Download Chapter 1 – Marketing is All Around Us Marketing is a process P P P

Chapter 1 – Marketing is All Around Us
Marketing is a process
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- We must keep up with trends and consumer attitudes.
Ideas, Goods, & Services
1. A business may sell any of the above
2. __________________ – good (ex: cars, toys, furniture, televisions, etc)
3. __________________ – ideas and services (ex: cooking a hamburger, cutting hair, movie theatres,
accounting offices)
Marketing Foundations
1. Business, Management, Entrepreneurship
• _____________________________________________________________________
2. Communication and interpersonal skills
• _____________________________________________________________________
3. Economics
4. Professional development
• _____________________________________________________________________
7 Functions of Marketing
1.
2.
3.
4.
5.
6.
7.
____________________ – deciding how goods get into customers hands.
____________________ – getting the $ to pay for setting up and running a business
______________________________ – getting information about customers, trends, and competing products.
__________________ – deciding how much to charge for goods and services in order to make a profit.
______________________________ – obtaining, developing, maintaining, improving a product.
__________________ – sales promotion, advertising, public relations
__________________ – provides customers with the goods and services they want
The Marketing Concept
• The idea that a business should strive to satisfy customers’ needs and wants while generating a profit.
• All areas of the business must have this goal.
•
1.2 Importance of Marketing
• Benefits
– New & Improved Products
– Lower Prices
– Added Value and Utility
– Utility = _________________
Fundamentals of Marketing Section 1.3
Market
• As a marketer you…
– Know your ______________ will not appeal to everyone
• A market – Group of people who may be _________________________
– Share similar needs and wants
– Have the ___________ to purchase the product
Market
• Example:
– You want to purchase a 6th Man Shirt
– You are not interested in purchasing a new computer because you don’t have the $.
– You can purchase a 6th Man Shirt because you have an extra $10.00 in your wallet.
Market Share
• _________________________________________
• Example: Fast Food
– Knowing your market share __________________________________________________________
Market Segmentation
• The process of classifying customers by needs and wants
• Breaking down the market into smaller groups with similar needs
– ____________
– ____________
– ____________
– ____________
Target Market
• The group you identify for a ________________________________________
• This is the most important group to which all marketing strategies are directed.
• No target market = _____________________
• Who is our R&W Shop target market? _____________________________
• Do your products reflect this markets needs and wants?
Consumers vs. Customers
• A product ______________________________________
• Consumer = ____________________________________
• Customer = ____________________________________
• Example: Kix cereal or Radio Flyer wagon
Customer Profile
• Lists information about the target market
– Age
– Income level
– Ethnic background
– Occupation
– Attitudes
– Lifestyle
– Geographic residence
Marketing Mix
• ___________________
• Product
• ___________________
• Price
• ___________________
• **Must know who your target market is before beginning your marketing mix
Product
1. Choosing product to make or sell
2. Product design – __________________________
3. Product development - brand name, packaging, service, warranty
4. Product updates/improvements – _________________________________
1. Example – _____________________________________________
Pizza Hut Product Updates
• "Pan Pizza", which usually comes in three different sizes (including Medium and Large, and the "Personal Pan
Pizza", which is micro-sized),
• ______________ (a hand tossed crust, with the outermost edge wrapped around a coil of string cheese)
• Hand-Tossed (closer to traditional pizzeria crusts)
• ______________ (Pizza Hut's original crust)
• 4forALL (four small pizzas for everyone)
• ______________ (one round pizza, divided into four triangular parts, each part having 4 slices)
• Dippin' Strips (rectangular slices that you can dip in sauces)
• The Edge (lots of toppings and no crust)
• _______________________________ (a breadstick as the crust with sauce and two cheeses).
• Calzones ("P'zones")
Price
• Price should reflect what customers are willing and able to pay
• Must consider…
– _______________________________________________
– Retail price – usually 30% to 100% of wholesale price
– ________________________________________________
Place
• Getting the product to the consumer’s hands
• Ask yourself…
– ____________________________________
– How and where will I distribute my product?
• _______________________________
– How will I transport the product to my customers?
Promotion
• Decisions about advertising, personal selling, sales promotion, and publicity.
• How will potential customers be told about a company’s products?
– ________________________________________________________