Transcript Powerpoint Lecture

CHAPTER
NATURE AND SCOPE
21
OF MARKETING OBJECTIVES
 Discuss the importance of marketing and
its role in the economy.
 List the activities that are a part of
marketing.
 Define basic marketing concepts and the
four elements of the marketing mix.
 Explain the four stages of the product life
cycle.
 ID the consumer goods classifications.
Marketing
 Not always easy to match production
and consumption.
 Producers/consumers need info. to
help them make their decisions
 Marketing - set of activities that get
products from producers to
consumers - but much more than just
transporting
Marketing
 Includes packaging, developing brand
names, determining prices, financing
and storing products and promotion
and many more
 Packaging Engineer
 ASU
 Salary
 Consumers comes into daily contact
with marketing in one form or another
 Organizations engaged in marketing
 Retailers - businesses that sell directly to
final consumers
 Businesses that sell services rather than
products are also included
 Wholesalers - businesses that buy
products from businesses and sell them to
other businesses
 Over 1/3 of all people employed in the US
work in a marketing job or a marketing
business
NATURE OF MARKETING
 Marketing Activities - pg 547
 These activities must occur before a product
can be advertised and sold
 Buying
 Selling
 Transporting
 Storing
 Financing
 Researching
 Risk taking
 Grading and valuing
NATURE OF MARKETING
 Cost of Marketing
 Role of Marketing
 Production oriented
 Sales oriented
 Customer oriented
 A Co. that has adopted the marketing
concept will have a marketing manager
who is part of top management and is
involved in all major decisions--work
closely with other people in co. and they
strive for customer satisfaction
NATURE OF MARKETING
 Market Determination--must determine the
market it wants to serve
 Market=types of buyers a bus. wishes to
attract and where those buyers are
located
 Whom to serve - demographics
 Where to serve - geographic
 Identifying target markets - groups of
customers w/ similar needs; do market
research to ID market before products are
even developed
Elements of Marketing – 4 Ps
 Product - pg 552
 Price - pg 553--not the easiest to
determine
 Distribution (Place) - pg 554
 Promotion - pg 555
 Advertising
 Personal selling
 Marketing Mix - blend of all decisions
related to product, price, place, promotion
MARKETING PLAN
Marketing Plan — detailed written
description of all marketing activities that
a business must accomplish and
coordinate in order to sell its products
Describes goals, target markets,
marketing mixes and identifies the ways
in which the business will evaluate if the
activities were successful and if the goals
were accomplished
Written for a one year period
PRODUCT LIFE CYCLE
Four stages of sales and profit
performance through which ALL brands of
a product progress:
Introduction
 Brand new product enters the market; no
competition; low profits at this time due to
high costs or production and marketing a
new product; counting on future sales
Growth
 When several brands of a new product are
available, life cycle changes to growth
stage; each company tries to attract
customers to it specific brand; usually make
a profit at this stage
PRODUCT LIFE CYCLE
Maturity
 Product has been purchased by large
numbers; quite profitable; many
competing brands; loyalty develops at this
stage; promotion of brand name,
packaging, image, promotion and price
are often emphasized at this stage; profits
begin to fall at the end of the maturity
stage; reintroduce old products
Decline
 Occurs when a new product is introduced
that is much better or easier to use;
customers begin to switch; may find new
uses for old products
PRODUCT
LIFE CYCLE
$
Sales
Introduction
Growth
Maturity
Decline
Profits
CONSUMER PRODUCTS
 Industrial goods
 Products designed to be used by another
business or incorporated into products:
aluminum, bricks, steel; bought in large
quantities
 Consumer goods
 Products designed for personal or home
use; bought in small quanitites




Convenience goods
Shopping goods
Specialty goods
Unsought goods
Consumer Goods
 Convenience goods
 Inexpensive items; bought w/o much
thought: groceries
 Shopping goods
 Purchased less frequently than
convenience goods, higher price, require
some buying thought; comparable
shopping
 Specialty goods
 Products customers insist on having and
are willing to search for them
Consumer Goods
 Unsought goods
 Customers do not shop for these; no
strong desire to have them; present a
difficult marketing problem.
Consumer Goods
 Unsought goods
Ex: life insurance, encyclopedias, funeral
services
Usually have to go to the customer and
use personal selling to discuss the need
for the product