Transcript Chapter 1 Prin of Mrktingx

MARKETING IS ALL
AROUND US
Chapter 1
The Scope of Marketing
Marketing professionals track
trends and consumer attitudes to
understand buying decisions.
• Marketing is activity, set of institutions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.
Scope of Marketing
• DEFINITION: Marketing includes the process of
planning, pricing, promoting, selling and distributing
ideas, goods, or services to create exchanges that
satisfy customers.
• Marketing is a PROCESS
• The AMA reviews the definition of marketing on a
regular basis to make sure it conforms to current
marketing practices.
• Marketing is ONGOING and it changes
• Good marketers keep up with the trends and
consumer attitudes http://youtu.be/7QUSN5p2vyQ
Ideas, Goods and Services
• Ideas: ex – Politician's platforms http://creativityonline.com/work/zumba-contagious/37063
• Goods – tangible items that have monetary value and satisfy
your needs and wants
ex – cars, furniture, televisions, clothing
• Services – intangible items that have monetary value and
satisfy your needs and wants that you cannot physically touch
ex – dry cleaners, banks, accounting services
Ideas, Goods and Services
• Every time someone sells or buys something and exchange
occurs in the marketplace.
• The marketplace is the commercial environment where
exchanges occurs.
• Examples: stores, internet, financial institutions, catalogs and
more.
Marketing and the Marketing Concept
Seven Marketing Core Functions
Marketing and the Marketing Concept
The process of deciding HOW to get goods into the
consumer hands. Also known as distribution
Gathering information, storing it, and analyzing data on customers
and competition
Understanding the concepts and strategies used to develop &
target specific marketing strategies to select an audience
Decisions that dictate how much to charge for goods and
services in order to make a profit
Obtaining, developing, maintaining, and improving a
product or a product mix in response to market
opportunities
The effort to inform, persuade, or remind current and
potential customers about business’ products or services
Providing customers with the goods and services they want.
The Marketing Concept
• The marketing concept is the idea that a business should strive to
satisfy customers’ needs and wants while generating a profit for
the business.
Desires
Determine
Needs
Anticipate
Satisfy
Customer Relationship Management
• Customer relationship management (CRM) is an aspect of
marketing that combines customer information (through database
and computer technology) with customer service and marketing
communications.
• By using CRM, companies understand their customers’ purchasing
patterns and demographics.
Customer
Information
(Databases)
Customer
Service
Marketing
Communications
Section 1.2
THE IMPORTANCE OF
MARKETING
Economic Benefits of Marketing
• Marketing supports competition and offers benefits to
consumers.
Economic Utility
• Utilities are the attributes of goods or services that make them
capable of satisfying consumers’ wants and needs.
• Form Utility – changing raw materials into usable goods or putting
parts together to make them more useful
• Place Utility – having a product where customers can buy it
• Time Utility – having a product or service available at a certain time
of year or convenient time of day
• Possession Utility – the exchange of a product for money
• Information Utility – involves communication with the consumer
The Benefits of Marketing and the Five Utilities
Section 1.3
FUNDAMENTALS OF
MARKETING
Market and Market Identification
• The term market refers to all the people who might buy a
product.
• All people who share similar needs and wants and who have
the ability to purchase a given product are a market.
• Ex – you could be part of the market for video games, but not
be part of the market for an expensive car.
• You could want an expensive car, but you may not have the means to buy one
• If you liked video games and had the resources to buy them, you would be apart of the
video game market
Consumer versus Organizational Markets
• Consumer Market - consists of consumer who purchase goods and
services for personal use
• Interested in products that will save them money, make lives easier, improve their
appearance, create status in the community or provide satisfaction
• Organizational Market - also known as business-to-business (B2B), includes
all business that buy products for use in their operations
• Most goals and objectives relate to improving profits, increase productivity,
increase sales, decrease expenses or increase efficiency
Market Share
• A market is further described by the total sales in a product
category
• A company’s market share is its percentage of the total sales
volume generated by ALL the companies that compete in a given
market.
U.S. Smartphone Market Share
Market Segmentation and Target Markets
• Market segmentation is the process of classifying customers by
specific characteristics
• The goal of market segmentation is to identify the group of people
most likely to become customers.
• The group that is identified for a specific marketing program is the
target market.
• Target markets are very important because all marketing strategies
are directed to them
• When a business does not identify the target market, its marketing
plan has no focus.
Details About Markets
Customer Profiles
• A customer profile lists information about the target market, such
as age, gender, income level, marital status, ethnic background,
geographic residence, attitudes, lifestyle, and behavior
Marketing Mix
• The marketing mix includes four basic marketing strategies called
the four Ps: product, place, price and promotion
• Product: begins with choosing what products to make and sell
• Product’s features, brand names, packaging, service, and warranty are all part of
the development
• Price: what is exchanged for the product.
• Strategies should reflect what customers are willing and able to pay
• Place: the means of getting the product into the customer’s hands
• Knowing where one’s customers shop helps marketers make place decisions
• Promotion: refers to activities related to advertising, personal
selling, sales promotion, and publicity
• Promotional strategies deal with how marketers tell potential customers about a
company’s products
Market Terms and the Fours Ps of Marketing Mix