MARKETING 11 Introduction WELCOME!

Is this marketing? Ex. 1 Why or why not?

How about this? Ex. 2 Why or why not?

And this? Ex. 3 Why or why not?

What do you think when you hear the word “marketing?” With a partner, make a list of words or phrases that your associate with marketing

Definition of Marketing  True marketing starts out with the customers, their demographics, related needs and values. It does not ask, “What do we want to sell?” It asks, “What does the customer want to buy?”  It does not say, “This is what our product or service does” It says “These are the satisfactions the customer looks for.” -Peter Drucker Marketing is about determining the value of your product or service and communicating that information to customers. -Canada Business Network

When does marketing happen? 4 things MUST occur Two or more parties with unsatisfied needs Ex. You don’t know how to replace the brakes on your car, the bookstore owner has a book on how to change the brakes in a car Desire and ability to satisfy these needs Ex. You have the money and time to buy, and the bookstore has it in stock A way for the parties to communicate Your store needs to exist and the customer needs to have a way of getting to it Something to exchange Both of you get something, you the book, the owner money

Or put another way… The process of convincing someone to take favourable action • Ex – convincing your parents to let you go to a party when you have lots of homework to do • Ex – Rock and Republic convincing you to buy their $250 jeans when you have $30 Levis that are just fine

Core Marketing Concepts

Needs A state of felt deprivation - Physical needs – Food, clothing, shelter, safety • Social needs – Belonging, affection • If need not satisfied –Seek to satisfy need –Try to reduce need

Wants • Everything else • Needs can be wants • Wants can be needs • Depends on the individual personality, circumstances, culture

Demands • Wants + buying power = demands • Products and services provide benefits • Benefits satisfy wants • Consumers choose products that maximize benefits/satisfies wants for amount of money they can afford – Hyundai vs. Mercedes vs. bikes

Products • Anything that might satisfy a need or want • Can be goods, services, places, activities, etc. • Need/want pants – Consignment jeans - $15 – Levi’s 501s - $50 – Rock and Republic - $200

Exchange • Act of obtaining a product by offering something in return • Exchanges occur under these conditions: – At least 2 parties – Must have something the other party values – Must want to deal with the other party – Must be free to accept or reject offer – Must be able to deliver product/service • Exchanges leave everyone better off (or not worse off)

Transactions • Trading values between 2 parties • Usually involves money – Starbucks gives a Mocha Frappuccino to Mr. Bui and gets $4.50 in return • But doesn’t have to involve money – Barter • Marketers try to generate a response to an offer

Markets • “A market is a set of actual and potential buyers of a product” • Evolution to market – Self-sufficient – Decentralized exchange – Centralized exchange / merchant • Not necessarily a physical place – China / stock market / farmer’s market /teenage market

CAN YOU THINK OF A COMPANY THAT DOES AN EXCELLENT JOB OF MARKETING THEIR PRODUCT OR SERVICE?