Introduction to Marketing BBB4M

Marketing Defined: The Process of creating, delivering, and communicating value to customers.  This is done through creation of a product or service, positioning, branding, pricing, promoting, and advertising that product or service.  The ultimate goal of Marketing is to help a company earn a profit.

Market Share  The percentage of the total market that a company has control over is known as market share. Example: suppose the shoe industry sold 100 million in 2013 in Canada. If your company had 1 million in sales, your company had 1% market share (100/1= 0.01)

Market Share  In a monopoly the company has 100% market share because it is the only company providing a particular good/service.  In perfect competition there are multiple companies that offer essentially the same product/service and each has a small percentage of market share. Example: Fast Food in Canada:  McDonald’s (10% market share)  Wendy’s (8% market share)  Burger King (6% market share)  Taco Bell (5 % market share)  KFC (5% market share)  Subway (5% market share)

Market Segments  Categories of products are often broken down into smaller segments so that they are more manageable for marketers.  Some categories include:  Books, beverages, meat, sports equipment  A category can be broken down as follows:  Example: Books  Children’s Books  Magazines  Fiction  Non-fiction  Comics  Cookbooks  Self Help Books

Segment These Categories 1.Sports Equipment 2.Breakfast Cereal 3.Beverages

Increasing Market Share  Increasing market share can be done in two ways;  1. Increase the size of the overall market  2. Take sales away from other competitors  Example  Your teacher brings a cake to class.  How many people want a piece?  The cake is cut into 8 pieces and there are 25 in the class  How do you get cake if you are not one of those 8 people?  Take it from someone OR cut the cake into smaller pieces

Supply and Demand  Supply and demand are two of the driving forces that affect consumer spending: Supply – refers to the amount of product or availability of a service to consumers Demand – refers to the desire by consumers to purchase goods/services

4 P’s of Marketing Product/Services Product/Service. They come from human invention or innovation. Inventions are radically new products/service – never seen before. Innovation are improvements to existing products/service.

4 P’s of Marketing Price  What price are you going to sell at?  How do you determine the price?  How will the price affect product sales and image?

4 P’s of Marketing Place  Where are you going to sell your product?  Direct sales or intermediaries? Examples?  What purpose do intermediaries serve?  What are the implications of your decision?

4 P’s of Marketing Promotion  Promotion consists of advertising, sales promotion and publicity  How are you going to convince people about your product?  What, when, where, how are you going to promote your product.

2 C’s Customer/Consumer  The customer is the person who makes the purchase.  The consumer is the person that consumes the product  Are they the same person?

2 C’s Competition  What products/service exists already?  Who/what is your competition?  How do you compare/differentiate your  product/service from the competition?  How do you stay a step ahead of your competition?

Brainstorm Activity  Brainstorm and think what a world without advertising and marketing would be like. List how people (consumers) would benefit from a world without advertisements and marketing. Then, list all the benefits that people get from advertisements and marketing.  Benefits of No Advertising/Marketing:  Benefits OF Advertising/Marketing

Marketing Research Marketing Research is essential to the success of a Business, particularly an International Business Marketing Research: The systematic:  Collection  Analysis  Interpretation of information used to develop a marketing strategy or to solve a marketing problem.

Hard and Soft Data Hard Data: Information tested and Supported Soft Data: information not tested and supported

Primary and Secondary Research  Primary Research - Gathered ‘first- hand’ by the researcher (ie. questionnaires, surveys, focus groups, test markets, observations, experiments, interviews, and diaries)  Secondary Research- Information is taken from other people’s research (ie. Library, books, internet)

Target Market Group of potential customers in which a Business aims its Marketing.  Includes demographics such as gender, age, income, occupation, education, household size, values, lifestyles, etc.  Helps Marketers narrow down their intended audience and aids in the Planning and Development Process

Niche Marketing  Niche Markets are small, but specific and well defined segments of the population. Niches are created by identifying and addressing needs, wants, and requirements that are not being addressed or being addressed poorly. Sometimes it is better to dominate a niche market than simply “compete” in a big, broad market. Niche Markets still require advertising and Marketing, but it is more narrowed in and has less mass appeal.