Unit 3 Basic Marketing Concepts

1. Unit 3Basic Marketing Concepts

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3. Commercial Questionnaire • What is the product? • Who is the target audience? • Do you think this commercial creates a relationship with its market? If so, what is it? • What aspects of this commercial are memorable?

4. Unit 3 Vocabulary • Market Share • Marketing • Marketing Concept • Marketing Mix • Market Segmentation • Marketing Strategy • Mass-Marketing • Positioning • Products • Psychographics • Sales Forecast • Services • Situation Analysis • SWOT Analysis • Target Market • Consumers • Consumer Market • Customers • Customer Profile • Customer Relationship Management (CRM) • Demographics • Discretionary Income • Disposable Income • Environmental Scan • Executive Summary • Geographics • Goods • Industrial Market • Market

5. Unit 3 Essential Question • How do the fundamental marketing concepts relate to the scope and impact of marketing on the economy?

6. Essential Question 1Basic Marketing Concepts • What is marketing?

7. Marketing is. . . • The process of planning, pricing, promoting, selling and distributing products to create exchanges that satisfy customers needs and wants. • Products • Goods • Services • Information / Ideas

8. Essential Question 2Basic Marketing Concepts • How do marketing strategies relate to the marketing mix?

9. Target Marketing- Focuses all marketing decisions on the specific group of people you want to reach. The Marketing Mix • Product • Place • Price 4 P’s of Marketing • Promotion

10. Product Positioning • Positioning: Getting the consumer to think about a product in a certain way. • Methods of positioning: • Playing to the competition's weaknesses. • Looking for underserved markets. • Leading with your strengths. • Targeting different market segments.

11. Marketing Strategies • Marketing strategy: Identification of target markets and determination of marketing mix choices that focus on those markets. • An effective marketing strategy will focus on a company’s or product’s competitive advantage: the key point of difference.

12. Essential Question 3Basic Marketing Concepts • What are the marketing functions and their related activities?

13. Functions of Marketing • Distribution • The physical movement of a good or service. • Deciding where and to what extent to sell a good or service.

14. Functions of Marketing • Financing • Determining the need for and availability of financial resources to aid in marketing activities.

15. Functions of Marketing • Marketing Information Management • Gathering, recording, analyzing, and disseminating information to aid in making marketing decisions.

16. Functions of Marketing • Pricing • The determination of an exchange price at which the buyer and seller perceive optimum value for a good or service.

17. Functions of Marketing • Product/Service Management • Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.

18. Functions of Marketing • Promotion • Communicates information about products, services, images, or ideas to customers or clients to influence their purchase behavior.

19. Functions of Marketing • Selling • Responding to consumers needs and wants through planned, personalized communications intended to influence purchase decisions.

20. Essential Question 4Basic Marketing Concepts • How do the effects of various marketing activities compare and contrast?

21. Marketing Activities • What marketing activities would be associated with each function of marketing? • Distribution? • Financing? • Marketing Information Management? • Pricing? • Product/Service Management? • Promotion? • Selling?

22. Essential Question 5Basic Marketing Concepts • How do marketing plans interact with marketing strategies?

23. Marketing Plan • Marketing Plan • A formal, written document that directs a company’s activities for a specific period of time. • Elements of a Marketing Plan include: • Situation Analysis • Marketing Strategies • Implementation • Evaluation and Control

24. Marketing Plan • Marketing Plan • The Marketing Strategies section of the Marketing Plan focuses on: • Product Positioning • Marketing Mix • Product • Place • Price • Promotion

25. Essential Question 6Basic Marketing Concepts • How does the marketing planning process employ situational analysis?

26. Situational Analysis • Situational Analysis: The study of the internal and external factors that affect marketing strategies and is an element of the Marketing Plan.

27. Situational Analysis • A Situational Analysis includes: • SWOT Analysis: An assessment of the company’s internal Strengths and Weaknesses and external Opportunities and Threats. • Environmental Scan: An analysis of outside influences that may have an impact on the organization. It includes: • Political • Economic • Socio-Cultural • Technological

28. Essential Question 7Basic Marketing Concepts • How are the concepts of market, market segmentation, and market identification differentiated?

29. Demographics Psychographics Market Market Segmentation Product Benefits Geographics

30. Identifying Your Customers • Market: A group of all potential customers who share common needs and wants, and who have the ability and willingness to buy the product. • Market Segmentation: Dividing the total market into smaller groups of people who share specific needs and characteristics.

31. Customers Buy a product Consumers Use the product Customers vs. Consumers

32. Consumer Personal Use Industrial Business Use Consumer Marketvs.Industrial Market

33. Market Segmentation Geographics • Segmentation of the market based on where people live.

34. Market Segmentation Demographics • Statistics that describe a population in terms of personal characteristics. These include age, gender, income, ethnic background, education, etc.

35. Market Segmentation Psychographics • Involves the study of customers based on lifestyle, and the attitudes and values that shape it.

36. Market Segmentation Product Benefits • Built in features of products in response to consumer needs and wants.

37. Market Identification:Identifying Your Customers Developing a Customer Profile • Combining geographic, demographic, psychographic, and product benefit data to get a complete picture of your potential customers.

38. Essential Question 8Basic Marketing Concepts • How does the marketing concept relate to customer needs and wants?

39. Brainstorm • What are the differences between sales-orientedandmarketing-oriented companies.

40. The Marketing Concept • In order for a business to make a profit, it must focus all of its efforts on satisfying the needs and wants of its customers.

41. Customer Satisfaction • Involves creating a relationship with the customer to achieve customer loyalty – also known as Customer Relationship Management (CRM). • Customer satisfaction is directly related to the product’s perceived value.