Transcript User_856520112016MarketingBasics

Marketing Basics
MAN-120
Professor Renata Mayrhofer
What is Marketing?
• NOT simply advertising and selling
• NOT manipulating people into buying what they
don’t want or need
• NOT tricks, dishonesty, & empty promises
aimed at deceiving the customer
Marketing
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A systematic approach to satisfying customers
A group of activities
An exchange relationship
Research based
Informs
Expedites product into customers’ hands
Changes with changing demographic
Importance of Marketing
• A necessary function to reaching consumers,
establishing relationships, and driving sales
• Essential in communicating the value of
products and services
• Needed to spread awareness and achieve
desired outcomes
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All organizations must reach their target
markets, communicate their offerings, and
establish high-quality services
Functions of Marketing
Marketing Concept
• What do customers want?
▫ Goods, Service, or Idea
• How do we get that to the customer?
• How do we keep pace with changing customer
needs?
• How do we achieve own business objectives at
the same time?
▫ Productivity, Market Share, Profit
Marketing Strategy
• A plan of action for developing, pricing,
distributing, & promoting products that meet
the needs of specific customers
• Two major components:
▫ Selecting target market
▫ Developing appropriate “marketing mix” to satisfy
that target market
Target Market
• A specific group of consumers upon whose needs
and wants a company focuses its marketing
efforts
Market Segmentation
• A strategy whereby a firm divides the total
market into groups of people who have relatively
similar product needs
Target Market Strategy
The Marketing Mix
Product
A complex mix of tangible & intangible attributes that
provide satisfaction
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Good – physical entity you can touch (a car,
computer, or adopted kitten)
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Service – intangible benefits to customers (Air
travel, dry cleaning, or haircuts)
 Idea – a concept, philosophy, image, or issue
(political party, church)
Price
A value placed on an object exchanged between a
buyer and a seller
Place or Distribution
• Making products available to customers in the
quantities desired
 Transporting
 Warehousing
 Materials handling
 Inventory control
Promotion
Includes
▫ Advertising
▫ Personal selling
▫ Publicity
▫ Sales promotion
Marketing Research
A systematic, objective process of getting
information about potential customers to guide
marketing decisions, including data on
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Age
Income
Ethnicity
Educational level
How frequently they purchase the product
Primary Data
• Marketing information observed, recorded, or
collected directly from respondents
• “Mystery shoppers”, surveys, focus groups
• Passive observation of consumer behavior
Secondary Data
• Information compiled inside or outside an
organization for some purpose other than
changing the current situation
• Marketers use information compiled by
▫ U.S. Census Bureau
▫ Other government agencies
▫ Databases created by marketing research firms