1. Introduction To Marketing
Marketing Functions
Utility
Marketing Concept

2. What Is Marketing?
The process of developing, promoting, and distributing products to satisfy customers’ needs and wants.

3. Products – goods and services that have monetary value

4. Goods – things you can touch or hold

5. Services – you can’t physically touch – tasks performed for a customer
                                             
Services – you can’t physically touch – tasks performed for a customer

6. Marketing is based on Exchange
Marketing connects business’ to their customers.

7. Exchange
An exchange takes place every time something is sold in the marketplace.

8. EXCHANGE
When the producer is someone other than the consumer, some form of exchange takes place.

9. Foundations of Marketing
Business, Management, Entrepreneurship
Communication and Interpersonal Skills
Economics
Professional Development

10. Functions of Marketing
Activities that work together to get goods and services from producers to consumers
Each is essential

11. Distribution Deciding where and to whom products need to be sold to reach the final users.

12. Financing Getting the money necessary to operate a business

13. Marketing Information Management Getting information to make sound business decisions. Usually obtained through marketing research

14. For example, after a stay at a luxury hotel, you fill out a form rating the service and accommodations.

15. Pricing How much to charge to maximize profits

16. Product Service Management
Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.

17. Promotion Communicating with potential customers to inform, persuade, or remind them about a business’s products

18. Selling Planned, personalized communication that influences purchasing decisions

19. The Marketing Concept
Businesses must satisfy customers’ needs and wants in order to make a profit

20. When Henry Ford first created the Model T, he was the only one mass producing cars. He didn’t have to think about “The Marketing Concept.” But, as more and more producers started making cars, they had to think about what customers need and want in order to stay in business.
Click on the Model T Ford to see Henry Ford’s thoughts about car color in the early 1900’s.

21. Imagine if, in today’s world, you could only buy black
Imagine if, in today’s world, you could only buy black. Many customers would not be very happy!

22. The Marketing Concept
If automobile manufactures do not give their customers a choice (what they want), they will not stay in business.
That concept is true for all businesses.
You must give the customer what they need and want.

23. That is what we mean by The Marketing Concept
Businesses must know their customers . . .
Businesses must satisfy customers’ needs and wants in order to make a profit

24. Economic Benefits of Marketing
Marketing bridges the gap between you and the maker or seller of an item

25. Economic Benefits of Marketing
New and Improved Products --businesses look for opportunities to please the customer

26. Economic Benefits of Marketing
Lower Prices – marketing activities add value and increase demand. When demand is high, manufacturers can produce at a lower price. They can sell at a lower price but increase the quantity sold. Thus, profits are higher even though prices are low.

27. Economic Benefits of Marketing
It adds VALUE

28. Added Value = Utility
In economic terms, utility does not mean your closet or the electric company.

29. There are five types of Utility:
Added Value = Utility
Attributes of a product or service that make it capable of satisfying consumers’ wants and needs.
There are five types of Utility:

30. Form Utility
Changing raw materials or putting parts together to make them more useful – making and producing things.
Sand into glass
Wood into paper
Silk into fabric

31. Having a product where customers can buy it.
Place Utility
Having a product where customers can buy it.

32. It Involves
Location – may be through a catalog or at a retailer (actual store) – or, Internet.
Transporting the product to the location.

33. Time Utility Planning and ordering Time of day and week
Having a product available at a certain time of year or a convenient time of day.
Time Utility
Planning and ordering
Time of day and week
Time of year: holidays and seasons

34. Possession Utility
The exchange of a product for some monetary value.

35. Payment may be made by
Cash
Personal checks
Credit cards
Installments
(layaway)

36. Information Utility Involves communication with the consumer.
ads
packaging
signs
displays
owner’s manuals

37. Which types of utility are related to marketing?
Form utility is a function of production, NOT marketing

38. These utilities ARE directly related to marketing:
Place
Time
Possession
Information

39. Market – all potential customers who have the ability and willingness to buy

40. Consumer Markets
Consist of consumers who purchase goods and services for personal use.

41. Industrial Markets
Business-to-business (B-to B) markets include all businesses that buy products for use in their operations.

42. Market Share
A company’s percentage of the total sales volume generated by all companies that compete in a given market.

43. Target Marketing
Focusing all decisions on a very specific group of people who you want to reach.

44. Customer Profile
To develop a clear picture of their target market, businesses create a customer profile.
It lists information about the target market, such as age, income level, occupation, attitudes, lifestyle, and geographic residence

45. Customers – people who buy the product
Consumers – people who actually use the product
Is mom the customer or the consumer? The kids?

46. Marketing Mix Basic marketing strategies – the four P’s
Product
Place
Price
Promotion

47. Product Strategies What product to make How to package it
What brand name to use
What image to project

48. Place Strategies
How and where a product will be distributed.

49. Price Strategies
Reflect what customers are willing and able to pay.

50. Promotion Strategies
How potential customers will be told about the new product
What the message will be
When and where it will be delivered
What inducements are there to buy

51. The Marketing Mix Product Place Price Promotion
The elements are interconnected
Product
Place
The Marketing Mix
Price
Promotion

52. The Marketing Mix – The 4 P’s
Contains countless alternatives.
Management must select a combination of marketing mix decisions that will satisfy target markets and achieve organizational goals.

53. Analyzing Markets
Market segmentation is a way of analyzing a market by specific characteristics in order to create a target market

54. Types of Segmentation:
Demographics
Psychographics
Geographics
Behavioral

55. Demographics – statistics that describe a population in terms of personal characteristics.
Age
Baby Boom Generation
Generation X
Generation Y
Gender

56. Income Disposable income – money left after taking out taxes
Discretionary income – money left after paying for basic living necessities such as food, shelter, and clothing

57. Marital Status

58. Ethnic Background

59. Psychographics
Involves grouping people with similar lifestyles, as well as shared attitudes, values, and opinions.
Activities
Attitudes
Personality & Values

60. Geographics – Segmentation based on where people live

61. Behavioral Segmentation
Looking at the benefits desired by consumers, shopping patterns, and usage rate. Market benefits, not just the physical characteristics of a product

62. Behavioral Segmentation
Many businesses find that the 80/20 rule applies.
80 % of a company’s sales are generated by 20 % of its loyal customers.

63. Mass Marketing Vs Segmentation
Mass marketing not as popular as it once was.
Niche marketing (the current trend) – markets are narrowed down and defined with extreme precision.