Download Marketing is All Around Us

Marketing is All
Around Us
Chapter 1
1.1 Scope of Marketing
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Marketing is a process
1.
2.
3.
4.
5.
Planning
Pricing
Promoting
Selling
Distributing
–
We must keep up with trends
and consumer attitudes.
Ideas, Goods, & Services
• Tangible item – goods (ex:
cars, toys, furniture,
televisions, etc)
• Intangible – ideas and
services (ex: cooking a
hamburger, cutting hair, movie
theatres, accounting offices)
Marketing Foundations
1.
Business, Management,
Entrepreneurship
•
2.
Understanding concepts that affect
business decision making
Communication and interpersonal
skills
•
3.
4.
Understanding how to interact
effectively with others
Economics
Professional development
•
Career exploration, development,
personal growth
7 Functions of Marketing
1. Distribution – deciding how goods get into
customers hands.
2. Financing – getting the $ to pay for setting up
and running a business
7 Functions of Marketing
3. Marketing Information
Management – getting
information about customers,
trends, and competing
products.
4. Pricing – deciding how much
to charge for good and
services in order to make a
profit.
7 Functions of Marketing
5. Product/Service Management –
obtaining, developing,
maintaining, improving a product.
6. Promotion – sales promotion,
advertising, public relations
7. Selling – 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 = usefulness
Fundamentals of
Marketing
Section 1.3
Market
• As a marketer you…
– Know your product will not
appeal to everyone
• A market – Group of people who may be
interested in your product
– 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
• Total sales in a
product category.
• Example: Fast
Food
• Knowing your
market share
helps you analyze
the competition
and their status in
a product category
Wendy's
15%
Burger King
26%
McDonalds
59%
McDonalds
Burger King
Wendy's
Market Segmentation
• The process of classifying
customers by needs and
wants
• Breaking down the market into
smaller groups with similar
needs
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Consumer
Industrial
Age
Gender
Target Market
• The group you identify for a
specific marketing program.
• This is the most important
group to which all marketing
strategies are directed.
• No target market = no focus.
• Who is our R&W Shop target
market?
• Do your products reflect this
markets needs and wants?
Consumers vs. Customers
• A product may have more than
1 target market.
• Consumer = person using
product
• Customer = person purchasing
product
• Example: Kix cereal or Radio
Flyer wagon
Customer Profile
• Lists information about the
target market
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–
–
–
–
–
Age
Income level
Ethnic background
Occupation
Attitudes
Lifestyle
Geographic residence
Marketing Mix
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4 P’s
Product
Place
Price
Promotion
**Must know who your target
market is before beginning
your marketing mix
Product
1. Choosing product to make or
sell
2. Product design – research is
key!
3. Product development - brand
name, packaging, service,
warranty
4. Product
updates/improvements –
extend the life of the product.
1. Example – new target market
Pizza Hut Product Updates
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"Pan Pizza", which usually comes in three different
sizes (including Medium and Large, and the "Personal
Pan Pizza", which is micro-sized),
Stuffed Crust (a hand tossed crust, with the outermost
edge wrapped around a coil of string cheese)
Hand-Tossed (closer to traditional pizzeria crusts)
Thin 'N Crispy (Pizza Hut's original crust)
4forALL (four small pizzas for everyone)
More4ALL (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)
Cheesy Twisted Crust (a breadstick as the crust with
sauce and two cheeses).
Calzones ("P'zones")
PLUS MANY MORE
Price
• Price should reflect what
customers are willing and able
to pay
• Must consider…
– what competitors are charging
for comparable products
– Retail price – usually 30% to
100% of wholesale price
– Promotional price
Place
• Getting the product to the
consumer’s hands
• Ask yourself…
– Where do my customer’s shop?
– How and where will I distribute
my product?
• Countries, retail outlets,
wholesalers
– 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.
– The message, the media, special
offers, timing of the promotional
campaigns