Marketing - Greene Central School District
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Transcript Marketing - Greene Central School District
Chapter 1
Everything around you
Think of purchases you have (or have not) made
How does a business influence your purchases?
▪ Southwest Airlines
Marketing
The process of planning, pricing promoting,
selling and distributing ideas, goods, or services to
create exchanges that satisfy customers
▪ An ongoing process – why?
Ideas
generally ideals, thoughts
▪ Politicians, environmentalists
▪ Got Chocolate Milk?
Goods
Tangible items that have monetary value and satisfy
your needs and wants
▪ Examples?
Services
Intangible items that have monetary value and satisfy
your needs and wants
▪ Examples?
Practice of marketing depends on 4 key areas of
knowledge: 4 foundations of marketing
Business, management, entrepreneurship
▪
Understanding these areas affect decision making
Communication and interpersonal skills
▪
Interact effectively with others
Economics
▪
Economic principles
Professional Development
▪
Career exploration, development and growth
Product/Service Management
1.
Obtaining, developing, maintaining, and improving
a product or a product mix in response to market
opportunities
▪
Marketing research = determining needs/wants
Pricing
2.
How much to charge for goods and services in order
to make a profit
▪
▪
▪
Costs
Competition price
Customers willingness and ability to pay
Promotion
3.
Effort to inform, persuade, or remind potential
customers about a business’s product or services
▪
▪
Examples of promotion?
Other than product and services promotion, what else
can a company promote?
Distribution
4.
The process of deciding how to get goods in
customers’ hand
▪
Transportation, storing, tracking
Marketing Information Management
5.
Gathering information, storing it, and analyzing
the information
▪
Why?
▪
▪
How would you gather information?
▪
▪
▪
Apple example
Nielsen – Consumer and Consumer behavior (watch and buy)
J D Power & Associates – primarily customer surveys
How often?
Financing
6.
Getting the money necessary to pay for setting up and
running a businesses
▪
Loans, selling shares of stock, issuing bonds
Helping others obtain your product/service
▪
▪
Extending credit to customers
Payment options
▪
Term payments, credit cards, etc.
Selling
7.
Providing customers with goods and services they want
Directly to the customer or business
▪
Techniques and activities
Marketing Concept
The idea that a business should strive to satisfy
customers’ needs and wants while generating a profit
for the firm
Where is the focus?
Success comes when all 7 functions support the
marketing concept idea
Customer Relationship Management (CRM)
An aspect of marketing that combines customer
information with customer service and marketing
communications
▪ Meaningful one-on-one communications via customer
intelligence
On a piece of paper, answer the following
(page 7, 1-3 and 5):
Name 2 ideas that can be marketed
Where do exchanges take place?
What is the main difference between consumers
and industrial users
List at least 3 ways the Internet has changed
marketing functions
Marketing has an important role in the
economy
Provides the means for competition to take place
▪ Businesses try to create new or improved products at
lower prices than their competitors
▪ How does this affect the consumers?
▪ How does this affect businesses to have such competition?
New and improved products
▪ Continuing to look at ways to satisfy customers
▪ How has competition shaped the personal computer industry?
Lower prices
What happens in the marketplace when prices drop?
What happens to production when demand increases?
▪ Overall unit costs go down
▪ Fixed costs
Rent, insurance, etc. stay the same regardless of production
▪ Variable costs
Costs that change given the amount of production
Labor, materials, etc.
▪ Example: $20,000 in fixed costs, Quantity produced is 10,000 units. How
much per unit does it cost the company?
▪ How much per unit would it cost the company if they produced 200,000
units?
The functions of marketing add value to a
product
Utility
▪ An attribute of a product or service that makes it
capable of satisfying consumers’ wants and needs
▪ 5 economic utilities
Place
Time
Possession
Information
Form (not directly related to marketing; however, the research
and product design makes it a crucial part of the marketing
process
Form Utility
Involves changing raw materials or putting parts
together to make them more useful
▪ Deals with making or producing things
▪ Taking things of little value and putting them together to create
more value
▪ Special features or ingredients in a product add value
and increases its form utility
▪ Example: Automobiles
Place Utility
Involves having a product where customers can
buy it.
▪ Businesses study consumers shopping habits to
determine the most convenient and efficient locations
to sell products
▪ Direct approach
▪ Catalogs
▪ Internet
▪ Retail stores (considered an intermediary)
Time Utility
Having a product available at a certain time of
year or a convenient time of day
Increases the value of the products by having
them available when consumers want them
Examples?
▪ 24 hour super stores
▪ Coffee shops
▪ Extended hours during holiday shopping seasons
Possession Utility
When legal ownership of a product changes hands
How do you come into possession of the items
you want? What exchanges are made?
▪ How does this add value?
Possession utility also includes providing payment
options
Information Utility
Involves communication with the consumer
Examples:
▪ Labeling
▪ Advertising
▪ Web Assist and Manuals
▪ How do these add value?
Provide information to customers by explaining the
features and benefits of the products
The added value to a product that marketing
provides is called ___________________
How does marketing help to lower prices?
In what way is marketing related to form utility?
Which utility is added by drive-through windows
at fast-food restaurants?
In a business-to-business transaction, the seller
offers the buyer a 2% discount for paying a bill
early. Assuming the buyer took advantage of this
offer, how much would be discounted on a
$10,000 invoice?
Can you make your product appeal to
everyone?
What considerations do we need to make?
Market
All people who share similar needs and wants and
who have the ability to purchase your products
Consumer Market
Consists of consumers who purchase goods and services
for personal use
▪ What does a consumer take into consideration?
▪ Lifestyles
Price, convenience/easier, improved appearance, status, or some
other motivation that provides satisfaction
Industrial Market (AKA Business to Business Market)
Businesses that buy products for use in their operations
▪ What does the business take into consideration?
▪ Profits
Efficiency
Market Share
The percentage of
total sales volume
generated by all
companies that
compete in a
given market
Continuously
changes
Camera Market
21.1
26.3
Sony
Kodak
Canon
Olympus
17.5
7.2
Why?
Fuji Film
Others
10.7
17.2
Unit sales is best
The manager of Geneganslet Golf Course
discovers that all the courses in the market area
together host 50,000 rounds of golf a year. Of
those rounds, Open Fairways hosts 7,000, and
therefore has _________ market share.
Market Share research and exercise
Four basic marketing strategies
4 P’s
▪ Product
▪ Price
▪ Promotion
▪ Place/Distribution
Marketers use these to influence potential
customers
A group of people
identified as those
most likely to become
customers
All marketing strategies
are directed to the
target market
When there is a lack of a
target market, the
marketing plan has no
focus
Marketing
Mix
~Product: choosing what
products to make and sell.
Design, features, brand
name, packaging, service,
and warranty
~Place: Getting the product
into the consumer’s hands
Where and how a product
will be distributed,
transportation, and stock
levels
~Price: reflection of what
customers are willing to pay
and compared to
competitors
~Promotion: decisions about
advertising, personal selling,
sales promotion, publicity
PRICING STRATEGIES
PROMOTIONAL STRATEGIES
How potential customers
List price or MSRP
Discounts
will be told about a
Allowances
company’s products
Credit Terms
Payment Period
Promotional Pricing
Period of time
The message
Media selected
Special offers
Timing of promotional
campaigns
Consumers – Those who “consume” the
product/service
Customers – Those who buy the product/service
Example: Cereal
▪ Two target markets:
▪ Children = consumers
▪ Parents = customers
Customer Profile
A listing of information about the target market:
▪ Age, income level, ethnic background, occupation, attitudes,
lifestyle, geographic residence
1.
2.
3.
Name the four P’s of the marketing mix and
explain the importance of a target market for
each of them
If total sales in the ice cream category were $4.4
billion and Breyers’s sales were $650,000,000
what would be its market share?
Round to the tenth decimal place.
Write a customer profile for a magazine of your
choice. Provide examples of articles and
advertisements that support that profile