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Introduction To Marketing

Introduction To Marketing . Marketing Functions Utility Marketing Concept. The process of developing, promoting, and distributing products to satisfy customers’ needs and wants. . What Is Marketing?. Products – goods and services that have monetary value.

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Introduction To Marketing

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  1. Introduction To Marketing Marketing Functions Utility Marketing Concept

  2. The process of developing, promoting, and distributing products to satisfy customers’ needs and wants. What Is Marketing?

  3. Products – goods and services that have monetary value

  4. Goods – things you can touch or hold

  5. Services – you can’t physically touch – tasks performed for a customer

  6. Marketing is based on Exchange • Marketing connects business’ to their customers.

  7. Exchange • An exchange takes place every time something is sold in the marketplace.

  8. EXCHANGE When the producer is someone other than the consumer, some form of exchange takes place.

  9. Foundations of Marketing • Business, Management, Entrepreneurship • Communication and Interpersonal Skills • Economics • Professional Development

  10. Functions of Marketing • Activities that work together to get goods and services from producers to consumers • Each is essential

  11. DistributionDeciding where and to whom products need to be sold to reach the final users.

  12. FinancingGetting the money necessary to operate a business

  13. Marketing Information ManagementGetting information to make sound business decisions. Usually obtained through marketing research

  14. For example, after a stay at a luxury hotel, you fill out a form rating the service and accommodations.

  15. Pricing How much to charge to maximize profits

  16. Product Service Management • Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.

  17. Promotion Communicating with potential customers to inform, persuade, or remind them about a business’s products

  18. SellingPlanned, personalized communication that influences purchasing decisions

  19. The Marketing Concept Businesses must satisfy customers’ needs and wants in order to make a profit

  20. When Henry Ford first created the Model T, he was the only one mass producing cars. He didn’t have to think about “The Marketing Concept.” But, as more and more producers started making cars, they had to think about what customers need and want in order to stay in business. Click on the Model T Ford to see Henry Ford’s thoughts about car color in the early 1900’s.

  21. Imagine if, in today’s world, you could only buy black. Many customers would not be very happy!

  22. The Marketing Concept • If automobile manufactures do not give their customers a choice (what they want), they will not stay in business. • That concept is true for all businesses. • You must give the customer what they need and want.

  23. The Marketing Concept That is what we mean by The Marketing Concept Businesses must know their customers . . . Businesses must satisfy customers’ needs and wants in order to make a profit

  24. Economic Benefits of Marketing • Marketing bridges the gap between you and the maker or seller of an item

  25. Economic Benefits of Marketing New and Improved Products --businesses look for opportunities to please the customer

  26. Economic Benefits of Marketing Lower Prices – marketing activities add value and increase demand. When demand is high, manufacturers can produce at a lower price. They can sell at a lower price but increase the quantity sold. Thus, profits are higher even though prices are low.

  27. Economic Benefits of Marketing • It adds VALUE

  28. Added Value = Utility In economic terms, utility does not mean your closet or the electric company.

  29. Added Value = Utility Attributes of a product or service that make it capable of satisfying consumers’ wants and needs. There are five types of Utility:

  30. Form Utility Changing raw materials or putting parts together to make them more useful – making and producing things. • Sand into glass • Wood into paper • Silk into fabric

  31. Place Utility Having a product where customers can buy it.

  32. It Involves • Location – may be through a catalog or at a retailer (actual store) – or, Internet. • Transporting the product to the location.

  33. Time Utility • Planning and ordering • Time of day and week • Time of year: holidays and seasons Having a product available at a certain time of year or a convenient time of day.

  34. Possession Utility The exchange of a product for some monetary value.

  35. Payment may be made by • Cash • Personal checks • Credit cards • Installments (layaway)

  36. Information Utility Involves communication with the consumer. • ads • packaging • signs • displays • owner’s manuals

  37. Which types of utility are related to marketing? Form utility is a function of production, NOT marketing

  38. These utilities ARE directly related to marketing: • Place • Time • Possession • Information

  39. Market – all potential customers who have the ability and willingness to buy

  40. Consumer Markets • Consist of consumers who purchase goods and services for personal use.

  41. Industrial Markets • Business-to-business (B-to B) markets include all businesses that buy products for use in their operations.

  42. Market Share • A company’s percentage of the total sales volume generated by all companies that compete in a given market.

  43. Target Marketing Focusing all decisions on a very specific group of people who you want to reach.

  44. Customer Profile • To develop a clear picture of their target market, businesses create a customer profile. • It lists information about the target market, such as age, income level, occupation, attitudes, lifestyle, and geographic residence

  45. Customers – people who buy the product • Consumers – people who actually use the product Is mom the customer or the consumer? The kids?

  46. Marketing MixBasic marketing strategies – the four P’s • Product • Place • Price • Promotion

  47. Product Strategies • What product to make • How to package it • What brand name to use • What image to project

  48. Place Strategies • How and where a product will be distributed.

  49. Price Strategies • Reflect what customers are willing and able to pay.

  50. Promotion Strategies • How potential customers will be told about the new product • What the message will be • When and where it will be delivered • What inducements are there to buy

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