Marketing! What’s it all about?

Marketing “The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”

It is a process. It involves. . . Planning Begins with what goods, services, and ideas to produce or sell in order to satisfy consumers’ needs and wants. Analyzing potential consumers to determine who they are and what items to produce or sell in order to satisfy them.

It is a process. It involves. . . Pricing Items must be priced so that consumers want to buy them. Price indicates quality and/or value to consumers. Price must be set to enable businesses to make a profit, but still be able to compete with others.

It is a process. It involves. . . Promoting Marketing helps to create and stimulate demand for products by informing people about them. Advertising, Sales promotion, Publicity, and Personal Selling are forms of promotion.

It is a process. It involves. . . Distributing Involves shipping, handling, and storing of items on the way from the producers to the consumer. Ensures that items are available when and where they are needed.

What is Marketed? Durable Goods - desks, computers, houses Nondurable Goods - food, cosmetics, gasoline Services - banking, health care, job placement People - Athletes, Musicians, Political Candidates Places - Honeymoon locations, vacations Organizations - NCAA, Labor unions, Art museums Ideas - “Pitch in”, “Buckle up for Safety”

Benefits of Marketing Raises the standard of living. Adds utility to goods and services. Makes buying convenient. Maintains reasonable prices.

Benefits of Marketing Improves the quality of life. Provides a variety of goods and services. Increases production.

Where does Marketing occur? Marketing is all around us! All types of businesses use marketing: Producers Wholesalers Retailers

Where does Marketing occur? It occurs in service-selling businesses. Examples: Banks, Real estate agencies, Hospitals, Dentists, Hotels/Motels, etc... It occurs in nonprofit organizations. Churches, Universities, Labor unions

Marketing Concept To succeed in business, managers must base their decisions on the needs and desires of consumers. Businesses must give consumers what they want.

Elements of the Marketing Concept Customer Orientation Businesses must determine how they can produce items people want and how can they do that more effectively. Base decision-making about products on customer’s needs and wants.

Elements of the Marketing Concept Company Commitment An organization that applies the marketing concept must focus all of its efforts on satisfying customer needs. The marketing concept must become a part of the entire organization.

Elements of the Marketing Concept Company Goals A company should achieve its goals by giving customers what they want. Companies exist by achieving their long term goals- not by making quick sales and not achieving customer needs and wants.

Why is Marketing Important? Increased production capacity. Increased buying power of consumers. Need for coordinating production and consumption.

Why is Marketing Important? One-third of all workers are in marketing jobs. Majority of businesses in the US are marketing-type businesses. Fifty cents of every sales dollar goes to cover the costs of marketing.

Without Marketing. . . Increased personal contact with businesses. Less variety in products. Fewer product improvements. Fewer products developed. Increased stock shortages or overages.

Target Market Who are you marketing your product to? Based on demographics (age, education, gender, income level, family status, etc.) Based on psychographics (lifestyles, activities, entertainment choices, etc.)

Marketing Mix Product (what are you marketing?) Price (how much will your product cost?) Place (where and how will you sell to your target market?) Promotion (how will you advertise your product?)

Different types of Advertising Newspaper Magazine Direct mail Transit Radio ad TV ad Webpage Banner ad