Marketing is All Around Us

Marketing is All Around Us Ch. 1 ME

Section 1.1 Marketing and the Marketing Concept

The Scope of Marketing • Marketing – is the process of planning, pricing, promotion, selling, and distributing ideas, goods, or services to create exchanges to satisfy customers. • Is a process; is ongoing and it changes • Needs to keeps up with trends and consumer attitudes

Ideas, Goods & Services • Ideas - is a concept or techniques that can be bough or sold • Goods - are tangible items that have monetary value and satisfy your needs and wants • Services – intangible items that have monetary value and satisfy your needs and wants • Marketplace– where the exchange takes place, every time someone sells or buys something • Usually a commercial environment

Foundations of Marketing Business, management & entrepreneurship Communication and interpersonal skills Economics Professional development

Seven Functions of Marketing • Distribution – is the process of deciding hot to get goods in customers’ hands • Main methods – truck, rail, ship or air • Also involves systems that track products • Financing – is getting the money that is necessary to pay for setting up and running a business

Seven Functions of Marketing • Marketing Information Management – in which all marketing decisions rely on good information about customers, trends and competing products • Must gather information, store it and analyze it • Is done on continual basis and through special marketing research studies • Pricing – dictates how much to charge for goods and services in order to make a profit • Based on costs and on what competitors charge for the same product or service • Determines how much a customer is willing to pay

Seven Functions of Marketing • Product/Service Management – is obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities • Promotion – is the effort to inform, persuade, and remind potential customers about a business’s products or services • Used for advertising • Also used to improve a company’s public image

Seven Functions of Marketing • Selling – provides customers with the goods and services they want • Includes selling in the retail market to customers, and business-to-business to wholesales, retailers, or manufacturers • Selling techniques include determining client needs and wants, and responding through planned, personalized communication

The Marketing Concept • Marketing Concept – is the ides that a business should strive to satisfy customers’ needs and wants while generating a profit for the firm • Responsible personnel of the firm must understand the marketing concept, and provide the best possible service to its customers • Repeat customers keep a company in business

Customer Relationship Management (CRM) Customer Relationship Management (CRM)- is an aspect of the marketing that combines customer information with customer service and marketing communications

Section 1.2 The Importance of Marketing

Benefits of Marketing • New and Improved Products • Marketing generates competition • Lower Prices • Marketing increases demand • Added Value and Utility • Utility– is added value in economic terms • Are the attributes of a product or service that make it capable of satisfying consumers’ needs and wants

Added Value and Utility • Form Utility- involves changing raw materials or putting parts together to make them more useful • Manufacturing of products involves taking things of little value by themselves and putting them together to create more value • Special features or ingredients add value and increase form utility value • Examples: zippers and electronic controls in a steering wheel

Added Value and Utility • Place Utility – involves having a product where customers can buy it • Customer shopping habits determine the most convenient and efficient locations • Direct approach by selling through catalogs, others business or internet • Time Utility– is having a product available at a certain time of year or a convenient time of day

Added Value and Utility • Possession Utility– the exchange of a product for money • Involves every time legal ownership of a product changes hands • Information Utility – involves communication with customers • Examples: sales people, displays, packaging and labeling, advertising, owners’ manuals & Web sites

Section 1.3 Fundamentals of Marketing

Market Identification Market – all people who share similar needs and wants and who have the ability to purchase a given product

Consumer vs. Industrial • Consumer Market – consists of consumers who purchase goods and services for personal use • Needs and wants address lifestyle categories • Industrial Market (Business to Business) – includes all businesses that buy products for use in their operations • Most relate to improving profits

Market Share & Target Markets • Market Share – is its percentage of the total sales volume generated by all companies that compete in a given market • Change all the time as new competitors enter the market and as the size of the market increases or decreases in volume • Market Segmentation – is the process of clarifying customers by needs and wants • Target Market – the group that is identified for a specific marketing program • All marketing strategies are directed at the target market • Is the key to a successful marketing plan

Consumers vs. Consumers • A product may have more than one target market • Customer Profile – develops a clear picture of a target market • Lists information, such as: age, income level, ethnic background, occupation, attitudes, lifestyle, and geographic residence

Marketing Mix • Product • Decisions begin with what to make and sell • Product feature’s include: brand name, packaging, service, and warranty • What to do with current products; updating, improving or discontinue • Place • The means of getting the product into the consumer’s hands • Know where target markets shop • Determines how and where a product will be distributed, transportation methods and stock levels

Marketing Mix • Price • Is what is exchanged for the product • Should reflect what customers are willing and able to pay • Take into account prices that competition charges for comparable products • Promotion • Refers to the decisions about advertising, personal selling, sales promotion, and publicity • Deal with how customers will be told about a company’s products

Marketing is All Around Us