Marketing
Understanding what Marketing is all about!
What is Marketing?
 Marketing is defined as the process of planning, pricing,
promoting, selling, and distributing ideas, goods, or services to
create exchanges that satisfy customers.
 Marketing is always changing as a marketer you need to keep up
with trends and customer attitudes.
 Goods- are tangible items that have monetary value and satisfy
your needs and wants such as cars, toys, furniture, televisions,
clothing.
 Services- intangible means you cannot physically touch them.
Involve a task, such as cooking, hair cut, banks, dry cleaning,
movie theatre.
Skills and Knowledge
 Marketing is one career cluster in
business administration. The
practice of marketing depends on
many key areas of skill and
knowledge.
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Business Law
Communications
Customer Relations
Economics
Emotional Intelligence
Entrepreneurship
Financial Analysis
Human Resource management
Information Management
Marketing
Operations
Professional Development
Strategic Management
Seven Marketing Core Functions
Channel Management- or distribution, is the process of
deciding how to get goods into customer’s hands.
Physically moving and storing goods is part of distribution
planning.
2. Market Planning- Obtaining good information about
customers, trends, and competing products. Also called
Marketing research.
3. Pricing- Dictate how much to charge for goods and
services in order to make a profit. Must determine what
customers are willing to pay.
1.
Marketing Functions Cont..
Product/Service Management (PSM)- is obtaining,
developing, maintaining, and improving a product or a
product mix, in response to market opportunities.
5. Promotion- is an effort to inform, persuade, or remind a
potential customer about a business’s products or services.
TV, radio commercials are forms of promotion and also
called advertising. Promotion can be used to improve a
company’s image. All promotional concepts and strategies
are used to achieve success in the marketplace.
4.
Marketing Functions Cont..
Selling- Provides customers with the goods and services
they want. This includes selling in the retail market to you,
the customer and selling in the business to business market
to wholesalers, retailers, or manufacturers.
7. Customer Relationship Management (CRM)- In today’s
marketplace, customer relationship is most important.
This is a combination of customer information with
customer service and marketing communications.
6.
The Marketing Concept
 The idea that organizations need to satisfy their customers
while also trying to reach their organizations’ goals.
Therefore, to be profitable, businesses must focus their
efforts on customers’ needs and wants.
 Need-basic necessities such as food, clothing, or shelter.
 Want- things people desire based on personality, experiences,
or information about a product.
The Importance of Marketing Marketing affects your life and the lives of other customers.
 The impact of marketing is more dramatic when you
consider how it affects our economy and standard of living.
 How Marketing affects our Economy:
 Marketing provides a means for competition to take place. In a
competitive marketplace, businesses try to create new or
improved products at lower prices then their competitors.
Businesses also look for ways to add value to a consumer’s
shopping experience.
Truth on pricing
 Marketing can lower your prices because marketing increases
demand.
 When demand is high manufacturers can produce products in
larger quantities, which reduces the manufacturing cost.
Quantity Produced
Fixed Cost Per Unit
10,000
$2.00
($20,000 /10,000)
200,000
.10
($20,000/200,000)
Adding Value and Utility
 The function of marketing is to add value to a product.
 Utility-economic term for adding value to a product or
service that makes it capable of satisfying customers' wants
and needs.
1. Form utility
2. Place utility
3. Time utility
4. Possession utility
5. Information utility
Utilities Cont..
 Form Utility- involves changing raw materials or putting
parts together to make them more useful. Ex. Placing radio
controls on steering wheel of car.
 Place Utility-involves having a product where customers
can buy it. Businesses study consumer shopping habits to
determine the most convenient and efficient locations to sell
products. Ex. Catalogs, internet, drive through windows,
etc.
Utilities cont..
 Time Utility- Having a product available at a certain time
of year or a convenient time of day. Wal-Mart is open 24
hours a day, retailers have extended shopping hours close to
Christmas. Having Halloween costumes out in September.
 Possession Utility- How you pay for the product. The
exchange process, a retailer may accept credit cards, debit
cards, checks, layaway plans etc. Ex: Sonic, you can pay with
debit card.
 Information Utility- involves communication with the
consumer. Salespeople provide information to customers by
explaining the features and benefits of products. Advertising
provides a lot of information.
The Market
 A market consists of potential customers with shared needs
who have the desire and ability to buy a product.
 It is important for a business to clearly identify a market,
they must know who they need to satisfy.
 You are a market and are targeted by many companies. Do
you ever feel like an advertisement was directed to you?
Consumer Vs. Industrial Markets
Consumer Market
 Consists of customers who
purchase goods and
services for personal use.
 Consumers are interested
in products that will save
them time, money, make
their lives easier, improve
their appearance, create
status in the community, or
provide satisfaction.
Industrial Market
 Business to Business market
includes all businesses that
buy products for use in their
operations.
 Most goals and objectives of
business firms are to improve
profits. Companies want to
improve productivity,
increase sales, decrease
expenses, or make work
more efficient.
Market Share
 The percentage of the total
sales volume generated by
all companies that compete
in a given market.
 Knowing your market and
what your market share is
will help a marketer focus
on the needs of the
business.
Sales
Papa John's
Pizza Hut
Domino's
Pizza Inn
Target Market & Segmentation
 Target Market-a specific group of consumers whom the
business focuses their marketing plan around.
 Demographics-Statistics that describe a population in terms
of personal characteristics.
 Teen girls 13-18. What would we sell them? Or
 The product is: Guitar Hero, who is the target market?
The Marketing Mix
Product
• Choosing what products to make and sell. Much research goes into product
design.
• A product’s features, brand name, packaging, service, and warranty are all part
of development.
Price
• Is what is exchanged for the product. Price strategies should reflect what
customers are willing and able to pay.
Place
• Means getting the product into the customer’s hands .
• Knowing where one’s customers shop helps marketers make the place decision.
Promotion
• Refers to activities related to advertising, personal selling, sales promotion, and
publicity.
• How will potential customers be told about a company’s products .