Transcript Marketing
Marketing
What is Marketing?
In your own words, describe what marketing is
You will be able to…
List common marketing activities and define
the marketing concept
Explain the two steps in marketing planning
Explain the advantage of small businesses in
providing customer service
Marketing
All of the activities performed to insure the exchange of goods and
services between businesses and consumers
How many different products/services are there available to
purchase?
Now choose one.
How many different “types” of that product/service are there
available to purchase?
Multiply those numbers by the millions of americans
companies are trying to get to be customers.
How can businesses insure that the products and services
they offer are available to the consumers who want them
with the information needed to help them decide to buy?
The Goal of Marketing
Is to get the RIGHT product or service,
to the RIGHT place,
at the RIGHT time,
at the RIGHT price,
and persuade customers to make a purchase decision
In a nut shell
• Marketers:
Use research to determine wants and needs of consumers
2. Test new ideas with consumers
1.
Why is Marketing Important?
About ½ of every dollar you spend pays for marketing costs.
Successful marketing allows :
consumers to get the products and services they want at an affordable
price
Businesses to sell their products at a profit
Effective Marketing leads to SATISFYING EXCHANGES BETWEEN
BUSINESSES AND CONSUMERS
Marketing and Capitalism
A free market or capitalistic society is based off of what?
Voluntary Exchanges
Business are free to decide what to produce and sell
Consumers are free to decide what to buy and are willing to
pay
Marketers serve as intermediaries, helping to match
production decisions of producers to consumption
decisions of consumers
9 Functions of Marketing
Marketers perform HUNDREDS of activities
Some work directly for a business that produces the goods
and services
Marketing researchers and sales people
Others operate their own service business
Advertising agencies and transportation companies)
Consumers can also perform marketing activities
Renting a trailer to move a new appliance rather than paying a
delivery company
Marketing Functions
In order for an exchange to occur, there are 9 FUNCTIONS
OF MARKETING that must be completed
Buying
Selling
Product/Service Planning
Promotion
Pricing
Marketing Information Management
Financing
Physical Distribution
Risk Management
9 functions of marketing
https://prezi.com/ic_jqertifrt/understanding-marketing-
functions/
Pop Quiz
Clear your desk
Take out a piece of paper
Number it 1-9
List the 9 functions of Marketing
Review
What is marketing?
All of the activities performed to insure the exchange of goods
and services between businesses and consumers
What is the goal of marketing?
Is to get the RIGHT product or service, to the RIGHT place, at the
RIGHT time, at the RIGHT price, and persuade customers to
make a purchase decision
About what percent of every dollar spent goes towards
marketing costs?
50%
We know…
That successful marketing leads to SATISFYING
EXCHANGES BETWEEN BUSINESSES AND
CONSUMERS
But why?
Marketing Concept
The most important aspect of marketing is satisfying
customer needs
A business that keeps the focus on satisfying customer needs
follows the Marketing Concept
Market Orientation vs. Sales
Orientation
Sales Orientation
Market Orientation
What is the Organization's
focus?
What business are you in?
To whom is the product
directed?
What is your primary goal?
How do you seek to achieve
your goal?
Inward, upon the
organization's needs
Selling goods and services
Everbody
Profit through maximum sales
volume
Primarily through intensive
promotion
Specific groups of people
Profit through customer
satisfaction
Through a coordinated
marketing strategy
Satisfying customer wants and
Outward, upon the needs and
needs and delivering superior
wants of consumers
value
Market Orientation vs. Sales
Orientation
Sales Orientation
Market Orientation
What is the Organization's
focus?
What business are you in?
To whom is the product
directed?
What is your primary goal?
How do you seek to achieve
your goal?
Inward, upon the
organization's needs
Selling goods and services
Everbody
Profit through maximum sales
volume
Primarily through intensive
promotion
Specific groups of people
Profit through customer
satisfaction
Through a coordinated
marketing strategy
Satisfying customer wants and
Outward, upon the needs and
needs and delivering superior
wants of consumers
value
Market Orientation vs. Sales
Orientation
Sales Orientation
Market Orientation
What is the Organization's
focus?
What business are you in?
To whom is the product
directed?
What is your primary goal?
How do you seek to achieve
your goal?
Inward, upon the
organization's needs
Selling goods and services
Everbody
Profit through maximum sales
volume
Primarily through intensive
promotion
Specific groups of people
Profit through customer
satisfaction
Through a coordinated
marketing strategy
Satisfying customer wants and
Outward, upon the needs and
needs and delivering superior
wants of consumers
value
Defining a firms business in terms of the benefits the customer seeks:
•
•
•
Ensures the firm focuses on customer needs
Encourages innovation/creativity in addressing those needs
Stimulates awareness in customer desires and preferences to keep product offerings relevant
Market Orientation vs. Sales
Orientation
Sales Orientation
Market Orientation
What is the Organization's
focus?
What business are you in?
To whom is the product
directed?
What is your primary goal?
How do you seek to achieve
your goal?
Inward, upon the
organization's needs
Selling goods and services
Everbody
Profit through maximum sales
volume
Primarily through intensive
promotion
Specific groups of people
Profit through customer
satisfaction
Through a coordinated
marketing strategy
Satisfying customer wants and
Outward, upon the needs and
needs and delivering superior
wants of consumers
value
Because most potential customers are not “average,” they are NOT likely to
be attracted to an average product marketed to an average consumer.
“Average” Shampoo?
•
Hello Hydration
•
Tousle Me Softly
•
Totally Twisted
•
Touchably Smooth
•
Hydralicious
•
Color Me Happy
•
Long-Term Relationship
•
None of your Frizzness
•
Body Envy
•
Drama Clean
Market Oriented organizations recognize that consumer needs
and wants vary, so they develop different goods, services, and
promotional appeals
Market Orientation vs. Sales
Orientation
Sales Orientation
Market Orientation
What is the Organization's
focus?
What business are you in?
To whom is the product
directed?
What is your primary goal?
How do you seek to achieve
your goal?
Inward, upon the
organization's needs
Selling goods and services
Everbody
Profit through maximum sales
volume
Primarily through intensive
promotion
Specific groups of people
Profit through customer
satisfaction
Through a coordinated
marketing strategy
Satisfying customer wants and
Outward, upon the needs and
needs and delivering superior
wants of consumers
value
Marketing Oriented Organizations emphasize LONG-TERM
RELATIONSHIPS by:
•Creating customer VALUE
•Providing customer SATISFACTION
Marketing Orientation Goal
Market Orientation vs. Sales
Orientation
Sales Orientation
Market Orientation
What is the Organization's
focus?
What business are you in?
To whom is the product
directed?
What is your primary goal?
How do you seek to achieve
your goal?
Inward, upon the
organization's needs
Selling goods and services
Everbody
Profit through maximum sales
volume
Primarily through intensive
promotion
Specific groups of people
Profit through customer
satisfaction
Through a coordinated
marketing strategy
Satisfying customer wants and
Outward, upon the needs and
needs and delivering superior
wants of consumers
value
Marketing Strategy
A two-step process for successfully planning and marketing
products and services
Step one
Identifying a Target Market
Step two
Developing a Marketing Mix
Target Market
A clearly identified group of consumers with similar wants
and needs
Do Now
How is a marketing orientated company different from a
sales orientated company?
Give examples of both
What is a marketing strategy?
What is a target market?
Marketing Mix
• What are we going to
sell that satisfies
consumers needs?
• How much are we going
to charge? Will we accept
credit?
• How will we get our
product to
consumers? Places
they are sold and ways
they are available
Product
Place
Price
Promotion
• How will we
communicate to
consumers and
encourage them to make
a purchase?
Product
The product includes more than just the physical good
It also includes:
Brand name
Packaging
Accessories
Services which increase
customer satisfaction
Price
Consumers compare prices to the satisfaction they believe
they will receive
When satisfaction is greater than price, consumers make
purchases
Goals of pricing
Cover costs and make profit
2. Set price so consumers view as good value
3. Set price to stay competitive with other companies
1.
Factors that Influence Price
• Supply and demand
• The quantity purchased
• Level of customer service offered
• How fragile the product is
• The number of businesses in distribution channel
• The amount of advertising and communication necessary to
inform consumers
Place
Several decisions need to be made when planning product
distribution.
Where will products be sold?
How will we get them there?
How will they be packaged and protected?
Channels of Distribution
• The paths that products travel from producer to consumer
– Direct channel – producer – consumer
– Indirect channel – producer – middleman – consumer
– Direct:
– Indirect:
Middlemen
Anyone in the middle that moves a product from producer to
consumer
Wholesaler
A Business that sells goods in large quantities to be retailed by
others
Buys directly from manufacturer/producer
Sells in bulk
Stores and ships products to retailers or smaller wholesalers
Retailer
A business that sells directly to consumer
Buys products from different manufacturers
prices products
displays products
makes it easy for you to buy
Promotion
The marketing tool businesses use to communicate with
consumers to persuade them to purchase its products
Role of promotion
To attract new customers, promotion is used
to Inform prospective customers
to Persuade them their product is the best choice
Once customers have bought product, promotion is used
to Reinforce their purchase decision
to Remind them of how it meets their needs
Promotional methods
• Advertising – information paid for by business to reach large
number of prospective customers
• Sales promotions – incentives for customers to buy products
(coupons, contests, free samples)
• Publicity – information not paid for by the business
• Personal selling – direct, personal communication between a
salesperson and customer to encourage the purchase of a
product
Which is it?
Which is it?
Which is it?
Which is it?
Old Spice Commercial