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The Marketing Environment 2 Chapter 8 The Marketing Environment The Role of Marketing Basics Planning Marketing

The Marketing Environment 3 Chapter Objectives Describe the marketing process. Explain the elements of the basic marketing mix. Identify the components of product utility. Explain the purpose of a marketing plan. Discuss the importance of a mission. Identify the internal and external influences of the marketing environment.

The Marketing Environment 4 What Is Marketing? The goal of marketing is to convince people to buy and use a product. marketing the process of developing, promoting, and distributing products, or goods and services, to satisfy customers’ needs and wants Section 8.1

The Marketing Environment 5 The Marketing Process The steps in the marketing process are: Section 8.1 Market Research Promoting Products Distributing Products

The Marketing Environment 6 The Marketing Process Using tools to discover buyers’ needs, product developers conduct extensive market research before, during, and after the product development phase. Section 8.1

The Marketing Environment 7 The Marketing Process When a product becomes available, marketers must promote it. This involves making people aware of the product and demonstrating the value of the product so they will buy it. Section 8.1

The Marketing Environment 8 The Marketing Process The places where people can buy a product are the channels of distribution. distribution the process of getting the product to the consumer Section 8.1

The Marketing Environment 9 The Marketing Concept The consumer is the driving force behind the marketing concept. marketing concept the idea that an organization needs to satisfy its customers while also trying to reach its organization’s goals Section 8.1 A business trying to sell a product or service must identify the target market. target market a specific group of consumers that an organization selects as the focus of its marketing plan

The Marketing Environment 10 The Marketing Mix The marketing mix is used when businesses make plans for marketing products. marketing mix a combination of four basic marketing strategies, known as the four Ps— product, price, place, and promotion Section 8.1

The Marketing Mix Section 8.1 Product Price Promotion Place 11

The Marketing Mix Section 8.1 Decisions Product Decisions Place Decisions Promotion Decisions Price Decisions 12

The Marketing Environment 13 Concept of Utility In economic terms, adding value to a product is called utility. utility the concept of conveying the value of products through appropriate and convenient placement, adequate information, and easy exchange Section 8.1 Utility increases the product or service’s ability to meet the needs and wants of consumers.

Concept of Utility Section 8.1 Four Types of Utility Place Information Possession Time 14

The Marketing Environment 15 Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.marketingseries.glencoe.com Lastminute.com is a resource for saving on flights, hotels, and cars for travelers booking just before they travel. Vendors, airlines, and hotels often have space available at the last minute. To sell these rooms and seats, the site offers them at discounted prices to people booking online—at the last minute. Listing Last Minute Eurostar, the train operating the English Channel tunnel between continental Europe and England, is included in the Web site’s packaging strategy. Customers searching for flights between London, Paris, or Brussels will automatically be given prices for the Eurostar train. Section 8.1 For more information, go to marketingseries.glencoe.com.marketingseries.glencoe.com 15

The Marketing Environment 16 Why do businesses focus on the marketing concept? What are the four Ps of the marketing mix? What is the concept of utility? Section

The Marketing Environment 17 The Importance of Planning Planning involves predicting the future, setting goals and objectives, and taking action to obtain those goals and objectives. Section 8.2 “If you don’t know where you are going, any road will take you there.”

The Marketing Environment 18 The Marketing Plan The marketing plan is a road map that ensures that all activities of the organization are directed at achieving the same outcome. marketing plan a written document that provides direction for the marketing activities of a company for a specific period of time Section 8.2

The Marketing Plan Section 8.2 Elements of a Marketing Plan Executive summary Situation analysis Marketing goals/ objectives Marketing strategies Implementation Evaluation and control 19

The Marketing Environment 20 Defining the Mission Before a marketing plan is created, a company must define and share its mission. mission a business’s purpose or goal Section 8.2 A company’s mission should be created with feedback from management and employees.

The Marketing Environment 21 Environmental Analysis Businesses operate within a marketing environment. marketing environment the internal and external factors that influence marketing decisions and the ability of the marketing plan to reach its goal Section 8.2

The Marketing Environment 22 Environmental Analysis The environmental or situation analysis is a study of the internal factors that affect a marketing plan. Section 8.2 SWOT Analysis S trengths W eaknesses O pportunities T hreats

The Marketing Environment 23 Environmental Analysis Internal factors of the marketing environment include operations, accounting, and public relations. Section 8.2

The Marketing Environment 24 Environmental Analysis External factors in the marketing environment include: demographics statistics that describe a population in terms of personal characteristics such as age, gender, income, ethnicity, or education Section 8.2 Demographics Economics Politics Technology

The Marketing Environment 25 Setting Goals and Objectives A goal should be clearly stated. goal the eventual desired outcome Section 8.2 Management and employees should understand and be aware of the company’s goals and objectives. objectives the steps that will lead to the goal

Setting Goals and Objectives Section 8.2 Objectives Should Be ClearSpecific ReasonableMeasurable 26

The Marketing Environment 27 Marketing in All Environments Understanding the marketing environment helps businesses market products successfully. Section 8.2

The Marketing Environment 28 What is the purpose of having a mission? What are the internal and external factors that influence the marketing environment? What are goals and objectives? Section

The Marketing Environment 29 1.Define the marketing process. The marketing process begins with learning what product consumers need or want through market research, developing the product, making consumers aware of the product through promotion, and then making it available through distribution. 1. The marketing concept is the idea that an organization needs to satisfy its customers while also trying to reach its organizational goals. In recent years, most successful businesses have embraced the concept that meeting the needs of their clients is the most important business activity for meeting business goals. 2. The four Ps of marketing are product, place, price, and promotion. 3.It means conveying the value of products through appropriate and convenient placement, adequate information, and easy exchange. 4. continued Checking Concepts 2.Explain the significance of the marketing concept. 3.Identify the four Ps of marketing. 4.Define the term utility.

The Marketing Environment 30 5.Explain the goal of the marketing plan. The goal of a marketing plan is to provide direction for the marketing activities of a company for a specific period of time. 5.A mission defines a business’s purpose or goal. 6. The internal factors that affect the marketing environment include: operations, such as departments interacting within the business or organization, as well as accounting and public relations. External factors include external suppliers of the resources needed to produce the product, product distribution, competition, size of company, demographics, economics, politics, and technology. 7. continued Checking Concepts 6.Identify the purpose of a mission. 7.Describe the factors affecting the marketing environment.

The Marketing Environment 31 Critical Thinking Checking Concepts 8.Explain how demographics affect a marketing plan. By studying demographics, marketers can find patterns of behavior among certain groups of people. They can then create marketing strategies that target those groups. 8.

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