The Basics of

Marketing By: Daniel Andres

Definition of Marketing

Marketing is defined as the act or process of buying and selling in a market. It is the commercial functions involved in transferring goods from producer to consumer

The basic understanding of marketing is found in the marketing mix

The Importance of Marketing

It is greatly needed in today’s economy

It can give you an edge over your competition

Used to gain a bigger customer base

Reminds customers why they choose to use your product/service

The Marketing Mix

Product

Price

Place

Promotion

People

PRODUCTThe product is the physical product or service offered to the consumer. In the case of physical products, it also refers to any services or conveniences that are part of the offering.  Product decisions include aspects such as function, appearance, packaging, service, warranty, etc.

PRICEPricing decisions should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing.

PROMOTIONPromotion decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decisions. It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them.  Promotion decisions involve advertising, public relations, media types, etc.

PLACEPlace (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions.  Distribution decisions include market coverage, channel member selection, logistics, and levels of service.

PEOPLEPeople decisions are those related to customer service.  How do you want your workers to appear to your customers?  There are a range of service profiles from service with a smile - McDonald's, to classier Nordstrom's, to plain rude - Ed Debevic's.  The function of people to present an appearance,  an attitude, etc. 

Summary of Marketing Mix DecisionsProduct Price Promotion Place People

FunctionalityAppearanceQualityPackagingBrandWarrantyService/Report

List PriceDiscountsAllowancesFinancingLeasing- Options

AdvertisingPersonal-SellingPublic-RelationsMessageMediaBudget

Channel-MembersChannel-MotivationMarket-CoverageLocationsL0gisticsService Levels

ServiceAppearanceUniformsAttitude

The Target Market

When marketing a product you must find what/ who is your target market. Your target market is the people group/ region you are trying to reach with your product/service

Niche vs. Mass Marketing

A Products Life Cycle

Intro GrowthMaturity Decline

Introduction Stage

In the introduction stage, the firm seeks to build product awareness and develop a market for the product.

Growth StageIn the growth stage, the firm seeks to build brand preference and increase market share

MaturityAt maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit.

Decline

As sales decline, the firm has several options:

• Maintain the product- possibly rejuvenating it by adding new features and finding new uses• Harvest the product- reduce costs and continue to offer it, possibly to a loyal niche segment• Discontinue the product- liquidating remaining inventory or selling it to another firm that is willing to continue the product

Product Life Cycle

Summary

The essence of marketing is to understand your customers' needs and develop a plan that surrounds those needs. Anyone that has a business has a desire to grow their business. The most effective way to grow and expand your business is by focusing on expanding your customer base.

You can increase your customer sales in four different ways. 1. Acquiring more customers2. Persuading each customer to buy more products3. Persuading each customer to buy more expensive products or

up selling each customer4. Persuading each customer to buy more profitable products

All four of these increase your revenue and profit. By acquiring more customers you increase your customer base and your revenues that come from a larger base. Marketing is used for researching and creating a strategic marketing plan that will increase your customer base.

A good marketing plan will:

• Guide your product development to reach out to customers you aren't currently attracting.

• Price your products and services competitively.• Develop your message and materials based on solution

marketing.

The End I hope You Enjoyed My Presentation