Marketing & The Marketing Concept Chapter 1.1

Foundations 1. Business, Management, Entrepreneurship - Understanding business basics - Assists in decision making 2. Communications Knowing how to interact with others Includes industry, company, and consumer 3. Economics Understanding how economics relates to marketing 4. Professional Development Understanding concepts related to career advancement

Functions 1. Distribution: getting the product to the consumer, truck/rail/ship/air/warehouse 2. Financing: getting the money needed to continue operations (stocks), includes financing offered to customers via credit 3. Marketing Information Management: analyzing information about consumers, trends, competing brands 4. Pricing: Deciding a price strategy and profit margin, taking into account how much the consumer is willing to pay

Functions Cont’d. 5. Product Management: creating and maintainnig a product mix 6. Promotion: inform/persuade consumers to purchase goods/services 7. Selling: to both consumer and b2b market (wholesalers, retail, manufacturers)

Economic Benefits of Marketing Chapter 1.2

Economic Benefits of Marketing 1. New and Improved Products: competition drives changes in products, want to satisfy consumers 2. Lower Prices: As demand increases helps to lower cost of “manufacturing” product, increased demand creates competitive pricing Utility: utility = added value

Types of Utility Form: the raw materials used to make the product, ingredients, etc. (ex. jeans, computers, cars) Place: place the product where customers can easily purchase (ex. catalog, online, brick and mortar, drive thru window) Time: have the product available when necessary (ex. holiday hours, 24/7, fast food, etc.) Possession: exchange of a product for money (ex. cash, check, Debit, Credit, Layaway, payment plan, etc.) Information: Communicating with the customer (salespeople, displays, labeling, manuals, directions, nutritional data)

Sample Ad: Utility

Sample Ad: Utility

Sample Ad: Utility

Fundamentals of Marketing 1.3 Market: people who share similar needs/wants, ability to purchase (customer vs. consumer)

Market: The Potential Customer Market Share % of total sales in a given industry Consumer/Industrial Market B2C/B2B Segmentation Process of classifying customers by needs/wants Target Market The group chosen for a particular marketing campaign Customer Profile: description of consumer

Marketing Mix Product Price Place Promotion making decision on name, features, packaging, product updates/improvements Price Pricing strategies, what are consumers willing to pay? Place How and where the product is distributed/sold Promotion How to engage customer: Sales strategies? Message? Medium?