Applying the Terms Marketing Basics

Marketing Marketing is the process of developing, promoting, and distributing goods and services to meet customer wants and needs.

Goods v. Services Goods: tangible (can touch) Example: pen, football, t-shirt Services: intangible (cannot touch) Example: dry cleaner, waiter, teacher

Target Market Target Market: “focuses all marketing decisions on the specific group of people you want to reach” EXAMPLE: The Target Market for the School Store is high school students, parents, and Falcon fans.

Used to describe Target Market Market Segmentation dividing the total market into smaller groups of people who share specific needs & characteristics Demographics: “statistics that describe a population in terms of personal characteristics” Age Race Gender Income level Used to describe Target Market

The Marketing Mix Product Place Price Promotion The marketing mix: “The 4 P’s” Product Place Price Promotion

Marketing Mix Project Students divide into teams of 2-3 people Design a new item for the BWHS school store (may use customink.com to complete design) Apply the Marketing Mix to this new product Create a PPT presentation to present to class

Marketing Concept The marketing concept:“states that to make a profit a business must focus all efforts on satisfying the needs & wants of the customer”

The Marketing Functions Marketing Functions: All activities that allow companies to bring products to the market for exchange Pricing Selling Distributing Promoting Product/service management Marketing information management

Pricing Pricing: “means deciding how much to charge for goods & services” EXAMPLE: a snickers bar is $1 in the School Store

Selling Selling: “providing customers with goods & services they want to buy” EXAMPLE: The Nike store sells Nike Air Pegasus shoes.

Distributing Distributing: “involves making decisions about where to sell your product and method of transportation to use (i.e. train, plane, automobile)” EXAMPLE: Surfboards arrive via plane from Hawaii and are sold on 17th street in VA Beach.

Promotion Promoting: “any form of communication used to inform, persuade, or remind people about a business’s products” Example: Advertising (paid- commercials, Ads, etc) Sales Promotion Direct Mail Internet and Social Media

Marketing Information Management Marketing Information Management: “gathering market information about customers, trends and competing products” Examples: customer surveys

Product/Service Management Product/service management: “obtaining, developing, maintaining, and improving a product in response to market opportunities” Product changes overtime to meet the need of customers EXAMPLE: The iPod has changed over the last 7 years. It was originally bulky and only black/white; next a smaller/color version called the Nano; next a video iPod; next a smaller Nano; finally iPhone

Marketing Functions Activity Students will work with a partner to complete the following activity: Choose a product and research each of the functions of marketing for that product: Pricing Selling Distributing Promoting Product/service management Marketing information management