Marketing Foundations What is Marketing? What is the goal of Marketing?

Marketing Concept: The process of creating, promoting, and presenting a product to meet the wants and needs of consumers Definition of Marketing: Know your customers’ wants and needs in order to supply a product they can and will buy Market: A group of customers who share common wants and needs, and who have the ability to purchase the product

Functions of Marketing Marketing consists of hundreds of activities Activities are organized around the customer Activities are organized around the 4 Ps: Product, price, place, and promotion (the Marketing Mix) Another way to organize activities is by function

Distribution Moving goods and services from one place to the end user; trucks, trains, planes, ships are possible methods **What about online transfer of products?? examples transporting storing finding sources timely transporting transferring ownership

Product/Service Management Obtaining information, developing, and maintaining products helps marketers decide how to respond to market opportunities developing a new product improving an old product deciding what products to carry in a store

Financing Act of providing funds for business activities, making purchases or investing; deciding if customers can pay with credit or other payment options Financial institutions and banks are in the business of financing as they provide capital to businesses, consumers and investors to help them achieve their goals. Getting investors Generating revenue

Pricing Setting prices for products/services that you sell so that you will make a profit Using financial information to determine price Setting prices to cover costs and include reasonable profit Adjusting prices when conditions change Researching and analyzing prices competitors are charging Have to consider the impact of distribution methods Each time a product goes through another channel of distribution, the price goes up WHY?

Marketing-Information Management MIM – making an informed decision, research and development marketing research gathers, analyzes, and distributes information about markets, competition, and customers one of the main ways a business learns what customers want surveys, meeting with customers Market Planning identifying target market segmenting the market determine strategies based on target market conduct market analysis develop marketing plan

Promotion Nonpersonal communication with customers to influence them to purchase products; communication through any type of media that gets the product out and into the hands of the public Advertising Public relations Sales promotion Publicity

Selling personal communications with customers; build customer relations (B2B, B2C) Relationship marketing includes: helping customers in a store making sales presentations answering questions on phone demonstrating how product works question customers

Marketing Mix - The four elements of marketing: Product – find out if there is a demand for the product; decide how to present the product to the customer; decide how to package the product Place – decide where to sell the product, what kind of location; decide the placement in the store where customers would easily see the product Price – how much are customers willing to pay; is the price competitive with other products, can the company make a profit Break-even point – the amount of money a company has to make to pay for its costs Promotion – making customers aware of the product; advertising, discounts, sales, coupons, rebates; publicity – free advertising; consists of news stories on TV, online, or in print; media events Together, these are called the Marketing Mix

Who does this??? Think about the place where you work, your favorite place to shop, or another business you know. Who performs each of these 7 marketing functions? Work with your neighbor to: List the name of the business List the 7 functions and who at that business would perform that function (position of person, not personal name)

Target Market should have: Clearly defined wants and needs that your company can meet Money to buy your product Willingness and authority to buy your product Enough customers n the market to be profitable

Market Segmentation Marketers segment (divide up) possible markets by: Demographics Geographics Psychographics Product benefits

Demographic Segmentation Statistics that describe the characteristics of a population of people Age Gender Ethnicity Family size Income Disposable – money left after taxes Discretionary – money left after taxes and necessities taken out (what you have left to spend)

Psychographic Segmentation based on psychological characteristics that affect needs and wants Hobbies Social activities Lifestyle Interests Attitudes If you show the target market in ads, people see themselves and relate better to the promotional message

Geographic Segmentation Based on where customers live Location Climate City size