Download Unit 1 PPT

Unit 1
“Marketing 101”
What is Marketing?
7 Functions of Marketing
Marketing Concept
Evolution
Marketing Mix
Benefits & Criticisms
UnOfficial Marketing Definition
a. “Get the right product to the right place at
the right time.”
b. “Identify, understand, satisfy, and keep the
customer.”
Business’s Overall Goal:
• “Meet and exceed customer needs better
than the competition.”
Official Marketing Definition
Marketing is: the creation and maintenance of
satisfying exchange relationships.
Creation – give the customers what they want/need.
Maintenance –monitor & check-in often with
customers to continue to make them happy & loyal.
Satisfaction = Utility (the value or benefit a person gets
from a product via form, place, possession, and time).
Marketing Builds Exchange Relationships
Something of Value
Something of Value
Marketing Affects Everyone!
• ________% of every dollar spent on products
goes toward paying for marketing activities.
Marketing is Everywhere!
• _________% of businesses perform some
kind of marketing function.
• Businesses need marketing to reach and serve
customers effectively so they can maximize
sales and profits.
Marketing’s Basic Functions:
1.
Product/Service Management – the design and development of products/services.
2.
Distribution –Conveniently located and timely availability of products
3.
Selling – Direct, personal communications to assess and satisfy needs of customers.
4.
Information Management – Gather & use market information to improve business
decision-making.
5.
Financing – provides $ support for marketing activities & assists customers with
purchasing (i.e. Credit cards, payment plans).
6.
Pricing – set the amount customers pay, create value for the product, & make profit.
7.
Promotion – Communicating product information to customers in a variety of ways.
Marketing Concept:
Idea of using the wants & needs of customers as the main
focus in planning an effective marketing strategy.
• Want – something you would like to have; a luxury
item, not necessary.
• Need – something you have to have; cannot survive without
4Ps (Marketing Mix) - a toolbox of activities used to create a
marketing strategy.
Goods, services, or ideas that can be
sold to satisfy customer needs
Conveniently located and timely
availability of products
Communicate info to customers;
persuade them to buy or act
Amount customers pay; creates value
for product; a profit-maker.
Consumers vs Customers
Strategic Marketing
• The marketing-mix works together as a unit
• All elements are equally important
• A change to one element affects the others
• The same marketing strategy won’t work in every
situation
• Marketers adjust and combine their strategies to fit
their purposes
• Examples of Strategic Marketing in Restaurant
business (McDonalds)
Evolution of the Marketing Concept
19th century: strong customer demand;
make & distribute new products.
1920s–1950s: weakened demand; had to “sell”
products using advertising & salespeople.
1950s–today: research & response to
customer needs; convenience & usefulness.
Marketing Concept Results
AND
FOLLOWED BY
THEN
IF
Pays to Keep the Customers Happy
• Costs ________ to attract new customers than
to retain current ones.
• The best way to retain current customers is to
keep them ________.
• On average, a satisfied customers tells _____
people.
• A dissatisfied customer complains to _____
people.
• _____ % of unhappy customers never tell the
company about their problem.
Benefits and Criticisms of Marketing
• Benefits
• Criticisms
• Businesses meet consumer
needs (Supply  Demand)
• Natural Resources used more
effectively
• Standard of Living is
improved
• More convenience for
consumers
• Public Awareness
• Global Trade
• More jobs; stronger economy
• Makes us buy things that we
don’t really need
• It is a big waste of money
• Good products don’t need
Marketing; they will sell
themselves
13