Market-Penetration Pricing

Because I’m introducing a new idea, I will set a low initial price in order to penetrate the market. According to Kotler, “Rather than setting a high initial price to skim off small but profitable market segments, some companies use market-penetration pricing. They set a low initial price in order to penetrate the market quickly and deeply-to attract a large number of buyers quickly and win a large market share.” At this point, my customers have tried everything to help maintain their weight and nothing seems to fit with their time-consuming lifestyle. I know that they will be hesitant to try my product so I feel setting a low price will be just enough to get them to try it. The benefits and service that come included are priceless.

Quote 18/ Chapter 9
Pg 271: Market-Penetration Pricing
(Philip Kotler, Marketing, An Introduction)

Factors to Consider When Setting Prices

“Good pricing begins with a complete understanding of the value that a product or service creates for customers.” After segmenting the marketing and choosing my target market, I’ve realized that my consumers will not mind paying more for a quality product. The problem I do face is whether they will understand that because they will be getting most of their information online, or through email or text, they will not understand the value of it. The biggest value does not come the many recipes we offer but in the service behind it. What my customers will be buying is not just a cookbook, but their own personal nutritionist.

Quote 17/ Chapter 9
Pg 259: Factors to Consider When Setting Prices
(Philip Kotler, Marketing, An Introduction)

Customer-Centered New-Product Development

"Above all else, new-product development must be customer centered." I will incorporate the very consumers targeted into my business. In the call centers, I want women who have once had image demanding jobs so they can relate to the caller. I will have the marketing team out mingling at the consumers jobs, asking questions and interviews our buyers.

Quote 16/ Chapter 8
Pg 242: Customer-Centered New-Product Development
(Philip Kotler, Marketing, An Introduction)

Test Marketing

"Test marketing, the stage at which the product and marketing program are introduced into realistic market settings." I'm going to test it among a small group of my target consumers. I will first sell my books online, hoping the gain the right target customer. I know that if they find it online they will into the millennial group who are comfortable using the Internet as a resource and will be more inclined to do other things on the web. They will hopefully spread the word through word of mouth, or other means of communication.

Quote 15/ Chapter 8
Pg 240: Test Marketing
(Philip Kotler, Marketing, An Introduction)

Brand Positioning

"A brand can be better positioned by associating its name with a desirable benefit." Seductive Girls Cookbook. Seductive, tending to the desire to be sexy and sensual. Girl, gives a feeling of youth which every woman desires. But behind the title is my promise to make feeling sexy as easy as it sounds.

Quote 14/ Chapter 7
Pg 212: Brand Positioning
(Philip Kotler, Marketing, An Introduction)

Levels of Products and Services

"The most basic level is the core customer value, which address the question 'What is the buyer really buying?'" When women buy my book they are buying freedom of yo-yo dieting. They are buying a new lifestyle that has healthy benefits as a bonus. The actual product is a cookbook in a more convenient form. The augmented product is the attention we offer, to their needs. We will be at their beckon call, only an email away. Should they want immediate help, our customer service hotline will be open 24/7.

Quote 13/ Chapter 7
Pg 200: Levels of Products and Services
(Philip Kotler, Marketing, An Introduction)

Concentrated Marketing

"Through concentrated marketing, the firm achieves a strong market position because of its greater knowledge of consumer needs in the niches it serves and the special reputation in acquires. It can market more effectively by fine tuning its products, prices and programs to the needs of carefully define segments." Quality, over quantity. I've made a product with one customer in mind. I want my customer to feel like my company is here to cater to their needs and they have a strong relationship with us.

Quote 12/ Chapter 6
Pg 178: Concentrated Marketing
(Philip Kotler, Marketing, An Introduction)

Market Segment

"A company must identify the parts of the market that it can serve best and most profitably. It must design customer-driven marketing strategies that build the right relationships with the right customers." I've divided the total market up by source of income. The first group is retail, second group is hospitality, the third is entertainment and the fourth is service. By taking the entertainment as my target, I've divided that group into smaller segments by benefits sought. Women who have already achieved status, women who work as an entertainer only for money and women working to achieve status. I know that the women that have only one obligation can afford to make time to work out and have people cook for them. They are not my target consumer. The next groups of women are those who work in the entertainment industry as means of money and nothing else. They don't value their craft and don't worry about maintaining a certain image and they are also not my target consumer. The last group is my target consumer because they are the women that love their job as an entertainer and want to perform and look to best of their ability. They don't mind paying extra for a quality product if it will make things easier.

Quote 11/ Chapter 6
Pg 167: Market Segment
(Philip Kotler, Marketing, An Introduction)

Buyer Decision Process

Kotler thinks that "Marketers need to focus on the entire buying process rather than on just the purchase decision." He has the steps as: Need recognition, information search, evaluation alternatives, purchase decision, post purchase behavior. The need my customers have is the demand to maintain the ideal body. This demand has them searching for many answers in many different places. They first search for information from co-workers that understand how hard this lifestyle is and wonder what they do to upkeep this image. When they can't find answers from them they'll look to their friends and family. They'll evaluate the alternatives having already tried diet pills, meal replacements, different workout regimens but nothing keeps their interest, or nothing works with their hectic schedule. Then they make the decision to purchase my cookbook. During their post purchase they adjust to the suggestions in the cookbook and spread their likes and dislikes to those in the 'information search' process.

Quote 10/ Chapter 5
Pg 146: Buyer Decision Process
(Philip Kotler, Marketing, An Introduction)

Maslow's Hierarchy of Needs

In Kotlers text, he has Maslow's Hierarchy of Needs which states the human needs. "Physiological needs, safety needs, social needs, esteem needs, and self-actualization needs." Understanding the needs of my consumers will help me to build the best product I can. I know that my customers will be striving off of their social needs and esteem needs. I know that they value how others perceive them and my intent to help them with such.

Quote 9/ Chapter 5
Pg 143: Maslow's Hierarchy of Needs
(Philip Kotler, Marketing, An Introduction)

My Marketing Research Process

In Kotlers text, the marketing research process is this: "Defining the problem and research objectives, developing the research plan for collecting information, implementing the research plan- colleting and analyzing data, and interpreting and reporting the findings." So to define the problem and objectives: Will decreasing the price open the door to more consumers and in return bring about more business? Or will decreasing the price lower the value and quality to the cookbook? Are the consumers worried about the price or will they be tech savvy enough to benefit from the options in which we chose to relay our information? In developing a research plan we will study this:

(Taken from Kotlers text) The demographic, economic, and lifestyle characteristics of our clients.
Where do they buy their groceries, and how much they are willing to pay.
What form of communication do they prefer (phone, email, text message, TV).
(Taken from Kotlers text) Retailer reactions to the proposed new product.
With these questions in mind, I propose to use primary data for collecting and analyzing our findings. I will use survey research that will include telephone and web research along with personal interviews. I will use secondary data to see how people prefer to learn, whether it's finding their own information by reading through website, or having the information sent to them, whether it's through mail, email or text message.

Quote 8/ Chapter 4
Pg 105: My Marketing Research Process
(Philip Kotler, Marketing, An Introduction)

Customer Insights

On the word of Kotler, customer insights are "fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships." My marketing information system was merely talking with, and listening to my clients. I also have many friends who dance and perform in Las Vegas shows and I got to talk with their co-workers. Gathering this information was easy, but creating a solution was the hard part. I asked myself "what will make this particular demand easier to overcome?" again and again and I finally came up with a cookbook. A cookbook with not only recipes but healthy options should you need to eat fast-food. But I came across another bump in the road when I remembered the little time they actually had to sit down and eat let alone prepare a meal. So I made everything accessible through website and instead of leaving the meal choice up to them I made an option where they could choose their meal or we could send everything to them in a text message or email. I also have workouts they can do while they cook to upkeep their figure. It's like having your own personal nutritionist and trainer! My company values are customers so we have a section in our website where people can suggest meals or send us their food preferences so we can make meals that fit their liking.

Quote 7/ Chapter 4
Pg 97: Customer Insights
(Philip Kotler, Marketing, An Introduction)

Responding to the Marketing Environment

Kotler says, "Many companies view the marketing environment as an uncontrollable element to which they must react and adapt. They passively accept the marketing environment and do not try to change it." I realize the potential that some may think that I'm pushing the fact that you need to look a certain way to be seductive and beautiful, which is certainly not the fact. I made this book for women to feel good about being healthy and learn to incorporate a healthy lifestyle into their own. Kotler also says, "Someone once observed, 'there are three kinds of companies: those who make things happen, those who watch things happen and those whole wonder what's happened.'" I'm making things happen. I'm opening eyes to a healthier life and showing that being healthy doesn't have to be a chore.

Quote 6/ Chapter 3
Pg 89: Responding to the Marketing Environment
(Philip Kotler, Marketing, An Introduction)

Understanding the Marketplace and Consumers

I made a product by looking at the way technology is advancing and listening to the people around me. I'm a student surrounded by other students and I'm a photographer surrounded by image-driven people. So how did I find the time to understand the consumer? Well, I am a consumer and I understand my own needs as well as others. What I want is convenience and what my clients want is the ideal look without the hassle. According to Kotler, it's important to understand the changing age structure. My target consumer is the millennial. "Born between 1977 and 2000…One thing that all of the Millennials have in common is their utter fluency and comfort with computer, digital, and Internet technology. They're consumers of every imaginable means of communication: TV, radio, cell phone, Internet, video games." My cookbook will be the first cookbook that won't only have the same recipes because it'll send them new recipes every week through email or text. Plus well have a website open only to those who purchased the book for other meal ideas and incorporated workouts. Cooking directions can be uploaded to mp3 players and our website will be open to any suggestions.

Quote 5/ Chapter 3
Pg 72: Understanding the Marketplace and Consumers
(Philip Kotler, Marketing, An Introduction)

My Marketing Strategy

According to Kotler, "The goal is create value for customers and build profitable customer relationships. Next comes marketing strategy-the marketing logic by which the company hopes to create this customer value and achieve these profitable relationships…It identifies the total market, then divides it into the small segments, selects the most promising segments, and focuses on serving and satisfying customers in these segments." My market segment is clear: image-driven women who value convenience, regardless of price. I've realized that my market won't be so big, as there aren't many women who require these certain demands. As Kotler suggests, my product will be a "market niche and will specialize in serving customer segments that major competitors overlook and ignore." There are lot cookbooks that are designed to help you loose weight if you're willing to be committed and others that guarantee faster, easier, weight loss. But what about those women that already have their ideal body and have trouble maintaining it because of their busy schedule? I've developed a product that won't appeal to every consumer, but will strive to be the best fit to those in need of it.

Quote 4/ Chapter 2
Pg 47: My Marketing Strategy

My Marketing Strategy

According to Kotler, “The goal is create value for customers and build profitable customer relationships. Next comes marketing strategy-the marketing logic by which the company hopes to create this customer value and achieve these profitable relationships…It identifies the total market, then divides it into the small segments, selects the most promising segments, and focuses on serving and satisfying customers in these segments.” My market segment is clear: image-driven women who value convenience, regardless of price. I’ve realized that my market won’t be so big, as there aren’t many women who require these certain demands. As Kotler suggests, my product will be a “market niche and will specialize in serving customer segments that major competitors overlook and ignore.” There are lot cookbooks that are designed to help you loose weight if you’re willing to be committed and others that guarantee faster, easier, weight loss. But what about those women that already have their ideal body and have trouble maintaining it because of their busy schedule? I’ve developed a product that won’t appeal to every consumer, but will strive to be the best fit to those in need of it.


Quote 4/ Chapter 2
Pg 47: My Marketing Strategy
(Philip Kotler, Marketing, An Introduction)

My Mission Statement

In Kotlers Introduction to Marketing textbook, he challenges you to ask yourself, “What is our business? Who is the customer? What do consumers value? What should our business be... A mission statement is a statement of the organizations purpose-what it wants to accomplish in the larger environment.” So this is my mission statement: “Looking good should not be a chore and should not rule your life. Look at healthy living as a lifestyle and not a consequence to weight gain.”

Quote 3/ Chapter 2
Pg 37: My Mission Statement
(Philip Kotler, Marketing, An Introduction)

Understanding Customer Needs, Wants, and Demands

I didn’t come up with the idea of a cookbook, it just fell into my thoughts. I made a product to help the women that I work for; to satisfy their needs, wants, and demands. Kotler says, “As a first step, marketer’s needs to understand customer needs and wants and the market place within which they operate.” With that in mind I noticed that although their job brought them their needs, staying in shape was not only a need, but a demand. The women that I worked with enjoyed their jobs but longed for an end to their struggle to upkeep their figure. I discovered that they didn’t just want to look sexy but live a healthy life.

Quote 2/ Chapter 1
Pg 6: Understanding Customer Needs, Wants, and Demands
(Philip Kotler, Marketing, An Introduction)

What is marketing?

Philip Kotler defines marketing as “the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.” So you’re probably wondering what my inspiration was for the cookbook was. If the key ingredient for marketing is building a strong relationship with the customer, well then I’ve done just that. Working as a photographer and makeup artist I’ve spent a lot of time with busy women with demanding jobs. I listened as they complained about the hardships of having a full schedule and a job that requires them to be in the best shape possible. They’ve tried everything from meal replacements to diet pills but nothing seemed to grab their interest and after a while they developed eating disorders to stay in shape. With a full schedule they could never find the time to prepare a healthy meal much less search through cookbooks for new meal ideas. With their complaints I’ve created the solution to that. A digital cookbook that sends new meals to your cell phone or email, equipped with workouts that you can do while you cook and cooking instructions that are downloadable to your IPod.

Quote 1/ Chapter 1
Pg 5: What is marketing?
(Philip Kotler, Marketing, An Introduction)