• Who is your customer?
– Is the type of customer your business
generally attracts the customer you want to
attract?
University of Wyoming 7

8. Researching Your Customer
• Primary • Secondary
– Phone surveys – Library references
– Personal interviews – Trade associations
– Intercept (randomly – US Census & other
selected people) governmental data
– Written surveys – Computerized
– Focus groups databases
– Publication inserts
University of Wyoming 8

9. Determining Your Market
Area
• Geographical boundaries and size
– Geographical scope
– Assumptions can make or break your market
– What about shipping and advertising?
– Target customers are different from
Newcastle to Gillette to Rapid City
University of Wyoming 9

10. Determining Your Market
Area (cont.)
• You want to start a business that offers
linked computer services specifically for
doctors and hospitals.
Town A – 5000 Town B – 50,000
•One small hospital facility for •25 miles away from town A
emergency treatment only
•Two major hospitals
•Five local physicians
•20 local physicians
University of Wyoming 10

11. Competitive Advantage
• Price • Products/Services
• Quality offered
• Expertise • Image/Reputation
• Customer service • Location
• Store layout • Sales method
• Store appearance • Management
• Selection • Credit policy
• Advertising • Stability
• Reliability
University of Wyoming 11

12. Think outside the obvious…
• The obvious customer isn’t the only
customer.
• The obvious competitor isn’t the only
competitor.
University of Wyoming 12

13. Determining Trade Area and
Target Market
• Determining the number of people in your
trade area who “fit” your customer profile.
– Target market – a sub-segment of the overall
trade area
• Have specific characteristics
– What percentage of this “target market” will
actually respond with a purchase?
University of Wyoming 13

14. Niche Marketing
• Seeking out and capitalizing on pockets of
opportunity.
– Usually small, specific customer base that has not
been reached – they have a need you can fill.
– A marketer can become a big fish in a small pond…
• Competition is less intense.
• Lower costs of reaching the market.
• Greater potential to achieve dominance.
– Niche markets may be less stable or long-lived
– May be too small to provide sufficient gross sales
University of Wyoming 14

15. Determining Market
Potential
• Who will buy & how much will they spend?
– Accuracy of your market research is important.
• Customer profile
• Competition identified
• Size of trade area
– The amount of your resources available for
development and marketing will have a strong effect
on which customers you target, who you take on as
competition and what size of trade area you intend
to market to.
University of Wyoming 15

16. Projecting Sales Volume
1. Total number of people (or businesses) in
your trade territory.
2. Total number in trade territory who fit
customer profile.
3. Estimated $ amount spent by customers on
products.
4. Equals total annual market potential.
5. Your estimated % share of this market.
6. Equals your projected annual market
potential.
HANDOUTS: Mkt Analysis University of Wyoming 16
Wksht & Resources

17. The Five “P”s of a Market
Plan
• P #1 – Products or Services
– What do they (your products) or you (your
services) do?
– What makes yours’ unique or special?
– Who will buy them?
– When will they buy them?
– How much will you charge?
University of Wyoming 17

18. The Five “P”s of a Market
Plan (cont.)
• P #2 – Packaging
– The way your business is presented to the
marketplace.
• Image of business
• Consistency of presentation in all
communications
• If you see golden arches you always know what
to expect.
University of Wyoming 18

19. The Five “P”s of a Market
Plan (cont.)
• P #3 – Place
– Where do you do business?
– Location can impact customer availability
and customer service
– Location needs to “fit” the customer
expectation
– Your position in the distribution chain affects
your decision about location
– A gift store in the industrial section probably
won’t have much of a draw
University of Wyoming 19

20. The Five “P”s of a Market
Plan (cont.)
• P #4 – Pricing
– What influences price?
• Cost – pricing from “bottom up”
– Raw materials, labor, overhead, taxes, profit
– Comparison to competition, market position
University of Wyoming 20

21. The Five “P”s of a Market
Plan (cont.)
• P #4 – Pricing (cont.)
– What influences price? (cont.)
• What is the market willing to pay?
– Seasonality
– Convenience
– Elasticity of consumer
» Milk (grocery store – convenience store)
» Computer programmer ($15/hr - $100/hr)
• Demand – “top down” pricing
– Analyze the range of acceptable prices
» Set price
» Analyze costs
» Is there adequate profit?
University of Wyoming 21

22. The Five “P”s of a Market
Plan (cont.)
• P #4 – Pricing (cont.)
– What influences price? (cont.)
• Perceived value
– What does your psychographic profile tell?
» “Worth” of $50 pair of name brand jeans to a
rancher?
» Image pricing positions your product/service based
on perceived value – BMW vs. Chevy
» Price/quality relationship
University of Wyoming 22

23. The Five “P”s of a Market
Plan (cont.)
• P #4 – Pricing (cont.)
– Common pricing mistakes
• Failure to allow for waste, inventory shrinkage, damaged
goods
• Not adjusting prices yearly
• Ignoring cost of replacing equipment (depreciation cost)
• Understanding cost of getting and keeping customers
• Underpricing special services – e.g. product variation, extra
services
• Not including an owner/manager salary
University of Wyoming 23

24. The Five “P”s of a Market
Plan (cont.)
• P #5 – Promotion
– No matter how much time and effort is put
into the product, pricing, and placement, the
whole process is likely to fail without good
promotion.
– “Top of Mind Awareness”
• Communicates a message
• Builds an image
• Creates awareness
University of Wyoming 24

25. The Five “P”s of a Market
Plan (cont.)
• P #5 – Promotion (cont.)
Don’t tell me about your grass seed, tell me
about my lawn!
University of Wyoming 25

26. Promotion
• Promotional Mix
– The combination of tools used to promote
products or services
• Personal selling
• Word of mouth
• Public relations
• Sales promotion
• Advertising
University of Wyoming 26

27. Promotion (cont.)
• Personal Selling
– Face-to-face presentation & promotion of
products/services
– Searching out prospects
– Providing follow-up
• Word-of-mouth
– Consumers talking about products/services they
have liked or disliked
– One of most effective promotional tools
– Targeted to satisfied customers
University of Wyoming 27

28. Promotion (cont.)
• Public Relations (PR)
– Listen to the public
– Develop policies & procedures that are in the
public interest
– Inform people that you are being responsive
to their needs
• E.g. health concerns, environmental concerns,
concern for children, etc.
University of Wyoming 28

29. Promotion (cont.)
• Public Relations (PR) (cont.)
– Publicity – a function of PR
• …any newsworthy or interesting information
about an individual, product, or organization.
• …that the media distributes to the public.
• …that is not paid for, or controlled by, the
sponsor.
University of Wyoming 29

30. Promotion (cont.)
• Public Relations (PR) (cont.)
– Publicity (cont.)
Advantages Disadvantages
•Free •No control
•Hard-to-reach audiences  How, when, where, how
many times, if
•Various media coverage
•Info may be altered
•Believability
•Good vs bad
University of Wyoming 30

31. Promotion (cont.)
• Sales
– Short-term activities that stimulate consumer
purchasing and supplement other
promotional activities.
Displays Bonuses Premiums
Gifts Trade shows Demonstrations
Contests Incentives Exhibits
Samples Rebates
Coupons Catalogs
University of Wyoming 31

32. Promotion (cont.)
• Advertising
– Paid, nonpersonal communication through various
media, by organizations or individuals, who are in
some way identified in the advertising message.
– Expenditures in order
• Newspaper – 25%
• Television – 22%
• Direct mail
• Yellow pages
• Radio
• Magazines
• Outdoor
University of Wyoming 32

33. Promotion (cont.)
• Elements of Effective Promotion
– Who? The right audience
• Your targeted market segment
– What? The right message
• The tone that best suits the image & product
• The information your target market segments
want to hear
– Benefits of your product/service
– Your competitive advantage
University of Wyoming 33

34. Promotion (cont.)
• Elements of Effective Promotion (cont.)
– Where? The right place
• Where your targeted market segments look for
information
University of Wyoming 34

35. Promotion (cont.)
• Marketing misconceptions
– Companies control the market
• …“If we build it, they will come.”
– Once you have developed a market approach that
works, you have mastered marketing.
• …remember when IBM was synonymous with computers?
– There is a magical market bullet that works for
everyone.
• …there is no “one right way” to market any product or
service.
University of Wyoming 35

36. Promotion (cont.)
• Marketing misconceptions (cont.)
– Marketing and selling are the same thing
• …selling is only one aspect of the marketing
process.
• …businesses that focus their efforts solely on
creating sales run the risk of disaster.
– Marketing is the same as advertising
• …advertising is just one part of the marketing
process.
University of Wyoming 36

37. Time – A Key
(Judith A. Barry, Cornell University)
Are you getting the most out of your
marketing strategy?
• Time costs money
– Value of time used is often underestimated
• Is return to time adequate to pay for the time
invested? If not, why are you doing it?
– Analyze skills
• Introverts get worn out being with people all day –
Is the right person doing the marketing?
University of Wyoming 37

38. Time – A Key (cont.)
• Think of using a middleman
– Using the skills and experience of external people
may save money and time
– Again, assess your skills – is your time better spent
in development and production?
• “Time costs money, but my time is free.”
– Wrong! All time costs money. You could always be
doing something else.
– If you get sick someone will have to be paid to do
the same job.
– Even if lifestyle is an important ingredient,
remember: the bills must be paid.
University of Wyoming 38

39. Time – A Key (cont.)
• Where to get more time?
– As development, quality control, and production
takes more time how can additional time be given to
the important task of marketing?
• Strategic planning is necessary
– Looking at the big picture
– Setting important goals and operations first
– Assigning the best sets of skills to the most appropriate tasks
– Reducing, cutting back, changing, expanding with long-term
goals in mind
University of Wyoming 39

40. QUESTIONS?
The University of Wyoming is an equal opportunity/affirmative action 40
institution.