1. Marketing: What’s it all about?

2. Yesterday, we talked about Marketing and the Basic Marketing Concept
Yesterday, we talked about Marketing and the Basic Marketing Concept. All Marketing Begins and Ends with what?

3. What is it Really? Companies management of profitable relationships
Satisfying customer needs****
A process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others.
Many people think of marketing as selling and advertising. However selling and advertising is only a small part of the puzzle. The marketing process begins long before a product hits the market.

4. Marketing helps connect businesses to their customers.

5. Basic Marketing Concept
The core of Marketing starts with identifying new customers/product markets and continual monitoring of current products/services to insure that customers are satisfied.
The basic marketing concept begins with Identifying the needs, wants and demands of people/customers.

6. What is a Market? A set of actual or potential buyers of a product.
The people within a certain market share the same needs or wants.
Example: Clothing Market

7. Types of Markets
Industrial
Consumer

8. Needs, Wants, and Demands
Starts Here
Needs:
Felt deprivation
Wants:
Form of needs shaped by culture and personality
Demands:
Wants backed by buying power
Example of Need- is food
Example of Want- New fashion style- something of a fad
Is everyones needs the same?
Is everyone’s wants the same?
Example everyone needs food- but Americans may want a hamburger, where as some one in Japan may want Rice.
Do we always get what we want? No because we have limited resources.
Wants become demands when we have the want and we have the capabilities to purchase.
The things that are in high demand are the things that give us the most satisfaction.
The most bang for the buck!!!

9. What does the customers need?
Products- anything that will satisfy a need or want. (Both Tangible and Intangible)
Services- essentially intangible and do not result in ownership.
Experiences- Six Flags, Disneyland

10. Focus on the Need not the Selling
”A manufacturer of drill bits may think a customer needs a drill bit, but what the customer really needs is a hole.”
Companies who don’t realize the actual needs/wants of customers run the risk of losing customers.
Focus on the Need not the Selling

11. Value and Satisfaction
Benefits gained versus costs of obtaining product
Satisfaction:
Degree of meeting consumer’s expectations

12. Exchange, Transaction, Relationships
Getting something for something
Transaction:
Two things of value
Agreed-upon conditions
Time/place of agreement
Exchange- Clean the horses stalls for decrease payment in rent.
Transaction- You pay $1200 for a new flat screen tv at Best Buy.

13. Relationship (cont.) Long-term relationship with customer
Build Loyalty and Trust
Offering continuous Quality products
Repeat customers are Key!!!
Increase in competition has built the need to build relationships and loyalty through marketing. Automobiles are an example of this.. Toyota has maintained it’s position at the top.
Think of a Time when when a product or service failed to meet your expectations. How did the experience affect your relationship with the brand and company? How did you respond? What could the company have done to better meet your needs?

14. Marketing Functions
All marketing activities can be classified into one of the seven functions of marketing.

15. Providing customers with
Selling
Providing customers with
Goods and Services they want. Selling can take place in the retail market to you the customer and business to business to industrial users.

16. Pricing
Deciding how much to charge for goods and services in order to maximize profits.

17. Product / Service Management
Obtaining, developing, maintaining, or improving a product or a product mix in response to market opportunities.
Decisions are often made on the basis of marketing research which highlights customer wants and needs.

18. The basis for this process is marketing research.
Marketing Information Management
The process of getting the marketing information needed to make sound business decisions.
The basis for this process is marketing research.

19. Any form of communication
Promotion
Any form of communication
used to inform, persuade, or remind customers about a business’s products or services. Promotion is also used to improve a firm’s public image.

20. Getting the money needed to finance the operation of the business.
Financing
Getting the money needed to finance the operation of the business.
Financing also involves helping customers to purchase items.

21. Goods can be shipped by: Truck, Rail, Boat, Airplane,
Distribution
Where products are sold and how the products get from the producer to the consumer.
Goods can be shipped by:
Truck, Rail, Boat, Airplane,
Pipeline

22. Why Study Marketing ?
Understanding Business - you must understand how a business works in order to apply marketing practices in our free enterprise society.
Learning Interpersonal Skills – you must learn the techniques and principles of human relations in order to deal with supervisors, co-workers, customers, and friends.
Perfecting Communications Skills – Good written and spoken communications are necessary in the job market.

23. Ticket out of Class
Turn your bellringer in from today!