Transcript Marketing-Information Management

1.01b Marketing
Functions
Work The Big Six
Marketing functions like parts
of a game...
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You must understand ALL parts
to win
Forgetting any function gives
competitors an advantage
Losing might be the result
6 FUNCTIONS of Marketing
1.
2.
3.
4.
5.
6.
Product Service Management
Marketing Information
Management
Pricing
Distribution
Promotion
Selling
Product/service Management
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Designing, producing, maintaining,
improving, and obtaining products to
meet customer’s wants and needs.
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What do customers want
Is the package appropriate
Does the product meet standards
What is the image of the business or
product
ANYTHING to do with the actual
product
Responsible for product life cycle
Marketing-Information
Management
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Gathering information (such as customer
buying habits, prices customers are
willing to pay for products, or test
marketing potential new products),
analyzing information, and utilizing
information for use in making marketing
decisions.
Who, What, Why, When, Where
 Questionnaires and Surveys
 Data Mining
 Product movement
Pricing
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Decides how much to charge so:
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It is important to consider what
competitors are charging and the
amount customers are willing and able
to pay.
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Customers want to buy
Business makes a profit
For example, when deciding what price to
charge for their latest athletic shoe, Nike
must take into consideration the cost of
producing, promoting, and distributing the
shoe.
Adjust prices when necessary
Channel Management
(Distribution)
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Channel Management
(logistics) is overseeing the
distribution process -- channel of
distribution -- movement of
product/services from producer
to consumer
Moving, storing, locating and/or
transferring ownership of
products
Promotion
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Communication used to inform,
persuade, or remind customers
about a business’s products. The
most common form of promotion is
advertising.
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For example, McDonalds decides to
broadcast a 30 second television
commercial during the Super Bowl.
Promotion (con’t)
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Advertising
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Publicity
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Television, radio, newspaper, magazine,
directory, online
Direct mail
Out-of-home—billboards and transit
News releases, press conferences,
personal appearances by celebrities,
special events, feature articles
Sales Promotion
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Displays, samples, contests, coupons,
trade shows, demonstrations, novelty
items
Selling
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Determining and responding to
customer’s wants and needs through
personalized communication. It is
intended to influence purchase
decisions and increase customer
satisfaction.
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For example, at The Limited, Taylor
searchers for a birthday present for her
sister, when Gwen (a sales associate)
asks if she could help her find the
correct size.
Importance of Functions in
Business’s Marketing Plan:
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Product/Service Management
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Offer products that are needed/wanted
Carry products that attract target market
Decide on image to project
Marketing Information Management
(MIM)
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Prevents guessing
Research helps predict the future, find
out if customers are happy and helps
keep up with the times
Importance of Functions
(con’t):
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Pricing
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Set prices customers are willing and
able to pay
Cover costs and make profit
Know when to adjust
Channel Management (distribution)
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Must have products to sell
Best method of transport
Right level of inventory
Importance of Functions
(con’t):
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Promotion
Tells about products
 Attracts attention
 Generates interest
 Draws customers to business
 Creates image
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Importance of Functions
(con’t):
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Selling—contact with customers
Creates a positive experience for
customers
 Meeting needs and offering most
appropriate products
 Benefits everyone—businesses,
consumers and society
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Inter-relationship
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The 6 functions MUST work
together to get goods and
services from producers to
consumers
If any one function is not doing
its job the others are affected
Functions are important in
carrying out a business’s
marketing plan
Business success…
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Comes from effectively carrying
out the six marketing functions
Profits are earned
 Relationships are established with
customers
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