Transcript What is Marketing PPt

What is Marketing
Terms to Know
Customers
⁻ Those who buy products/services
Consumers
⁻ Those who use the products/services
Market
⁻ potential customers who have the ability and willingness to buy
Disposable Income
⁻ Money left over after taxes
Discretionary Income
⁻ money left over after basic necessities
Products/Service
⁻ Tangible vs. Intangible
What is Marketing
- Process of developing, promoting, and distributing products
to satisfy customer’s needs and wants
- Economics in action
Economics – the study of how scarce limited resources are
allocated to satisfy needs and wants
Economics vs. Marketing
- Economics ensures everyone has what they need/want,
Marketing gets customers what they need/want
Marketing Functions
 Distribution
• Getting product from producer to consumer
 Finance
 Finding away for people to afford a product
 Market Information Management
 Determining what people want
 Pricing
 Determine what customers will pay
 Product/Service Management
 Giving people what they want
 Promotion
 Enticing customers to buy the product/service
 Selling
 Getting people to buy a product
Marketing Functions
 Distribution
 Finance
 Market Information Management
 Pricing
 Product/Service Management
 Promotion
 Selling
Marketing Concept
Satisfy needs and wants
2. Do it better than the competition
1.

Competitive Advantage
Utility
• Added value
1.
2.
3.
4.
5.
Form – in a useful form
Place – available where customers can get it
Time – available when customers want it
Possession – able to take it home
Information – know about the product/service
Marketing Mix
 Strategies used to achieve the marketing concept
5 P’s
1. Product
2. Place
3. Price
4. Promotion
5. People
Product Strategy
 Strategies applied to the product
Include:
 Branding (Name)
 Product Mix
 Product Positioning
 Product Life Cycle
Price Strategy
 Setting a price to achieve an objective
Includes:
 Stage of PLC
 Price Skimming/Penetration
 Psychological Pricing Techniques
 Supply and Demand
Place Strategy
 How do customer get the product
 What are some different ways customers receive the product?
 Channels of Distribution
Channels of Distribution
- Path a product takes from producer to consumer
Players:
1. Producers
2. Consumers
3. Intermediaries – “middleman”; move products from
producers to consumers
Intermediaries
Retailers – sell products to consumers
2. Wholesalers – buy in large quantities; sell to retailers
3. Agents
1.
- sell to wholesalers or retailers
- don’t take physical ownership
Channels of Distribution
A
B
C
D
Producer
Agent
Retailer
Wholesaler
Wholesaler
Retailer
Retailer
Consumer
Distribution Intensity
Exclusive Distribution
– 1 outlet in a geographical area
Selective Distribution
– limited number of outlets in an area
Intensive Distribution
– available in all suitable outlets
Promotion Strategy
 Enticing customers to buy the product
Promotion - Informing, persuading, or reminding them about
a product
Forms:
 Sales Promotion
 Selling
 Advertising (Print, TV, Radio, Internet
 Public Relations
 Publicity
 Guerilla Marketing
 Viral Marketing
People Strategy
 Selecting the right group of people for your product/service
 Creating a Target Market – very specific group of people the
product is aimed at
 Market vs. Target Market
 Marketing Segmentation – dividing the total market into
smaller groups of people who share specific needs and
characteristics
 Demographic
 Psychographics
 Geographics
 Product Benefits
Demographics
 Personal characteristics that describe a population
 May Include:
 Age
 Generation X – 1965-1976, products of dual career households
 Generation Y – digital natives
 Gender
 Income
 Disposable
 Discretionary
 Others?
Psychographics
 Consumers lifestyle, attitudes, and values
 May include:
 Sports enthusiasts
 Extremists
 Conservatives
 Liberals
 Others
Geographics
 Where a population lives
 May Include:
 Rural
 Urban
 Suburbs
 Others?
Product Benefits
 Population that uses product based on benefits
 May Include
 Specialty shoes (ie. Football shoes, basketball shoes)
 Diet soda
 Others
Examples