Unit 3Basic Marketing
Concepts
http://www.youtube.com/watch?feature=player_detailpage&v=ssXV0wXUZYg
http://www.youtube.com/watch?v=yGikNBqiNyE&feature=player_detailpage
What is the product?Who is the target audience?Do you think this commercial
creates a relationship with its market? If so, what is it?
What aspects of this commercial are memorable?
Commercial Questionnaire
Unit 3 Vocabulary Consumers Consumer Market Customers Customer Profile Customer Relationship
Management (CRM) Demographics Discretionary Income Disposable Income Environmental Scan Executive Summary Geographics Goods Industrial Market Market
Market Share Marketing Marketing Concept Marketing Mix Market Segmentation Marketing Strategy Mass-Marketing Positioning Products Psychographics Sales Forecast Services Situation Analysis SWOT Analysis Target Market
Unit 3 Essential Question
How do the fundamental marketing concepts relate to the scope and impact of marketing on the economy?
What is marketing?
Essential Question 1Basic Marketing Concepts
Marketing is. . .The process of planning, pricing,
promoting, selling and distributing products to create exchanges that satisfy customers needs and wants.
Products– Goods
– Services
– Information / Ideas
How do marketing strategies relate to the marketing mix?
Essential Question 2Basic Marketing Concepts
Target Marketing - Focuses all marketing decisions on the specific group of people you want to reach.
The Marketing Mix
4 P’s of Marketing
ProductPlace
Promotion
Price
Product Positioning
Positioning: Getting the consumer to think about a product in a certain way.
Methods of positioning:– Playing to the competition's weaknesses.– Looking for underserved markets.– Leading with your strengths.– Targeting different market segments.
Marketing Strategies
Marketing strategy: Identification of target markets and determination of marketing mix choices that focus on those markets.
An effective marketing strategy will focus on a company’s or product’s competitive advantage: the key point of difference.
What are the marketing functions and their related activities?
Essential Question 3Basic Marketing Concepts
Functions of MarketingDistribution
– The physical movement of a good or service.
– Deciding where and to what extent to sell a good or service.
Functions of MarketingFinancing
– Determining the need for and availability of financial resources to aid in marketing activities.
Functions of MarketingMarketing Information Management
Gathering, recording, analyzing, and disseminating information to aid in making marketing decisions.
Functions of MarketingPricing
– The determination of an exchange price at which the buyer and seller perceive optimum value for a good or service.
Functions of MarketingProduct/Service Management
– Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.
Functions of MarketingPromotion
– Communicates information about products, services, images, or ideas to customers or clients to influence their purchase behavior.
Functions of MarketingSelling
– Responding to consumers needs and wants through planned, personalized communications intended to influence purchase decisions.
How do the effects of various marketing activities compare and contrast?
Essential Question 4Basic Marketing Concepts
What marketing activities would be associated with each function of marketing?
– Distribution?– Financing?– Marketing Information Management?– Pricing?– Product/Service Management?– Promotion?– Selling?
Marketing Activities
How do marketing plans interact with marketing strategies?
Essential Question 5Basic Marketing Concepts
Marketing PlanMarketing Plan
– A formal, written document that directs a company’s activities for a specific period of time.
– Elements of a Marketing Plan include: Situation Analysis Marketing Strategies Implementation Evaluation and Control
Marketing PlanMarketing Plan
– The Marketing Strategies section of the Marketing Plan focuses on:
Product Positioning Marketing Mix
– Product
– Place
– Price
– Promotion
How does the marketing planning process employ situational analysis?
Essential Question 6Basic Marketing Concepts
Situational Analysis
Situational Analysis: The study of the internal and external factors that affect marketing strategies and is an element of the Marketing Plan.
Situational Analysis
A Situational Analysis includes:– SWOT Analysis: An assessment of the
company’s internal Strengths and Weaknesses and external Opportunities and Threats.
– Environmental Scan: An analysis of outside influences that may have an impact on the organization. It includes:
Political Economic Socio-Cultural Technological
How are the concepts of market, market segmentation, and market identification differentiated?
Essential Question 7Basic Marketing Concepts
Market Segmentati
on
Identifying Your Customers
Market: A group of all potential customers who share common needs and wants, and who have the ability and willingness to buy the product.
Market Segmentation: Dividing the total market into smaller groups of people who share specific needs and characteristics.
Customers vs. Consumers
CustomersBuy a product
ConsumersUse the product
Consumer Marketvs.
Industrial MarketConsumer
Personal Use
IndustrialBusiness Use
Market Segmentation
GeographicsSegmentation of the market based on
where people live.
Market SegmentationDemographics
Statistics that describe a population in terms of personal characteristics. These include age, gender, income, ethnic background, education, etc.
Market SegmentationPsychographics
Involves the study of customers based on lifestyle, and the attitudes and values that shape it.
Market Segmentation
Product BenefitsBuilt in features of products in
response to consumer needs and wants.
Market Identification:Identifying Your Customers
Developing a Customer ProfileCombining geographic, demographic,
psychographic, and product benefit data to get a complete picture of your potential customers.
How does the marketing concept relate to customer needs and wants?
Essential Question 8Basic Marketing Concepts
Brainstorm
What are the differences between sales-orientedsales-oriented and marketing-orientedmarketing-oriented companies.
The Marketing Concept In order for a business to make a
profit, it must focus all of its efforts on satisfying the needs and wants of its customers.
Customer Satisfaction Involves creating a relationship with
the customer to achieve customer loyalty – also known as Customer Relationship Management (CRM).
Customer satisfaction is directly related to the product’s perceived value.