EVOLUTION OF THE MARKETING CONCEPT

Evolution of Marketing The Production Era (1800s to 1920s) • production creates demand • products will sell themselves BMI3C Unit 1

Evolution of Marketing The Sales Era (1920s to 1960s) • production is greater than demand • hire salespeople to find new markets and consumers BMI3C Unit 1

Evolution of Marketing The Marketing Concept Era (1960s to 1980s) strive to achieve organization’s goals and satisfy consumer needs marketing is integrated into each phase of business starting before production BMI3C Unit 1

Evolution of Marketing The Marketing Orientation Era (1980s to today) • continuously collect information about consumers’ needs, competitors • share this information with other departments and use it to create consumer value BMI3C Unit 1

MARKETING ACTIVITIES

Marketing Activities Summarize the ten marketing activities and indiciate which high school courses (besides marketing) which you would take if you wanted to get into that field. BMI3C Unit 1

Research Marketing Activities conduct surveys gather information analyse data BMI3C Unit 1

Product Development Marketing Activities create product to satisfy customer’s needs BMI3C Unit 1

Pricing Marketing Activities establish how much to charge for the product based on cost of materials, how much consumer is willing to spend BMI3C Unit 1

Packaging Marketing Activities develop package to attract attention, safely contain product BMI3C Unit 1

Branding Marketing Activities develop a name, trademark, slogan, logo—identity—for the product BMI3C Unit 1

Sales Marketing Activities organize or be involved in the process of getting the product into the consumers’ hands BMI3C Unit 1

Physical Distribution Marketing Activities Physical Distribution getting the product from factory to where it is accessible to the consumer BMI3C Unit 1

Inventory Management Marketing Activities calculating how many of each product need to be stocked to satisfy consumers’ needs BMI3C Unit 1

Storage Marketing Activities where will you keep the product between production and retailer? BMI3C Unit 1

Promotion Marketing Activities making consumers aware of your product and its merits BMI3C Unit 1

HOMEWORK Read page 18 Answer questions 1 and 2 Read section 1.5 Unit 1 BMI3C Unit 1

Today’s Agenda Take up homework Based on pg. 18, define nonprofit and not-for-profit organizations, what are the differences between the two? Note BMI3C Unit 1

CONSUMER AND COMPETITIVE MARKETS

Consumer Market Cons & Comp Markets the group you try to attract: target market everybody: aggregate market usually a smaller group, differentiated market based on age, gender, etc. BMI3C Unit 1

Cons & Comp Markets A target market is a group of potential customers to whom a company directs its marketing program EXAMPLES: teens, parents, seniors, extremely wealthy, etc. BMI3C Unit 1

Competitive Market Cons & Comp Markets all products and services that compete for consumers’ money within a category can be broad (toys) can be narrow (diet colas) unrelated (entertainment) BMI3C Unit 1

Cons & Comp Markets A product’s marketing efforts try to influence the consumer’s decision towards spending money on that specific product. BMI3C Unit 1

or “The Marketing Mix and the 2 Cs” The 4 Ps and 2 Cs or “The Marketing Mix and the 2 Cs”

Environ- mental Factors: Uncontrollable regulatory Marketing Mix: product social competitive price consumer place promotion technological economic BMI3C Unit 1

The 4 Ps and 2 Cs product price place promotion consumer competition BMI3C Unit 1

The 4 Ps and 2 Cs The product is a good, service, idea, or event to satisfy the consumer’s needs. Examples? product price place promotion consumer competition BMI3C Unit 1

The price is what is exchanged for the product, usually money. The 4 Ps and 2 Cs The price is what is exchanged for the product, usually money. product price place promotion consumer competition BMI3C Unit 1

The place is a means of getting the product into the consumer’s hands. The 4 Ps and 2 Cs The place is a means of getting the product into the consumer’s hands. Examples? product price place promotion consumer competition BMI3C Unit 1

The 4 Ps and 2 Cs Promotion is the means of communication used by the seller to inform the buyer. Examples? product price place promotion consumer competition BMI3C Unit 1

The 4 Ps and 2 Cs The consumer is the individual or group of individuals who may use your product. product price place promotion consumer competition BMI3C Unit 1

The 4 Ps and 2 Cs The competition is other firms that could provide a product similar to yours. Who competes with Nike? Pepsi? McDonalds? Ford? product price place promotion consumer competition BMI3C Unit 1

The Marketing Mix Worksheet

H O M E W O R K Marketing Mix worksheet Start thinking about 4 Ps and 2 Cs assignment BMI3C Unit 1

Today’s Agenda Marketing Mix worksheet Read “Future Shop”, page 20, answer questions Group activity & discussion Note Work on assignment due Friday BMI3C Unit 1

Information Technology Read “Future Shop” on page 20, answer questions. At your table, compare answers to #1, list 3 advantages (benefits) and 3 disadvantages (costs).  What can Future Shop do to capitalize on the advantages or downplay the disadvantages? Compare your answers to #2 BMI3C Unit 1

The Marketing Mix Worksheet

Marketing Strategies

Marketing Strategies A strategy is a method to carry out an action plan to reach a goal. A marketing strategy explains how a company will carry out the marketing plan, its goals, and the marketing mix formula to achieve those goals. BMI3C Unit 1

Marketing Strategies The Marketing Plan contains: a section outlining marketing goals of the business target market(s) a list of as many competitors as possible BMI3C Unit 1

Marketing Strategies The Marketing Plan contains: a research section, with a plan for gathering and analysing info how the product will be positioned, with rationale pricing strategy BMI3C Unit 1

Marketing Strategies The Marketing Plan contains: distribution channels & logistics promotional and advertising proposal BMI3C Unit 1

value = - Brand strategies perceived benefit perceived cost - Marketing Strategies Brand strategies The primary goal is to communicate the value of a product or service to the consumer. value = - perceived benefit perceived cost - BMI3C Unit 1

Brand strategies Marketing Strategies see example on page 26 It attempts to position the product or service by creating a positive value equation in the consumer’s mind. BMI3C Unit 1

The Value Equation Group Activity

Distribution strategies Marketing Strategies Distribution strategies Focus on the best way to deliver a product/service to the target market. MANUFACTURER RETAILER CONSUMER BMI3C Unit 1

Distribution strategies Marketing Strategies Distribution strategies PUSH: “If the product is out there where people will see it, they will buy it.” focus on selling the good to the retailer, importer or wholesaler BMI3C Unit 1

Distribution strategies Marketing Strategies Distribution strategies incentives, promotions, product display case offered in exchange for product placement The manufacturer needs to push the product through the chain BMI3C Unit 1

Distribution strategies Marketing Strategies Distribution strategies PULL: “increase distribution by increasing consumer demand” focus is on selling the good to the consumer BMI3C Unit 1

Distribution strategies Marketing Strategies Distribution strategies convince consumers that they need the product, and that specific brand requires a strong advertising and promotions campaign BMI3C Unit 1

Distribution strategies Marketing Strategies Distribution strategies The pull strategy is difficult to use alone, the push strategy can be. Most strategies use a combination of the two. BMI3C Unit 1

End of Unit 1 BMI3C Unit 1