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What is Marketing

What is Marketing. Terms to Know. Customers Those who buy products/services Consumers Those who use the products/services Market potential customers who have the ability and willingness to buy Disposable Income Money left over after taxes Discretionary Income

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What is Marketing

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  1. What is Marketing

  2. Terms to Know Customers • Those who buy products/services Consumers • Those who use the products/services Market • potential customers who have the ability and willingness to buy Disposable Income • Money left over after taxes Discretionary Income • money left over after basic necessities Products/Service • Tangible vs. Intangible

  3. What is Marketing • Process of developing, promoting, and distributing products to satisfy customer’s needs and wants • Economics in action Economics – the study of how scarce limited resources are allocated to satisfy needs and wants Economics vs. Marketing • Economics ensures everyone has what they need/want, Marketing gets customers what they need/want

  4. Marketing Functions • Distribution • Getting product from producer to consumer • Finance • Finding away for people to afford a product • Market Information Management • Determining what people want • Pricing • Determine what customers will pay • Product/Service Management • Giving people what they want • Promotion • Enticing customers to buy the product/service • Selling • Getting people to buy a product

  5. Marketing Functions • Distribution • Finance • Market Information Management • Pricing • Product/Service Management • Promotion • Selling

  6. Marketing Concept • Satisfy needs and wants • Do it better than the competition • Competitive Advantage

  7. Utility • Added value • Form – in a useful form • Place – available where customers can get it • Time – available when customers want it • Possession – able to take it home • Information – know about the product/service

  8. Marketing Mix • Strategies used to achieve the marketing concept 5 P’s • Product • Place • Price • Promotion • People

  9. Product Strategy • Strategies applied to the product Include: • Branding (Name) • Product Mix • Product Positioning • Product Life Cycle

  10. Price Strategy • Setting a price to achieve an objective Includes: • Stage of PLC • Price Skimming/Penetration • Psychological Pricing Techniques • Supply and Demand

  11. Place Strategy • How do customer get the product • What are some different ways customers receive the product? • Channels of Distribution

  12. Channels of Distribution • Path a product takes from producer to consumer Players: • Producers • Consumers • Intermediaries – “middleman”; move products from producers to consumers

  13. Intermediaries • Retailers – sell products to consumers • Wholesalers – buy in large quantities; sell to retailers • Agents - sell to wholesalers or retailers - don’t take physical ownership

  14. Channels of Distribution A B C D Producer Agent Wholesaler Wholesaler Retailer Retailer Retailer Consumer

  15. Distribution Intensity Exclusive Distribution – 1 outlet in a geographical area Selective Distribution – limited number of outlets in an area Intensive Distribution – available in all suitable outlets

  16. Promotion Strategy • Enticing customers to buy the product Promotion - Informing, persuading, or reminding them about a product Forms: • Sales Promotion • Selling • Advertising (Print, TV, Radio, Internet • Public Relations • Publicity • Guerilla Marketing • Viral Marketing

  17. People Strategy • Selecting the right group of people for your product/service • Creating a Target Market – very specific group of people the product is aimed at • Market vs. Target Market • Marketing Segmentation – dividing the total market into smaller groups of people who share specific needs and characteristics • Demographic • Psychographics • Geographics • Product Benefits

  18. Demographics • Personal characteristics that describe a population • May Include: • Age • Generation X – 1965-1976, products of dual career households • Generation Y – digital natives • Gender • Income • Disposable • Discretionary • Others?

  19. Psychographics • Consumers lifestyle, attitudes, and values • May include: • Sports enthusiasts • Extremists • Conservatives • Liberals • Others

  20. Geographics • Where a population lives • May Include: • Rural • Urban • Suburbs • Others?

  21. Product Benefits • Population that uses product based on benefits • May Include • Specialty shoes (ie. Football shoes, basketball shoes) • Diet soda • Others

  22. Examples

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