Download Marketing Dynamics

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Part 1 Marketing Dynamics
Chapter 1
Marketing Is Dynamic!
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Chapter Objectives
State the main goal of marketing.
Describe each of the Four Ps.
Distinguish among good, service, and
idea.
Explain how marketers determine the
marketing mix.
Summarize the key elements of a
marketing plan.
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Marketing Terms
marketing
customer
target market
Four Ps
product
good
service
idea
place
distribution
price
promotion
marketing mix
marketing plan
SWOT analysis
forecast
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Marketing Defined
Marketing consists of
dynamic activities that
focus on the customer
to generate a profitable
exchange
(Continued)
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Marketing Defined
Goal of marketing

meet customers’
needs and wants with
products that
customers can and
will buy
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Marketing Is Dynamic
Dynamic = constantly changing
Marketing is dynamic because
customers’ needs and wants are
constantly changing
Describe a want or need of yours that has
changed over time.
(Continued)
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Marketing Is Dynamic
Customers’ needs
and wants change
because
customers change
 the economy
changes
 technology changes
 social trends change

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Marketing Is
Customer-Focused
Marketing focuses
on the customer
A customer can be a
person
 business
 nonprofit
organization
 government

(Continued)
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Marketing Is
Customer-Focused
Marketers focus
on customers by
learning what
customers need
and want
 developing
products to meet
those needs and
wants

(Continued)
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Marketing Is
Customer-Focused
A target market is a specific group of
customers whose needs a company
will focus on satisfying by creating
products that the target market wants
and will buy
Teens are a popular target market
Describe a product that was designed to
meet the wants and needs of teens.
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Marketing Is
Relationships
The basis for marketing is the
relationship between the buyer and the
seller
Many businesses develop long-term
relationships with their customers
Describe a long-term relationship
that you have with a business.
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Marketing Is International
People can buy
products from
anywhere in the
world
Japan National Tourist Organization
What enables people to buy
products from anywhere?
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Marketing Is the Four Ps
The Four Ps are the basic
elements of marketing
Product
 Place
 Price
 Promotion

(Continued)
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Marketing Is the Four Ps
Product is the what

What are you selling?
Place is the where

Where are you selling it?
Price is the how much

How much will the customer pay for it?
Promotion is communication

What do you want the customers and the
public to know?
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Product
There are three types of
products
good
– physical item
 service
– action done for you
 idea
– concept, cause, image,
issue, or philosophy

(Continued)
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©2007 JupiterImages Corporation
Categorize the pictured products as
good, service, or idea.
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Place
Place
getting products to
customers
 at convenient times
and locations
 includes distribution

Describe distribution you have seen.
(Continued)
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Place
Distribution is
physically getting
goods to customers
Includes
shipping
 storing
 inventory
 stocking of goods

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Price
Price is the amount of money
requested for a product
determined by the marketers
 based on
– how much they think the customer
will pay
– the costs to produce the product

What might happen if you set a price
too low or too high?
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Promotion
Promotion is
communication
with customers
 telling people
about
– your product
– your business

Describe promotion that you have seen.
(Continued)
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Promotion
Promotion includes
selling, advertising, and sales promotion
 public relations
– creating a positive image of your
company

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Marketing Is the
Marketing Mix
The marketing mix is
a plan of action for
marketing a product
consists of the
decisions made
about each of the
Four Ps
 made with the target
market in mind

(Continued)
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Marketing Is the
Marketing Mix
Marketing mix decisions include
answers to these questions
What products do customers need or
want?
 Which stores will be convenient for them?
 What price will they pay?
 Where will they see ads?

Choose a product, then answer these
questions for the teen target market.
(Continued)
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Marketing Is the
Marketing Mix
Why is the target
market in the
center?
Is the customer
part of the
marketing mix?
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The Marketing Mix
in Action
Imagine that you want to eat dinner.
You hear a commercial on the radio
promoting a new value meal at a local
fast-food restaurant.
The announcer says that the value meal
costs $3.95. You have $5.00 in your
pocket. You buy the value meal.
Identify the Four Ps in this marketing mix.
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Marketing Is the
Marketing Plan
The marketing plan is a plan that
guides a company so that it avoids
such pitfalls as
 lost
sales
 lost opportunities
 poor product planning
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Key Elements of a
Marketing Plan
Key elements of a marketing plan include
market opportunities and analysis
– a SWOT analysis helps a company
determine its strengths, weaknesses,
opportunities, and threats
 a market strategy
 an action plan
 monitoring and evaluating the plan
– review revenue from sales to help forecast,
or predict future sales and revenue
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
Is Marketing in
Your Future?
Marketing
is an exciting field
 has potential for
high earnings
 is useful in careers
not directly related
to marketing

(Continued)
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Is Marketing in
Your Future?
Marketing skills can help you
prepare for a job in marketing
 prepare for college studies in marketing
 use marketing in other fields
 make wise consumer decisions

How will marketing skills
help you in the future?
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Review
Explain how marketing is more than
advertising and selling.
List the Four Ps.
Why isn’t the customer part of the
marketing mix?
Name a product and describe the
marketing mix for that product.
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Glossary
Back
customer. Individual or group who buys
products.
distribution. Process of physically
delivering goods to customers.
forecast. To predict future sales and
revenue.
Four Ps. Product, price, place, and
promotion.
(Continued)
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Glossary
Back
good. A physical item; something that
you can touch.
idea. A concept, cause, issue, image,
or philosophy that can be marketed.
marketing. Dynamic activities that focus
on the customer to generate a profitable
exchange.
(Continued)
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Glossary
Back
marketing mix. Plan of action for
marketing a product; it consists of the
decisions made about each of the Four
Ps for that product—product, place,
price, and promotion.
marketing plan. A plan that guides a
company so that it avoids such pitfalls
as lost sales, lost opportunities, and
poor product planning.
(Continued)
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Glossary
Back
place. Marketing activities involved in
making products available to
customers; includes distribution.
price. Amount of money requested or
exchanged for a product.
product. Anything that can be bought or
sold; includes goods, services, and
ideas.
(Continued)
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Glossary
Back
promotion. Process of telling people about
the product and the company that offers it.
service. Action that is done for you.
SWOT analysis. An analysis that includes
a company’s strengths, weaknesses,
opportunities, and threats.
target market. The specific group of
customers whose needs a company will
focus on satisfying.
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