How is selling today different from selling a hundred years ago?

Marketing Basics

Marketing is… An organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing includes a range of activities.

What are some places/ ways that you are exposed to marketing? Hear advertisements on radio, tv. Billboards Internet Clothing/ shoes/bags/ purses/ jewelry cups Food items Interacting with sales people Less obveous ones: Storing products Distribution On-line payment Gather data on consumers Improve products New products Business to business marketing

All businesses market Some directly Transportation Financial Companies Advertising agencies Marketing research firms Transportation Trucking Railroad Air Freight Shipping/Delivery Financial Companies Credit cards Business loans

Marketing Function Product & Service Management Distribution Selling Marketing Information Management Financial Analysis Pricing Promotion

Product and Service management Designing Developing Maintaining Improving Acquiring products and services that meet customer needs Create a list of all the products. What are all the materials you need to make these products? Where will you get all the materials needed to make the products?

Distribution Determining the best way for customers to Locate Obtain Use products Where will the customers get the products? What will the packaging look like? Packaging… What if you sell online – how do they come to customers?

Selling Communicating directly with potential customers Face to face Telephone Computer Video confrencing What will you do to communicate directly with the customers? Will you have a sales force? Give details about what your direct sales will look like … (this is not the adversiting)

Marketing-Information Management Obtaining Managing Applying information to improve decision making and improve marketing activities. How will you get information from the customers about wether they like the products or not? What products they like? What will you do with the information?

Financial Analysis Budgeting Obtaining Finances Creating payment options Then making sure they get paid What are the factors that you need to concider when creating your budget? Will you have to take out a loan? When the customers pay – what are their option? What if the offer products online?

Pricing Setting price Communicate value Easy to see Comparable Make a profit Communicate value What are they getting for the price What are the factors that go into setting the price? What are you hoping to make as a profit? Give an example {like… a basic pastry costs 1.12 to make (flour, butter, sugar, fruit filling) so we will sell it for 1.40 – that gives you a 25% profit…} How will the customers know the pastry s worth 1.40? (made with enriched flour…. Made with low fat ….) How will you communicate that value to the customers?

Promotion Communicate to customers Advertising TV Radio Magazines Newspapers Direct Mail Internet How will you advertise? What is the best way to get customers? Why? Some examples: Contests, Product Displays, sponsorships, public relation activities (10% to a charity) Give a detailed example of what one of the advertisements would be like

Total Product Concept use all 7 functions when designing a strategy.