Unit 3 Basic Marketing Concepts

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Commercial Questionnaire What is the product? Who is the target audience? Do you think this commercial creates a relationship with its market? If so, what is it? What aspects of this commercial are memorable?

Unit 3 Vocabulary Consumers Consumer Market Customers Customer Profile Customer Relationship Management (CRM) Demographics Discretionary Income Disposable Income Environmental Scan Executive Summary Geographics Goods Industrial Market Market Market Share Marketing Marketing Concept Marketing Mix Market Segmentation Marketing Strategy Mass-Marketing Positioning Products Psychographics Sales Forecast Services Situation Analysis SWOT Analysis Target Market

Unit 3 Essential Question How do the fundamental marketing concepts relate to the scope and impact of marketing on the economy?

Essential Question 1 Basic Marketing Concepts What is marketing?

Marketing is. . . The process of planning, pricing, promoting, selling and distributing products to create exchanges that satisfy customers needs and wants. Products Goods Services Information / Ideas

Essential Question 2 Basic Marketing Concepts How do marketing strategies relate to the marketing mix?

Target Marketing - Focuses all marketing decisions on the specific group of people you want to reach. The Marketing Mix Product Place Price 4 P’s of Marketing Promotion

Product Positioning Positioning: Getting the consumer to think about a product in a certain way. Methods of positioning: Playing to the competition's weaknesses. Looking for underserved markets. Leading with your strengths. Targeting different market segments.

Marketing Strategies Marketing strategy: Identification of target markets and determination of marketing mix choices that focus on those markets. An effective marketing strategy will focus on a company’s or product’s competitive advantage: the key point of difference.

Essential Question 3 Basic Marketing Concepts What are the marketing functions and their related activities?

Functions of Marketing Distribution The physical movement of a good or service. Deciding where and to what extent to sell a good or service.

Functions of Marketing Financing Determining the need for and availability of financial resources to aid in marketing activities.

Functions of Marketing Marketing Information Management Gathering, recording, analyzing, and disseminating information to aid in making marketing decisions.

Functions of Marketing Pricing The determination of an exchange price at which the buyer and seller perceive optimum value for a good or service.

Functions of Marketing Product/Service Management Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.

Functions of Marketing Promotion Communicates information about products, services, images, or ideas to customers or clients to influence their purchase behavior.

Functions of Marketing Selling Responding to consumers needs and wants through planned, personalized communications intended to influence purchase decisions.

Essential Question 4 Basic Marketing Concepts How do the effects of various marketing activities compare and contrast?

Marketing Activities What marketing activities would be associated with each function of marketing? Distribution? Financing? Marketing Information Management? Pricing? Product/Service Management? Promotion? Selling?

Essential Question 5 Basic Marketing Concepts How do marketing plans interact with marketing strategies?

Marketing Plan Marketing Plan A formal, written document that directs a company’s activities for a specific period of time. Elements of a Marketing Plan include: Situation Analysis Marketing Strategies Implementation Evaluation and Control

Marketing Plan Marketing Plan The Marketing Strategies section of the Marketing Plan focuses on: Product Positioning Marketing Mix Product Place Price Promotion

Essential Question 6 Basic Marketing Concepts How does the marketing planning process employ situational analysis?

Situational Analysis Situational Analysis: The study of the internal and external factors that affect marketing strategies and is an element of the Marketing Plan.

Situational Analysis A Situational Analysis includes: SWOT Analysis: An assessment of the company’s internal Strengths and Weaknesses and external Opportunities and Threats. Environmental Scan: An analysis of outside influences that may have an impact on the organization. It includes: Political Economic Socio-Cultural Technological

Essential Question 7 Basic Marketing Concepts How are the concepts of market, market segmentation, and market identification differentiated?

Demographics Psychographics Market Market Segmentation Product Benefits Geographics

Identifying Your Customers Market: A group of all potential customers who share common needs and wants, and who have the ability and willingness to buy the product. Market Segmentation: Dividing the total market into smaller groups of people who share specific needs and characteristics.

Customers vs. Consumers Buy a product Consumers Use the product

Consumer Market vs. Industrial Market Personal Use Industrial Business Use

Market Segmentation Geographics Segmentation of the market based on where people live.

Market Segmentation Demographics Statistics that describe a population in terms of personal characteristics. These include age, gender, income, ethnic background, education, etc.

Market Segmentation Psychographics Involves the study of customers based on lifestyle, and the attitudes and values that shape it.

Market Segmentation Product Benefits Built in features of products in response to consumer needs and wants.

Market Identification: Identifying Your Customers Developing a Customer Profile Combining geographic, demographic, psychographic, and product benefit data to get a complete picture of your potential customers.

Essential Question 8 Basic Marketing Concepts How does the marketing concept relate to customer needs and wants?

Brainstorm What are the differences between sales-oriented and marketing-oriented companies.

The Marketing Concept In order for a business to make a profit, it must focus all of its efforts on satisfying the needs and wants of its customers.

Customer Satisfaction Involves creating a relationship with the customer to achieve customer loyalty – also known as Customer Relationship Management (CRM). Customer satisfaction is directly related to the product’s perceived value.