CHAPTER 1 World of Marketing BELL RINGER With a partner, come up with a definition of marketing that you would see in a textbook Please don’t use any resources, create the definition on your own We will share as a group 1.1 WHAT IS MARKETING? Marketing- the process of developing, promoting, and distributing products, or goods and services, to satisfy customers’ needs and wants. In order to market something, it must either be a good or service Goods- tangible (touchable) products. Ex – basketball, computer, chair Services- intangible (not touchable). Ex – Doctor, lawyer, healthcare THE MARKETING PROCESS Develop Promote Distribute DEVELOP Involves studying consumers to determine what they want Design the products that will satisfy their needs and wants Market research Questionnaires Surveys PROMOTION What are forms of promotion? Helps to: Educate consumers Create interest and desire Make sales Create an image for a company and its products Play Logo/Slogan games on my wiki under Chapter 1 DISTRIBUTION "You can have the best product in the world, but if nobody knows about it, what good is it ?“ – Phil Knight, Chairman of Nike You need to get the product into the hands of customer! Buying and selling are also involved with distribution Some companies sell directly to the consumer Direct mail Telephone solicitation (We love telemarketers!) Internet Most use intermediaries (middle-man): Wholesalers Retailers INTERMEDIARIES Producer Consumer Intermediary: Wholesaler Retailer WHOLESALER Wholesaler- reseller who buy goods, store them, and sell them in smaller quantities to retailers or directly to organizations. A manufacturer or sporting goods may sell its products to wholesalers That wholesaler then sells the product to different retailers or directly to a sports organization NASGW – go to my wiki and see if you recognize any sporting good wholesalers Hard to give examples because we don’t really hear about the companies! RETAILERS Retailer- Sell their goods directly to the consumer. They are resellers too, but they sell their goods directly to the consumer A lot easier to give examples because we see them everyday! Name some examples THE MARKETING CONCEPT Successful organizations recognize the importance of their customers Marketing concept- the idea that organizations need to satisfy their customers while also trying to reach their organizations’ goals. To be profitable, businesses must focus their efforts on our needs and wants! THE MARKET Market- potential customers with shared needs who have the desire and ability to buy a product. “I’m in the market for a new purse” I’m not in the “I’m in the market for a new car” market for “I’m in the market for new shoes” anything “I’m in the market for a new tank” If you don’t have the $$$, then you aren’t in the market NEEDS AND WANTS Organizations spend millions to learn about their customers’ needs and wants. Why? Needs- basic necessities such as food, clothing, shelter Wants- things that people desire based on personality, experience, or information about a product. THE MARKET The first step in creating a marketing concept involves identifying customers NEEDS AND WANTS Mr. Hakim OR So… TARGET MARKET Satisfying customer needs isn’t easy. Think of everyone in your family from youngest to oldest (grandma/grandpa) They all have the need for shoes, but would they all want to wear the exact same shoe? TARGET MARKET Target market- a specific group of consumers that an organization selects as the focus of its marketing plan. Magazine ad activity - library DEMOGRAPHICS Demographics- Statistics that describe a population in terms of personal characteristics Age Income level Occupation Gender Ethnic background Education level DEMOGRAPHIC ACTIVIT Y In your group of 4, create a brief presentation for the class with the demographic you were given. Include: Title slide informing us of your demographic Some likely traits/characteristics this demographic would share What kind of athletic shoes would best suit this group, and why? Include a picture of the shoes on the last slide 20 minutes to complete Save to someone’s Drive folder for your presentation EXAMPLE: 17 year old male, student, doesn’t work, has girlfriend, Caucasian race. Traits/Characteristics this demographic would share: Athletic Outgoing Spoiled Friendly Irresponsible Picture of shoes: THE MARKETING MIX One of the most important and yet simplest to remember when it comes to marketing Marketing Mix: A combination of four basic marketing strategies – the 4 P’s – Product Price Place Promotion PRODUCT It’s not only the product/service that the company is trying to sell Designing Naming Packaging Coloring Are all very important aspects to decide on before the product reaches the shelves The power of color in packaging –on my wiki, Ch 1. Cruise over it, I will assign certain people to certain colors to tell us more about them. PRICE Why is the price so important? What must a business consider when deciding what price to charge? Did you know, approximately 50% of a item’s price goes back to the company for marketing expenses? Did you know, on average, stores raise the price around 50% more for what they paid for it! PLACE (DISTRIBUTION) Where do you buy pair of gloves or a theater ticket? Internet? Retail Store? Theater? Telephone Solicitation? Wholesaler? Retailer? Channel of distribution- path a product takes from the producer to the consumer PROMOTION Ways to encourage customers to purchase products/services. Our product will make Increase customer satisfaction. you better at everything! Includes: advertising, publicity, personal selling, and public relations Buy 2, get 1 free!!