What Is Marketing? 1. Defined: The process of developing, promoting, and distributing products to satisfy customers needs and wants.

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1 What Is Marketing? 1. Defined: The process of developing, promoting, and distributing products to satisfy customers needs and wants. Development + Promotion + Distribution = Happy Customer

2 1. Products goods and services that have monetary value 2.Goods things you can touch or hold 3.Services you can t physically touch tasks performed for a customer

3 Functions of Marketing 1. Activities that work together to get goods and services from producers to consumers 1) Channel Management 2) Marketing Information Management 3) Market Planning 4) Pricing 5) Product Service Management 6) Promotion 7) Selling 2.Each is essential

4 Channel Management 1. Process of deciding how to get goods into customers hands.

5 Marketing Information Management 1. Getting information to make sound business decisions - Gathering, storing, and analyzing information, customers, trends, and competing products 2. Usually obtained through marketing research.

6 For example, after a stay at a luxury hotel, you fill out a form rating the service and accommodations.

7 Market Planning Understanding concepts and strategies used to develop and target specific marketing strategies to a select audience

8 Pricing 1. How much to charge to maximize profits

9 Product Service Management Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.

10 Promotion 1. Communicating with potential customers to inform, persuade, or remind them about a business s products

11 Selling 1. Planned, personalized communication that influences purchasing decisions

12 The Global Economy 1. Marketers are found at every level of business. 2.Nearly all business decisions have a Marketing element. 3.Marketing changes the: A. Number, (increased variety) B. Quality, (better quality because of competition) C. and Price (lower price because of competition) of products that you can buy.

13 The Marketing Concept 1.Businesses must satisfy customers needs and wants in order to make a profit.

14 When Henry Ford first created the Model T, he was the only one mass producing cars. He didn t have to think about The Marketing Concept. But, as more and more producers started making cars, they had to think about what customers need and want in order to stay in business. Click on the Model T Ford to see Henry Ford s thoughts about car color in the early 1900 s.

15 Imagine if, in today s world, you could only buy black. Many customers would not be very happy!

16 Today s buyer wants a choice!

17 The Marketing Concept 1. If automobile manufactures do not give their consumers a choice (what they want), they will not stay in business. 2.That concept is true for all businesses. 3.Companies sell what Customers want.

18 Economic Benefits of Marketing 1. Marketing bridges the gap between you and the maker or seller of an item

19 Economic Benefits of Marketing New and Improved Products --businesses look for opportunities to please the customer

20 Economic Benefits of Marketing Lower Prices marketing activities add value and increase demand. When demand is high, manufacturers can produce at a lower price. They can sell at a lower price but increase the quantity sold. Thus, profits are higher even though prices are low.

21 Economic Benefits of Marketing 1.It adds VALUE

22 Market 1. Market all potential customers who have the ability and willingness to buy

23 Target Marketing 1. Focusing all Marketing efforts on a very specific group of people who you want to reach.

24 1. Customers people who buy the product 1. Consumers people who actually use the product Is mom the customer or the consumer? What about the kids?

25 Marketing Mix Basic marketing strategies the four P s 1. Product 2. Place 3. Price 4. Promotion

26 Product Strategies 1. What product to make 2.How to package it 3.What brand name to use 4.What image to project

27 Place Strategies 1. How and where a product will be distributed.

28 Price Strategies 1. Reflect what customers are willing and able to pay.

29 Promotion Strategies 1. How potential customers will be told about the new product 2.What the message will be 3.When and where it will be delivered 4.What inducements are there to purchase it

30 The Marketing Mix 1. The elements are interconnected Product Place Price Promotion

31 The Marketing Mix The 4 P s 1. Contains countless alternatives. 2.Management must select a combination of marketing mix decisions that will satisfy target markets and achieve organizational goals. Product & Place & Price & Promotion = Goals

32 Analyzing Markets 1.Market segmentation is a way of analyzing a market by specific characteristics as in order to define the target market.

33 Types of Segmentation: 1. Demographics 2. Psychographics 3. Geographics 4. Behavioral

34 Demographics 1. Demographics statistics that describe a population in terms of personal characteristics. Demographics include: 2. Age A. Baby Boom Generation B. Generation X C. Generation Y 3. Gender 4. Marital Status 5. Ethnic Background

35 U.S. Trend The percentage of the Caucasian population is declining, while other ethnic populations increase.

36 Psychographics 1. Involves grouping people with similar lifestyles, as well as shared attitudes, values, and opinions. A. Activities B. Attitudes C. Personality & Values

37 Music teachers, dancers, and other music lovers would be one category of people who share psychographic characteristics.

38 VALS is a marketing and consulting tool that helps businesses worldwide develop and execute more effective strategies. The system identifies current and future opportunities by segmenting the consumer marketplace on the basis of the personality traits that drive consumer behavior. VALS applies in all phases of the marketing process, from new-product development and entry-stage targeting to communications strategy and advertising. Click on VALS to learn more and to take a survey to determine your VALS type

39 Geographics 1. Geographics Segmentation based on where people live A. Political Boundary B. Climate C. Natural Boundary

40 Behavioral Segmentation 1. Looking at the benefits desired by consumers, shopping patterns, and usage rate. Market benefits, not just the physical characteristics of a product

41 Behavioral Segmentation 1. Many businesses find that the 80/20 rule applies % of a company s sales are generated by 20 % of its loyal customers.

42 Mass Marketing Vs Segmentation 1. Mass marketing not as popular as it once was. 2.Niche marketing (the current trend) markets are narrowed down and defined with extreme precision.