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Unit 3
Basic Marketing
Concepts
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Commercial Questionnaire
What
is the product?
Who is the target audience?
Do you think this commercial
creates a relationship with its
market? If so, what is it?
What aspects of this commercial
are memorable?
Unit 3 Vocabulary
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Competitive Advantage
Consumers
Consumer Market
Customers
Customer Lifetime
Value
Customer Profile
Customer Relationship
Management (CRM)
Demographics
Discretionary Income
Disposable Income
Environmental Scan
Executive Summary
Geographics
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Goods
Industrial Market
Market
Market Share
Marketing
Marketing Concept
Marketing Mix
Market Segmentation
Marketing Strategy
Mass-Marketing
Positioning
Products
Psychographics
Sales Forecast
Services
Unit 3 Vocabulary
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Situation Analysis
SWOT Analysis
Target Market
Unique Value
Proposition
Unit 3 Essential
Question
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How do the fundamental marketing
concepts relate to the scope and
impact of marketing on the
economy?
Essential Question 1
Basic Marketing Concepts
What
is marketing?
Marketing is. . .
 The
process of planning, pricing,
promoting, selling and distributing
products to create exchanges that satisfy
customers needs and wants.
 Products
– Goods
– Services
– Information / Ideas
Essential Question 2
Basic Marketing Concepts
How
do marketing strategies relate
to the marketing mix?
Target Marketing - Focuses all
marketing decisions on the specific group
of people you want to reach.
The Marketing Mix
Product
Place
Price
Promotion
Product Positioning
 Positioning:
Getting the consumer to
think about a product in a certain way.
 Methods of positioning:
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Playing to the competition's weaknesses.
Looking for underserved markets.
Leading with your strengths.
Targeting different market segments.
Marketing Strategies
 Marketing
strategy: Identification of
target markets and determination of
marketing mix choices that focus on
those markets.
 An effective marketing strategy will
focus on a company’s or product’s
competitive advantage: the key point
of difference.
Essential Question 3
Basic Marketing Concepts
What
are the marketing functions
and their related activities?
Functions of Marketing
 Distribution
– The physical movement of a good or
service.
– Deciding where and to what extent to
sell a good or service.
Functions of Marketing
 Financing
– Determining the need for and
availability of financial resources to aid
in marketing activities.
Functions of Marketing
 Marketing
Information Management
 Gathering, recording, analyzing, and
disseminating information to aid in making
marketing decisions.
Functions of Marketing
 Pricing
– The determination of an exchange
price at which the buyer and seller
perceive optimum value for a good or
service.
Functions of Marketing
 Product/Service
Management
– Obtaining, developing, maintaining, and
improving a product or a product mix in
response to market opportunities.
Functions of Marketing
 Promotion
– Communicates information about
products, services, images, or ideas to
customers or clients to influence their
purchase behavior.
Functions of Marketing
 Selling
– Responding to consumers needs and
wants through planned, personalized
communications intended to influence
purchase decisions.
Essential Question 4
Basic Marketing Concepts
How
do the effects of various
marketing activities compare and
contrast?
Marketing Activities
 The
marketing activities associated
with Distribution:
– Determining mode of transportation (Motor,
Plane, Rail, Air, Pipeline)
– Location of business (Country, Geography,
Street, etc.)
– Location of product (Front of store, back of
store, top shelf, bottom shelf, etc.)
Marketing Activities
 The
marketing activities associated
with Financing:
– Budgeting:
 Sources
of capital
 Expenditures of capital
– Accounting:
 Cash
flow statement
 Income statement
 Balance sheet
Marketing Activities
 The
marketing activities associated
with Marketing Information
Management:
– Surveys
 Customer
comment cards
 Social media questionnaires
 Point of Sale questions by cashier
– SWOT Analysis
– Customer / consumer research
– Trend analysis
Marketing Activities
 The
marketing activities associated
with Pricing:
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Product cost analysis
Break-even analysis
Pricing goals, strategies, techniques
Consumer perceptions
Government regulations
Product life cycle
Marketing Activities
 The
marketing activities associated
with Product/Service Management:
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Updating / modifying products
Changing / modifying product mix
Branding, packaging, labeling
Product positioning
Product bundeling
Marketing Activities
 The
marketing activities associated
with Promotion:
– Sales / specials
 Buy
1 get 1 free
 25% off
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Coupons
Advertising
Publicity
Personal Selling
Marketing Activities
 The
marketing activities associated
with Selling:
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Shopping
Personal selling
Buying products
Customer buying motives
Customer decision making
Essential Question 5
Basic Marketing Concepts
How
do marketing plans interact
with marketing strategies?
Marketing Plan
 Marketing
Plan
– A formal, written document that directs
a company’s activities for a specific
period of time.
– Elements of a Marketing Plan include:
Marketing
Strategies
Situation Analysis
Implementation
Evaluation and Control
Marketing Plan
 Marketing
Plan
– The Marketing Strategies section of the
Marketing Plan focuses on:
Product
Positioning
Marketing Mix
– Product
– Place
– Price
– Promotion
Marketing Plan
 Marketing
Plan
– The Marketing Strategies section of the
Marketing Plan focuses on:
Competitive
advantage is an advantage
that a firm has over its competitors,
allowing it to generate greater sales or
margins and/or retain more customers than
its competition.
Marketing Plan
 Marketing
Plan
– The Marketing Strategies section of the
Marketing Plan focuses on:
Unique
Value Proposition is a clear
statement that describes the benefit of your
offer, how you solve your customer’s needs
and what distinguishes you from the
competition.
Essential Question 6
Basic Marketing Concepts
How
does the marketing planning
process employ situational
analysis?
Situational Analysis
 Situational
Analysis: The study of
the internal and external factors that
affect marketing strategies and is an
element of the Marketing Plan.
Situational Analysis
A
Situational Analysis includes:
– SWOT Analysis: An assessment of the
company’s internal Strengths and Weaknesses
and external Opportunities and Threats.
– Environmental Scan: An analysis of outside
influences that may have an impact on the
organization. It includes:
 Political
 Economic
 Socio-Cultural
 Technological
Essential Question 7
Basic Marketing Concepts
How
are the concepts of market,
market segmentation, and market
identification differentiated?
Market
Segmentation
Identifying Your Customers
 Market:
A group of all potential
customers who share common needs
and wants, and who have the ability
and willingness to buy the product.
 Market Segmentation: Dividing the
total market into smaller groups of
people who share specific needs and
characteristics.
Customers vs. Consumers
Customers
Buy a product
Consumers
Use the product
Consumer Market
vs.
Industrial Market
Consumer
Personal Use
Industrial
Business Use
Market Segmentation
Geographics
 Segmentation
of the market based on
where people live.
Market Segmentation
Demographics
 Statistics
that describe a population in
terms of personal characteristics.
These include age, gender, income,
ethnic background, education, etc.
Market Segmentation
Psychographics
 Involves
the study of customers based
on lifestyle, and the attitudes and
values that shape it.
Market Segmentation
Product Benefits
 Built
in features of products in
response to consumer needs and
wants.
Market Identification:
Identifying Your Customers
Developing a Customer Profile
 Combining
geographic, demographic,
psychographic, and product benefit
data to get a complete picture of your
potential customers.
Essential Question 8
Basic Marketing Concepts
How
does the marketing concept
relate to customer needs and
wants?
Brainstorm
 What
are the differences between
sales-oriented and marketing-oriented
companies.
The Marketing Concept
 In
order for a business to make a
profit, it must focus all of its efforts
on satisfying the needs and wants of
its customers.
Customer Satisfaction
 Involves
creating a relationship with
the customer to achieve customer
loyalty – also known as Customer
Relationship Management (CRM).
 Customer satisfaction is directly
related to the product’s perceived
value.
Customer Lifetime Value
 Customer
Lifetime Value is a
prediction of the net profit attributed
to the entire future relationship with
a customer. Customer lifetime value
encourages firms to focus on the
long-term health of their customer
relationships.