Marketing Is All Around Us

Chapter 1.1

The Reality…

You have been marketed to since you were very young.

You probably know a lot about marketing from the viewpoint of the potential customer.

Think/Discuss…

Think of something you have bought Think of something that was bought

for you Discuss why you wanted these

particular things

Change Your Thinking…

This class will encourage you to look at the world through a different lens…

Stop thinking like a consumer, and start thinking like a marketer!

Key terms:

marketing goods services marketing concept

Marketing

Definition: Process of planning, pricing, promoting,

selling, and distributing ideas, goods, or services to create exchanges that satisfy customers.

Must keep up with trends and consumer attitudes

All functions of marketing support this effort

Goods

Definition: Tangible items that have monetary value

and satisfy your needs and wants

Examples: Cars Toys Furniture Clothing

Services

Definition: Intangible items that have monetary

value and satisfy your needs and wants (i.e., you cannot physically touch them)

Examples: Cooking a meal Cutting and styling hair

Exchange

Definition: Any time someone sells or buys

something in the marketplace

Foundations of Marketing

Business, management, entrepreneurship

Communication and interpersonal skills

Economics Professional development

Seven Functions of Marketing

Channel Management- Distribution Market Planning Marketing Information Management Pricing Product/Service Management Promotion Selling

2012 Trends Video Clip

Channel Management-Distribution Process of deciding how to physically get

the goods to the customer

Main methods are truck, rail, ship, air

Large retail chains store products in warehouses and distribute later

Tracking products (inventory) is also a component of the process

Marketing Information Management

Process of gathering information, storing it, and analyzing it

Companies continually collect said info through market research studies

The better your information, the better decisions you can make!

Market Planning

Understanding concepts and strategies used to develop specific target market strategies.

Involves: Customer’s needs/wants Data collection process, analyzing data,

and using data to create a market plan.

Pricing How much to charge for goods and services

in order to make a profit

Based on costs and what competition charge for the same product or service

Determine how much are customers willing to pay Escort versus Lexus

Product/Service Management

Obtaining, developing, maintaining, and improving a product in response to market opportunities

Market research guides this

http://www.gatorade.com/#/products/g2

Promotion Effort to inform, persuade, or remind

potential customers about a business’s products or services

Examples: Radio and TV commercials (advertising = type of promotion)

Used to improve company’s public image

Selling

Provides customers with the goods and services they want

Two markets Selling to you the customer = Retail

market Selling to a business = Business to

Business (B2B) (i.e, wholesalers, retailers, manufacturers)

Selling, continued

Needs and wants of the client determine HOW you sell (techniques & activities)

Selling requires personalized, planned communication

Strong selling can influence purchase decisions and enhance future business opportunities

Marketing Concept Idea that a business should strive to

satisfy customers’ needs and wants while generating a profit

Focus is on the customer!

Relationship building is key, as repeat customers keep a company in business

Customer Relationship Management (CRM)

Combines customer information (through database and computer technology) with customer service and marketing communications

Try to create more meaningful one-on-one communication

Homework: 15 points Please type

Identify a business that believes in the marketing concept

What products do they market? Who is their competition? What makes them stand out? Who is the intended target market? How do they promote? Use specific

examples. 15 points

Taco Bell