MARKETING CONCEPTS
The Umbrella Term
What is Marketing?
• Marketing is the process of planning, pricing,
promoting, selling and distributing ideas, goods, or
services to create exchanges that satisfy customers.
• Marketing is a process. It is always changing
• Maintaining a good relationship with consumers is
crucial.
What do you need to know?
• There are four key areas of knowledge that must be
had in order for marketing to be successful. They are
known as the Foundations of Marketing
• Business, management, entrepreneurship
• Communication and interpersonal skills
• Economics
• Professional development
Seven Functions of Marketing
• Distribution
• Financing
• Marketing Information Management
• Pricing
• Product/Service Management
• Promotion
• Selling
Distribution
• The process of deciding how to get products into
consumers hands.
• This includes physically moving and storing products.
• Also includes the systems that track products so that
they can be located at a later time.
Financing
• Getting the money necessary to pay for setting up
and running a business.
• Business owners can take out loans to start their
business or sell shares of stock of the business.
• It also involves the decision on whether or a not a
company is going to provide credit to its customers.
Marketing Information Management
• Gathering, storing and analyzing the information
about customers, trends and competing products.
• Collecting the information is done on a continuous
basis through special marketing research studies.
• Companies conduct this research to be more
effective at marketing and selling their product.
Pricing
• How much you charge for goods and services in
order to make a profit
• Based on costs of the product and what other
competitors charge for the same product or service.
• Also have to consider the economic side of it:
• How much are customers willing to pay?
• Is there demand?
Product/Service Management
• Obtaining, developing, maintaining, and improving a
product in response to market opportunities.
• Marketing research helps guide product/service
management toward what the consumer needs and
wants.
Promotion
• The effort to inform, persuade, or remind potential
customers about a business’s products or services.
• Advertising is a type of promotion.
• Can also be used to improve a company’s public
image.
• Good promotion can mean success in the
marketplace.
Selling
• Providing customers with the goods and services they
want.
• Includes selling in the retail market and selling in the
business-t0-buiness market to wholesalers, retailers, or
manufacturers.
• Determining client needs and wants and responding
through planned, personalized communication.
• The selling process can influence purchasing decisions
and enhance future business opportunities.
The Marketing Concept
• The idea that a business should strive to satisfy customers’
needs and wants while generating a profit for the firm.
• This only works if the Seven Functions of Marketing are
supporting this idea.
• The message that needs to be send is that customer
satisfaction is the most important thing.
• Customer Relationship Management (CRM) combines
customer information to create more meaningful one-on-one
communications with the customer by apply customer data.
What are Markets?
• All the people who share similar needs and wants and
who have the ability to purchase your products are
called a market.
• There are two main markets that we will focus on:
• Consumer Market: consumers who purchase goods
and services for person use.
• Industrial Market: Also known as business-to-business
(B-to-B) markets. This market includes business that
buy products for their own operations
Market Share
• A company’s market share is its percentage of the total sales
volume generated by companies that compete in a given market
Target Market
• The group that is identified for a specific marketing
program is the target market.
• This is the group of people that all marketing
strategies are directed to.
• Without a target market, the marketing strategy has
no focus and will therefore not be successful.
•Identifying the target market correctly is a
major key to success.
Customer Profile
• A customer profile provides information about the target market.
• Includes things such as:
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Age
Income level
Ethnic background
Occupation
Attitudes
Lifestyle
Geographic residence
Marketing Mix
• The Marketing Mix included four basic marketing strategies called
the four P’s.
• Product
• Place
• Price
• Promotion
• The four areas are interconnected. Changes in one area can affect
decisions made in another.
• Sometimes a fifth P is considered: People.
• The Marketing Mix is EXTREMELY important to successful
marketing.
Product
• First decision is what product to make and sell.
• A product’s features, brand name, packaging, service
and warranty are all part of development.
• Sometimes a product will have to be updated or
improved in order to be competitive and to extend
the life of the product.
Place
• How does the product get into the hands of the
consumer.
• You need to know where your customers shop.
• It determines how and where a product will be
distrubuted. This could mean determining which
country a product will be sold in, or what type of
grocery store.
Price
• What is exchanged for the product.
• Pricing strategies should reflect what the customer is
willing and able to pay.
• Pricing decisions also affect competitors prices.
Promotion
• Decisions about advertising, personal selling, sales
promotion, and publicity.
• Promotional strategies deal with how potential
customers will be told about a company’s products,
including the message, the media selected, special
offers, and the timing of the promotional campaigns.
Homework
• Write a customer profile for a magazine of your
choice. Support your description by describing
sample articles an advertisements from the
magazine.
• Your customer profile should be at least a full page
double spaced. Don’t forget to bring in the sample
articles and pages along with your profile.