Transcript Unit 1 PPT
Unit 1 “Marketing 101” What is Marketing? 7 Functions of Marketing Marketing Concept Evolution Marketing Mix Benefits & Criticisms UnOfficial Marketing Definition a. “Get the right product to the right place at the right time.” b. “Identify, understand, satisfy, and keep the customer.” Business’s Overall Goal: • “Meet and exceed customer needs better than the competition.” Official Marketing Definition Marketing is: the creation and maintenance of satisfying exchange relationships. Creation – give the customers what they want/need. Maintenance –monitor & check-in often with customers to continue to make them happy & loyal. Satisfaction = Utility (the value or benefit a person gets from a product via form, place, possession, and time). Marketing Builds Exchange Relationships Something of Value Something of Value Marketing Affects Everyone! • ________% of every dollar spent on products goes toward paying for marketing activities. Marketing is Everywhere! • _________% of businesses perform some kind of marketing function. • Businesses need marketing to reach and serve customers effectively so they can maximize sales and profits. Marketing’s Basic Functions: 1. Product/Service Management – the design and development of products/services. 2. Distribution –Conveniently located and timely availability of products 3. Selling – Direct, personal communications to assess and satisfy needs of customers. 4. Information Management – Gather & use market information to improve business decision-making. 5. Financing – provides $ support for marketing activities & assists customers with purchasing (i.e. Credit cards, payment plans). 6. Pricing – set the amount customers pay, create value for the product, & make profit. 7. Promotion – Communicating product information to customers in a variety of ways. Marketing Concept: Idea of using the wants & needs of customers as the main focus in planning an effective marketing strategy. • Want – something you would like to have; a luxury item, not necessary. • Need – something you have to have; cannot survive without 4Ps (Marketing Mix) - a toolbox of activities used to create a marketing strategy. Goods, services, or ideas that can be sold to satisfy customer needs Conveniently located and timely availability of products Communicate info to customers; persuade them to buy or act Amount customers pay; creates value for product; a profit-maker. Consumers vs Customers Strategic Marketing • The marketing-mix works together as a unit • All elements are equally important • A change to one element affects the others • The same marketing strategy won’t work in every situation • Marketers adjust and combine their strategies to fit their purposes • Examples of Strategic Marketing in Restaurant business (McDonalds) Evolution of the Marketing Concept 19th century: strong customer demand; make & distribute new products. 1920s–1950s: weakened demand; had to “sell” products using advertising & salespeople. 1950s–today: research & response to customer needs; convenience & usefulness. Marketing Concept Results AND FOLLOWED BY THEN IF Pays to Keep the Customers Happy • Costs ________ to attract new customers than to retain current ones. • The best way to retain current customers is to keep them ________. • On average, a satisfied customers tells _____ people. • A dissatisfied customer complains to _____ people. • _____ % of unhappy customers never tell the company about their problem. Benefits and Criticisms of Marketing • Benefits • Criticisms • Businesses meet consumer needs (Supply Demand) • Natural Resources used more effectively • Standard of Living is improved • More convenience for consumers • Public Awareness • Global Trade • More jobs; stronger economy • Makes us buy things that we don’t really need • It is a big waste of money • Good products don’t need Marketing; they will sell themselves 13