Understanding Basic Marketing Concepts: Vocabulary, Strategies, and Functions

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 • Goods • Industrial Market • Market • Market Share • Marketing • Marketing Concept • Marketing Mix • Market Segmentation • Marketing Strategy • Mass-Marketing • Positioning • Products • Psychographics • Sales Forecast • Services • Competitive Advantage • Consumers • Consumer Market • Customers • Customer Lifetime Value • Customer Profile • Customer Relationship Management (CRM) • Demographics • Discretionary Income • Disposable Income • Environmental Scan • Executive Summary • Geographics

5. Unit 3 Vocabulary • Situation Analysis • SWOT Analysis • Target Market • Unique Value Proposition

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

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

8. 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

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

10. 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

11. 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.

12. 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.

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

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

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

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

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

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

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

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

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

22. Marketing Activities • The marketing activities associated with Distribution: • Determining mode of transportation (Motor, Plane, Rail, Air, Pipeline) • Location of business (Country, Geography, Street, etc.) • Location of product (Front of store, back of store, top shelf, bottom shelf, etc.)

23. Marketing Activities • The marketing activities associated with Financing: • Budgeting: • Sources of capital • Expenditures of capital • Accounting: • Cash flow statement • Income statement • Balance sheet

24. Marketing Activities • The marketing activities associated with Marketing Information Management: • Surveys • Customer comment cards • Social media questionnaires • Point of Sale questions by cashier • SWOT Analysis • Customer / consumer research • Trend analysis

25. Marketing Activities • The marketing activities associated with Pricing: • Product cost analysis • Break-even analysis • Pricing goals, strategies, techniques • Consumer perceptions • Government regulations • Product life cycle

26. Marketing Activities • The marketing activities associated with Product/Service Management: • Updating / modifying products • Changing / modifying product mix • Branding, packaging, labeling • Product positioning • Product bundeling

27. Marketing Activities • The marketing activities associated with Promotion: • Sales / specials • Buy 1 get 1 free • 25% off • Coupons • Advertising • Publicity • Personal Selling

28. Marketing Activities • The marketing activities associated with Selling: • Shopping • Personal selling • Buying products • Customer buying motives • Customer decision making

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

30. 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: • Marketing Strategies • Situation Analysis • Implementation • Evaluation and Control

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

32. Marketing Plan • Marketing Plan • The Marketing Strategies section of the Marketing Plan focuses on: • Competitive advantageis an advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition.

33. Marketing Plan • Marketing Plan • The Marketing Strategies section of the Marketing Plan focuses on: • Unique Value Proposition is a clear statement that describes the benefit of your offer, how you solve your customer’s needs and what distinguishes you from the competition.

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

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

36. 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

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

38. Demographics Psychographics Market Market Segmentation Product Benefits Geographics

39. 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.

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

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

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

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

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

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

46. 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.

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

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

49. 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.

50. 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.