Transcript What is Marketing?

What is Marketing?
- all of the activities involved in the
planning, pricing, promoting,
distributing and selling of goods and
services TO SATISFY CONSUMERS’
NEEDS AND WANTS.
Which Types of Businesses
Need Marketing?
All businesses need marketing:
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Manufacturers market their products to
potential consumers.
Service businesses market their expertise to
potential customers.
Not-for-profit organizations market their
cause to potential donors
True marketing starts out with the customers, their
demographics, related needs and values.
It does not ask, “What do we want to sell?”
It asks , “What does the customer want to buy?”
It does not say, “This is what our product or service
does.”
It says, these are the satisfactions the customer
looks for.”
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Peter Drucker
The Marketing Mix
(4 P’s of Marketing)
Major marketing management decisions can be
classified into four categories:
 Product
 Price
 Place (distribution)
 Promotion
These are the variables that marketing managers can
control in order to best satisfy their target customers.
They must be combined properly to be effective.
Product
-factors dealing with developing the RIGHT
product/service for the Target Market:
 What need or want does this product meet*?
 High / low quality
 Taste / smell / size
 Services included: delivery?
Place
-factors dealing with getting the RIGHT
product/service to the Target Market:
 Direct Distribution – sells to consumers at
a farm, bakery or factory outlet
 Indirect – wholesalers, retailers
 Specialty – vending machine, catalogue, web
site (Jones Cola)
 Urban / suburban / rural
Price
-factors dealing with establishing the RIGHT price.
 Estimate likely profit at various prices
 How price sensitive (elastic) is this product?
 What are prices of competitive products?
want to price higher than competition, must
promote additional value)
 Is this a luxury or value product?
(if
Promotion
-factors dealing with communicating to the Target Market
about the RIGHT product, at the RIGHT place to find it, for
the RIGHT price.
 Advertising
 Sales Promotion:
Coupons (redemption rate indicates success)
Contest, e.g. “Roll Up the Rim to Win”
Premiums – consumer gets free with purchase of
product (includes loyalty cards, e.g. 10th purchase free)
Sampling – encourages product trial
 Publicity