Download 1.01 Marketing Concept

Marketing – Definitions
• The process of developing, promoting, pricing, selling,
and distributing products to satisfy customer’s wants
and needs.
• All activities necessary to get a product from the
manufacturer to the consumer.
• The creation and maintenance of satisfying exchange
relationship.
• Dynamic activities that focus on the customer to
generate a profitable exchange.
Marketing Activities
•SWOT analysis: The acronym
for strengths, weaknesses,
opportunities, and threats. A
SWOT analysis reviews the
potential for success or failure
of a business or product.
Marketing Activities Cont.
• SWOT
• Internal - Businesses must continually review
internal strengths and weaknesses. For
example, McDonalds introduced the fruit cup as
an alternative to fries. After one month of its
introduction, McDonalds evaluated the strengths
and weaknesses of the product. Businesses are
also looking at their staff, financials, 4 P’s and
production
Marketing Activities Cont.
• SWOT
• External - Opportunities and threats are external
factors that will also affect operating the business.
For example, staying abreast of what current
products are offered by competitors. For example,
when Coke introduced its new product, Vault,
Pepsi suffered a decrease in sales for its existing
product Mountain Dew. Businesses are also
looking at environmental issues, political climate,
cultural issues, and technology
Marketing Activities Cont.
• Creating a Marketing Plan
• Businesses use the functions of Marketing:
Pricing, Selling, Promotion, Distribution,
Financing, Product/Service Management
(PSM), & Marketing Information Management
(MIM) to create a marketing plan for their
business. This can be done for the whole
company, divisions, and individual products.
Items that are Marketed
• Products - include both goods and services
– Goods - Tangible items that satisfy customer’s needs and wants.
For example, television, car, cell phone, and clothing.
– Services - Intangible items that satisfy customer’s needs and
wants. For example, admission to an amusement park, getting a
haircut, seeing a movie, going to the doctor, or buying
insurance.
• Ideas – Go Green, Cancer Awareness, Stop Smoking,
Stay in School
• Organizations – Profit & Non-profit. Ex: Nike,
Microsoft, Red Cross, and Victory Junction.
• People – politicians, movie stars, athletes
Wants vs. Needs
Wants: Not a necessity, a desire.
For example, a sports car
versus an economical car.
Needs: A necessity for living.
For example, clothing, food,
and shelter.
Where Does Marketing Take Place?
EVERYWHERE!!!!
Marketing Concept
Definitions
• 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.
• An approach to business that says that the way to
make a profit is to focus on customer satisfaction.
• Using the needs of the customers as the primary
focus during the planning, production, distribution,
and promotion of a good or service.
Customer vs. Consumer
• Consumer: The person who uses the product. For
example, Carrie buys denture cream toothpaste for her
grandmother to use. Her grandmother is the consumer for
this product, while Carrie is the customer.
• Customer: The person who purchases the product. For
example, Alyssa buys chicken and steak at the grocery
store this week to cook for her family’s dinner. Alyssa will
not eat the chicken or steak because she is a vegetarian.
Alyssa’s family is the consumer, while Alyssa is the
customer. In many cases, the customer is also the
consumer. For example, Tracey purchases and uses Tide
detergent.
Benefits of Marketing
• New and improved products.
– Businesses create new products and improve
existing products to maintain their current
customers or attract new ones. For example,
Verizon has introduced their new Xperia Play
phone by Sony Ericson as the worlds first
Playstation certified phone. Verizon Xperia
• Lower prices.
– Lower prices benefit customers while businesses
benefit by selling more product at the lower price.
For example, prices for e-readers, tablets, laptops,
etc. they were expensive and few sold. As prices
dropped, more customers purchased them.
Benefits of Marketing Cont.
• If Marketing did not exist
– Without Marketing society would remain a self-subsistence
style of living. You have less competition which results in
higher prices, less choices, less improvements on existing
products, and less information is available.
• Marketing’s benefit to society
– Societies benefits from Marketing through increased
competition, lower prices, larger variety of goods/services,
and mass communication with information about
products/services. Fueled with more information, better
choices are made utilizing our scarce resources within
businesses, governments, and households. There are
foreign and domestic societies and both benefit from
marketing activities.