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What Is Marketing?1. Defined:
The process of developing, promoting, and distributing products to satisfy customers’ needs and wants.
Development + Promotion + Distribution = Happy Customer
1. Products – goods and services that have monetary value
2.Goods – things you can touch or hold
3.Services – you can’t physically touch – tasks performed for a customer
Functions of Marketing 1. Activities that work together to get goods and
services from producers to consumers
1) Channel Management
2) Marketing Information Management
3) Market Planning
4) Pricing
5) Product Service Management
6) Promotion
7) Selling
2.Each is essential
Marketing Information Management 1. Getting information to make sound business decisions -
Gathering, storing, and analyzing information, customers, trends, and competing products
2. Usually obtained through marketing research.
For example, after a stay at a luxury hotel, you fill out a form rating the service and accommodations.
Market PlanningUnderstanding concepts and strategies used to develop and target specific marketing strategies to a select audience
Product Service ManagementObtaining, developing,
maintaining, and improving a product or a product mix in response to market opportunities.
Promotion1. Communicating with potential customers to
inform, persuade, or remind them about a business’s products
The Global Economy
1. Marketers are found at every level of business.
2.Nearly all business decisions have a Marketing element.
3.Marketing changes the:
A. Number, (increased variety)
B. Quality, (better quality because of competition)
C. and Price (lower price because of competition)
of products that you can buy.
The Marketing Concept1.Businesses must satisfy customers’ needs
and wants in order to make a profit.
Click on the Model T
Ford to see Henry
Ford’s thoughts about
car color in the early
1900’s.
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.
The Marketing Concept1. If automobile manufactures do not give their
consumers a choice (what they want), they will not stay in business.
2.That concept is true for all businesses.
3.Companies sell what Customers want.
Economic Benefits of Marketing1. Marketing bridges the gap between you and the
maker or seller of an item
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.
Target Marketing1. Focusing all Marketing efforts on a very specific
group of people who you want to reach.
1. Customers – people who buy the product
1. Consumers – people who actually use the product
Is mom the customer or the
consumer?
What about the kids?
Product Strategies
1. What product to make
2.How to package it
3.What brand name to use
4.What image to project
Promotion Strategies1. How potential customers will be told about the
new product
2.What the message will be
3.When and where it will be delivered
4.What inducements are there to purchase it
The Marketing Mix – The 4 P’s1. Contains countless alternatives.
2.Management must select a combination of marketing mix decisions that will satisfy target markets and achieve organizational goals.
Product & Place & Price & Promotion = Goals
Analyzing Markets1.Market segmentation is a way of
analyzing a market by specific characteristics as in order to define the target market.
Demographics1. Demographics – statistics that describe a
population in terms of personal characteristics. Demographics include:
2. AgeA. Baby Boom Generation
B. Generation X
C. Generation Y
3. Gender4. Marital Status
5. Ethnic Background
U.S. Trend – The percentage of the Caucasian population is declining, while other ethnic populations increase.
Psychographics 1. Involves grouping people with
similar lifestyles, as well as shared attitudes, values, and opinions.
A. Activities
B. Attitudes
C. Personality & 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 type
Geographics1. Geographics –
Segmentation based on where people live
A. Political Boundary
B. Climate
C. Natural Boundary
Behavioral Segmentation1. Looking at the benefits desired by consumers,
shopping patterns, and usage rate. Market benefits, not just the physical characteristics of a product
Behavioral Segmentation1. Many businesses find that the 80/20 rule applies.
2.80 % of a company’s sales are generated by 20 % of its loyal customers.