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BCEN 1400 Introduction to Business

BCEN 1400 Introduction to Business. Chapters 13 – 16 Marketing. The Marketing Concept is Born. From production to selling to the marketing concept The Marketing Concept Customer orientation Service orientation Profit orientation Nowadays, the buzz is customer relationship management.

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BCEN 1400 Introduction to Business

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  1. BCEN 1400Introduction to Business Chapters 13 – 16 Marketing

  2. The Marketing Concept is Born • From production to selling to the marketing concept • The Marketing Concept • Customer orientation • Service orientation • Profit orientation • Nowadays, the buzz is customer relationship management

  3. The Marketing Mix Place Product Computer 'R Us Marketing Program Buy at Computers ‘R Us Price Promotion

  4. The Marketing Process • Phase I • Find opportunities • Conduct research • Scan the environment • Identify a target market • Phase II • Make a product or service • Test market • Phase III • Make a name • Set a price • Get it to the consumer • Phase IV • Promote the thing • Build relationships

  5. The Consumer • Responds to parts of the marketing mix • Belongs to groups • Responds to the purchase situation • Evaluates and makes decisions • What decisions do you make when going to the grocery?

  6. Ways to Segment the Consumer Market • Geography • Demography • Psychography • By Benefits Desired • By Volume-Based Behavior

  7. Other Businesses • Also make great targets • Fewer in number • Why is this not such a bad thing? • More rational than emotional; however, personal selling is much more important!

  8. Top Marketing Tactics of Small Businesses Source: Investor’s Business Daily, June 1, 2004

  9. The Importance of Value • Cost/price/value relationships • Creating value in the mind of the purchaser • The total product offer • Everything a customer evaluates when purchasing a product

  10. The Total Product Offer

  11. Product Lines and Product Mixes • Product Line • Products that are similar or intended for similar customers • The Diet Coke line • Product Mix • The combination of all product lines offered by one manufacturer. • Coke, Diet Coke, Dasani, Fruity Sodas, etc.

  12. Types of Products • Convenience • Shopping • Specialty (includes luxury) • Unsought (unexpected purchases)

  13. The Purposes of Packaging • Packaging really is your own little salesman! • Protect goods • Attract the buyer • Provide information on what’s inside • Explain product benefits • Provide information on usage • Show price and value

  14. Brand • A name or symbol that distinguishes one set of products made by one vendor from another • Trademark: protection for a brand • Manufacturer, private, and generic brands • Generating brand equityand co-branding

  15. Betty Crocker Chef Boyardee Uncle Ben Colonel Sanders Little Debbie Fake Real Both Real guy, fake rank Real Brand Characters: Are They Real or Fake? Source: Fast Company, August 2004

  16. 10 Most Valuable Brands Source: Business Week, August 7, 2006

  17. Top 10 Favorite Mascots of America • M&Ms figures / Mars • Doughboy / General Mills, Smucker’s • Duck / Aflac • Tony the Tiger / Kellogg • Gecko / Berkshire Hathaway’s Geico • Chester the Cheetah / Pepsi’s Frito-Lay • Energizer Bunny / Energizer Holdings • Kool-Aid Man / Kraft Foods • Trix Rabbit / General Mills • Snap, Crackle and Pop / Kellogg Source: Forbes, January 9, 2006

  18. Idea Generation Screening Analysis Development Testing Commercialize New-ProductDevelopment Process

  19. Best ProductInnovation of ALL Time % of Consumers’ Choice Source: American Demographics

  20. The Product Life Cycle • A model of what happens to sales and profits over time • Includes introduction, growth, maturity, and decline • Each stage requires different strategies.

  21. Pricing • Motivations behind prices • Target returns • Volume/market share • Image • Nonprofit objectives • Skimming, penetration, EDLP, bundling, psychological pricing

  22. Pricing UsingBreakeven Analysis Problem Should we charge $2 or $3 per unit? Costs Total Fixed Costs $400,000 Variable Cost $ 1 per unit Market Research Forecast Company can sell: 290,000 boxes at $2 / unit 210,000 boxes at $3 / unit Breakeven point = total fixed cost price - variable cost (per unit) (per unit) $2 price = $400,000 = 400,000 units to breakeven $2 - $1 $3 price = $400,000 = 200,000 units to breakeven $3 - $1 Breakeven Analysis

  23. Types of Pricing Strategies • Skimming • Penetration • Everyday Low Pricing • Bundling • Psychological

  24. Distribution • Why do we need marketing channels? • Examples of intermediaries • Agents and brokers (do not take title) • Wholesaler (take title) • Retailer

  25. Marketing Utilities • Form • Time • Place • Possession • Information • Service

  26. Retailing Strategies • Retail distribution • Intensive • Selective • Exclusive • Nonstore • Electronic • Telemarketing • Direct selling and direct marketing

  27. Types of Transportation • Understanding the flow of logistics • Trains • Slow, but large shipments • Trucks • Small shipments • Water • Slow, inexpensive • Air • Fast, very expensive

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