Marketing

Marketing Activities Buying – Obtaining a product to be resold; involves finding suppliers that can provide the right products in the right quantity at a fair price Buying – Obtaining a product to be resold; involves finding suppliers that can provide the right products in the right quantity at a fair price Selling – Providing personalized and persuasive information to customers Selling – Providing personalized and persuasive information to customers

Marketing Activities Transporting – Moving products from where they were made to where consumers can buy them Transporting – Moving products from where they were made to where consumers can buy them Storing – Holding products until customers need them, such as on shelves, Storing – Holding products until customers need them, such as on shelves, storage rooms, or warehouses

Marketing Activities Financing – Providing money to pay for the various marketing activities, such as obtaining credit when buying and extending credit when selling Financing – Providing money to pay for the various marketing activities, such as obtaining credit when buying and extending credit when selling Researching – Studying buyer interests and needs, testing products, and gathering facts needed to make good marketing decisions Researching – Studying buyer interests and needs, testing products, and gathering facts needed to make good marketing decisions

Marketing Activities Risk Taking – Assuming the risk of losses that may occur from fire, theft, damage, etc. Risk Taking – Assuming the risk of losses that may occur from fire, theft, damage, etc. Grading and Valuing – Grouping goods according to size, quality, or other characteristics, and determining an appropriate price for products and services Grading and Valuing – Grouping goods according to size, quality, or other characteristics, and determining an appropriate price for products and services

Role of Marketing Production Oriented – decisions about what and how to produce receive most attention Production Oriented – decisions about what and how to produce receive most attention Sales Oriented – emphasize widespread distribution and promotion to sell products Sales Oriented – emphasize widespread distribution and promotion to sell products Customer Oriented – direct activities of the company toward satisfying customers Customer Oriented – direct activities of the company toward satisfying customers

Marketing Concept Keeping the needs of the consumer uppermost in mind during the design, production, and distribution of a product Keeping the needs of the consumer uppermost in mind during the design, production, and distribution of a product Marketing manager is part of top management and involved in all major decisions Marketing manager is part of top management and involved in all major decisions President Operations Manager Marketing Manager Finance Manager

Market Determination Market – types of buyers a business wishes to attract and where those buyers are located Market – types of buyers a business wishes to attract and where those buyers are located Whom to serve???? Whom to serve???? Where to serve???? Where to serve???? Identify target markets – groups of customers with very similar needs Identify target markets – groups of customers with very similar needs

Marketing Mix Four Elements of Marketing – 4 P’s Four Elements of Marketing – 4 P’s 1. Product 2. Price 3. Place (Distribution) 4. Price

Product All attributes, both tangible and intangible, that customers receive in exchange for the purchase price All attributes, both tangible and intangible, that customers receive in exchange for the purchase price Number of items to produce Number of items to produce Physical features Physical features Quality Quality Number of different models Number of different models Packaging Packaging Brand Name Brand Name Product guarantees & services Product guarantees & services Image to be communicated to customers Image to be communicated to customers

____ ____Price Amount of money given to acquire a product. Amount of money given to acquire a product. High enough to cover costs of producing and marketing High enough to cover costs of producing and marketing Consider the number of competing products and their prices Consider the number of competing products and their prices Demand for the product Demand for the product Sold for cash or credit Sold for cash or credit Coupons, discounts, bargain for lower price, trade in, etc…. Coupons, discounts, bargain for lower price, trade in, etc….

Place (Distribution) Product must be in a place where customers need or want it Product must be in a place where customers need or want it Set of activities required to transport and store products and make them available to customers Set of activities required to transport and store products and make them available to customers May sell products to retailers or wholesalers May sell products to retailers or wholesalers

Promotion Providing information to consumers that will assist them in making a decision and persuade them to purchase a product or service Providing information to consumers that will assist them in making a decision and persuade them to purchase a product or service Major methods - Advertising and Personal Selling Major methods - Advertising and Personal Selling

Marketing Plan Detailed written description of all marketing activities that a business must accomplish in order to sell its products Detailed written description of all marketing activities that a business must accomplish in order to sell its products Describes the goals the business wants to accomplish, the target markets, the marketing mixes, and the tactics that make up the marketing strategy Describes the goals the business wants to accomplish, the target markets, the marketing mixes, and the tactics that make up the marketing strategy Identifies ways to evaluate to determine if successful Identifies ways to evaluate to determine if successful Written for a specific time period Written for a specific time period

The Product Life Cycle Consists of four stages of sales and profit performance through which all brands of a product progress Consists of four stages of sales and profit performance through which all brands of a product progress Introduction Introduction Growth Growth Maturity Maturity Decline Decline

Introduction Stage A brand new product enters the market A brand new product enters the market The product is different from, and expected to be better than, products customers are currently using The product is different from, and expected to be better than, products customers are currently using If successfully introduced, increasing number of consumers will accept it, sales will increase, and profits will grow If successfully introduced, increasing number of consumers will accept it, sales will increase, and profits will grow

Growth Competitors will enter the market Competitors will enter the market More customers become regular purchasers More customers become regular purchasers Companies attempt to improve their brand Companies attempt to improve their brand Companies will add to their distribution Companies will add to their distribution Profits are likely to increase Profits are likely to increase

Maturity Product purchased by large numbers of customers and become quite profitable Product purchased by large numbers of customers and become quite profitable Competing with many other brands with similar features Competing with many other brands with similar features Customers have developed loyalty to a brand Customers have developed loyalty to a brand Companies focus on promotion and may look for new markets Companies focus on promotion and may look for new markets

Decline Occurs when a new product is introduced that is much better or easier to use Occurs when a new product is introduced that is much better or easier to use Companies begin to see declines in sales and profits Companies begin to see declines in sales and profits Either find new uses for product or attempt to sell off any remaining inventory Either find new uses for product or attempt to sell off any remaining inventory

Product Categories Industrial goods – products designed for use by another business Industrial goods – products designed for use by another business Consumer goods – products designed for personal or home use Consumer goods – products designed for personal or home use Some products may be both a consumer and industrial good Some products may be both a consumer and industrial good

Consumer Products Convenience Goods – inexpensive items that consumers purchase regularly without a great deal of thought Convenience Goods – inexpensive items that consumers purchase regularly without a great deal of thought Ex: milk, candy, soft drinks, soap Ex: milk, candy, soft drinks, soap Shopping Goods – consumers purchase less frequently and usually have a higher price and requite some buying thought Shopping Goods – consumers purchase less frequently and usually have a higher price and requite some buying thought Ex: cars, furniture, large appliances, houses Ex: cars, furniture, large appliances, houses

Consumer Products Specialty Goods – products that customers insist on having and are willing to search for until they find them. Specialty Goods – products that customers insist on having and are willing to search for until they find them. Ex: designer clothing, expensive jewelry, special automobiles Ex: designer clothing, expensive jewelry, special automobiles Unsought Goods – Customers do not shop for these type of goods because they do not have a strong need for them Unsought Goods – Customers do not shop for these type of goods because they do not have a strong need for them Ex: life insurance, cemetery plots, funeral services Ex: life insurance, cemetery plots, funeral services