Download Marketing Is All Around Us

Marketing Is All Around
Us
Essential Questions
• Describe the scope of marketing.
• Describe each marketing core function.
• Explain the marketing concept.
Marketing defined…
 According to the American Marketing
Association (AMA), “marketing is the
activity, set of institutions, and
processes for creating, communicating,
delivering, and exchanging offerings
that have value for customers, clients,
partners, and society at large.”
 Marketing involves the process
of planning, pricing,
promoting, selling, and
distributing ideas, goods, or
services to create exchanges
that satisfy customers.
Goods
Services
 Tangible items
that have
monetary value
and satisfy one’s
needs and wants.
 Intangible items
that have
monetary value
and satisfy one’s
needs and wants.
Seven Core Functions of
Marketing
 Channel
Management
 Product/Service
Management
 Marketing
Information
Management
 Promotion
 Market Planning
 Pricing
 Selling
Channel
Management/Distribution
 Is the process of deciding how to
get goods into customer’s hands.
 Physically moving and storing goods
is part of distribution planning.
 Also includes the systems used to
track products.
Marketing Information
Management
 Gathering, storing and analyzing information
about customers, trends, and competing
products.
 Companies conduct research so they can be successful
at marketing and selling their products.
 They need to get information about their customers,
their habits and attitudes, where they live, and trends
in the marketplace.
 Marketers can use this information to create a
marketing plan for their products
Market Planning
 involves understanding the concepts and
strategies used to develop and target
specific marketing strategies to a select
audience.
 This function requires an in-depth knowledge
of activities to create a marketing plan.
 The plan will include methods for reaching
different types of customers.
Pricing
 Pricing decisions dictate how much to
charge for goods and services in order to
make a profit.
 Pricing decisions are based on costs and on what
competitors charge for the same product or
service.
 To determine a price, marketers must also
determine how much customers are willing to
pay.
Product/Service
Management
 Product/service management is
obtaining, developing, maintaining,
and improving a product or a product
mix in response to market
opportunities.
Selling techniques include…
 determining client needs and
wants and responding through
planned, personalized
communication.
Promotion
 Promotion is the effort to inform,
persuade, or remind current and
potential customers about a business’s
products or services.
Selling
 Selling provides customers with the goods and
services they want.
 This includes selling in the retail market to you, the
customer, and selling in the business-to-business
market to wholesalers, retailers, or manufacturers.
 Selling techniques include…
The Marketing Concept
 is the idea that a business should strive to satisfy
customers’ needs and wants while generating a
profit for the business.
 Focus is on the CUSTOMER
**The marketing concept holds that the desires and needs of the
target market must be determined, anticipated, and satisfied in
order to successfully achieve the goals of the producer.**
In short…
 Marketing involves planning, pricing,
promoting, selling, and distributing
goods (tangible items that have
monetary value) and services
(intangible items that have monetary
value). The marketing concept
implements marketing techniques to
ensure customer satisfaction.
Essential Questions
• Describe the scope of marketing. planning, pricing,
promoting, selling, and distributing ideas, goods,
services to create exchanges and satisfy customers.
• Describe each marketing core function. channel
management, marketing information management,
market planning, pricing, product/service
management, promotion, selling
• Explain the marketing concept. businesses should
strive to satisfy customers’ needs and wants while
generating a profit.
The Importance of
Marketing
Essential Questions
 Describe the benefits of marketing.
 Explain the concept of utility.
 Cite examples of types of utilities.
Economic Benefits of Marketing
 Marketing is a global force.
 The impact of marketing affects the
economy and standard of living in
countries around the world.
 Marketing plays an important role in an economy
because it provides the means for competition to
take place.
 In a competitive marketplace, businesses try to
create new or improved products at lower prices
than their competitors.
 There are many economic benefits of marketing to
an economy and to consumers.
 New and improved products
 Lower prices
 Economic Utilities
New and Improved Products
 Marketing generates competition, which fosters new
and improved products. Businesses always look for
ways to satisfy customers’ wants and needs to keep
customers interested. This creates a larger variety of
goods and services.
Lower Prices
 Marketing activities increase demand,
and this helps to lower prices. When
demand is high, manufacturers can
produce products in larger quantities.
This reduces the unit cost of each
product.
Identify Who is affected
by the impact of marketing?
People in countries all over the
world are affected as economies
and standards of living are
impacted by marketing.
Summarize What is the
benefit of competition?
Businesses create new or
improved products at lower
prices, forcing efficiency and
responsiveness to consumers.
Explain What role does
marketing play in an
economy?
Marketing provides the means for
competition to take place in the
marketplace.
Utility
 The functions of marketing add value
to a product. This added value in
economic terms is called utility.
 Utilities are the attributes of goods or
services that make them capable of
satisfying consumers’ wants and needs.
Form Utility
 involves changing raw materials into
usable goods or putting parts together
to make them more useful.
 The manufacturing of products
involves taking things of little value by
themselves and putting them together
to create more value.
Place Utility
 involves having a product where
customers can buy it.
 Businesses study consumer shopping
habits to determine the most
convenient and efficient locations to
sell products.
Time Utility
 having a product or service
available at a certain time of year
or a convenient time of day.
Possession Utility
 The exchange of a product for money.
 Retailers may accept alternatives to cash,
such as personal checks or debit cards, in
exchange for their merchandise. They may
even offer installment or layaway plans
(delayed possession in return for gradual
payment).
Information Utility
 involves communication with the consumer.
 Salespeople provide information to customers by
explaining the features and benefits of products. Displays
communicate information, too. Packaging and labeling
inform consumers about qualities and uses of a product.
 Advertising informs consumers about products, tells
whereto buy products, and sometimes tells how much
products cost.
 Owners manuals
Identify What are the
five economic utilities?
form utility, place utility, time
utility, possession utility,
information utility
Formulate Why is form
utility not directly related
to marketing?
When form utility involves
changing putting parts together to
make them useful, individual parts
are not marketed as the final
product.
Appraise How are
time and place utilities
related?
Time utility cannot exist without
place utility. If products are to
consumers at a certain time, but
there is no place where they can
buy them, product will not sell.
Essential Questions
Describe the benefits of marketing. new and improved
products, lower prices, and added value or utility
Explain the concept of utility. attributes of goods or
services that make them capable of satisfying
consumer’s wants and needs
Cite examples of types of utilities. form utility; place
utility; time utility; possession utility; information
utility
Fundamentals of Marketing
Essential Questions
 Describe how marketers use knowledge of the
market to sell products.
 Compare and Contrast consumer and
organizational markets.
 Explain the importance of target markets.
 Explain how each component of the marketing mix
contributes to successful marketing.
Market and Market
Identification
 The term market refers to all the people who might
buy a product. The marketing mix is a combination
of elements used to sell a product to a specific target
market.
 Marketers design products to satisfy
customers’ needs and wants. They know not
all customers may want their product or
service. So they identify those people who
want their product and who have the ability
to pay for their product. All people who
share similar needs and wants and who have
the ability to purchase a given product are a
market.
Consumer Market
 The consumer market consists of consumers who
purchase goods and services for personal use.
Consumers’ needs and wants generally fall into a
few categories that reflect their lifestyles. For the
most part, consumers are interested in products that
will save them money, make their lives easier,
improve their appearance, create status in the
community, or provide satisfaction.
Organizational Market
 The organizational market or businessto-business (B-to-B) market includes all
businesses that buy products for use in
their operations. This market includes
transactions among businesses.
Market Share
 A market is further described by the
total sales in a product category.
 A company’s market share is its
percentage of the total sales volume
generated by all companies that
compete in a given market.
Market Segmentation
 Businesses look for ways to sell their
products to different consumers who may be
potential customers. This involves
segmenting, or breaking down, the market
into smaller groups that have similar
characteristics. Market segmentation is the
process of classifying customers by specific
characteristics.
Target Market
 The goal of market segmentation is to
identify the group of people most likely
to become customers. The group that is
identified for a specific marketing
program is the target market. Target
markets are very important because all
marketing strategies are directed to
them.
Customer Profiles
 To develop a clear picture of their
target market, businesses create a
customer profile. A customer profile
lists information about the target
market, such as age, gender, income
level, marital status, ethnic
background, geographic residence,
attitudes, lifestyle, and behavior.
Marketing Mix
 The marketing mix includes
four basic marketing strategies
called the four Ps: product,
place, price, and promotion.
Marketing Mix: Product
 Product decisions begin with choosing
what products to make and sell. Much
research goes into product design. A
product’s features, brand name,
packaging, service, and warranty are
all part of the development.
Marketing Mix: Price
 Price is what is exchanged for the
product. Price strategies should
reflect what customers are willing
and able to pay.
Marketing Mix: Place
 The means of getting the product into
the customer’s hands is the place
element of the marketing mix.
Knowing where one’s customers shop
helps marketers make the place
decision. Place strategies determine
how and where a product will be
distributed.
Marketing Mix: Promotion
 Promotion refers to activities related to
advertising, personal selling, sales
promotion, and publicity. Today many
companies include social media in a
product’s promotional mix. Promotional
strategies deal with how marketers tell
potential customers about a company’s
products.
Marketing Mix: People
 Because of the importance of customers, some
would add a fifth “P” to the list: people. Marketers
must first clearly define each target market before
they can develop marketing strategies
 The importance of the target market (people) cannot
be overemphasized. Marketers make decisions for
the other four elements of the marketing mix based
on the target market.
Essential Questions
Describe how marketers use knowledge of the market to sell
products. Identify consumers who have the ability to pay
Compare and contrast consumer and organizational markets.
Consumer market: purchases for personal use. Organization
market: purchases for businesses.
Explain the importance of target markets. All marketing
strategies are directed to target markets.
Explain how each component of the marketing mix contributes
to successful marketing. The product must be developed for a
target market and convenient for customers to purchase.