Marketing Is All Around Us

Marketing Is All Around Us

What Youll Learn . . .The Functions of MarketingUnderstand the Marketing ConceptMarketing UtilitiesDefine a Target MarketUnderstand how Markets are SegmentedStandard 1 Day 1Students will learn:The meaning of marketingThe functions of marketingMarketing's importance in a global economyThe Marketing ConceptWhat Is Marketing?Defined: The process of developing, promoting, and distributing products to satisfy customers needs and wants.

Development + Promotion + Distribution = Happy Customer

Products goods and services that have monetary valueGoods things you can touch or hold

Services you cant physically touch tasks performed for a customer

Functions of Marketing Activities that work together to get goods and services from producers to consumersDistributionFinancingMarketing Information ManagementPricingProduct Service ManagementPromotionSellingEach is essential

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

Financing Getting the money necessary to operate a business

Marketing Information Management Getting information to make sound business decisions. Usually obtained through marketing research

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

PricingHow much to charge to maximize profits

Product Service ManagementObtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.

PromotionCommunicating with potential customers to inform, persuade, or remind them about a businesss products

SellingPlanned, personalized communication that influences purchasing decisions

The Global EconomyMarketers are found at every level of business.Nearly all business decisions have a Marketing element.Marketing changes the:Number, (increased variety)Quality, (better quality because of competition)and Price (lower price because of competition)of products that you can buy.The Marketing ConceptBusinesses must satisfy customers needs and wants in order to make a profit.

Click on the Model T Ford to see Henry Fords thoughts about car color in the early 1900s.When Henry Ford first created the Model T, he was the only one mass producing cars. He didnt 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.

Imagine if, in todays world, you could only buy black. Many customers would not be very happy!

Todays buyer wants a choice!The Marketing ConceptIf automobile manufactures do not give their consumers a choice (what they want), they will not stay in business.That concept is true for all businesses.Companies sell what Customers want.

Standard 1 Day 2Students will understand:The Economic Benefits of Marketing.The meaning of economic utility.The five economic utilities and how to distinguish the four that are related to marketing.Economic Benefits of MarketingMarketing bridges the gap between you and the maker or seller of an item

MARKETING

Economic Benefits of MarketingNew and Improved Products --businesses look for opportunities to please the customer

Economic Benefits of MarketingLower 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.

Economic Benefits of MarketingIt adds VALUE

Added Value = UtilityThere are five types of Utility:

FormPlaceTimePossessionInformation

Attributes of a product or service that make it capable of satisfying consumers wants and needs.

Form Utility

Changing raw materials into goods making and producing things. Sand into glass Wood into paper Silk into fabricPlace UtilityHaving a product where customers can buy it.It Includes:Location may be through a catalog or at a retailer (actual store) or, Internet.Transporting the product to the location.

Time UtilityHaving a product available at a certain time of year or a convenient time of day.Planning and orderingTime of day and weekTime of year: holidays and seasons

Possession UtilityThe exchange of a product for some monetary value.

Payment may be made by:CashPersonal checksCredit cardsInstallments (layaway)

Information UtilityInvolves communication with the consumer.

Ads Packaging Signs Displays Owners Manuals

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

These utilities ARE directly related to marketing:Place

Time

Possession

Information

Standard 1 Day 3Students will be able to:Define a marketDescribe target marketingDifferentiate between customers and consumersUse the four Ps of the marketing mix

MarketMarket all potential customers who have the ability and willingness to buy

Target MarketingFocusing all Marketing efforts on a very specific group of people who you want to reach.

Customers people who buy the product

Consumers people who actually use the product

Is mom the customer or the consumer? What about the kids?Marketing MixBasic marketing strategies the four Ps ProductPlacePricePromotion

Product StrategiesWhat product to makeHow to package itWhat brand name to useWhat image to project

Place StrategiesHow and where a product will be distributed.

Price StrategiesReflect what customers are willing and able to pay.

Promotion StrategiesHow potential customers will be told about the new productWhat the message will beWhen and where it will be deliveredWhat inducements are there to purchase it

The Marketing MixThe elements are interconnectedProductPlacePricePromotion

The Marketing Mix The 4 PsContains countless alternatives.Management must select a combination of marketing mix decisions that will satisfy target markets and achieve organizational goals.

=

Product & Place & Price & Promotion = GoalsStandard 1 Day 4Students will:Understand the concept of market segmentation. Define the term market segmentation.Understand the four methods used to segment a market.Understand current demographic, psychographic, and geographic trendsAnalyzing MarketsMarket segmentation is a way of analyzing a market by specific characteristics as in order to define the target market.

Types of Segmentation:DemographicsPsychographicsGeographicsBehavioral

DemographicsDemographics statistics that describe a population in terms of personal characteristics. Demographics include:AgeBaby Boom GenerationGeneration X Generation YGenderMarital StatusEthnic Background

U.S. Trend The percentage of the Caucasian population is declining, while other ethnic populations increase.Psychographics Involves grouping people with similar lifestyles, as well as shared attitudes, values, and opinions.ActivitiesAttitudesPersonality & Values

Music teachers, dancers, and other music lovers would be one category of people who share psychographic characteristics.

VALS is a marketing and consulting tool that helps businesses worldwide develop and execute more effective strategies. The system identifies current and future opportunities by segmenting the consumer marketplace on the basis of the personality traits that drive consumer behavior. VALS applies in all phases of the marketing process, from new-product development and entry-stage targeting to communications strategy and advertising.

Click on VALS to learn more and to take a survey to determine your VALS typeGeographicsGeographics Segmentation based on where people livePolitical BoundaryClimateNatural Boundary

Behavioral SegmentationLooking at the benefits desired by consumers, shopping patterns, and usage rate. Market benefits, not just the physical characteristics of a product

Behavioral SegmentationMany businesses find that the 80/20 rule applies.80 % of a companys sales are generated by 20 % of its loyal customers.

Mass Marketing Vs SegmentationMass marketing not as popular as it once was.Niche marketing (the current trend) markets are narrowed down and defined with extreme precision.