BA 101 Introduction to Business Chapters Marketing Function

What is Marketing? IndividualObjectivesOrganizationalObjectives ConceptionPricingPromotionDistribution IdeasServicesGoods

Core Marketing Concepts Goods and Services Value, Quality and Satisfaction Exchange, Transaction and Relationships Needs, Wants, and Demands Markets

Selling Concept vs. Marketing Concept Starting Point FocusMeansEnds Existing Products Factory Selling and Promoting Profits Through Sales Volume Customer Needs Market Integrated Marketing Profits Through Customer Satisfaction The Selling Concept The Marketing Concept

Customer Satisfaction Positive Customer Experiences Negative Customer Experiences Greater customer loyalty Positive “word of mouth” More sales opportunities Less price sensitivity Damaged business reputation Negative “word of mouth” Fewer sales opportunities Reduced business prospects

Understanding Today’s Customers Sophisticated Price Sensitive Demanding Informed

Understanding Today’s Customers Organizational Market Consumer Market Industry/CommerceIndustry/CommerceResellersResellers GovernmentGovernmentIndividualsIndividualsFamiliesFamilies HouseholdsHouseholds

Marketing Research How can we use information for marketing purposes? How can we use information for marketing purposes?

Develop the Marketing Strategy Segments and Niches Market Position Target Markets Marketing Mix

Developing the Marketing Mix Social Responsibility Business Ethics PromotionPlace PriceProductCompetitionEconomicsNature PoliticsRegulationTechnology Society Target Market

Product: It is a combination of benefits Core Benefits Brand Name Features Quality Level Design Packaging InstallationWarranty UpgradesAccessories Delivery and Credit After-Sale Service

The Product Continuum Goods Products Ideas Services SaltShoesVCRAutoFast Food CruiseConsultingEducationInsurance Tangible Dominant Intangible Dominant

Characteristics of Service Products IntangibleQualityIntangibleQualityPerishableNaturePerishableNature

TimeIntroductionGrowthMaturityDecline In-Flight Internet Service Digital Music Players DVD PlayersVCRs +0 Sales Volume (units) Sales Profits The Product Life Cycle

New-to-the-world products New product lines Additions to existing product lines Improvements or revisions of existing products New Product Development (NPD) New Products and NPD

Product Line and Product Mix Meat Milk Fruit Juice Meatballs Sausages Product Line Product Mix Salami

Developing Pricing Strategies QualityPerceptionsQualityPerceptions MarketingObjectivesMarketingObjectives ConsumerDemandConsumerDemand GovernmentRegulationsGovernmentRegulations

Break-Even Analysis Break-Even Point $$ Profits $$ More Than $$ Losses $$ Less Than Fixed costs Selling price per unit-Variable costs per unit Cost-Based Pricing

Break-Even Point Haircuts at $20 Each

Break-Even Point Haircuts at $30 Each

Other Pricing Strategies Price-Based Optimization Skimming Penetration

Marketing Intermediaries RetailersWholesalers

How Intermediaries Simplify Commerce

Distribution Channel Length Consumer Business User Business User Consumer Goods and Services Business Goods and Services Producer Agent/Broker Wholesaler Retailer ProducerWholesaler

Market Coverage Distribution Convenience Goods and Organizational Supplies Expensive Technical or Specialty Products IntensiveSelectiveExclusive

Elements of Promotion Personal selling Personal selling Advertising Advertising Direct marketing Direct marketing Sales promotion Sales promotion Public relations Public relations

The Promotional Mix ActivityReachTimingFlexibility Cost/ Exposure Personal Selling Advertising Direct Marketing Sales Promotion Public Relations Direct Interaction Limited Reach Indirect Interaction Large Reach Direct Interaction Large Reach Indirect Interaction Large Reach Indirect Interaction Large Reach Regular Contact Intermittent Tailored Message Standard Message Customized Message Standard Message Standard Message Relatively High Low to Moderate Relatively High Varies No Direct Cost

Personal Selling Customer-Oriented Marketing Customer-Oriented Marketing Partnerships with Customers Partnerships with Customers

Product Awareness Product Image Consumer Demand Advertising and Direct Marketing

Major Advertising Media Newspapers Television Direct Mail Internet Magazines Radio Outdoor

Consumer Sales Promotions Coupons Rebates Point-of-Purchase Special-Event Advertising Samples Premiums Cross-Promotions Specialty Advertising

Public Relations News Conferences News Releases Community Relations Press Relations Investor Relations Government Affairs Product Publicity

Integrated Marketing Communications IMCIMCPublicRelationsPersonalSelling ProductAdvertisingDirectMarketing SalesPromotion Effectiveness Consistency Impact Clarity