Marketing is All Around Us Chapter 1

1.1 Scope of Marketing Marketing is a process 1.Planning 2.Pricing 3.Promoting 4.Selling 5.Distributing –We must keep up with trends and consumer attitudes.

Ideas, Goods, & Services Tangible item – goods (ex: cars, toys, furniture, televisions, etc) Intangible – ideas and services (ex: cooking a hamburger, cutting hair, movie theatres, accounting offices)

Marketing Foundations 1.Business, Management, Entrepreneurship Understanding concepts that affect business decision making 2.Communication and interpersonal skills Understanding how to interact effectively with others 3.Economics 4.Professional development Career exploration, development, personal growth

7 Functions of Marketing 1. Distribution – deciding how goods get into customers hands. 2. Financing – getting the $ to pay for setting up and running a business

7 Functions of Marketing 3. Marketing Information Management – getting information about customers, trends, and competing products. 4. Pricing – deciding how much to charge for good and services in order to make a profit.

7 Functions of Marketing 5. Product/Service Management – obtaining, developing, maintaining, improving a product. 6. Promotion – sales promotion, advertising, public relations 7. Selling – provides customers with the goods and services they want

The Marketing Concept The idea that a business should strive to satisfy customers’ needs and wants while generating a profit. All areas of the business must have this goal.

1.2 Importance of Marketing Benefits –New & Improved Products –Lower Prices – Added Value and Utility –Utility = usefulness

Fundamentals of Marketing Section 1.3

Market As a marketer you… –Know your product will not appeal to everyone A market - –Group of people who may be interested in your product –Share similar needs and wants –Have the $ to purchase the product

Market Example: –You want to purchase a 6 th Man Shirt –You are not interested in purchasing a new computer because you don’t have the $. –You can purchase a 6 th Man Shirt because you have an extra $10.00 in your wallet.

Market Share Total sales in a product category. Example: Fast Food Knowing your market share helps you analyze the competition and their status in a product category

Market Segmentation The process of classifying customers by needs and wants Breaking down the market into smaller groups with similar needs –Consumer –Industrial –Age –Gender

Target Market The group you identify for a specific marketing program. This is the most important group to which all marketing strategies are directed. No target market = no focus. Who is our R&W Shop target market? Do your products reflect this markets needs and wants?

Consumers vs. Customers A product may have more than 1 target market. Consumer = person using product Customer = person purchasing product Example: Kix cereal or Radio Flyer wagon

Customer Profile Lists information about the target market –Age –Income level –Ethnic background –Occupation –Attitudes –Lifestyle –Geographic residence

Marketing Mix 4 P’s Product Place Price Promotion **Must know who your target market is before beginning your marketing mix

Product 1.Choosing product to make or sell 2.Product design – research is key! 3.Product development - brand name, packaging, service, warranty 4.Product updates/improvements – extend the life of the product. 1.Example – new target market or new uses

Pizza Hut Product Updates "Pan Pizza", which usually comes in three different sizes (including Medium and Large, and the "Personal Pan Pizza", which is micro-sized), Stuffed Crust (a hand tossed crust, with the outermost edge wrapped around a coil of string cheese) Hand-Tossed (closer to traditional pizzeria crusts) Thin 'N Crispy (Pizza Hut's original crust) 4forALL (four small pizzas for everyone) More4ALL (one round pizza, divided into four triangular parts, each part having 4 slices) Dippin' Strips (rectangular slices that you can dip in sauces) The Edge (lots of toppings and no crust) Cheesy Twisted Crust (a breadstick as the crust with sauce and two cheeses). Calzones ("P'zones") PLUS MANY MORE

Price Price should reflect what customers are willing and able to pay Must consider… – what competitors are charging for comparable products –Retail price – usually 30% to 100% of wholesale price –Promotional price

Place Getting the product to the consumer’s hands Ask yourself… –Where do my customer’s shop? –How and where will I distribute my product? Countries, retail outlets, wholesalers –How will I transport the product to my customers?

Promotion Decisions about advertising, personal selling, sales promotion, and publicity. How will potential customers be told about a company’s products. –The message, the media, special offers, timing of the promotional campaigns