Understanding Key Marketing Concepts

Key Marketing Functions There are seven key marketing functions –Product/Service Management –Distribution –Selling –Marketing-Information Management –Financing –Pricing –Promotion

Product/Service Management Designing, developing, maintaining, improving, and acquiring products or services so they meet customer needs Would the test subjects for a PS3 be the same as the test products for Ugg boots

Distribution Determining the best way to get a company’s products or services to customers How is the internet changing the distribution channel? –On Dec. 10 EBay reported $881 million in purchases Do you think we will ever get completely away from the brick and mortar stores?

Selling Direct and personal communication with the customer to assess and satisfy their future needs For example at sporting events food vendors –Food vendors normally have creative sayings in order to catch the attention of their audience Use the internet to directly communicate with customers needs – –

Marketing-Information Management Gathering and using information about customers to improve business decisions Why do you think Giant Eagle gives created the advantage card? –In order to be able to track consumers purchasing tendencies Who has been asked for their zip code when purchasing products? Why do you think they do this?

Financing Budget for a company’s marketing AND to provide customers with assistance in paying for their company’s products What types of products typical are bought with some element of financing from the company? –Cars –Homes –Furniture

Pricing Process of establishing and communicating the value or cost of goods and services to customers If products are in high demand prices may be set high –Example: Concert Tickets Prices may be set lower if seller can count on high volume (Wal-Mart type of products) Bad pricing may lead to customer dissatisfaction –What happened with the IPhone?

Promotion Using advertising & other communication about products and services to achieve a desired outcome Who has looked at the back of their ticket stubs at sporting events? –Coupons used to promote products or services to buy products at a discount