Marketing
Foundations
What is Marketing?
What is the goal of Marketing?
Definition of Marketing:
• The process of creating, promoting, and presenting a product
to meet the wants and needs of consumers
Marketing Concept:
• Know your customers’ wants and needs in order to supply a
product they can and will buy
Market:
• A group of customers who share common wants and needs,
and who have the ability to purchase the product
Functions of Marketing
• Marketing consists of hundreds of activities
• Activities are organized around the customer
• Activities are organized around the 4 Ps:
• Product, price, place, and promotion (the Marketing Mix)
• Another way to organize activities is by function
Distribution
Moving goods and services from one place to the end user;
trucks, trains, planes, ships are possible methods
**What about online transfer of products??
examples........
• transporting
• storing
• finding sources
• timely transporting
• transferring ownership
Product/Service Management
Obtaining information, developing, and maintaining products
helps marketers decide how to respond to market
opportunities
• developing a new product
• improving an old product
• deciding what products to carry in a store
Financing
Act of providing funds for business activities, making purchases
or investing; deciding if customers can pay with credit or other
payment options
• Financial institutions and banks are in the business of
financing as they provide capital to businesses, consumers
and investors to help them achieve their goals.
• Getting investors
• Generating revenue
Pricing
Setting prices for products/services that you sell so that you
will make a profit
• Using financial information to determine price
• Setting prices to cover costs and include reasonable profit
• Adjusting prices when conditions change
• Researching and analyzing prices competitors are charging
• Have to consider the impact of distribution methods
• Each time a product goes through another channel of
distribution, the price goes up
• WHY?
Marketing-Information Management
MIM – making an informed decision, research and
development
• marketing research
• gathers, analyzes, and distributes information about markets,
competition, and customers
• one of the main ways a business learns what customers want
• surveys, meeting with customers
Market Planning
• identifying target market
• segmenting the market
• determine strategies based on target market
• conduct market analysis
• develop marketing plan
Promotion
Nonpersonal communication with customers to influence them
to purchase products; communication through any type of
media that gets the product out and into the hands of the
public
• Advertising
• Public relations
• Sales promotion
• Publicity
Selling
personal communications with customers; build customer
relations (B2B, B2C)
Relationship marketing includes:
• helping customers in a store
• making sales presentations
• answering questions on phone
• demonstrating how product works
• question customers
Marketing Mix - The four elements of marketing:
• Product – find out if there is a demand for the product; decide
how to present the product to the customer; decide how to package
the product
• Place – decide where to sell the product, what kind of location;
decide the placement in the store where customers would easily see
the product
• Price – how much are customers willing to pay; is the price
competitive with other products, can the company make a profit
• Break-even point – the amount of money a company has to
make to pay for its costs
• Promotion – making customers aware of the product; advertising,
discounts, sales, coupons, rebates; publicity – free advertising;
consists of news stories on TV, online, or in print; media events
Together, these are called the Marketing Mix
Who does this???
Think about the place where you work, your favorite place to
shop, or another business you know.
Who performs each of these 7 marketing functions?
Work with your neighbor to:
• List the name of the business
• List the 7 functions and who at that business would perform
that function (position of person, not personal name)
Target Market should have:
• Clearly defined wants and needs that your
company can meet
• Money to buy your product
• Willingness and authority to buy your product
• Enough customers n the market to be profitable
Market Segmentation
• Marketers segment (divide up) possible markets by:
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Demographics
Geographics
Psychographics
Product benefits
Demographic Segmentation
• Statistics that describe the characteristics of a population of
people
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Age
Gender
Ethnicity
Family size
Income
• Disposable – money left after taxes
• Discretionary – money left after taxes and necessities taken out
(what you have left to spend)
Psychographic Segmentation
• based on psychological characteristics that affect needs and
wants
• Hobbies
• Social activities
• Lifestyle
• Interests
• Attitudes
If you show the target market in ads, people see themselves and
relate better to the promotional message
Geographic Segmentation
• Based on where customers live
• Location
• Climate
• City size