Download Marketing Is All Around Us

Marketing Is All
Around Us
Quick Think
• How would you define Marketing?
• Activities that fall under its umbrella
The Marketing Umbrella
Marketing
• Marketing is the process of planning,
pricing, promoting, selling and
distributing ideas, goods, or services to
create exchanges that satisfy
customers
Marketing
• As a marketer, you need to keep up
with trends and consumer attitudes
• The products, ideas or services you
develop and the way you price, promote
and distribute them should reflect those
trends and attitudes
Ideas, Goods &
Services
•
•
Goods are tangible items that have monetary
value and satisfy needs
•
Cars, toys, furniture, tv’s, etc.
Intangible items that have monetary value and
satisfy your needs are services
•
•
You cannot physically touch them
Cooking, cutting hair, movie theaters, etc.
7 Marketing Core
Functions
1. Channel Management
• a.k.a. Distribution
• The process of deciding how to get
goods into customer’s hands
• Methods of transportation
• Tracking & storing
7 Marketing Core
Functions
2. Market Planning
•
Involves understanding the concepts
and strategies used to develop and
target specific marketing strategies to
a select audience
•
Collection of data, data analysis,
using that data for a marketing plan
7 Marketing Core
Functions
3. Marketing Information Management
•
Gathering information & storing it
about customers, trends and
competing products
•
•
Research done on a continual basis
Companies conduct research so they
can be successful at marketing their
products
7 Marketing Core
Functions
4. Pricing
• Dictates how much to charge for
goods and services in order to make
a profit
• Based on costs and what competitors
are charging
• Must determine how much customers
are willing to pay
7 Marketing Core
Functions
5. Product/Service Management
• Obtaining, developing, maintaining,
and improving a product or a product
mix in response to market
opportunities
• Research guides this toward what the
consumer needs and wants
7 Marketing Core
Functions
6. Promotion
• The effort to inform, persuade or
remind potential customers about a
business’s product or services
• Television, radio, etc.
7 Marketing Core
Functions
7. Selling
• Provides customers with the goods
and services they want
• Retail and business-to-business
• Techniques include determining
clients needs & wants and responding
through communication
The Marketing
Concept
• The idea that a business should strive
to satisfy customers’ needs and wants
while generating a profit for the firm
• The focus is on the customer
Economic Benefits of
Marketing
• Marketing plays an important role in an
economy because it provides the
means for competition to take place
• New & improved products
• Lower prices
Market
• All people who share similar needs and
wants and who have the ability to
purchase a given product are called a
market
Consumer v.
Industrial Market
• Consumer market consists of
consumers who purchases goods and
services for personal use (business-toconsumer / B2C)
• Industrial market (business-to-business
/ B2B) market includes all businesses
that buy products for use in their
operations
Market Share
• A market is further described by the
total sales in a product category
• Camera market, video game market,
etc.
• A company’s percentage of total sales
in a given market is its market share
Target Market &
Market Segmentation
• Market segmentation is the process of
classifying customers by needs and
wants
• The goal of this is to identify the group
of people most likely to become
customers
Target Market &
Market Segmentation
• 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
Consumers v.
Customers
• A product may have more than one
target market
• Children’s cereal
• Children (consumers)
• Parents (customers)
• Ad’s will try to reach both children &
parents
Customer Profile
• To develop a clear picture of their target
market, businesses create a customer
profile
• Lists information about the target
market, such as:
• age, income level, ethnic background,
occupation, attitudes, lifestyle and
geographic residence
The Marketing Mix
• The marketing mix includes four basic
market strategies called the four P’s
• Product
• Place
• Price
• Promotion
The Marketing Mix
• Product
• Choosing what products to make and
sell
• Product design, features, brand
name, packaging, service and
warranty
The Marketing Mix
• Place
• The means of getting the product into
the consumer’s hands is the place
factor of the marketing mix
• Knowing where one’s customers shop
• Determines how and where a product
will be distributed
The Marketing Mix
• Price
• What is exchanged for the product
• Price strategies should reflect what
customers are willing and able to pay
• Takes into account competition
The Marketing Mix
• Promotion
• Refers to activities related to
advertising, personal selling, sales
promotion and publicity
• How potential customers are told
about the product