Course standard BMA-IBT-5 Marketing Demonstrate understanding of the concept of marketing and its importance to business ownership.

What is Marketing? “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large.”

Simple ….Marketing is… Developing, promoting, pricing, selling, and distributing products Needs vs. Wants

Marketing Businesses All businesses must complete some marketing activities even if that is not their focus.

Products are… Both goods and services Goods vs. Services

The benefits to marketing are… New and improved products Lower prices

A target market is… The group of consumers a business desires to have as customers. Customer vs. Consumer

What is a market? The group of all potential customers who have similar needs and wants and have the ability to buy the product Consumer Market Industrial Market

The marketing concept is… A business approach that directs all marketing efforts towards satisfying customer’s wants and needs.

What is market share? The percentage of the total sales revenue acquired by a business within a market For example: Running Shoes

And market segmentation is… Dividing the entire market into smaller groups who share similar characteristics.

Demographic segmentation is… Dividing the market based on personal characteristics such as age, gender, income, ethnic background, education, and occupation For example, Teen Vogue is marketed to…

Geographic Segmentation Dividing a market based on where a person lives (local, regional, state, national, or global markets). For example, swimwear and body boards sell best…

Psychographic Segmentation Dividing the market based on values (ethics, morals, standards), attitudes (personality), and lifestyles (how people spend their time) For example: Schwinn Bicycle

Behavioral Segmentation Dividing the market into groups based on what they are looking for in a product and why they buy the product For example: Crest whitening toothpaste

Activity Market segmentation worksheet Vocabulary Marketing Target Market Market segmentation Demographic, Geographic, Behavioral, psychographic segmentation

Summarize the marketing mix Marketing mix: A combination of decisions a business makes in order to best reach its target market. Known as the four Ps (product, price, place, promotion).

Marketing Mix: Product Businesses must decide which products to offer customers.

Marketing Mix: Price The amount a business charges customers for a product.

Marketing Mix: Place Having the product available at the right time and location. Also known as distribution.

Marketing Mix: Promotion Informing and reminding customers of the products available to them and persuading them to purchase. Promotion includes advertising, personal selling, sales promotion, and publicity.

7 Functions of Marketing

Product & Service Management Designing Developing Maintaining Improving Acquiring products & services that meet consumer needs

Distribution Determines best ways for customers to locate, obtain, and use the products and services of an organization.

Selling Communicating directly with 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 of marketing activities.

Financial Analysis Budgeting for marketing activities Obtaining the necessary funds needed for operations Providing financial assistance to customers so they can purchase the business’ products and services

Pricing Setting and communicating the value of products and services

Promotion Communicating information about products and services to potential customers.

Marketing Strategy Marketing activities often cost 50% or more of the selling price of a product or service. Marketing planning is aimed at satisfying customer needs better than competitors do, resulting in sales and profits. A company’s plan that identifies how it will use marketing to achieve its goals is called a marketing strategy.

Marketing Strategy Developing a marketing strategy is a two-step process. Step One: Identify a target market. Target market: a specific group of consumers who have similar wants and needs. Step Two: Create a marketing mix. Marketing mix: the blending of four marketing elements – product, distribution, price, and promotion.

Marketing Strategy Marketing orientation considers the needs of customers when developing a marketing mix. No assumptions! Research will be needed to make sure that companies know what customers want.

The SWOT analysis is… Strengths Weaknesses Opportunities Threats

Mass Marketing vs. Niche Marketing Mass marketing: A single marketing plan used to reach all consumers For example: Light Bulbs Niche marketing: Narrowing markets, by identifying very specific characteristics, into a more specific group of people For example: Aquatic Pet Stores

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