Marketing Is All Around Us

Quick Think

•How would you define Marketing?

•Activities that fall under its umbrella

The Marketing Umbrella

Marketing

•Marketing is the process of planning, pricing, promoting, selling and distributing ideas, goods, or services to create exchanges that satisfy customers

Marketing

•As a marketer, you need to keep up with trends and consumer attitudes

•The products, ideas or services you develop and the way you price, promote and distribute them should reflect those trends and attitudes

Ideas, Goods & Services

• Goods are tangible items that have monetary value and satisfy needs

• Cars, toys, furniture, tv’s, etc.

• Intangible items that have monetary value and satisfy your needs are services

• You cannot physically touch them

• Cooking, cutting hair, movie theaters, etc.

7 Marketing Core Functions

1.Channel Management

•a.k.a. Distribution

•The process of deciding how to get goods into customer’s hands

•Methods of transportation

•Tracking & storing

7 Marketing Core Functions

2.Market Planning

• Involves understanding the concepts and strategies used to develop and target specific marketing strategies to a select audience

• Collection of data, data analysis, using that data for a marketing plan

7 Marketing Core Functions

3.Marketing Information Management

• Gathering information & storing it about customers, trends and competing products

• Research done on a continual basis

• Companies conduct research so they can be successful at marketing their products

7 Marketing Core Functions

4.Pricing

•Dictates how much to charge for goods and services in order to make a profit

•Based on costs and what competitors are charging

•Must determine how much customers are willing to pay

7 Marketing Core Functions

5.Product/Service Management

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

•Research guides this toward what the consumer needs and wants

7 Marketing Core Functions

6.Promotion

•The effort to inform, persuade or remind potential customers about a business’s product or services

•Television, radio, etc.

7 Marketing Core Functions

7.Selling

•Provides customers with the goods and services they want

•Retail and business-to-business

•Techniques include determining clients needs & wants and responding through communication

The Marketing Concept

•The idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the firm

•The focus is on the customer

Economic Benefits of Marketing

•Marketing plays an important role in an economy because it provides the means for competition to take place

•New & improved products

•Lower prices

Market

•All people who share similar needs and wants and who have the ability to purchase a given product are called a market

Consumer v. Industrial Market

•Consumer market consists of consumers who purchases goods and services for personal use (business-to-consumer / B2C)

•Industrial market (business-to-business / B2B) market includes all businesses that buy products for use in their operations

Market Share

•A market is further described by the total sales in a product category

•Camera market, video game market, etc.

•A company’s percentage of total sales in a given market is its market share

Target Market & Market

Segmentation•Market segmentation is the

process of classifying customers by needs and wants

•The goal of this is to identify the group of people most likely to become customers

Target Market & Market

Segmentation•The group that is identified for a

specific marketing program is the target market

•Target markets are very important because all marketing strategies are directed to them

Consumers v. Customers

•A product may have more than one target market

•Children’s cereal

•Children (consumers)

•Parents (customers)

•Ad’s will try to reach both children & parents

Customer Profile

•To develop a clear picture of their target market, businesses create a customer profile

•Lists information about the target market, such as:

•age, income level, ethnic background, occupation, attitudes, lifestyle and geographic residence

The Marketing Mix

•The marketing mix includes four basic market strategies called the four P’s

•Product

•Place

•Price

•Promotion

The Marketing Mix

•Product

•Choosing what products to make and sell

•Product design, features, brand name, packaging, service and warranty

The Marketing Mix•Place

•The means of getting the product into the consumer’s hands is the place factor of the marketing mix

•Knowing where one’s customers shop

•Determines how and where a product will be distributed

The Marketing Mix

•Price

•What is exchanged for the product

•Price strategies should reflect what customers are willing and able to pay

•Takes into account competition

The Marketing Mix

•Promotion

•Refers to activities related to advertising, personal selling, sales promotion and publicity

•How potential customers are told about the product