2. Part 1 Marketing Dynamics
Chapter 1
Marketing Is Dynamic!

3. Ch. 1, Marketing Is Dynamic!
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.

4. Ch. 1, Marketing Is Dynamic!
Marketing Terms
marketing
customer
target market
Four Ps
product
good
service
idea
place
distribution
price
promotion
marketing mix
marketing plan
SWOT analysis
forecast

5. Ch. 1, Marketing Is Dynamic!
Marketing Defined
Marketing consists of dynamic activities that focus on the customer to generate a profitable exchange
(Continued)

6. Ch. 1, Marketing Is Dynamic!
Marketing Defined
Goal of marketing
meet customers’ needs and wants with products that customers can and will buy

7. Ch. 1, 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)

8. Ch. 1, Marketing Is Dynamic!
Customers’ needs and wants change because
customers change
the economy changes
technology changes
social trends change

9. Marketing Is Customer-Focused
Ch. 1, Marketing Is Dynamic!
Marketing Is Customer-Focused
Marketing focuses on the customer
A customer can be a
person
business
nonprofit organization
government
(Continued)

10. Marketing Is Customer-Focused
Ch. 1, Marketing Is Dynamic!
Marketing Is Customer-Focused
Marketers focus on customers by
learning what customers need and want
developing products to meet those needs and wants
(Continued)

11. Marketing Is Customer-Focused
Ch. 1, Marketing Is Dynamic!
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.

12. Marketing Is Relationships
Ch. 1, Marketing Is Dynamic!
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.

13. Marketing Is International
Ch. 1, Marketing Is Dynamic!
Marketing Is International
People can buy products from anywhere in the world
Japan National Tourist Organization
What enables people to buy products from anywhere?

14. Marketing Is the Four Ps
Ch. 1, Marketing Is Dynamic!
Marketing Is the Four Ps
The Four Ps are the basic elements of marketing
Product
Place
Price
Promotion
(Continued)

15. Marketing Is the Four Ps
Ch. 1, Marketing Is Dynamic!
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?

16. Ch. 1, Marketing Is Dynamic!
Product
There are three types of products
good
physical item
service
action done for you
idea
concept, cause, image, issue, or philosophy
(Continued)

17. Categorize the pictured products as good, service, or idea.
©2007 JupiterImages Corporation
Categorize the pictured products as good, service, or idea.

18. Ch. 1, Marketing Is Dynamic!
Place
Place
getting products to customers
at convenient times and locations
includes distribution
Describe distribution you have seen.
(Continued)

19. Ch. 1, Marketing Is Dynamic!
Place
Distribution is physically getting goods to customers
Includes
shipping
storing
inventory
stocking of goods

20. Ch. 1, Marketing Is Dynamic!
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?

21. Ch. 1, Marketing Is Dynamic!
Promotion
Promotion is
communication with customers
telling people about
your product
your business
Describe promotion that you have seen.
(Continued)

22. Ch. 1, Marketing Is Dynamic!
Promotion
Promotion includes
selling, advertising, and sales promotion
public relations
creating a positive image of your company

23. Marketing Is the Marketing Mix
Ch. 1, Marketing Is Dynamic!
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)

24. Marketing Is the Marketing Mix
Ch. 1, Marketing Is Dynamic!
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)

25. Marketing Is the Marketing Mix
Ch. 1, Marketing Is Dynamic!
Marketing Is the Marketing Mix
Why is the target market in the center?
Is the customer part of the marketing mix?

26. The Marketing Mix in Action
Ch. 1, Marketing Is Dynamic!
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.

27. 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

28. 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

29. Is Marketing in Your Future?
Ch. 1, Marketing Is Dynamic!
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)

30. Is Marketing in Your Future?
Ch. 1, Marketing Is Dynamic!
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?

31. Ch. 1, Marketing Is Dynamic!
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.

32. Glossary customer. Individual or group who buys products.
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)

33. Glossary good. A physical item; something that you can touch.
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)

34. 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)

35. 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)

36. 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.