Transcript World of Marketing

What Is Marketing?
S
Marketing
S Marketing is defined as the process of developing,
promoting, and distributing products, or goods and
services, to satisfy customers’ needs and wants.
S Goods are tangible products, such as sports
equipment
S Services are intangible products, such as theater
tickets (provides entrance to the play)
The Marketing Process
S Developing products involves studying consumers to determine
what they want, and then designing the product that will satisfy
their needs and wants.
S Promotional activities help to educate consumers, create interest
and desire, make a sale, and create an image for a company and
its product.
S “Just Do It”
S “The Breakfast of Champions”
S Distribution is the means of getting the product into the hands of
the consumer.
The Marketing Concept
S Is the idea that organizations need to satisfy their
customers while also trying to reach their
organizations’ goals.
S To be profitable, businesses must focus their efforts
on customers’ needs and wants.
The Market
S A marketing concept involves identifying customers. A market
consists of potential customers with shared needs who have the
desire and ability to buy a product.
S Needs and Wants
- organizations spend lots of money to learn about their
customers’ needs and wants.
- needs occur when people experience a lack of basic necessities
such as food, clothing, or shelter.
- wants are things that people desire based on personality,
experiences, or information about a product.
S Target Market
- is a specific group of consumers that an
organization selects as the focus of its marketing
plan.
- having a clear picture about the target market
makes developing a marketing plan easier to
accomplish.
Mass Marketing vs.
Market Identification
S Mass marketing involves promoting products with one key
message that is directed to everyone.
S Today marketing efforts are much more sophisticated due to
availability of information and computer technology.
S Market-research companies provide clients with data to
determine consumers’ lifestyle characteristics.
S Demographics are statistics that describe a population in terms of
personal characteristics (age, income, occupation, gender, ethnic
background, education level).
The Marketing Mix
S The marketing mix is a combination of four basic marketing
strategies, known as the 4 P’s – product, price, place, and
promotion.
S They must all focus on the target market.
S Product Decisions
S involves the goods, services, or ideas used to satisfy consumer needs.
S designing, naming, and packaging a product are major
considerations.
S Price Decisions
S influences customers’ buying decision.
S involves the exchange process between the customer and the seller.
S businesses must ask how much should be charged for the good or
service.
S the cost of making or buying a product for resale
S expenses related to marketing the product, competition, and what
the consumer is willing to pay.
S Place Decisions
S involves making the product available to the customer.
S marketers must determine how and where their target market shops.
S also known as channel of distribution – the path a product takes
from the producer to the consumer.
S Promotion Decisions
S involves how the goods or services are communicated to the
consumer.
S it may use any combination of advertising, sales promotion,
publicity, and personal selling.
S involves selection of media