Marketing is All Around UsCh. 1 ME

Marketing and the Marketing Concept

Section 1.1

Marketing – is the process of planning, pricing, promotion, selling, and distributing ideas, goods, or services to create exchanges to satisfy customers. Is a process; is ongoing and it changes Needs to keeps up with trends and consumer attitudes

The Scope of Marketing

Ideas - is a concept or techniques that can be bough or soldGoods - are tangible items that have monetary value and satisfy your needs and wantsServices – intangible items that have monetary value and satisfy your needs and wantsMarketplace – where the exchange takes place, every time someone sells or buys something

Usually a commercial environment

Ideas, Goods & Services

1. Business, management & entrepreneurship2. Communication and interpersonal skills3. Economics4. Professional development

Foundations of Marketing

1. Distribution – is the process of deciding hot to get goods in customers’ hands

a) Main methods – truck, rail, ship or airb) Also involves systems that track products

2. Financing – is getting the money that is necessary to pay for setting up and running a business

Seven Functions of Marketing

3. Marketing Information Management – in which all marketing decisions rely on good information about customers, trends and competing products

a) Must gather information, store it and analyze itb) Is done on continual basis and through special

marketing research studies

4. Pricing – dictates how much to charge for goods and services in order to make a profit

a) Based on costs and on what competitors charge for the same product or service

b) Determines how much a customer is willing to pay

Seven Functions of Marketing

5. Product/Service Management – is obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities

6. Promotion – is the effort to inform, persuade, and remind potential customers about a business’s products or services

a) Used for advertisingb) Also used to improve a company’s public image

Seven Functions of Marketing

7. Selling – provides customers with the goods and services they want

a) Includes selling in the retail market to customers, and business-to-business to wholesales, retailers, or manufacturers

b) Selling techniques include determining client needs and wants, and responding through planned, personalized communication

Seven Functions of Marketing

Marketing Concept – is the ides that a business should strive to satisfy customers’ needs and wants while generating a profit for the firm Responsible personnel of the firm must understand the

marketing concept, and provide the best possible service to its customers

Repeat customers keep a company in business

The Marketing Concept

Customer Relationship Management (CRM)- is an aspect of the marketing that combines customer information with customer service and marketing communications

Customer Relationship Management (CRM)

The Importance of Marketing

1. Section 1.2

1. New and Improved Productsa) Marketing generates competition

2. Lower Pricesa) Marketing increases demand

3. Added Value and Utility a) Utility – is added value in economic terms

i. Are the attributes of a product or service that make it capable of satisfying consumers’ needs and wants

Benefits of Marketing

Form Utility- involves changing raw materials or putting parts together to make them more useful Manufacturing of products involves taking things of little

value by themselves and putting them together to create more value

Special features or ingredients add value and increase form utility value Examples: zippers and electronic controls in a steering

wheel

Added Value and Utility

Place Utility – involves having a product where customers can buy it Customer shopping habits determine the most

convenient and efficient locations Direct approach by selling through catalogs, others

business or internet

Time Utility – is having a product available at a certain time of year or a convenient time of day

Added Value and Utility

Possession Utility – the exchange of a product for money Involves every time legal ownership of a product

changes hands

Information Utility – involves communication with customers Examples: sales people, displays, packaging and

labeling, advertising, owners’ manuals & Web sites

Added Value and Utility

Fundamentals of Marketing

1. Section 1.3

Market – all people who share similar needs and wants and who have the ability to purchase a given product

Market Identification

Consumer Market – consists of consumers who purchase goods and services for personal use Needs and wants address lifestyle categories

Industrial Market (Business to Business) – includes all businesses that buy products for use in their operations Most relate to improving profits

Consumer vs. Industrial

Market Share – is its percentage of the total sales volume generated by all companies that compete in a given market Change all the time as new competitors enter the

market and as the size of the market increases or decreases in volume

Market Segmentation – is the process of clarifying customers by needs and wants

Target Market – the group that is identified for a specific marketing program All marketing strategies are directed at the target

market Is the key to a successful marketing plan

Market Share & Target Markets

A product may have more than one target market

Customer Profile – develops a clear picture of a target market Lists information, such as: age, income level, ethnic

background, occupation, attitudes, lifestyle, and geographic residence

Consumers vs. Consumers

Marketing Mix

Product

Place

Price

Promotion

Product Decisions begin with what to make and sell Product feature’s include: brand name, packaging, service,

and warranty What to do with current products; updating, improving or

discontinue Place

The means of getting the product into the consumer’s hands

Know where target markets shop Determines how and where a product will be distributed,

transportation methods and stock levels

Marketing Mix

Price Is what is exchanged for the product Should reflect what customers are willing and able to

pay Take into account prices that competition charges for

comparable products Promotion

Refers to the decisions about advertising, personal selling, sales promotion, and publicity

Deal with how customers will be told about a company’s products

Marketing Mix