ENTREP LESSON 3-5

• 7 Ps in the marketing mix

  • Product
  • Place
  • Price
  • Promotion
  • People
  • Packaging
  • Positioning
• Marketing mix


  • A set of controllable and connected variables that a company gathers to satisfy a customer better than its competitor
• Product


  Any goods or services that are produced to meet the consumers' wants, tastes and preferences
• Place


  The location where the buyer and seller exchange goods or services, also called distribution channel
• Distribution channels


  • Producer - Wholesaler - Retailer - Consumer
  • Producer - Retailer - Consumer
  • Producer - Consumer
• Price


  The value of money in exchange for a product or service, the amount or value that a customer gives up to enjoy the benefits of having or using a product or service
• Promotion


  The complete set of activities which communicate the product, brand or service to the user to attract people to buy your product over others
• People


  You, your team, staff, audience, and advertisers who are involved in the product or service whether directly or indirectly
• Packaging


  The outside appearance of a product and how it is presented to the customers, should be attractive enough and cost efficient
• Positioning


  The process used by marketers to create an image in the minds of a target market, presenting a product or service in a way that is different from the competitors
• Brand name


  A name, symbol, or other feature that distinguishes a seller's goods or services in the marketplace
• Brand strategy


  • A long-term design for the development of a popular brand in order to achieve the goals and objectives, directly linked to customer needs, wants, emotions, and competitive surroundings
• Branding


  • A powerful and sustainable high-level marketing strategy used to create or influence a brand, distinguish products and companies, build economic value to both customers and to brand owners
• Common branding strategies


  • Purpose (functional, intentional)
  • Consistency
  • Emotion
  • Flexibility
  • Employee involvement
  • Loyalty
  • Competitive awareness
• Functional purpose


  Focuses on the assessments of success in terms of fast and profitable reasons, e.g. the purpose of the business is to make money
• Intentional purpose


  Focuses on fulfillment as it relates to the capability to generate money and do well in the world
• Consistency


  • Aids to brand recognition, which fuels customer loyalty, avoid things that don't relate to or improve your brand
• Flexibility


  • Allows you to adjust and differentiate your approach from your competition, don't be afraid to change tactics that don't work anymore
• Emotion


  • Allow customers to feel part of your brand, connect more deeply and emotionally with your customers, build relationships and promote brand loyalty
• Employee involvement


  • Employees should be well-versed in how they communicate with customers and represent the brand
• Loyalty


  • An important part of brand strategy, the emphasis on a positive relationship between you and your existing customers sets the tone for what potential customers can expect
• Competitive awareness


  • Do not be frightened of competition, take it as a challenge to improve your branding strategy and craft a better value in your brand
• Branding strategy


  • Deeply and emotionally connect with customers
  • Make customers feel part of the family
  • Use emotion to build relationships and promote brand loyalty
  • Employees should be well-versed in communicating with customers and representing the brand
• Common branding strategy elements

  • Consistency
  • Emotion
  • Flexibility
  • Employee involvement
  • Loyalty
  • Competitive awareness
• Branding is an important part of brand strategy
• Emphasising a positive relationship with existing customers sets the tone for what potential customers can expect
• Do not be frightened of competition, take it as a challenge to improve your branding strategy and craft a better value in your brand
• 3Ps more for services - people, packaging and positioning
• All the Ps should be compatible and consistent in the marketing mix
• The price is compatible with the product's placement
• The product must be consistent with the promotion
• When you make a marketing mix, it becomes a chain of strong bonds that will lead you to lengthen the chain
• Branding is absolutely critical to a business because of the overall impact it makes on your company
• Branding can change how people perceive your brand, drive new business, and increase brand awareness
• Executive summary


  Part of the business plan which is the first to be presented but the last to be made
• Guide questions for executive summary

  • What is the nature of your business?
  • What products will be offered?
  • Who will be your target market?
  • Is this a new or existing business?
  • If an existing business, how long has it been in operation for?
  • Where will the business be based?
  • What is the shareholding and management structure of the business?
  • What are the short and long term goals of the business?
  • What is the owners cash contribution towards this business going to be?
  • What is the ideal funding requirement from the bank? (How much are you looking to borrow?
  • What security will you be offering for the loan?
• Business description contents


  • Under what legal entity is the business going to be trading under, and has this entity been registered?
  • What sector does the business fall into (wholesale, retail, food, service, etc.)?
  • Where is the business located?
  • What sort of premises will the business be operating from (shopping centre, warehouse, owners residence, etc)?
  • Reason for choosing these particular premises.
  • What zoning is allocated to the business address?
  • Does the business address comply with the allocated zoning?
  • Will a lease agreement be signed, if so, what are the terms and conditions?
  • What is the monthly rentals payable?
• Product/service contents


  • What is the product mix of the business?
  • Why would customers be attracted to your products (quality, reliability, price, etc)?
  • What gives your product the competitive edge over the rivals?
• Market and competition contents


  • Who is your target market (age, income, etc)?
  • What growth patterns can you see emerging with regard to the make up and size of your market (expansion geographically, new customers, etc)?
  • Identify and list the major competitors in your area. Name/How long have they been in business/Products services provided
  • What key success factors do the competitor demonstrate?
  • Can you identify any weakness in the business operations?
  • What skills will be necessary in order to allow you to have the competitive advantage in your area?
• Marketing and selling strategy should provide a clear indication of what the marketing strategy is going to be, over and above the involvement from the franchisor