Chapter 1 MARKETING IS ALL AROUND US

The Scope of Marketing Marketing is activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing professionals track trends and consumer attitudes to understand buying decisions.

Scope of Marketing DEFINITION: Marketing includes the process of planning, pricing, promoting, selling and distributing ideas, goods, or services to create exchanges that satisfy customers. Marketing is a PROCESS The AMA reviews the definition of marketing on a regular basis to make sure it conforms to current marketing practices. Marketing is ONGOING and it changes Good marketers keep up with the trends and consumer attitudes

Ideas, Goods and Services Ideas: ex – Politician's platforms online.com/work/zumba-contagious/37063http://creativity- online.com/work/zumba-contagious/37063 Goods – tangible items that have monetary value and satisfy your needs and wants ex – cars, furniture, televisions, clothing Services – intangible items that have monetary value and satisfy your needs and wants that you cannot physically touch ex – dry cleaners, banks, accounting services

Ideas, Goods and Services Every time someone sells or buys something and exchange occurs in the marketplace. The marketplace is the commercial environment where exchanges occurs. Examples: stores, internet, financial institutions, catalogs and more.

Marketing and the Marketing Concept Seven Marketing Core Functions

The process of deciding HOW to get goods into the consumer hands. Also known as distribution Marketing and the Marketing Concept Gathering information, storing it, and analyzing data on customers and competition Understanding the concepts and strategies used to develop & target specific marketing strategies to select an audience Decisions that dictate how much to charge for goods and services in order to make a profit Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities The effort to inform, persuade, or remind current and potential customers about business’ products or services Providing customers with the goods and services they want.

The Marketing Concept The marketing concept is the idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the business. DesiresNeeds DetermineAnticipateSatisfy

Customer Relationship Management Customer relationship management (CRM) is an aspect of marketing that combines customer information (through database and computer technology) with customer service and marketing communications. By using CRM, companies understand their customers’ purchasing patterns and demographics. Customer Information (Databases) Customer Service Marketing Communications

Section 1.2 THE IMPORTANCE OF MARKETING

Economic Benefits of Marketing Marketing supports competition and offers benefits to consumers.

Economic Utility Utilities are the attributes of goods or services that make them capable of satisfying consumers’ wants and needs. Form Utility – changing raw materials into usable goods or putting parts together to make them more useful Place Utility – having a product where customers can buy it Time Utility – having a product or service available at a certain time of year or convenient time of day Possession Utility – the exchange of a product for money Information Utility – involves communication with the consumer

The Benefits of Marketing and the Five Utilities

Section 1.3 FUNDAMENTALS OF MARKETING

Market and Market Identification The term market refers to all the people who might buy a product. All people who share similar needs and wants and who have the ability to purchase a given product are a market. Ex – you could be part of the market for video games, but not be part of the market for an expensive car. You could want an expensive car, but you may not have the means to buy one If you liked video games and had the resources to buy them, you would be apart of the video game market

Consumer versus Organizational Markets Consumer Market - consists of consumer who purchase goods and services for personal use Interested in products that will save them money, make lives easier, improve their appearance, create status in the community or provide satisfaction Organizational Market - also known as business-to-business (B2B), includes all business that buy products for use in their operations Most goals and objectives relate to improving profits, increase productivity, increase sales, decrease expenses or increase efficiency

Market Share A market is further described by the total sales in a product category A company’s market share is its percentage of the total sales volume generated by ALL the companies that compete in a given market. U.S. Smartphone Market Share

Market Segmentation and Target Markets Market segmentation is the process of classifying customers by specific characteristics The goal of market segmentation is to identify the group of people most likely to become customers. 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 When a business does not identify the target market, its marketing plan has no focus.

Details About Markets

Customer Profiles A customer profile lists information about the target market, such as age, gender, income level, marital status, ethnic background, geographic residence, attitudes, lifestyle, and behavior

Marketing Mix The marketing mix includes four basic marketing strategies called the four Ps: product, place, price and promotion Product: begins with choosing what products to make and sell Product’s features, brand names, packaging, service, and warranty are all part of the development Price: what is exchanged for the product. Strategies should reflect what customers are willing and able to pay Place: the means of getting the product into the customer’s hands Knowing where one’s customers shop helps marketers make place decisions Promotion: refers to activities related to advertising, personal selling, sales promotion, and publicity Promotional strategies deal with how marketers tell potential customers about a company’s products

Market Terms and the Fours Ps of Marketing Mix