AOF Entrepreneurship Unit 3 Lesson 6 The Role

AOF Entrepreneurship Unit 3, Lesson 6 The Role of Marketing Copyright © 2009– 2012 National Academy Foundation. All rights reserved.

What is marketing? • Marketing is the strategy used by a business to promote a product or service. • Marketing includes advertising, promotion, public relations, and sales. • Marketing is critical to the growth and success of most businesses and organizations. What are some ways that a new company can promote its product or service?

Successful marketing is made up of many elements Successful marketing involves developing a plan that includes: • Industry and market research • Analysis of the competition • Deep understanding of targeted customers Where do you think you could find information on market and industry research?

Organizations attempt to achieve a competitive advantage over their competitors The two most common types of competitive advantage include: • Cost advantage • Differential advantage Think about your own business idea. What type of competitive advantage can your company provide?

The 4 Ps represent a company’s marketing mix These four categories reflect a company’s marketing mix, or strategy: • Product • Place (distribution) • Price • Promotion How can each of these four categories help companies gain a competitive advantage?

Marketing materials can be used for public relations, promotions, advertising, or sales pitches • Public relations—courting the media • Marketing materials— reaching out to customers and potential customers • Advertising—promoting products and company branding Would you be more interested in a product you read about in a news article rather than an advertisement? Why?

The marketing budget needs to match the marketing goals and the company’s realistic financial forecasts • Before identifying how to promote the products and services, entrepreneurs need to consider financial restrictions. • The size of the budget might restrict the types of advertising and promotion that can be accomplished. • Promotion is easier than ever, because the Internet offers many low-cost marketing opportunities.

Make your marketing goals specific and measurable, and be prepared to adjust your expectations as you go • Marketing plans should have specific goals that can be measured and assessed at key milestones. • Many marketing plans include financial projections, and a calculable ROI, or return on investment. • Short-term goals are important, but make room for longer-term goals. • The plan should be adaptable as the market changes.