© 2006 Thomson-Wadsworth. Learning Objectives Define marketing. Describe the various approaches to the marketplace, including production, product, selling,

© 2006 Thomson-Wadsworth


Learning Objectives

• Define marketing.• Describe the various approaches to the

marketplace, including production, product, selling, marketing, and social marketing.

• State why marketing is important to the management process.

• Identify differences between the nutrition professional’s role as a marketer and as a consumer.


Learning Objectives

• Discuss the differences between mass marketing and marketing to target populations.

• List the methods that are used to conduct market research.

• Identify the components of the marketing mix.

• Differentiate among the various types of products that are available to consumers.


Learning Objectives

• Describe the market channels that are used to get products from producer to consumer.

• Describe the relationship between marketing and price.

• List several ways to promote goods, services, and combination products.


Overview

• Marketing – A management tool that focuses on

identifying the needs, wants, and demands of customers and developing products to meet those needs.



The Marketplace

• Marketplace – The milieu in which goods are

exchanged; can be viewed from the perspective of production, product, selling, marketing, or social marketing.



The Marketplace

• Production Perspective– A view of the marketplace based on

the idea of growing, manufacturing, or creating a product for the marketplace.

– Distribution - The method of delivering a product to the marketplace.


The Marketplace

• Product Perspective – A view of the marketplace that

focuses on the product, its value, desirable features, or performance.


The Marketplace

• Selling Perspective – A view of the marketplace based on getting

customers to purchase the product.– Promotion - The methods used to attract

consumers to a product so as to convince them to purchase it.

– Middlemen - Individuals or groups who work in the distribution channel, moving the product from the producer or manufacturer to the consumer.


The Marketplace

• Marketing Perspective– A view of the marketplace that considers

production, sales, products, and promotion in light of consumers’ needs, wants, and demands.

– Four P’s of Marketing - Product, place, price, and promotion; sometimes called the marketing mix.

– Needs - Things required for a state of well-being, such as physical (food, safety, and shelter) and mental (belonging, affection, and self-expression) well-being.


The Marketplace

• Marketing Perspective– Wants - Socially accepted ways to

meet needs.– Demands - Wants that are supported

by resources, such as money, that allow the wants to be fulfilled.


The Marketplace

• Social Marketing Perspective– A view of the marketplace that

balances the needs, wants, and demands of consumers with those of the organization and those of society.

– ex: Eat 5 to 9 A Day• www.5aday.com/

http://www.5aday.com/


Target Markets

• Mass Marketing – The marketing of a product to the

population at large without discriminating among population subgroups.

• Target Marketing – The marketing of a product to a unique

subgroup within the population rather than to the population at large.


Target Markets

• Market Segmentation – The identification and measurement

of those characteristics that are present in a population subgroup that is likely to purchase a specific product.


Target Markets

• Market Targeting– Size/anticipated growth of segment– Potential to compete with other

marketers– Resources necessary to reach market– Likely return on investment


Target Markets

• Market Positioning – Presenting a product to the target

market, emphasizing the characteristics of the product that are most important to those consumers.

– Equating the product with its benefits.


Market Research

• Market research - The gathering of information about consumers’ wants, needs, and demands to identify target markets and develop the marketing mix for those markets.


Market Research

• Needs identification– Either too little or too much

information hampers market research– Selectivity is necessary– Information Overload - Having too

much data, which may impede management processes and interfere with decision making.


Market Research

• Information gathering– Typically, some data is collected by the

industry• ex: American Hospital Association gathers data

about hospitals at www.aha.org/

– Primary Data - Information gathered for the sole purpose of the party who requires the information.

– Secondary Data - Information that has already been compiled by another source.

http://www.aha.org/


Market Research

• Data analysis– The compilation and analysis of

primary and secondary data collected.


Marketing Mix

• Marketing Mix – A combination of

• product, • place, • price, and • promotion

– as they contribute to the marketing of a product.


Marketing Mix


Marketing Mix

• Products– Anything offered to the market to

satisfy the needs, wants, and demands of consumers.


Marketing Mix - Products

• Goods– Tangible products. Ownership is

transferred when goods are sold.– Tangible - Something that can be

seen, touched, and felt.– Durable Goods - Products that can

oftentimes be used and reused repeatedly and that have a life expectancy measured in years.



• Goods– Nondurable Goods - Products that

get used up quickly and that have a life expectancy usually measured in days or months.

– Perishable Goods - Products with a very short life span due to a high potential for deterioration or spoilage.



• Services



• Services – Intangible - Something that cannot

be held, touched, or seen--like services.

– Inseparability - A characteristic of services in which a product cannot be separated from its provider.



• Services – Variability - A characteristic of services

that indicates that services are not uniform, due to factors such as the provider of the service, the consumer, and the circumstances under which the service takes place.

– Service Perishability - A characteristic of services that implies that a service cannot be stored and used later; the service must be utilized upon delivery.



• Other products– Places– Activities– Organizations– People

• Combination products– ex: foodservice = food (tangible) +

service (intangible)



Marketing Mix

• Place – The location where the product is

available to the consumer.


Marketing Mix - Place

• Distribution Channels– The routes products follow from the

manufacturer to the end user; may be direct and simple, or complex with the products changing ownership several times along the way.

• Retail distribution– Retailer - An organization or individual who

sells products directly to the end user of the product.


Marketing Mix - Place

• Wholesale distribution– Wholesaler - An organization or person

who buys products from the grower or producer and sells them to the retailer who, in turn, sells the products to the end user.

• Service distribution– Usually, there are fewer middlemen

involved– Internet and other technologies


Marketing Mix

• Price – The cost of a product to consumers.– The only component in the marketing

mix that concerns itself with revenue and profit.


Marketing Mix - Price

• Marketing strategy• Cost of producing the product

– 40% of food cost is often the basis for prices in healthcare foodservice

• Psychology of pricing• External factors (e.g. economy)


Marketing Mix - Price

• Pricing strategies:– Price adjustments– Promotions pricing– Options pricing– Product line pricing


Marketing Mix

• Promotion– Communicating information about the

product to consumers. – Ideally, the communication leads the

consumer to purchase the product for an initial trial.


Marketing Mix - Promotion

• Advertising– A form of promotion that carries the

message about the product to wide segments of the population.

– Advantages: advertiser controls content/placement of ad, cost per exposure low, repetition

– Disadvantages: impersonal, one-way communication, can be expensive



• Personal selling– Advantage: most effective because of

two-way communication– Disadvantage: most expensive

because sales force must be trained and paid



• Sales promotion– The use of tools to attract the

consumers’ attention.– ex: games, prizes, coupons,

premiums, reduced-price sales, etc.



• Public relations– Unpaid publicity.– ex: news story, photograph, etc.– Advantage: more credible than

advertising– Disadvantage: no control over

content/placement



• Merchandising– A tool that involves the physical

display of the product to the customer.

– ex: placement on shelf or display rack in retail store, dessert tray in restaurant, etc.



Conclusion

• Marketing is a process that enables an organization to meet the wants, needs, and desires of consumers.

• The marketplace can be addressed from five perspectives: production, product, selling, marketing, and social marketing.

• A target market is identified as potential consumers of a product.


Conclusion

• In order to design products for a market, or for a target market, it is necessary to learn about characteristics of the consumers as well as to identify and analyze the competition in the marketplace. This is done through market research.


Conclusion

• The development of the marketing mix should be based on an organization’s approach to the marketplace, the target market it has identified, and the research data that it has acquired, molded together in a way that will reach consumers.

• The marketing mix includes product, placement, price, and promotion.


The Marketing of Nutritionjobs.com

• Market research• Market segmentation• Marketing mix• Promotional plan

– Advertisements– Online newsletter– Direct mail


The Marketing of Nutritionjobs.com

• Promotional plan– Promotional offers– Business stationery– Invoices– Presence at professional meetings– Freebies

Documents

© 2006 Thomson-Wadsworth. Learning Objectives Define marketing. Describe the various approaches to the marketplace, including production, product, selling,