World of Marketing CHAPTER 1

 With a partner, come up with a definition of marketing that you would see in a textbook  Please don’t use any resources, create the definition on your own  We will share as a group BELL RINGER

 Marketing- the process of developing, promoting, and distributing products, or goods and services, to satisfy customers’ needs and wants.  In order to market something, it must either be a good or service  Goods- tangible (touchable) products. Ex – basketball, computer, chair  Services- intangible (not touchable). Ex – Doctor, lawyer, healthcare 1.1 WHAT IS MARKETING?

THE MARKETING PROCESS Develop Promote Distribute

 Involves studying consumers to determine what they want  Design the products that will satisfy their needs and wants  Market research  Questionnaires  Surveys DEVELOP

 What are forms of promotion?  Helps to:  Educate consumers  Create interest and desire  Make sales  Create an image for a company and its products  Play Logo/Slogan games on my wiki under Chapter 1Logo/Slogan games PROMOTION

 "You can have the best product in the world, but if nobody knows about it, what good is it?“ – Phil Knight, Chairman of Nike  You need to get the product into the hands of customer!  Buying and selling are also involved with distribution  Some companies sell directly to the consumer  Direct mail  Telephone solicitation (We love telemarketers!)  Internet  Most use intermediaries (middle-man):  Wholesalers  Retailers DISTRIBUTION

INTERMEDIARIES Producer Intermediary: Wholesaler Retailer Intermediary: Wholesaler Retailer Consumer

 Wholesaler- reseller who buy goods, store them, and sell them in smaller quantities to retailers or directly to organizations.  A manufacturer or sporting goods may sell its products to wholesalers  That wholesaler then sells the product to different retailers or directly to a sports organization  NASGW – go to my wiki and see if you recognize any sporting good wholesalers NASGW  Hard to give examples because we don’t really hear about the companies! WHOLESALER

 Retailer- Sell their goods directly to the consumer.  They are resellers too, but they sell their goods directly to the consumer  A lot easier to give examples because we see them everyday!  Name some examples RETAILERS

 Successful organizations recognize the importance of their customers  Marketing concept- the idea that organizations need to satisfy their customers while also trying to reach their organizations’ goals.  To be profitable, businesses must focus their efforts on our needs and wants! THE MARKETING CONCEPT

 Market- potential customers with shared needs who have the desire and ability to buy a product.  “I’m in the market for a new purse”  “I’m in the market for a new car”  “I’m in the market for new shoes”  “I’m in the market for a new tank”  If you don’t have the $$$, then you aren’t in the market THE MARKET I’m not in the market for anything 

 Organizations spend millions to learn about their customers’ needs and wants. Why?  Needs- basic necessities such as food, clothing, shelter  Wants- things that people desire based on personality, experience, or information about a product. NEEDS AND WANTS

 The first step in creating a marketing concept involves identifying customers THE MARKET

OR NEEDS AND WANTS So… Mr. Hakim

 Satisfying customer needs isn’t easy.  Think of everyone in your family from youngest to oldest (grandma/grandpa)  They all have the need for shoes, but would they all want to wear the exact same shoe? TARGET MARKET

 Target market- a specific group of consumers that an organization selects as the focus of its marketing plan.  Magazine ad activity - library TARGET MARKET

 Demographics- Statistics that describe a population in terms of personal characteristics  Age  Income level  Occupation  Gender  Ethnic background  Education level DEMOGRAPHICS

 In your group of 4, create a brief presentation for the class with the demographic you were given. Include:  Title slide informing us of your demographic  Some likely traits/characteristics this demographic would share  What kind of athletic shoes would best suit this group, and why?  Include a picture of the shoes on the last slide  20 minutes to complete  Save to someone’s Drive folder for your presentation DEMOGRAPHIC ACTIVITY

 17 year old male, student, doesn’t work, has girlfriend, Caucasian race.  Traits/Characteristics this demographic would share:  Athletic  Outgoing  Spoiled  Friendly  Irresponsible  Picture of shoes: EXAMPLE:

 One of the most important and yet simplest to remember when it comes to marketing  Marketing Mix:  A combination of four basic marketing strategies – the 4 P’s –  Product  Price  Place  Promotion THE MARKETING MIX

 It’s not only the product/service that the company is trying to sell -  Designing  Naming  Packaging  Coloring  Are all very important aspects to decide on before the product reaches the shelves  The power of color in packaging –on my wiki, Ch 1. The power of color in packaging  Cruise over it, I will assign certain people to certain colors to tell us more about them. PRODUCT

 Why is the price so important?  What must a business consider when deciding what price to charge?  Did you know, approximately 50% of a item’s price goes back to the company for marketing expenses?  Did you know, on average, stores raise the price around 50% more for what they paid for it! PRICE

 Where do you buy pair of gloves or a theater ticket?  Internet?  Retail Store?  Theater?  Telephone Solicitation?  Wholesaler?  Retailer?  Channel of distribution- path a product takes from the producer to the consumer PLACE (DISTRIBUTION)

PROMOTION  Ways to encourage customers to purchase products/services.  Increase customer satisfaction.  Includes: advertising, publicity, personal selling, and public relations Buy 2, get 1 free!! Our product will make you better at everything!