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Marketing
What is Marketing?In your own words, describe what
marketing is
You will be able to…List common marketing activities
and define the marketing conceptExplain the two steps in marketing
planningExplain the advantage of small
businesses in providing customer service
MarketingAll of the activities performed to insure the
exchange of goods and services between businesses and consumers
How many different products/services are there available to purchase?
Now choose one.How many different “types” of that product/service
are there available to purchase?Multiply those numbers by the millions of americans
companies are trying to get to be customers.
How can businesses insure that the products and services they offer are available to the consumers who want them with the information needed to help them decide to buy?
The Goal of MarketingIs to get the RIGHT product or service,to the RIGHT place, at the RIGHT time, at the RIGHT price, and persuade customers to make a
purchase decision
In a nut shell• Marketers:
1. Use research to determine wants and needs of consumers
2. Test new ideas with consumers
Why is Marketing Important?About ½ of every dollar you spend pays for
marketing costs.
Successful marketing allows :consumers to get the products and services they
want at an affordable priceBusinesses to sell their products at a profit
Effective Marketing leads to SATISFYING EXCHANGES BETWEEN BUSINESSES AND CONSUMERS
Marketing and CapitalismA free market or capitalistic society is based off
of what?Voluntary Exchanges
Business are free to decide what to produce and sell
Consumers are free to decide what to buy and are willing to pay
Marketers serve as intermediaries, helping to match production decisions of producers to consumption decisions of consumers
9 Functions of MarketingMarketers perform HUNDREDS of activitiesSome work directly for a business that
produces the goods and services Marketing researchers and sales people
Others operate their own service business Advertising agencies and transportation
companies)Consumers can also perform marketing
activitiesRenting a trailer to move a new appliance
rather than paying a delivery company
Marketing FunctionsIn order for an exchange to occur, there are 9
FUNCTIONS OF MARKETING that must be completed
BuyingSellingProduct/Service Planning PromotionPricingMarketing Information ManagementFinancingPhysical DistributionRisk Management
9 functions of marketinghttps://prezi.com/ic_jqertifrt/understanding-
marketing-functions/
Pop QuizClear your deskTake out a piece of paperNumber it 1-9
List the 9 functions of Marketing
ReviewWhat is marketing?
All of the activities performed to insure the exchange of goods and services between businesses and consumers
What is the goal of marketing?Is to get the RIGHT product or service, to the RIGHT
place, at the RIGHT time, at the RIGHT price, and persuade customers to make a purchase decision
About what percent of every dollar spent goes towards marketing costs?50%
We know…That successful marketing leads to
SATISFYING EXCHANGES BETWEEN BUSINESSES AND CONSUMERS
But why?
Marketing ConceptThe most important aspect of marketing is
satisfying customer needsA business that keeps the focus on
satisfying customer needs follows the Marketing Concept
Market Orientation vs. Sales Orientation
What is the Organization's focus? What business are you in? To whom is the product
directed? What is your primary goal? How do you seek to achieve your goal?
Sales Orientation Inward, upon the organization's needs Selling goods and services Everbody Profit through maximum sales
volumePrimarily through intensive
promotion
Market Orientation Outward, upon the needs and wants of consumers
Satisfying customer wants and needs and delivering superior
valueSpecific groups of people Profit through customer
satisfactionThrough a coordinated marketing strategy
Market Orientation vs. Sales Orientation
What is the Organization's focus? What business are you in? To whom is the product
directed? What is your primary goal? How do you seek to achieve your goal?
Sales Orientation Inward, upon the organization's needs Selling goods and services Everbody Profit through maximum sales
volumePrimarily through intensive
promotion
Market Orientation Outward, upon the needs and wants of consumers
Satisfying customer wants and needs and delivering superior
valueSpecific groups of people Profit through customer
satisfactionThrough a coordinated marketing strategy
Market Orientation vs. Sales Orientation
What is the Organization's focus? What business are you in? To whom is the product
directed? What is your primary goal? How do you seek to achieve your goal?
Sales Orientation Inward, upon the organization's needs Selling goods and services Everbody Profit through maximum sales
volumePrimarily through intensive
promotion
Market Orientation Outward, upon the needs and wants of consumers
Satisfying customer wants and needs and delivering superior
valueSpecific groups of people Profit through customer
satisfactionThrough a coordinated marketing strategy
Defining a firms business in terms of the benefits the customer seeks:
• Ensures the firm focuses on customer needs• Encourages innovation/creativity in addressing those needs• Stimulates awareness in customer desires and preferences to keep product offerings relevant
Market Orientation vs. Sales Orientation
What is the Organization's focus? What business are you in? To whom is the product
directed? What is your primary goal? How do you seek to achieve your goal?
Sales Orientation Inward, upon the organization's needs Selling goods and services Everbody Profit through maximum sales
volumePrimarily through intensive
promotion
Market Orientation Outward, upon the needs and wants of consumers
Satisfying customer wants and needs and delivering superior
valueSpecific groups of people Profit through customer
satisfactionThrough a coordinated marketing strategy
Because most potential customers are not “average,” they are NOT likely to be attracted to an average product marketed to an average consumer.
“Average” Shampoo?• Hello Hydration• Tousle Me Softly• Totally Twisted• Touchably Smooth• Hydralicious• Color Me Happy• Long-Term Relationship• None of your Frizzness• Body Envy• Drama Clean
Market Oriented organizations recognize that consumer needs and wants vary, so they develop different goods, services, and promotional appeals
Market Orientation vs. Sales Orientation
What is the Organization's focus? What business are you in? To whom is the product
directed? What is your primary goal? How do you seek to achieve your goal?
Sales Orientation Inward, upon the organization's needs Selling goods and services Everbody Profit through maximum sales
volumePrimarily through intensive
promotion
Market Orientation Outward, upon the needs and wants of consumers
Satisfying customer wants and needs and delivering superior
valueSpecific groups of people Profit through customer
satisfactionThrough a coordinated marketing strategy
Marketing Oriented Organizations emphasize LONG-TERM RELATIONSHIPS by:
•Creating customer VALUE•Providing customer SATISFACTION
Marketing Orientation Goal
Market Orientation vs. Sales Orientation
What is the Organization's focus? What business are you in? To whom is the product
directed? What is your primary goal? How do you seek to achieve your goal?
Sales Orientation Inward, upon the organization's needs Selling goods and services Everbody Profit through maximum sales
volumePrimarily through intensive
promotion
Market Orientation Outward, upon the needs and wants of consumers
Satisfying customer wants and needs and delivering superior
valueSpecific groups of people Profit through customer
satisfactionThrough a coordinated marketing strategy
Marketing StrategyA two-step process for successfully
planning and marketing products and services
Step one
Identifying a Target Market
Step two
Developing a Marketing Mix
Target MarketA clearly identified group of consumers
with similar wants and needs
Do Now
How is a marketing orientated company different from a sales orientated company?Give examples of both
What is a marketing strategy?
What is a target market?
Marketing Mix
ProductThe product includes more than just the
physical goodIt also includes:
Brand namePackagingAccessoriesServices which increase
customer satisfaction
PriceConsumers compare prices to the
satisfaction they believe they will receive
When satisfaction is greater than price, consumers make purchases
Goals of pricing1. Cover costs and make profit2. Set price so consumers view as good
value3. Set price to stay competitive with other
companies
Factors that Influence Price• Supply and demand• The quantity purchased• Level of customer service offered• How fragile the product is• The number of businesses in distribution
channel• The amount of advertising and
communication necessary to inform consumers
PlaceSeveral decisions need to be made when
planning product distribution.Where will products be sold?How will we get them there?How will they be packaged and protected?
Channels of Distribution• The paths that products travel from producer
to consumer– Direct channel – producer – consumer– Indirect channel – producer – middleman –
consumer
– Direct:
– Indirect:
MiddlemenAnyone in the middle that moves a product
from producer to consumer
WholesalerA Business that sells goods in large quantities
to be retailed by othersBuys directly from manufacturer/producerSells in bulkStores and ships products to retailers or smaller
wholesalers
RetailerA business that sells directly to consumer
Buys products from different manufacturersprices productsdisplays productsmakes it easy for you to buy
PromotionThe marketing tool businesses use to
communicate with consumers to persuade them to purchase its products
Role of promotionTo attract new customers, promotion is
usedto Inform prospective customers to Persuade them their product is the best
choice
Once customers have bought product, promotion is used to Reinforce their purchase decision to Remind them of how it meets their needs
Promotional methods• Advertising – information paid for by business
to reach large number of prospective customers
• Sales promotions – incentives for customers to buy products (coupons, contests, free samples)
• Publicity – information not paid for by the business
• Personal selling – direct, personal communication between a salesperson and customer to encourage the purchase of a product
Which is it?
Which is it?
Which is it?
Which is it?Old Spice Commercial