Marketing THE ACTIVITY, SET OF INSTRUCTIONS, AND PROCESS FOR CREATING, COMMUNICATING, DELIVERING, AND EXCHANGING OFFERINGS THAT HAVE VALUE FOR CUSTOMERS, CLIENTS, PARTNERS, AND SOCIETY.

Functions of Marketing  Product & Service Management  Designing, developing, maintaining, improving and acquiring products and services that meet consumer needs.  Distribution  Determining the best ways for customers to locate, obtain, and use the products and services of an organization  Selling  Communicating directly with the potential customers to determine and satisfy their needs.  Marketing Information Management  Obtaining, Managing, and using market information to improve business decision-making and the performance or marketing activities.  Financial Analysis  Budgeting for marketing activities, obtaining the necessary funds needed for operations, and providing financial assistance to customers (Loans).  Pricing  Setting and communicating the value of products and services.  Promotion  Communicating information about products and services to potential customers.

Check for Understanding  Discuss the definition of marketing and the different factors of marketing.

Marketing Strategy: How a company will use marketing to achieve its goals  Developing a Marketing Strategy is a 2 part process:  Step 1: Identify a Target Market: Specific group of consumers who have similar wants and needs  Step 2: Create a Marketing Mix: Blending of 4 marketing elements— product, distribution, price, and promotion  A successful marketing mix will fulfill the wants and needs of the target market, while providing profit to the company.

Understanding Customers  Two Types of Customers  Final Consumers: Persons that buy products and services mostly for their own use  Business Consumers: Persons, companies, and organizations that buy products and services for operation of a business, for incorporation into other products ad services, or for resale to their customers.  Consumer Decision Making Process 1. Recognize a need 2. Gather information 3. Select and evaluate alternatives 4. Make a purchase decision 5. Determine the effectiveness of the decision  Buying Motives: Understanding buying motives helps a company develop a marketing mix  Emotional buying motives: Based on feelings, beliefs, attitudes  Rational buying motives: Guided by facts and logic

 Describe the Consumer Decision-Making Process and the importance of understanding buying motives.

Researching the Target Market  Steps in Marketing Research 1. Define the marketing Problem 2. Study the Situation 3. Develop a data collection procedure 4. Gather and analyze information 5. Propose Solutions  Types of Research Studies  Surveys: Planned set of questions  Focus Groups: Gathering ideas, experiences and opinions from consumers  Observations: Recording the actions of consumers rather than ask them questions  Experiment: Present alternatives to consumers and observe choices

 Justify the importance of Marketing Research.

Product Planning: Developing Brand Name and Packaging  Idea Development  New ideas come from a number of inspirations, but more times that not a product idea is for an improvement of a current product  Ideas Screening  New ideas are evaluated to determine which ones have the best chance of success.  Strategy Development  If product idea is workable, the next step is developing a full marketing strategy  Production and Financial Planning  A company now needs to identify the factors and cost of production and promotion  Limited Production and Test Marketing  A company testing the production, promotion, and distribution of a product on a smaller scale before making a bigger investment.

Pricing a Product  Factors of Pricing  Supply and Demand  Quality  Uniqueness  Age  Season  Complexity  Convenience

How Does a Company Decide How Much to Charge?????  A company needs to look at a few things before deciding on a final price. 1. Product Cost: How much does it cost to produce a product?  Or how much did we pay the company that produces it? 2. Operating Cost: How much does it cost the company to operate?  Salaries, facilities, storage, utilities, taxes, etc. 3. Desired Profit: How much does the company realistically want to make off the sale of the product? Selling Price Formula Product Cost + Operating Cost + Profit = Selling Price  The amount added to make a profit is call “Markup”  If a company doesn’t sell enough of a product at the desired profit margin, the may “Markdown” the price  Predict some potential causes for a markdown…..

Communication with Consumers and Promotion of Products

 Justify the importance of communication in marketing.

Ways Companies Can Communicate with Consumers  Promotion: communication used to inform, persuade, or remind.  Personal Promotion is most effective and most expensive form of marketing communication  Personal Selling: Direct, individualized communication with prospective customers to assess their needs and assisting them to fill those needs  Mass Promotion is directed to many people at same time, hopefully the target market  Advertising is the most known form of Mass Promotion. Other Types are publicity, public relations and sales promotions  Merchandising includes a set of promotional activities designed to generate sales in the retail settings.  Companies will often use these in conjunction with each other. Mass promotion to draw people in, then personal promotion to make the sale.

Ways Companies Can Communicate with Consumers  Mass Communication  Mass s  Mail Outs—Promotions, flyers, upcoming events  Social Media—Facebook, Twitter, other examples????  Commercials—Radio, Television  Printed ads—newspapers, billboards, online banners

 Identify the describe the common types of promotion.

Marketing Group Project  You, with a group of your class mates, will develop a marketing plan for your business.