Marketing is All Around Us Ch. 1 ME

Marketing and the Marketing Concept Section 1.1 Marketing and the Marketing Concept

The Scope of Marketing Marketing – is the process of planning, pricing, promotion, selling, and distributing ideas, goods, or services to create exchanges to satisfy customers. Is a process; is ongoing and it changes Needs to keeps up with trends and consumer attitudes

Ideas, Goods & Services Ideas - is a concept or techniques that can be bough or sold Goods - are tangible items that have monetary value and satisfy your needs and wants Services – intangible items that have monetary value and satisfy your needs and wants Marketplace – where the exchange takes place, every time someone sells or buys something Usually a commercial environment

Foundations of Marketing Business, management & entrepreneurship Communication and interpersonal skills Economics Professional development

Seven Functions of Marketing Distribution – is the process of deciding hot to get goods in customers’ hands Main methods – truck, rail, ship or air Also involves systems that track products Financing – is getting the money that is necessary to pay for setting up and running a business

Seven Functions of Marketing Marketing Information Management – in which all marketing decisions rely on good information about customers, trends and competing products Must gather information, store it and analyze it Is done on continual basis and through special marketing research studies Pricing – dictates how much to charge for goods and services in order to make a profit Based on costs and on what competitors charge for the same product or service Determines how much a customer is willing to pay

Seven Functions of Marketing Product/Service Management – is obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities Promotion – is the effort to inform, persuade, and remind potential customers about a business’s products or services Used for advertising Also used to improve a company’s public image

Seven Functions of Marketing Selling – provides customers with the goods and services they want Includes selling in the retail market to customers, and business-to-business to wholesales, retailers, or manufacturers Selling techniques include determining client needs and wants, and responding through planned, personalized communication

The Marketing Concept Marketing Concept – is the ides that a business should strive to satisfy customers’ needs and wants while generating a profit for the firm Responsible personnel of the firm must understand the marketing concept, and provide the best possible service to its customers Repeat customers keep a company in business

Customer Relationship Management (CRM) Customer Relationship Management (CRM)- is an aspect of the marketing that combines customer information with customer service and marketing communications

The Importance of Marketing Section 1.2 The Importance of Marketing

Benefits of Marketing New and Improved Products Lower Prices Marketing generates competition Lower Prices Marketing increases demand Added Value and Utility Utility – is added value in economic terms Are the attributes of a product or service that make it capable of satisfying consumers’ needs and wants

Added Value and Utility Form Utility- involves changing raw materials or putting parts together to make them more useful Manufacturing of products involves taking things of little value by themselves and putting them together to create more value Special features or ingredients add value and increase form utility value Examples: zippers and electronic controls in a steering wheel

Added Value and Utility Place Utility – involves having a product where customers can buy it Customer shopping habits determine the most convenient and efficient locations Direct approach by selling through catalogs, others business or internet Time Utility – is having a product available at a certain time of year or a convenient time of day

Added Value and Utility Possession Utility – the exchange of a product for money Involves every time legal ownership of a product changes hands Information Utility – involves communication with customers Examples: sales people, displays, packaging and labeling, advertising, owners’ manuals & Web sites

Fundamentals of Marketing Section 1.3 Fundamentals of Marketing

Market Identification Market – all people who share similar needs and wants and who have the ability to purchase a given product

Consumer vs. Industrial Consumer Market – consists of consumers who purchase goods and services for personal use Needs and wants address lifestyle categories Industrial Market (Business to Business) – includes all businesses that buy products for use in their operations Most relate to improving profits

Market Share & Target Markets Market Share – is its percentage of the total sales volume generated by all companies that compete in a given market Change all the time as new competitors enter the market and as the size of the market increases or decreases in volume Market Segmentation – is the process of clarifying customers by needs and wants Target Market – the group that is identified for a specific marketing program All marketing strategies are directed at the target market Is the key to a successful marketing plan

Consumers vs. Consumers A product may have more than one target market Customer Profile – develops a clear picture of a target market Lists information, such as: age, income level, ethnic background, occupation, attitudes, lifestyle, and geographic residence

Marketing Mix Product Place Price Promotion

Marketing Mix Product Place Decisions begin with what to make and sell Product feature’s include: brand name, packaging, service, and warranty What to do with current products; updating, improving or discontinue Place The means of getting the product into the consumer’s hands Know where target markets shop Determines how and where a product will be distributed, transportation methods and stock levels

Marketing Mix Price Promotion Is what is exchanged for the product Should reflect what customers are willing and able to pay Take into account prices that competition charges for comparable products Promotion Refers to the decisions about advertising, personal selling, sales promotion, and publicity Deal with how customers will be told about a company’s products