Assignment 3: Promotion and Pricing Strategies Due Week 8 and worth 135 points
Using the business from Assignment 2, write a three to four (3-4) page paper in which you: Identify its primary target market. Specify three (3) methods you will use to research customer needs and wants. Describe the marketing mix: a) product, b) pricing strategy, c) promotion, and d) placement/distribution. Create a one-year advertising budget and plan that incorporates the use of various advertising media and publicity. Include at least two (2) references outside the textbook.
Your assignment must follow these formatting requirements: This course requires use of Strayer Writing Standards (SWS). The format may be different than other Strayer University courses. Please take a moment to review the SWS documentation for details (more information and an example is included in the Strayer Writing Standards left menu link). Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required page length.
Paper For Above instruction
The development of an effective marketing plan is crucial for a new business to establish its presence, attract customers, and sustain growth. This paper explores the marketing strategies essential for a business initiated from the previous assignment, with a focus on identifying the target market, methods of research, marketing mix elements, and an advertising plan with a budget. These elements collectively provide a comprehensive framework to position the business competitively within its market niche.
Identifying the Primary Target Market
The primary target market for the business is crucial in tailoring marketing strategies for maximum impact. Based on the business from Assignment 2, which operates within the healthy snack industry, the target market comprises health-conscious adults aged 25-45 who seek convenient, nutritious snack options. This demographic is often urban-based, with a moderate to high disposable income, and tends to be well-educated about health and wellness. They are active on social media and rely heavily on digital platforms for discovering new products. Understanding this demographic's preferences and behaviors allows the business to design targeted marketing efforts that resonate with their lifestyle and purchasing habits.
Methods to Research Customer Needs and Wants
To effectively understand customer needs and wants, the business will employ three specific research methods:
Surveys and Questionnaires:
Deploying online surveys through email campaigns and social media platforms enables the collection of direct feedback from potential customers. This method provides quantitative data on consumer preferences, purchase frequency, and price sensitivity, which help tailor product offerings and marketing messages.
Focus Groups:
Conducting focus groups with a diverse sample of target consumers offers qualitative insights into their perceptions, motivations, and expectations. This interactive approach helps identify emotional and psychological drivers influencing purchasing decisions and reveals areas for product enhancement or marketing adjustment.
Market Observation and Competitor Analysis:
Observing consumer behavior in retail settings and analyzing competitors’ marketing strategies provide valuable real-world insights. Monitoring how customers interact with similar products and noting successful promotional tactics inform the business’s positioning and promotional activities.
The Marketing Mix
The marketing mix encompasses strategies related to product, price, promotion, and placement/distribution, each crucial for building a cohesive marketing approach.
Product
The product offering consists of organic, gluten-free snack bars made from natural ingredients, targeting health-conscious consumers. The packaging emphasizes convenience, health benefits, and sustainability, appealing to eco-aware customers. Product differentiation is achieved through superior nutritional content and eco-friendly packaging, aligning with consumer values.
Pricing Strategy
Adopting a value-based pricing approach, the business will price its products slightly higher than conventional snack bars to reflect the premium quality and organic ingredients while remaining within an
affordable range for the target demographic. Promotional discounts and bulk-purchase discounts will be offered periodically to incentivize larger orders and foster customer loyalty.
Promotion
The promotional strategy involves a blend of digital and traditional advertising channels. Social media marketing campaigns on platforms like Instagram and Facebook will target health-conscious communities through sponsored posts and influencer collaborations. Content marketing—including blogs and recipe ideas—will engage consumers and position the brand as an authority in healthy snacking. Additionally, participation in local health fairs and partnerships with gyms will increase visibility and credibility.
Placement/Distribution
Distribution channels will include online sales via the company’s website, third-party e-commerce platforms like Amazon, and local health stores. The business will also explore partnerships with fitness centers and organic markets to enhance accessibility. Efficient inventory management and logistics will ensure timely delivery, supporting customer satisfaction and repeat purchases.
One-Year Advertising Budget and Plan
The advertising budget for the first year will be $50,000, allocated towards digital advertising, content creation, influencer collaborations, and local events. Digital advertising will receive approximately 60% of the budget, focusing on targeted social media ads, pay-per-click campaigns, and sponsored posts, which are cost-effective and measurable. Content creation including videos, blogs, and newsletters will account for 20%. The remaining 20% will fund local promotions such as sampling events and participation in health expos.
The advertising plan prioritizes a phased approach:
Quarter 1:
Launch introductory social media campaigns, develop content, and establish brand presence.
Quarter 2:
Intensify influencer marketing efforts, introduce promotional discounts, and participate in local health events.
Quarter 3:
Expand digital advertising reach, optimize campaigns based on analytics, and launch a referral program.
Quarter 4:
Evaluate campaign effectiveness, focus on retargeting, and prepare for year-end promotions and holiday campaigns.
Conclusion
Developing a comprehensive marketing plan involves understanding the target market, employing effective research methods, and carefully designing the marketing mix. An integrated advertising strategy supported by a realistic budget ensures the business can reach its audience effectively, build brand recognition, and achieve sales objectives over the first year. By continuously evaluating and adapting these strategies, the business can establish a strong presence in the competitive health snack industry and foster long-term customer relationships.
References
Scarborough, N. M., & Cornwall, J. R. (2015).
Essentials of Entrepreneurship and Small Business Management . Pearson.
Kotler, P., & Keller, K. L. (2016).
Marketing Management (15th ed.). Pearson.
Armstrong, G., & Kotler, P. (2019).
Marketing: An Introduction . Pearson.
Chaffey, D., & Ellis-Chadwick, F. (2019).
Digital Marketing . Pearson.
Hanna, R., & Chen, X. (2020). Social media marketing strategies for small businesses.
Journal of Small Business Management , 58(4), 607-623.
Evans, J. R., & Berman, B. (2017).
Contemporary Marketing . Pearson.
Weinstein, A. (2018).
Sales and Sales Management . SAGE Publications.
Laudon, K. C., & Traver, C. G. (2021).
E-commerce 2021: Business, Technology, Society . Pearson.
Olson, E. M., & Zaltman, G. (1979). Using marketing research in small business.
Journal of Small Business Management , 17(3), 20-29.
Baines, P., Fill, C., & Page, K. (2013).
Essentials of Marketing . Oxford University Press.