Marketing

What is Marketing? In your own words, describe what marketing is

You will be able to… List common marketing activities and define the marketing concept Explain the two steps in marketing planning Explain the advantage of small businesses in providing customer service

Marketing All of the activities performed to insure the exchange of goods and services between businesses and consumers

How many different products/services are there available to purchase? Now choose one. How many different “types” of that product/service are there available to purchase? Multiply those numbers by the millions of americans companies are trying to get to be customers. How can businesses insure that the products and services they offer are available to the consumers who want them with the information needed to help them decide to buy?

The Goal of Marketing Is to get the RIGHT product or service, to the RIGHT place, at the RIGHT time, at the RIGHT price, and persuade customers to make a purchase decision

In a nut shell Marketers: 1. Use research to determine wants and needs of consumers 2. Test new ideas with consumers

Why is Marketing Important? About ½ of every dollar you spend pays for marketing costs. Successful marketing allows : consumers to get the products and services they want at an affordable price Businesses to sell their products at a profit Effective Marketing leads to SATISFYING EXCHANGES BETWEEN BUSINESSES AND CONSUMERS

Marketing and Capitalism A free market or capitalistic society is based off of what? Voluntary Exchanges Business are free to decide what to produce and sell Consumers are free to decide what to buy and are willing to pay Marketers serve as intermediaries, helping to match production decisions of producers to consumption decisions of consumers

9 Functions of Marketing Marketers perform HUNDREDS of activities Some work directly for a business that produces the goods and services Marketing researchers and sales people Others operate their own service business Advertising agencies and transportation companies) Consumers can also perform marketing activities Renting a trailer to move a new appliance rather than paying a delivery company

Marketing Functions In order for an exchange to occur, there are 9 FUNCTIONS OF MARKETING that must be completed Buying Selling Product/Service Planning Promotion Pricing Marketing Information Management Financing Physical Distribution Risk Management

9 functions of marketing functions/ functions/

Pop Quiz Clear your desk Take out a piece of paper Number it 1-9 List the 9 functions of Marketing

Review What is marketing? All of the activities performed to insure the exchange of goods and services between businesses and consumers What is the goal of marketing? Is to get the RIGHT product or service, to the RIGHT place, at the RIGHT time, at the RIGHT price, and persuade customers to make a purchase decision About what percent of every dollar spent goes towards marketing costs? 50%

We know… That successful marketing leads to SATISFYING EXCHANGES BETWEEN BUSINESSES AND CONSUMERS But why?

Marketing Concept The most important aspect of marketing is satisfying customer needs A business that keeps the focus on satisfying customer needs follows the Marketing Concept

Market Orientation vs. Sales Orientation What is the Organization's focus? What business are you in? To whom is the product directed? What is your primary goal? How do you seek to achieve your goal? Sales Orientation Inward, upon the organization's needs Selling goods and servicesEverbody Profit through maximum sales volume Primarily through intensive promotion Market Orientation Outward, upon the needs and wants of consumers Satisfying customer wants and needs and delivering superior value Specific groups of people Profit through customer satisfaction Through a coordinated marketing strategy

Market Orientation vs. Sales Orientation What is the Organization's focus? What business are you in? To whom is the product directed? What is your primary goal? How do you seek to achieve your goal? Sales Orientation Inward, upon the organization's needs Selling goods and servicesEverbody Profit through maximum sales volume Primarily through intensive promotion Market Orientation Outward, upon the needs and wants of consumers Satisfying customer wants and needs and delivering superior value Specific groups of people Profit through customer satisfaction Through a coordinated marketing strategy

Market Orientation vs. Sales Orientation What is the Organization's focus? What business are you in? To whom is the product directed? What is your primary goal? How do you seek to achieve your goal? Sales Orientation Inward, upon the organization's needs Selling goods and servicesEverbody Profit through maximum sales volume Primarily through intensive promotion Market Orientation Outward, upon the needs and wants of consumers Satisfying customer wants and needs and delivering superior value Specific groups of people Profit through customer satisfaction Through a coordinated marketing strategy Defining a firms business in terms of the benefits the customer seeks: Ensures the firm focuses on customer needs Encourages innovation/creativity in addressing those needs Stimulates awareness in customer desires and preferences to keep product offerings relevant

Market Orientation vs. Sales Orientation What is the Organization's focus? What business are you in? To whom is the product directed? What is your primary goal? How do you seek to achieve your goal? Sales Orientation Inward, upon the organization's needs Selling goods and servicesEverbody Profit through maximum sales volume Primarily through intensive promotion Market Orientation Outward, upon the needs and wants of consumers Satisfying customer wants and needs and delivering superior value Specific groups of people Profit through customer satisfaction Through a coordinated marketing strategy Because most potential customers are not “average,” they are NOT likely to be attracted to an average product marketed to an average consumer.

“Average” Shampoo? Hello Hydration Tousle Me Softly Totally Twisted Touchably Smooth Hydralicious Color Me Happy Long-Term Relationship None of your Frizzness Body Envy Drama Clean Market Oriented organizations recognize that consumer needs and wants vary, so they develop different goods, services, and promotional appeals

Market Orientation vs. Sales Orientation What is the Organization's focus? What business are you in? To whom is the product directed? What is your primary goal? How do you seek to achieve your goal? Sales Orientation Inward, upon the organization's needs Selling goods and servicesEverbody Profit through maximum sales volume Primarily through intensive promotion Market Orientation Outward, upon the needs and wants of consumers Satisfying customer wants and needs and delivering superior value Specific groups of people Profit through customer satisfaction Through a coordinated marketing strategy Marketing Oriented Organizations emphasize LONG-TERM RELATIONSHIPS by: Creating customer VALUE Providing customer SATISFACTION

Marketing Orientation Goal

Market Orientation vs. Sales Orientation What is the Organization's focus? What business are you in? To whom is the product directed? What is your primary goal? How do you seek to achieve your goal? Sales Orientation Inward, upon the organization's needs Selling goods and servicesEverbody Profit through maximum sales volume Primarily through intensive promotion Market Orientation Outward, upon the needs and wants of consumers Satisfying customer wants and needs and delivering superior value Specific groups of people Profit through customer satisfaction Through a coordinated marketing strategy

Marketing Strategy A two-step process for successfully planning and marketing products and services Step one Identifying a Target Market Step two Developing a Marketing Mix

Target Market A clearly identified group of consumers with similar wants and needs

Do Now How is a marketing orientated company different from a sales orientated company? Give examples of both What is a marketing strategy? What is a target market?

Marketing Mix How will we communicate to consumers and encourage them to make a purchase? How much are we going to charge? Will we accept credit? How will we get our product to consumers? Places they are sold and ways they are available What are we going to sell that satisfies consumers needs? ProductPlace PromotionPrice

Product The product includes more than just the physical good It also includes: Brand name Packaging Accessories Services which increase customer satisfaction

Price Consumers compare prices to the satisfaction they believe they will receive When satisfaction is greater than price, consumers make purchases

Goals of pricing 1. Cover costs and make profit 2. Set price so consumers view as good value 3. Set price to stay competitive with other companies

Factors that Influence Price Supply and demand The quantity purchased Level of customer service offered How fragile the product is The number of businesses in distribution channel The amount of advertising and communication necessary to inform consumers

Place Several decisions need to be made when planning product distribution. Where will products be sold? How will we get them there? How will they be packaged and protected?

Channels of Distribution The paths that products travel from producer to consumer – Direct channel – producer – consumer – Indirect channel – producer – middleman – consumer – Direct: – Indirect:

Middlemen Anyone in the middle that moves a product from producer to consumer

Wholesaler A Business that sells goods in large quantities to be retailed by others Buys directly from manufacturer/producer Sells in bulk Stores and ships products to retailers or smaller wholesalers

Retailer A business that sells directly to consumer Buys products from different manufacturers prices products displays products makes it easy for you to buy

Promotion The marketing tool businesses use to communicate with consumers to persuade them to purchase its products

Role of promotion To attract new customers, promotion is used to Inform prospective customers to Persuade them their product is the best choice Once customers have bought product, promotion is used to Reinforce their purchase decision to Remind them of how it meets their needs

Promotional methods Advertising – information paid for by business to reach large number of prospective customers Sales promotions – incentives for customers to buy products (coupons, contests, free samples) Publicity – information not paid for by the business Personal selling – direct, personal communication between a salesperson and customer to encourage the purchase of a product

Which is it?

Old Spice Commercial