2.012.01 Recognize the Recognize the importance of importance of

marketing.marketing.

2.012.01 Recognize the Recognize the importance of importance of

marketing.marketing.

Marketing is…

• The process of developing, promoting, pricing, selling, and distributing products to satisfy customer’s wants and needs. Marketing involves all the activities necessary to get a product from the manufacturer to the consumer

WANTS AND NEEDS• Wants

– Not a necessity– A desire

• Examples:– Sports Car– Designer Clothes

• Needs– A necessity for

living

• Examples:– Food– Clothing– Shelter

Activity 1 – part 1• Divide a piece of paper into six

sections, labeling the sections wants, needs, consumer, customer, goods, and services

• Draw three examples of wants and needs.

A target market is…• The group of consumers a business

desires to have as customers.• For example, the target market for

Disney DVDs is families with children under the age of 12

Customer VS. Consumer

• Customer– The person who

purchases the product

• Consumer– The person who

uses the product

In many cases, the customer is also the consumer.

Activity 1 – part 2

• Return to the divided a piece of paper

• Draw one good example of a consumer and one of a customer.

Products are…

• Are both goods and services

Goods and Services• Goods

– Tangible items that satisfy customer’s needs and wants

• Example:– Television– Car– Clothing

• Services– Intangible items

that satisfy customer’s needs and wants.

• Example:– Admission to an

amusement park– Getting a haircut– Seeing a movie

Activity 1 – part 3

• Return to the divided a piece of paper

• Draw three examples of goods and one good example of a service.

The marketing concept is…

• A business approach that directs all marketing efforts towards satisfying customer’s wants and needs.

…

Marketing Concept cont.

• By offering goods and services that consumer want, businesses will make a profit

• It recognizes the importance of establishing and maintaining relationships with consumers

The benefits to marketing are…

• New and improved products– Businesses create new products and improve existing products to maintain their

current customers or attract new ones.

• Lower prices– Lower prices benefit customers while businesses benefit by selling more product

at the lower price

• Tide

Activity 2“Children (consumers) watching television commercials during

their favorite cartoonsview cereals being advertised. However, it is their parents (customer) who go to the grocery store and buy the cereal.”

• Select a cereal that appeals to both the consumer and the customer of the cereal and identify the features that motivate each.

–What improvements would you maketo this cereal to appeal more to each group?

Bass Pro Shop Pregnant woman

Hollister Fishing and water enthusiast

K and W cafeteria (J & S) Families with small childrenA Pea in the Pod (maternity) Sporting enthusiast

Toys R Us Females who enjoy crafts

Dick’s Sporting Goods Senior citizens

Michael’s Teenagers and college students

Match the retailer with their target market.

Activity 3

The SWOT analysis is…

•Strengths

•Weaknesses

•Opportunities

•Threats

A SWOT analysis reviews the potential for success or failure of a business or product …

SWOT Analysis cont.

• Businesses must continually review INTERNAL strengths and weaknesses

• Opportunities and threats are EXTERNAL factors that will also affect operating the business

• SWOT video by Mindtools.com

Activity 4• Create a SWOT PowerPoint• Label one slide each as

strengths, weaknesses, opportunities, and threats.

• Define the four components of a SWOT analysis with illustrations using photos and clipart.