Download Intro to Marketing and

Marketing
Part 1 – Introduction and
Product planning
INTRODUCTION
MARKETING
The performance of business activities
that direct the flow of goods and
services from producer to consumer
MARKETING CONCEPT
The process of satisfying a customer’s
needs while achieving the firm’s goal
In 1950’s companies concerned
themselves with finding customer’s
needs
MARKETING PLAN
A set of strategies for accomplishing
marketing objectives – marketing plan
FUNCTIONS OF MARKETING
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•
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Buying/Purchasing
Selling
Distribution and storing
Financing
Risk management
Standardizing and gathering
marketing information
• Product/service planning
• Pricing
• Promotion
UTILITY
The power of a good or service to
satisfy a human need
• Form – Changing raw materials into
usable consumer goods. (steel to make
cars)
• Time - Making the product available
when the customers want to purchase it
• Place - Making the product available at
a location where customers want to
purchase it
• Possession/Ownership – Making the
orderly transfer of ownership (allowing
the buyer to use a VISA)
UTILITIES AND MARKETING
• Marketing deals with
– Time
– Place
– Ownership
• Manufacturing functions deal with:
– Form
MARKETING MIX
The combination of:
Product
Price
Distribution
Promotion
directed to reach a particular
target market.
Where to begin
• In implementing the marketing
concept the first step is to listen to
consumers about their needs and
wants.
• Effective marketing research
involves listening to employees,
shareholders, dealers, and
customers.
WHAT DO CONSUMERS WANT?
What do consumers want?
• Consumers buy products because
they have a
– use for the good
– like the convenience
– take pride in ownership
Who are our customers?
MARKET SEGMENTATION
Process of dividing a market by similar
traits
MARKET SEGMENT
A group of individuals or firms that
share one or more common
characteristics –
Females in the market
TARGET MARKET
A market segment toward which a firm
directs its marketing effort is target
market.
Pepsi directs their advertising to the 18
to 34 age group
Market research
• What do you think?
• Internal data
– Accounts receivable
– Comparisons of sales by territory or
product line
– Profitability of particular divisions
• External data
– Observation
– Studies
– Surveys
• Market segmentation allows
market researchers to determine
how and why certain groups of
people buy products and services
– Demographics – age, sex, income,
occupation, household size, education
– Geographic – weather, culture
Classifying products
• Industrial goods – good purchased
by industry commerce,
government, and intermediary
companies for the production of
other goods or for the resale to
consumers (B2B)
• Consumer – finished goods
intended for use by the consumer
for personal, family, or household
use
Types of consumer goods
• Convenience goods –can be bought
with little shopping effort
– purchased in convenience stores,
vending machines, newsstands
– Ex: gum, milk magazines, bread, and
newspapers
• Shopping goods –purchased after
shopper has compared such things as
price, quality, style, and color
– Require more of the shopper’s time and
effort and are more expensive
– Furniture, carpeting, automobiles
– Warranties needed to attract buyers
• Specialty goods require even more
shopping effort because they have
special qualities
– Shopper is willing to make special
effort to buy
– Custom-made furniture, gourmet
foods, high-quality clothes
– Fine wines, artwork
– May require considerable time, effort,
and money to find
Classifying Services
• Industrial
• Consumer
Product Life Cycle
• Introduction
– Inform/promotion
• Growth
• Maturity
• Declining
– Extend product’s life:
• Persuading consumers that they
need additional items.
• Finding new uses for the product.
• Changing sizes, packaging, and
labeling.
Introduction
• Challenge of making potential
customers award of the product’s
existence, its features, benefits,
and uses, consumer awareness and
acceptance of the product is very
low, no competitors have hit the
market, profits are low, and
promotional expenses are very high
Growth
• Acceptance by public, repeat sales,
profits begin to happen , and
competition begins
Maturity
• Reaches it speak in sales and
profits, there begins a slight
decline in sales and profits and
company needs to make a decision
about the product’s life
Decline
• Sales volume falls greatly, profits
are near zero and there is little
hope for the product to ever be a
profitable success
Naming your product
• Simplicity
– 5-7 letters
– Easy to remember
– Cost
• Easy to pronounce
– No tongue twisters
• In-line with the product
– “Turtle” for a computer?
• Suggestive of the quality or use of the
product
– Examples: Spray & Wash, Gold Medal, and
Brisk.
• Distinctive and individual
• Able to stand the test of time
– Not based on a short-lived fad
Packaging
• All are elements of product
packaging – attention getters,
divide contents into usable
portions, used to inform users of
the product, both marketing and
functional value
• All those activities involved in
developing and providing a
container for a product are
packaging.
Terms
• PRODUCT LINE
– Kellogg’s producing Corn Flakes,
Raisin Bran, Rice Krispies, etc, is an
example of product line.
• PRODUCT MIX
– General Mills selling yogurt, cereal,
and baking products is an example of
product mix.
• TRADEMARK
– A brand that is registered with the U.S.
Patent and Trademark Office to legally
protect it – trademark.
Packaging - considerations
• 1. Is cost of package material in line
with product cost?
2. Will the package be able to be
reused?
3. Will it protect the product through
rough handling in transit and storage?
4. Will it be easy to stack and display?
5. Will the package provide room for
good product information to "sell" the
product to the consumer?
6. How eye catching will it be in the
marketplace?
7. Will it protect the product and keep
it fresh until consumer use?
COLORS
• WHITE: Pure. Clean. Youthful. It is a
neutral color that can imply purity in
fashion and sterilization in the medical
profession.
• BLACK: Power. Elegant. Secretive. The
color black can target your high-end
market or be used in youth marketing to
add mystery to your image.
• RED: Passion. Excitement. Danger. Red is
the color of attention, causing the blood
pressure and heart rate to rise. Use red to
inject excitement into your brand.
• ORANGE: Vibrant. Energy. Play. Add some
fun to your company if you want to
create a playful environment for your
customers.
COLORS
• YELLOW: Happy. Warm. Alert. Yellow can
be an attractor for your business with a
relaxed feeling.
• GREEN: Natural. Healthy. Plentiful. To
create a calming effect or growth image
choose green. Go green go.
• PURPLE: Royalty. Wise. Celebration.
Maybe add some purple tones to your
look for your premium service business.
• BLUE: Loyal. Peaceful. Trustworthy. Blue
is the most popular and neutral color on a
global scale. A safe choice for a business
building customer loyalty.