Transcript market - Cloudfront.net

Unit 1
The World of
Marketing
Chapter 1 Marketing Is All
Around Us
Chapter 2 The Marketing
Plan
Marketing
and the
Chapter
1 Marketing
Concept
Marketing Is All Around Us
• Section 1.1 Marketing and the Marketing Concept
• Section 1.2 The Importance of Marketing
• Section 1.3 Fundamentals of Marketing
Key Terms
marketing
goods
services
marketing
concept
CRM
Marketing and the Marketing Concept
Objectives
 Define marketing
 List the seven functions of marketing
 Understand the marketing concept
Marketing Essentials Chapter 1, Section 1.1
Ideas, Goods, and Services
marketing
Marketing promotes ideas,
goods, and services.
Examples of ideas that might
be marketed are:
The process of
planning, pricing,
promoting,
selling, and
distributing
products to
satisfy customers’
needs and
wants.
• A candidate’s political
platform
• A public service initiative,
such as don’t smoke or
stay in school
This ad promotes the idea of a healthy diet
that includes dairy products
Marketing Essentials Chapter 1, Section 1.1
goods
Tangible items
of monetary
value that satisfy
needs and
wants.
services
Intangible
items of
monetary value
that satisfy
needs and
wants.
Examples of marketed
goods include:
 Cars
 Electronics
 Home furnishings
 Foods
Examples of services that
may be marketed are:
 Automotive repair
 Hair styling
 Legal aid
 Financial consulting
Marketing Essentials Chapter 1, Section 1.1
Seven Functions of Marketing
1.
Distribution getting goods to customers
2.
Financing acquiring money to set up and
run a business
3.
Marketing information management
researching customers, trends, and
competitors
4.
Pricing charging for goods and services to
make a profit
Marketing Essentials Chapter 1, Section 1.1
Seven Functions of Marketing
5.
Product/service
management obtaining,
developing, maintaining,
and improving a product or
service
6.
Promotion informing,
persuading, and reminding
customers about a product
or service
7.
Selling providing
customers with goods and
services
Marketing Essentials Chapter 1, Section 1.1
The Marketing Concept
marketing
concept
Businesses
should satisfy
customers’ needs
and wants while
making a profit.
The marketing concept focuses on satisfying the
needs and wants of customers. For a business to
be successful, all employees must:
 Understand the marketing concept
 Provide the best possible service to customers
Marketing Essentials Chapter 1, Section 1.1
The Marketing Concept
Customer relationship
management (CRM) combines:
 Customer information
 Marketing communications
CRM uses customer
information to create
meaningful marketing
communications. The goal of
CRM is to establish strong,
long-term relationships with
customers.
Marketing Essentials Chapter 1, Section 1.1
SECTION 1.1 REVIEW
1. Explain two of the seven functions of marketing?
2. Define CRM.
3. What is the marketing concept?
Lets practice!
2011 Top Ten Trends Assignment
1.
2.
3.
4.
5.
6.
7.
8.
Form a group of 4 students
Select one of the top 2011 business trends
As a group, read & discuss the trend.
Identify specific existing products that could be
connected with the selected trend.
Brainstorm a new product for the trend & address
these questions about the product:
• Identify who is the customer for this product?
• What age group would provide the largest
opportunity to sell your products? Why
Does your group feel this is a trend that will continue to
gain market share? Why or why not?
What economic factors might influence the trend?
Report out to the class.
The Importance of Marketing
Key Terms
utility
Objectives
 Analyze the benefits of marketing
 Apply the concept of utility
As you go through this section, note the benefits of
marketing and list the five utilities on your graphic
organizer.
Marketing Essentials Chapter 1, Section 1.2
Economic Benefits of Marketing
Marketing’s benefits to the
economy and consumers are:
 New and improved
products
 Lower prices
 Added value
Marketing Essentials Chapter 1, Section 1.2
New and Improved Products
Marketing generates
competition. In a competitive
marketplace, businesses try to
create new and improved products
to satisfy customers’ wants and
needs. Some examples:
 Food manufacturers know that
on-the-go parents want their
children to start the day with
healthy foods. So Quaker created
Fruit & Oatmeal Toastables® and
Breakfast Squares®.
Marketing Essentials Chapter 1, Section 1.2
New and Improved Products
 Dutch Boy Paints won an award for its
new container design that makes the
container easy to hold and open as paint
is poured.
This ad promotes Dutch Boy Paints’
innovative paint container.
Marketing Essentials Chapter 1, Section 1.2
Lower Prices
Marketing increases demand. When demand is high:
 Products can be produced in larger quantities
 The fixed cost per unit is lower
As a result, a company can:
1. Charge a lower price per unit
2. Sell more units
3. Make more money
In addition, when demand
for products increases:
 More companies enter
the marketplace
Marketing Essentials Chapter 1, Section 1.2
 Companies must lower
prices to remain
competitive
Added Value and Utility
utility
An attribute of a
product or
service that
makes it capable
of satisfying
consumers’
wants and
needs.
The value that marketing adds to a
product or service is called utility
Five utilities contribute to making a
product or service capable of
satisfying customers’ wants and
needs:
 Form putting parts together
to make a product consumers
want
 Place offering a product where
consumers can buy it (e.g. retail
store, catalog, Web site)
Marketing Essentials Chapter 1, Section 1.2
Added Value and Utility
 Time offering a product at a
convenient time of day or year for
consumers
 Possession allowing consumers to
take legal ownership of a product
 Information communicating
information about a product (e.g.
through labeling, advertising, or an
owners’ manual)
Marketing Essentials Chapter 1, Section 1.2
SECTION 1.2 REVIEW
1. How does marketing help to lower
prices?
2. What is meant by the economic
concept of utility?
3. Explain two of the five economic
utilities.
1.2 PRACTICE APPLICATION
Lets practice!
You will now work in teams to
create “Utility Lemonade”.
In your table groups:
1) Create your own lemonade (using the supplies provided).
2) Create a creative “product name” for your lemonade.
3) Record all of your product decisions including:
a) your product name
b) a list of the forms of utility & how they
relate to this product
c) your target audience for this product
Fundamentals of Marketing
Key Terms
market
consumer
market
industrial
market
market share
target
market
customer
profile
marketing
mix
Objectives
 Describe the concept of market
 Differentiate consumer and industrial
markets
 Describe market share
 Define target market
 List the components of the marketing mix
Marketing Essentials Chapter 1, Section 1.3
Market and Market Identification
market
People who share
similar needs
and wants and
are capable of
buying products.
Try to memorize the terms in this section, because
you will use them throughout your study of
marketing! The first important term is market, which
refers to people who:
 Share similar needs and wants
 Have the ability to purchase a product
If you like DVDs and can afford to buy or rent them,
you are part of the DVD market.
Marketing Essentials Chapter 1, Section 1.3
Consumer Versus Industrial Markets
consumer
market
All consumers
who purchase
goods and
services for
personal use.
There are different types of markets with different
goals and objectives. The consumer market
wants products and services that:





Save money
Make life easier
Improve appearance
Create status
Provide personal satisfaction
Marketing Essentials Chapter 1, Section 1.3
Consumer Versus Industrial Markets
industrial
market
Businesses that
buy products to
use in their
operations; also
called the
business-tobusiness market
(this can be
abbreviated as
B-to-B or B2B).
The industrial market, or business-to-business
(B-to-B) market, wants products and services that:
 Improve productivity
 Improve efficiency
 Increase sales
 Decrease expenses
Marketing Essentials Chapter 1, Section 1.3
A single product may be promoted to both
the consumer and industrial markets. For
example, Perdue advertises its chicken and
turkey products:
 On television and in newspapers, to reach
consumers
 In the publication Supermarket News, to
reach professionals in the supermarket
industry
Marketing Essentials Chapter 1, Section 1.3
Market Share
market share
A company’s
percentage of
total sales
volume
generated by all
competition in a
given market.
A company’s market share is its percentage of total
sales in a given market, such as the video game
market. Market share changes as:
 New competitors enter the market
 The market’s volume increases or decreases
Marketing Essentials Chapter 1, Section 1.3
target market
A group of
people identified
as those most
likely to become
customers.
Target Market and Market
Segmentation
Identifying a product’s target market, or the
segment of the market most likely to buy the
product, is a key to success. A single product may
have these two target markets:
 Consumers
 Customers
For example, a nutritious breakfast food would be
targeted at:
 Children who will request it and eat it, the
consumers
 Parents who will approve and buy it, the
customers
Marketing Essentials Chapter 1, Section 1.3
customer
profile
A list of
information
about a target
market, such as
age, income
level, ethnicity,
occupation,
attitudes,
lifestyle, and
geographic
residence.
To develop a clear picture of its target market, a
business may create a customer profile , which lists
such information about the target market as:
 Age
 Income level
 Ethnic background
 Occupation
Demographics
Refers to segmentation of a market in terms
of personal characteristics such as: age,
gender, income, ethnic background,
education, and occupation.
 Attitudes
Psychographics
 Lifestyle
Refers to segmentation of a market based on lifestyle,
and the attitudes and values that shape it.
 Geographic residence
Geographics
Refers to segmentation of a market
based on where people live
Marketing Essentials Chapter 1, Section 1.3
Marketing Mix
marketing mix
The four basic
marketing
strategies, called
the four Ps:
product, place,
price, and
promotion.
The marketing mix X includes four basic marketing
strategies, or tools, called the four Ps:
 product
 place
 price
 promotion
Actions in one of these
areas affect decisions
in another.
Marketing Essentials Chapter 1, Section 1.3
Product
A company must choose what
products to develop, update,
and improve.
Place
A company must decide
where to sell and distribute a
product.
Marketing Essentials Chapter 1, Section 1.3
Price
A company must determine
what it will charge for a
product.
Promotion
A company must decide how
to advertise, promote, and
publicize a product.
Marketing Essentials Chapter 1, Section 1.3
SECTION 1.3 REVIEW
1. What is the key difference between consumer &
industrial markets?
2. Explain the relationship between market
segmentation, target markets and customer profile.
3. Name the four P’s.
4. Explain the importance of a target market for two of
the four P’s?
This chapter has helped prepare you to meet the
following DECA performance indicators:
 Explain marketing and its importance in a global
economy
 Describe marketing functions and related activities
 Determine forms of economic utility created by
marketing activities
 Explain types of business activities
 Prepare simple written reports
1.3 PRACTICE APPLICATION
Lets practice!
You will now work in teams to
understand the Marketing Mix.
In groups of no more than four:
1) Decide on a product that interests you.
2) Look at how it is advertised (form(s) of media used?)
3) Research your product’s price and where it is sold.
4) Identify its target market (customer profile).
5) Create a visual aid with the product name, form(s) of
advertising, price & place (where it is sold), target market
(customer profile – in terms of demographics, psychographics,
geographics, etc).