The Marketing Basics Chapter 8

What is marketing? The process of developing, promoting, and distributing products which could be goods or services.

Marketing Concept That an organization has to satisfy its customers’ wants and needs in order to make a profit

The marketing process When deciding on product decisions: A company needs to look at trends as well as gaps in the market to be filled by a new product This information is usually gathered by doing market research Surveys Traffic counts

The market Any group of buyers who are willing and able to buy a product are called a market Instead of marketing to everyone, marketers will do target marketing to focus their marketing plan to customers who are more likely to buy their product.

Marketing Mix Four basic marketing strategies (4 P’s) Product decision: based on what goods and services to sell Price decision: based on marketing costs, costs to produce, and value to customer

Other p’s of marketing mix Place decisions: Where the customer will shop for products and services and the process of distribution on how the company will get the product to the customer

4 p’s continued Promotion: is choosing the best method to communicate to the customer how and why the product meets their needs and wants

Utility Utility – is adding value to a product to make it more useful to the customer/consumer Place Utility: Having products available at a place convenient for them to buy them

Time utility Having products available at a time when the customer needs them

Information Utility Giving the customer information that would help them understand the product Packaging, product displays, literature, salespeople

Possession utility Making it easy for the customer to possess the product Cash, credit or debit card, check, money order

Mr. Brown decides to build a new go kart track right in front of Oakwood on Highway 27 which would be centrally located. This would be a ___________ marketing decision. A. product B. price C. place D. promotion

Mary has decided to open a new italian restaurant in Somerset Mary has decided to open a new italian restaurant in Somerset. She plans to accept all forms of payment such as credit cards, debit cards, cash, checks, etc. This would be an example of ___________ utility. A. place B. time C. possession D. information

The Pulaski County Tourist Center has various types of brochures at their office so that tourists know what tourist attractions are available and where they are located. This is an example of ___________ utility. A. place B. time C. possession D. information

Two of the main things that a company needs to consider when deciding what products and services to provide are: A. trends and money in the market B. trends and gaps in the market C. product and market groupings D. All of the above

The Hilton in Nashville lowers the prices of their rooms by 20% when their occupancy numbers are low. This would be an example of what type of marketing decision? A. product B. price C. promotion D. place

Marketing is the process of _________, __________, and __________ of goods and services to meet the customer’s wants and needs. A. developing, analyzing, and researching B. developing, analyzing, and distributing C. developing, promoting, and distributing D. promoting, marketing, and organizing

Planning Marketing For most businesses to be successful, they have to have a marketing plan A marketing plan provides direction for the marketing activities of a company It serves as a “road map”

Company’s Mission Is a business’s purpose or goal It reflects how a business should operate both internally and externally Examples:The mission of Somerset Independent Schools is to create, implement and maintain an environment which encourages all students to reach their full potential.  This will be achieved through a commitment to school and district initiatives to reach proficiency.  We commit to a comprehensive system of support to assure this outcome. 

Wendy’s Mission Statement Mission Statement We manage our business by the Golden Rule, treating others as we would like to be treated, holding ourselves to high ethical standards. We achieve our objectives by employing the best people in the industry, training them effectively and compensating them fairly. We constantly strive to serve the highest quality food, quickly, in a friendly manner, in in sparkling clean, Dave's Way restaurants All of our efforts are directed toward operating profitable restaurants that exceed our guests and our employee's expectations.  

Hilton’s Mission Statement Our Mission To create rewarding customer experiences that build long term loyalty to our Family of Brands, drive business to our hotels, and spread the warmth of Hilton hospitality worldwide.      In fulfilling this mission we will,   Recognize our team members as key to our success   Foster an environment of collaboration and teamwork   Continually optimize, and invest in, our processes, productivity, and quality

SWOT Analysis Focusing on different internal and external factors that could affect the marketing environment Strengths (Internal): Qualities that give a business a competitive advantage What are Wendy’s strengths versus McDonalds?

Internal Factors that affect a marketing environment? Operations (how departments interact in an organization) Accounting – the amount of profit or loss a business may have Public relations – the company has a good or bad publicity

External Factors that affect a business environment? External suppliers of resources Product distribution Size of company Demographics Economics Politics Technology

Weaknesses (Internal) Weaknesses: Qualities that gives a business a competitive disadvantage? Wendy’s weaknesses vs McDonalds? Wendys VS

Opportunities (external) Features or events that could benefit the business What features or events could benefit Wendys?

Threats (external) Threats – features or events that could damage the business? Threats to Wendys?