What is Marketing? - all of the activities involved in the planning, pricing, promoting, distributing and selling of goods and services TO SATISFY CONSUMERS’ NEEDS AND WANTS.

Which Types of Businesses Need Marketing? All businesses need marketing: Manufacturers market their products to potential consumers. Service businesses market their expertise to potential customers. Not-for-profit organizations market their cause to potential donors

True marketing starts out with the customers, their demographics, related needs and values. It does not ask, “What do we want to sell?” It asks, “What does the customer want to buy?” It does not say, “This is what our product or service does.” It says, these are the satisfactions the customer looks for.” Peter Drucker

The Marketing Mix (4 P’s of Marketing) Major marketing management decisions can be classified into four categories: These are the variables that marketing managers can control in order to best satisfy their target customers. They must be combined properly to be effective.  Place (distribution)  Price  Product  Promotion

Product -factors dealing with developing the RIGHT product/service for the Target Market:  What need or want does this product meet*?  Services included: delivery?  Taste / smell / size  High / low quality

Place -factors dealing with getting the RIGHT product/service to the Target Market:  Direct Distribution – sells to consumers at a farm, bakery or factory outlet  Urban / suburban / rural  Specialty – vending machine, catalogue, web site (Jones Cola)  Indirect – wholesalers, retailers

Price -factors dealing with establishing the RIGHT price.  Estimate likely profit at various prices  Is this a luxury or value product?  What are prices of competitive products? (if want to price higher than competition, must promote additional value)  How price sensitive (elastic) is this product?

Promotion -factors dealing with communicating to the Target Market about the RIGHT product, at the RIGHT place to find it, for the RIGHT price.  Sales Promotion: Coupons (redemption rate indicates success) Sampling – encourages product trial Premiums – consumer gets free with purchase of product (includes loyalty cards, e.g. 10 th purchase free) Contest, e.g. “Roll Up the Rim to Win”  Advertising  Publicity