1. Marketing Part 1 – Introduction and Product planning

2. INTRODUCTION MARKETING The performance of business activities that direct the flow of goods and services from producer to consumer MARKETING CONCEPT The process of satisfying a customer’s needs while achieving the firm’s goal In 1950’s companies concerned themselves with finding customer’s needs MARKETING PLAN A set of strategies for accomplishing marketing objectives – marketing plan

3. FUNCTIONS OF MARKETING Buying/Purchasing Selling Distribution and storing Financing Risk management Standardizing and gathering marketing information Product/service planning Pricing Promotion

4. UTILITY The power of a good or service to satisfy a human need Form – Changing raw materials into usable consumer goods. (steel to make cars) Time - Making the product available when the customers want to purchase it Place - Making the product available at a location where customers want to purchase it Possession/Ownership – Making the orderly transfer of ownership (allowing the buyer to use a VISA)

5. UTILITIES AND MARKETING Marketing deals with –Time –Place –Ownership Manufacturing functions deal with: –Form

6. MARKETING MIX The combination of: Product Price Distribution Promotion directed to reach a particular target market.

7. Where to begin In implementing the marketing concept the first step is to listen to consumers about their needs and wants. Effective marketing research involves listening to employees, shareholders, dealers, and customers.

8. WHAT DO CONSUMERS WANT?

9. What do consumers want? Consumers buy products because they have a –use for the good –like the convenience –take pride in ownership

10. Who are our customers? MARKET SEGMENTATION Process of dividing a market by similar traits MARKET SEGMENT A group of individuals or firms that share one or more common characteristics – Females in the market TARGET MARKET A market segment toward which a firm directs its marketing effort is target market. Pepsi directs their advertising to the 18 to 34 age group

11. Market research What do you think? Internal data –Accounts receivable –Comparisons of sales by territory or product line –Profitability of particular divisions External data –Observation –Studies –Surveys

12. Market segmentation allows market researchers to determine how and why certain groups of people buy products and services –Demographics – age, sex, income, occupation, household size, education –Geographic – weather, culture

13. Classifying products Industrial goods – good purchased by industry commerce, government, and intermediary companies for the production of other goods or for the resale to consumers (B2B) Consumer – finished goods intended for use by the consumer for personal, family, or household use

14. Types of consumer goods Convenience goods –can be bought with little shopping effort –purchased in convenience stores, vending machines, newsstands –Ex: gum, milk magazines, bread, and newspapers Shopping goods –purchased after shopper has compared such things as price, quality, style, and color –Require more of the shopper’s time and effort and are more expensive –Furniture, carpeting, automobiles –Warranties needed to attract buyers

15. Specialty goods require even more shopping effort because they have special qualities –Shopper is willing to make special effort to buy –Custom-made furniture, gourmet foods, high-quality clothes –Fine wines, artwork –May require considerable time, effort, and money to find

16. Classifying Services Industrial Consumer

17. Product Life Cycle Introduction –Inform/promotion Growth Maturity Declining –Extend product’s life: Persuading consumers that they need additional items. Finding new uses for the product. Changing sizes, packaging, and labeling.

18. Introduction Challenge of making potential customers award of the product’s existence, its features, benefits, and uses, consumer awareness and acceptance of the product is very low, no competitors have hit the market, profits are low, and promotional expenses are very high

19. Growth Acceptance by public, repeat sales, profits begin to happen, and competition begins

20. Maturity Reaches it speak in sales and profits, there begins a slight decline in sales and profits and company needs to make a decision about the product’s life

21. Decline Sales volume falls greatly, profits are near zero and there is little hope for the product to ever be a profitable success

22. Naming your product Simplicity –5-7 letters –Easy to remember –Cost Easy to pronounce –No tongue twisters In-line with the product –“Turtle” for a computer? Suggestive of the quality or use of the product – Examples: Spray & Wash, Gold Medal, and Brisk. Distinctive and individual Able to stand the test of time –Not based on a short-lived fad

23. Packaging All are elements of product packaging – attention getters, divide contents into usable portions, used to inform users of the product, both marketing and functional value All those activities involved in developing and providing a container for a product are packaging.

24. Terms PRODUCT LINE –Kellogg’s producing Corn Flakes, Raisin Bran, Rice Krispies, etc, is an example of product line. PRODUCT MIX –General Mills selling yogurt, cereal, and baking products is an example of product mix. TRADEMARK –A brand that is registered with the U.S. Patent and Trademark Office to legally protect it – trademark.

25. Packaging - considerations 1. Is cost of package material in line with product cost? 2. Will the package be able to be reused? 3. Will it protect the product through rough handling in transit and storage? 4. Will it be easy to stack and display? 5. Will the package provide room for good product information to "sell" the product to the consumer? 6. How eye catching will it be in the marketplace? 7. Will it protect the product and keep it fresh until consumer use?

26. COLORS WHITE: Pure. Clean. Youthful. It is a neutral color that can imply purity in fashion and sterilization in the medical profession. BLACK: Power. Elegant. Secretive. The color black can target your high-end market or be used in youth marketing to add mystery to your image. RED: Passion. Excitement. Danger. Red is the color of attention, causing the blood pressure and heart rate to rise. Use red to inject excitement into your brand. ORANGE: Vibrant. Energy. Play. Add some fun to your company if you want to create a playful environment for your customers.

27. COLORS YELLOW: Happy. Warm. Alert. Yellow can be an attractor for your business with a relaxed feeling. GREEN: Natural. Healthy. Plentiful. To create a calming effect or growth image choose green. Go green go. PURPLE: Royalty. Wise. Celebration. Maybe add some purple tones to your look for your premium service business. BLUE: Loyal. Peaceful. Trustworthy. Blue is the most popular and neutral color on a global scale. A safe choice for a business building customer loyalty.