Marketing

Marketing Unit 3

1Business Costs Product, Place, & PromotionAll Costs are per item

Office Supply Store - $100

Cheap Pencils - $15

#1 Supplier - $50

Marketing FunctionsMarket PlanningDeveloping a strategy to: achieve company goalssatisfy customer needs better than competitorsCreate sales and earn a profitProduct/Service ManagementDesigning, developing, maintaining, improving and acquiring products and services that meet customer needsDistributionDetermining the best way for customers to locate, obtain, and use products and services

3PricingSetting and communicating the value of products

PromotionCommunicating information about products and services to potential customers.

SellingCommunicating directly with customers to determine and satisfy their needs.

Marketing Functions4Information ManagementObtaining and using information to improve business decision-making and the performance of marketing activities.FinanceBudgeting for marketing activitiesObtaining necessary funds for operationsProviding financial assistance to customersRisk ManagementReducing the possibility of financial lossEnsuring product is safe and meet all guidlines

Marketing Functions5The Need for Marketingvolunteers?!?Your Business

If you make a great product is marketing necessary?

More important, marketing or a quality product?

6The Marketing ConceptUsing the needs of customers as the primary focus throughout the functions of marketing

3 Step process:Identify needs of customersDevelop and market product/serviceOperate the business at a profit

Satisfied or not what's the difference?8Finding out Customer NeedsMarketing Research gathers and analyzes information about customers.Methods of Information gatheringSurveysFocus GroupsObservationTest MarketsRandom Sampling/Experiment

9Developing Marketing Strategy for a Marketing Concept GoalSTEP 1 Identify the Target MarketWho are we selling our product or service to? Gatorade

vs.

Your Turn

STEP 2 Develop Marketing MixProduct, Price, Place (Distribution), Promotion

10Products what a business offers to satisfy its customer needs

13Product

ProductWhat does the customer want/need from the product/service? What features does it have to meet these needs?What is it to be called? How is it branded?How is it differentiated versus your competitors?

15Price- The money a customer must pay for a product or service

16PriceWhat is the value of the product or service to the buyer?How will your price compare with your competitors? What profit will we earn?Pricing FactorsSupply and DemandUniquenessAgeSeasonComplexityConvenienceQuality

17Place (Distribution) The location and methods used to make a product or service available to the target market

18Place

Place (Distribution)What are the best methods and procedures to use so customers can find obtain and use your product?Where do buyers look for your product or service? What do your competitors do?Direct vs. Indirect Channels of DistributionDirect From Producers to ConsumerIndirect One or more business in between the producer & consumer .Transportation CompanyRetailers

20Promotion Any form of communication used to inform, persuade or remind.

21Promotion

PromotionWhere and when can you get across your marketing messages to your target market? How do your competitors do their promotions? And how does that influence your choice of promotional activity? Types of PromotionAdvertisingPersonal SellingSales PromotionsGiveawaysPublicityWord of Mouth23Effective Communication24Marketing Mix The 4 Ps25