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Explore the fundamentals of marketing, its significance in business operations, and its effects on consumers and society. Discover how marketing helps businesses attract customers, meet their needs, and create better products.
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What is marketing? • Marketing is defined by the American Marketing Association as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large1.” • There are four activities, or components, of marketing: • Creating. The process of collaborating with suppliers and customers to create offerings that have value. • Communicating. Broadly, describing those offerings, as well as learning from customers. • Delivering. Getting those offerings to the consumer in a way that optimizes value. • Exchanging. Trading value for those offerings.
In Other Words… • Marketing is the action or business of promoting and selling products or services, including market research and advertising. • Marketing refers to the activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people. • Marketing is everything a company does to gain customers and maintain relationships with them. • The goal of marketing is to match a company's products and services to the people who need and want them to ensure profitability.
Basics of Marketing • To market a product successfully, a company has to understand what people want to buy and why they want to buy it. • Market-a group of customers who share common wants and needs. • Marketing-the process of creating, promoting, and presenting a product or service to meet the wants and needs of consumers. • Essentially marketing involves everything you do to get your potential customers and your product or service together. • Marketing is attracting and retaining a growing base of satisfied customers.
Why Study Marketing? • Marketing is exciting, important, constantly evolving and profitable in the business world. • It influences all business operations and is seen as essential to the success of manufacturers, retailers, businesses, government agencies, hospitals, law offices, schools, churches, etc. • Marketing is one of the most important functions in companies today! • Companies usually spend $500 billion on advertising in one year. • Many companies spend 50% of their expenses for marketing activities, and E-commerce businesses may sped nearly 90% of their costs to marketing.
Where Can I see Marketing? • Marketing is one the most visible parts of business that you can see everyday. • Marketing includes advertisements in all types of media. Some examples are on products, trucks, billboards, magazines, trains, airplanes, malls, online, etc. • You are a consumer when you are shopping and purchase an item. When you do this you are apart of Marketing because you are involved in marketing decisions, and activities.
Marketing in the Business World • Marketing is involved in more than four million businesses and those businesses use it as their primary business activity. • Most business have departments specifically for Marketing that hire Marketing Specialist whose main goal is to complete daily marketing activities. • Some jobs include selling, research for marketing, inventory management, advertising, sales, promotions, customer service, transportation, etc. • Some businesses believe that if a product is amazing it doesn’t need marketing, but if there isn’t any marketing, how can customers know it even exists?
Affects of Marketing- Business • Marketing is how businesses gets customers, it helps business find customers and sell their products and services profitably. • Marketing is responsible for the activities leading to the exchange of a business products and services for the customers money. Other marketing functions that you will be learning about this semester also make the exchange possible. • When a business uses marketing efficiently they can identify customers needs and wants to help create products that will be successful.
Affects of Marketing- People • People may not realize this but marketing is everywhere. It helps makes peoples lives simpler. • If a person going to the store for chips they can easily find these product by the store organization, know the price easily, can identify the product with its advertisement, and you should be able to easily purchase that item with any form of payment. • Marketing helps you get better products with lower prices. • Marketers observe consumer needs and wants which help make more products that help lower costs. • Name some other ways marketing helps you in your everyday life?
Affects of Marketing- Society • Marketing helps provide new and better products for consumers! • Cars get better gas mileage which has less pollution. • There are more biodegradable products. • Helps involve standards of living , there are more products available for all types of needs. • Marketing also helps provide jobs for the people that help the economy!
Functions of Business • Marketing is an important part of business but Marketing alone can not guarantee success for all businesses. There are many other important business functions that help and they are production, operations, accounting and finance, and management.
Marketing Functions • There are 7 functions to Marketing. When you understand these functions you will have a grasp on recognizing activities being preformed by companies as they develop new products, improve marketing procedures, and respond to customer needs. • Distribution-process of getting goods and services to customers (purchasing, stock handling, inventory control, and physical distribution). • Redbox redefined the movie rental business by making movies available in kiosks in local neighborhoods. • Financing—getting the money that is necessary for setting up and running a business • Car dealerships offer in store financing when you purchase a car so they can make purchasing a care in store much simpler than going to a bank.
Marketing Functions • Marketing Information Management-gathering and analyzing information about consumers, trends, and competitors’ products. • Grocery stores use registers information to gain knowledge on what products to keep in their stores. • Pricing—deciding how much to charge for a product or service so the business can make a profit. • Product/Service Management—obtaining, developing, maintaining, and improving a product or product mix in response to market opportunities • Apple combined the products such as the iPod, iPhone, and MacBook to make the iPad
Marketing Functions • Promotion—any effort to inform, persuade, or remind potential customers about a business’s products or services. • Selling—providing customers with the goods and services they choose to buy. • Companies use relationship marketing to build and maintain relationships with customers.
Marketing Mix • The traditional way of viewing the components of marketing is via the four Ps: • Product. Goods and services (creating offerings). • Promotion. Communication. • Place. Getting the product to a point at which the customer can purchase it (delivering). • Price. The monetary amount charged for the product (exchanging).
Marketing Mix • Product—Is there a demand for the product or service? Includes Brand Name, Packaging, Accessories of product/service need to appeal to people • Often businesses create a logo to give a visual identity to a company or brand. A logo is a symbol that companies often use in advertising, stationery and other business materials that allow people to easily recognize the brand and its meaning • Go to this website below, and see how many Logo’s you are familiar with • http://www.wordgames.com/logo-quiz.html • Place—how and where customers will buy product/service. • Channel of distribution—pathway to direct products to consumers • Direct distribution- goods/services sold from producer to customer • Indirect distribution- involves one or more intermediaries
Marketing Mix • Price— to determine the price of a product • How much are customers willing to pay? • Is the price competitive with other products? • Can the company make a profit? • Break-even point is the point at which total revenues/sales equal total costs and expenses of developing and offering a product or service • Promotion—involves making customers aware of the product. • Most important promotion is advertising
Strategic marketing Marketing strategies encompass these activities: • Determining the need for a product through consumer research and by observing sales patterns of similar products in the marketplace. • Modifying existing products or creating new products to meet consumer wants and needs. • Determining how to best reach potential customers to make them aware of your products and to persuade them to purchase them. • Creating marketing campaigns based on your research of the most effective way of reaching customers. • Confirming customer relationships are built via follow-up sales campaigns and loyalty programs, etc.
Marketing Concept • Marketing doesn’t only determine consumer need, it also helps create consumer need. It really begins with understanding your potential consumer and going from there. • Businesses started to realize it is much more difficult and expensive to sell their products with just advertising. They had to consider customers needs and wants to make products customers actually want. • The marketing concept is using the needs of customers as the primary focus during the planning, production, pricing, distribution, and promotions of a product or service. • Business must master these three concepts to be successful with the marketing concept: • The business must be able to identify what will customer needs are. • Be able to develop and market products or services that customers believe are better competition choices. • The business must be able to operate profitabilityand successfully. • Example- fast food restaurants realized customers were wanting healthier food so they all adjusted their menus to meet those needs.
Changes In Marketing • Marketing is the key to a businesses success, however, Marketing has changed throughout the years and will continue to change. • In marketing you have to be knowledge in all business fields to be able to adapt to all the changes. • In this course you will be learning all the parts of marketing.
