Transcript MARKETING

UNIT 6
NATURE AND SCOPE OF MARKETING
“ONE CAN BE A SUCCESSFUL MARKETER ONLY IF ONE HAS
ADOPTED THE PROPER MARKETING MIND-SET. THIS MEANS
HAVING A CLEAR APPRECIATION FOR WHAT MARKETING
COMPRISES AND WHAT IT CAN DO FOR THE ORGANIZATION.
MORE IMPORTANT, IT MEANS DEVELOPING A PHILOSOPHY
OF MARKETING THAT PUTS THE CUSTOMER AT THE CENTER
OF EVERYTHING ONE DOES. MARKETING IS NOT
INTIMIDATION OR COERCION. IT IS NOT HARD SELLING AND
DECEPTIVE ADVERTISING. IT IS A SOUND, EFFECTIVE
TECHNOLOGY FOR CREATING EXCHANGES AND
INFLUENCING BEHAVIOR THAT, WHEN PROPERLY APPLIED
MUST BE SOCIALLY BENEFICIAL.”
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WHAT IS MARKETING?
—the process of planning and executing
the conception, pricing, promotion, and
distribution of ideas, goods, and services
to create exchanges that satisfy individual
and organizational objectives
WHICH MEANS WHAT?
--Marketing is used to get goods from
producers but it’s also about what is
involved in the process of getting goods
from producers to you, the consumer.
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THREE PHASES OF MARKETING:
PRODUCTIONS ORIENTED
--EARLY 1900’S
-FEW PRODUCERS, NOT MUCH VARIETY
SALES ORIENTED
--SOME COMPETITION
--FOCUS ON EFFICIENCY, MARKETING STRATEGY
CONSUMER ORIENTED
--INCREASED COMPETITION
--FOCUS ON CONSUMER
--NICHE MARKETING
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WHAT DO YOU THINK THE
CONSEQUENCES WOULD BE IF A
COMPANY PRODUCED PRODUCTS
FIRST AND THEN ATTEMPTED TO FIND
MARKETS IN WHICH TO SELL THE
PRODUCT?
HEARD OF CIRCUIT CITY’S DIVX?
(read handout on divx – highlight
important points as to where Circuit City
went wrong.)
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MARKETING
A process that involves:
1) Planning – what should be produced to
how should it be transported from
manufacturer to your home.
2) Executing the conception – making the
plan become a reality based on
carefully laid out strategies. Did you
create a desire for this product?
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3) Pricing – must be determined
Has a demand for this product been established?
4) Promotion—Does anyone know about your product? How
did you prepare for its debut?
Is there a burning desire to have your product?
5) Distribution of ideas – Have you advertised on TV, internet
billboards, etc. Do you have a spokesperson?
(ex: Geico Gecko lizard)
6) Distribution of goods and services – Do you have a plan
for your goods being stored until the consumer is ready
to purchase them? (ex: warehouses, etc)
Do you have a plan for distribution in general? Logistics
drawn in to deliver a company's goods and services to the
correct place at the right time and at lowest possible costs
7) Create an exchange to satisfy individual and
organizational objectives
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Key to this entire unit:
satisfying exchange relationships.
Those that expect to be successful
year after year must believe in the
goal of customer satisfaction.
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MARKETING:
What to produce
How to produce
How much to produce
What price
What and when to pull from shelves
When to introduce a product…….
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MARKETING ACTIVITIES
The success of a business rests on acceptable
levels of sales, and sales depend on YOU.
Marketing activities have the most direct impact
on achieving success in sales. So how do/did we
acquire new customers?
MARKETING ACTIVITIES – What worked?
1. Make a list of all marketing activities you
used in a year.
2. How many leads you got from each activity.
3. How many leads led to new customers.
4. What it cost for each activity and compare
costs
5. Measure which marketing activities
produced better results than others,
enabling you to continue those that work
and reassign the resource (money or time)
to new activities that may produce better
results.
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Most common marketing activities that have
the most direct impact on achieving
success in sales
1. Buying—finding suppliers who can provide the right
goods in the right quality and quantity and at a fair
price
2. Selling—how well you do gaining customer
satisfaction/loyalty by helping the customer buy your
goods
3. Transporting—how do you get the goods from store to
consumers residence—free delivery, their truck
etc.
4. Storing—most businesses have some form of
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warehousing your goods until sold or needed.
Most common marketing activities continued
5. Financing—Do you want to renovate or expand?
Will you accept credit cards?
Additional expense? 1.8% of purchase price
6. Research and information gathering—how can you
make good business decisions when you have not
researched the needs/wants of the consumer.
7. Risk taking—there is a certain risk--fire, theft, and
other factors can wipe a retailer out
8. Grading and valuing—what determines how
goods/services should be priced?
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WHAT IS THE COST OF
MARKETING A
PRODUCT
--Marketing a product may be higher
than cost of making product
$.42 - $.59
FOR EACH DOLLAR
SPENT
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MARKETING DETERMINATION
(before a company decides to make and distribute a product,
it must):
1. IDENTIFY YOUR MARKET – who is the target? Did you use
market research to identify target market?
What group will be best served by your product.
Considerations: age, gender, education, income,
occupation, population.
2. LOCATION – where are they located?
Is this a good geographic location for my product?
Store location--Why this location? Good Traffic flow?
Accessibility–-easy in and out, traffic light? What is around
this location? Is it close to where target audience shops?
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CHARACTERISTICS OF MARKETS
WHO
WHERE
WHAT
WHO IS THE TARGET?
WHERE ARE THEY LOCATED?
WHAT ARE THEIR NEEDS AND WANTS?
IT ALL STARTS WITH MARKET RESEARCH THAT IDENTIFIES YOUR
TARGET AUDIENCE? Target markets are groups of customers with very
similar needs to whom the company plans to sell its product. If company
can find a group of people with similar needs, it can more easily develop
a product to satisfy each of them.
MAKES SENSE, DOESN’T IT?
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Possible target markets for BICYCLES
Use attached worksheet to complete questions
Age 6-10
first bike
Leisure
biking
comfortable
low
maintenance
Competitive
Biking
Mountain
biking
Lightweight
touring
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Possible target markets for BICYCLES
Use computer to research, if necessary
1.
Describe how products will be different for each of the target markets.
Age 6-10 first bike:___________________________________________________________________________
__________________________________________________________________________________________
Leisure biking (comfortable, low maintenance):_____________________________________________________
__________________________________________________________________________________________
Competitive biking___________________________________________________________________________
__________________________________________________________________________________________
Lightweight touring___________________________________________________________________________
__________________________________________________________________________________________
Mountain biking______________________________________________________________________________
__________________________________________________________________________________________
2. How will marketing have to be different for each target audience?
Age 6-10 first bike:___________________________________________________________________________
__________________________________________________________________________________________
Leisure biking (comfortable, low maintenance):_____________________________________________________
__________________________________________________________________________________________
Competitive biking___________________________________________________________________________
__________________________________________________________________________________________
Lightweight touring___________________________________________________________________________
__________________________________________________________________________________________
Mountain biking______________________________________________________________________________
__________________________________________________________________________________________
TIPS: SUGGEST DIFFERENDCES IN WHERE THE BICYCLES ARE SOLD, THE INFORMATION NEEDED, PRICES
CHARGED, AND HOW THEY ARE PROMOTED.
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FOUR
P’S OF MARKETING
PRODUCT
PRICE
PLACE
PROMOTION
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PRODUCT:
WHAT DOES THE CONSUMER WANT?
Did you do your research?
PRICE:
HOW DO YOU DETERMINE WHAT IS FAIR AND WHAT
THE MARKET WILL BEAR?
(ex: the price must be high enough to cover the costs of
producing and marketing the product. To be considered
also: number of competing products and their prices;
demand for the product; whether the product will be sold
for cash or credit; will coupons, discounts, or promotion
methods be used to attract customers, etc.
Pricing is not an easy marketing decision, is it!!
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PLACE (or distribution)
Retail activities to transport and store products and make
them available to customers. Are you (as the manufacturer)
going to sell your product directly to the retailer or use a
wholesaler which will then sell to the retailer? Are you
selling on-line only? A catalog?
PROMOTION:
What method am I going to use to provide information to
consumers that will assist them in making a decision and
persuade them to purchase a produce or service FROM
ME?
HOW DO I COMMUNICATE WITH MY TARGET MARKET?
SOURCE—the business
CHANNEL –radio, TV, internet site; social media, etc.
MESSAGE—information in the promotion
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RECEIVER – the customer
MARKETING PLAN SIMILAR TO BUSINESS PLAN
YOU WILL DEVELOP
Yes, we’re getting you ready for the Business
Plan you will be doing in a few weeks.
--WRITTEN DESCRIPTION OF ALL MARKETING
ACTIVITES THAT A BUSINESS MUST
ACCOMPLISH IN ORDER TO SELL A PRODUCT
--GOALS
--TARGET MARKET
--MARKETING MIX
--HOW TO EVALUATE TO DETERMINE SUCCESS
--HOW TO EVALUATE WHETHER GOALS
REACHED
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Types of Consumer Products
Products can be classified into two groups:
1.Industrial Goods – products designed for use by another
company. Ex: bricks purchased by building contractors,
aluminum purchased by aircraft manufacturers, computers
purchased by accounting firms.
2. Consumer Goods – products designed for personal or
home use. Ex: jewelry, furniture, magazines, computer
games. Consumer goods require careful marketing attention
because there are so many products and brands available.
A product CAN BE both a consumer and industrial good:
Ex: computers can be purchased for by individuals as well
as businesses.
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Four types of consumer goods:
CONVENIENCE GOODS—
products a consumer purchases frequently with
minimal time and effort—generally inexpensive--candy
and gum, milk, gasoline
SHOPPING GOODS—
higher margin of profit. More expertise required in
selling the product: ex: appliances, furniture, cars
SPECIALTY GOODS—
consumer more conscious about image, brand
name, quality. Higher priced.
ex: fine jewelry, designer clothing, high end autos
UNSOUGHT GOODS—
a company has to go out to the consumer and
convince the customer of the need for this product:
ex: life insurance, stocks and bonds, funeral ins.,
etc.
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PRODUCT LIFE CYCLE
(Successful products move through predictable stages
throughout their product lives)
LET’S USE COMPUTERS AS OUR EXAMPLE
1) INTRODUCTION (expansion) (IBM, APPLE)
new product so little if any competition; sales and profits increase rapidly;
price high
2) GROWTH (peak)
Competitors who were sitting on the sidelines waiting to see how you would do have
now decided to enter the market. Competition increased; demand still higher
than supply so high price; high profits; new improvements introduced –
increased marketing
3) MATURITY (contraction)
Market saturation—little difference Increased marketing, profits dwindle
4) DECLINE (trough)
Only the strong survive. Competition dwindles, efficient companies survive
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