The Marketing Mix
The 4 P's of Marketing
April 27, 2010

Objective:
Standard 1: Students will identify and describe the planning function of management.

Learning Outcomes:
Students will achieve a moderately to highly skilled status by showing proficiency in the following:

• Explain what planning is and the importance of planning.
• Explain the business decision-making process.
• Distinguish between strategic (long-term) and operational (short-term) plans.
• Identify planning tools used in project planning (budgets, schedules, policies, etc.).

Coursework Procedure:
Read the following scenario closely and answer the questions below. Note that those questions that say "Explain" require at least a one-paragraph answer.

Tommy's Denim will be a denim wear shop for males and females, 16-24 years old, living within your county. Its product mix will consist of jeans and other casual clothes in denim --- also, bib overalls and denim jackets for young children. The business might even expand to add tennis shoes and sweats.

The location for the business will be a leased space in a building around the Wal-Mart Super Center. The hours of operation will be Monday - Saturday, 10:00AM - 7:00PM.

Prices will be set just above cost. The rationale is that once customers find out what bargains are being offered, they'll keep coming back for more.

Promotion will be used to get customers to drive to the store. Good rates are available for early morning TV spots (5-7AM). Also, there will be billboards on the road to the store. No sales people will be hired because customers who come to the store will know exactly what they want. This will also help keep the prices down.

A. Product decisions:

1. Who is your target market? Is the target group too broad or too narrow? Explain.
2. What products should Tommy's Denim sell? (Are there products proposed that should be eliminated? Are there additional products that could enhance the product mix? Explain.)
3. How will the products offered be different from or better than the products offered by Wal-Mart?
4. How would you position the store's products?

B. Pricing Decisions:

1. What is the pricing strategy that the owner of Tommy's Denim is proposing?
2. Based on the strategy proposed, has the owner considered all of the factors in determining prices? Explain.
3. What type of pricing strategy would you propose? Explain the reasons for your choice.
4. What motivates the customers who will buy from the store? Are they primarily price sensitive or status conscious? Explain.
5. Which would you use: Psychological pricing or prestige pricing? Explain the importance of this technique in motivating your target market.

C. Place Decisions:

1. Is the location described appropriate for the businesses' target market(s)? Why or why not? If not, what would you propose as an alternate location?
2. What would you propose for the physical layout of the business? Provide a brief description of how the layout will encourage sales. Then create a rough sketch and include it with your assignment.
3. Do the hours of operation match the times that the target market prefers to do business? Explain.
4. What would you propose for the business's hours of operation? Explain how these hours would address the concerns of the target market.

D. Promotion Decisions:

1. What type of advertising media has the owner proposed to use? Will these be effective? Explain why or why not.
2. What kind of advertising media would you propose? Why?
3. What would you suggest for an advertising message or theme? Elaborate.
4. What sales promotion devices and activities would be appropriate for this business?
5. Should the business incorporate personal selling? Why or why not?

Due Date(s) and Submission Instructions:
This assignment is due by the end of class on Thursday, April 29, 2010. This assignment should be typed and easy to read (except, of course, for the map).

BUSINESS MANAGEMENT
Grade Levels: 10-12
Units of Credit: Semester (.5)
CIP Code: 52.0211
Prerequisite: None
Skill Certification Exam: #230

This Business Management course seeks to develop sound management concepts within students, as management plays a role in any future employment opportunity. Students are able to analyze, synthesize, and evaluate data from the other functional areas of business (e.g., marketing, finance, and production). Effective management requires decision-making abilities, long-range planning knowledge, human relations expertise, and motivational skills. Students learn the four basic functions of management.