6/3/14 The Concept of A Marke?ng Machine Inputs to The Marke?ng Machine Place Inputs and Outputs for a Coffee Shop Machine Promo?on Price Tags Product Quality I am the manager of this machine The Marke?ng Machine Ted Mitchell Revenues Quan?ty of Goods Sold Profits Demand Outputs from The Marke?ng Machine Example of A Marke?ng Machine Place Promo?on Product Quality Revenues Inputs to The Marke?ng Machine Now I am the manager of this coffee Price Tags shop machine What choice of ingredients do you have for the Promo?on Mix? Promo%on The Coffee Shop Machine Quan?ty of Goods Sold Demand Profits Outputs from The Coffee shop Machine Many Ingredients for the Promo?on and Communica?on Mix •  The Inputs for Marke?ng Machines have been classified as the 4 P’s of the marke?ng mix •  Possible elements of the •  Promo?on mix for the Coffee Shop are: •  Print adver?sing, (how many, how much $) •  Number of Servers, total server hours •  Radio Spots,(how many, how much budget) •  Coupons, •  Cups with Logos The Coffee Shop Machine Revenues Now I must choose the marke?ng mix Quan?ty of Goods Sold Demand Profits Outputs from The Marke?ng Machine Many Ways to measure amounts of Promo?on effort and expense •  In General: Measuring the amount of Promo?on include •  Number of inser?ons, TV spots •  Square footage of ad facing •  Number of households reached •  Number of Calls made by sales people •  Number of views, of click-­‐throughs •  (Number of languages ?) 1 6/3/14 What choice of ingredients do you have for the Pricing Mix? Pricing Ingredients The Coffee Shop Machine Revenues Now I must choose the pricing mix Quan?ty of Goods Sold Demand Profits Outputs from The Marke?ng Machine What choice of ingredients do you have for the Product/Service Mix? Product Ingredients The Coffee Shop Machine Revenues Now I must choose the Product mix Quan?ty of Goods Sold Demand Profits Outputs from The Marke?ng Machine What choice of ingredients do you have for the Place/Time Mix? Place and Time Ingredients The Coffee Shop Machine Revenues Quan?ty of Goods Sold Demand Profits Outputs from The Marke?ng Machine Now I must choose the Place mix Ingredients in the Pricing mix •  Possible elements of the Pricing mix for the coffee shop are: •  Price Tag for each size cup of coffee •  Price Tag for a pastry •  In general accept credit/debit cards, loyalty rewards, student discounts, cashing checks, different currencies, cumula?ve discounts, etc. •  Bundling delivery, assembly, insurance, product features, returns, trade-­‐ins Ingredients for the Product Mix •  Possible elements of the Product/Service mix for the coffee shop are •  Quality of coffee, sizes of coffee, number of servers, quality of the servers, amount of ambiance, amount and type of entertainment •  In general, wi-­‐fi, related product lines, alcohol, foods, tapis, product training, assembly, Ingredients for the Place Mix •  Possible elements for provision of Place and ?me u?li?es for the coffee shop •  Hours of Opera?on, Days of Opera?on, Furnishings, Loca?on •  In general it would include, channels of distribu?on, direct or indirect, the number distribu?on ?ers, packing, storage, transporta?on, logis?cs, SCM 2 6/3/14 Any Ques?ons about •  The Inputs for Marke?ng Machines have been classified as the 4 P’s of the marke?ng mix •  What are the possible ingredients in each of the Four P’s •  Pricing Mix •  Product/Service Mix •  Mix of Place and Time U?li?es •  Promo?on/Communica?on Mix Outputs are linked •  1) Customer Awareness •  2) Demand (Cups sold, Number of pastries) •  3) Sales Revenues (average revenue per transac?on) •  4) Profits (unit profits, gross profit, marke?ng profit, net profit) Types of Coffee Shop Outputs are •  We are most concerned with: •  Profits (unit profits, gross profit, marke?ng profits, net profits) •  Total Sales Revenues (average revenue per transac?on, revenues per product line, revenue per household, per account) •  Demand (Quan?ty of Cups sold, Number of pastries) •  Customer Awareness •  Level of Customer Sa?sfac?on Any ques?ons •  About the basic inputs and outputs for the coffee shop machine you are running? •  What is the overarching output you are gebng points for? •  Customer Sa?sfac?on (Reten?on rates) 3