Section 10.1 Introduction to Marketing

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2 10 Marketing

3 Section 10.1 Introduction to Marketing

4 Objectives Describe marketing and its focus on the customer. Explain marketing strategies.

5 Essential Question How can marketing contribute to the success of a business?

6 Importance of Marketing Marketing consists of dynamic activities that identify, anticipate, and satisfy customer demand while making a profit One of the four functions of business Marketing concept is an approach to business that focuses on satisfying customers as the means of achieving profit goals

7 Importance of Marketing

8 Importance of Marketing Four Ps of marketing are the elements of product, price, place, and promotion Product is anything that can be bought or sold Price is the amount of money requested or exchanged for a product Place includes activities involved in getting goods and services to customers Promotion is the process of communicating with potential customers to influence their buying behavior Target market is the specific group of customers whose needs a company will focus on satisfying

9 Importance of Marketing The seven functions of marketing

10 Marketing Strategies Marketing strategy is the plan that helps a business meet its overall goals and objectives Marketing plan is a document describing business and marketing objectives and the strategies and tactics to achieve them First step is identify target market; market identification

11 Marketing Strategies Market segmentation is the process of dividing the market into smaller groups Geographic segmentation is segmenting a market based on where customers live Demographic segmentation is dividing the market of potential customers by their personal statistics Psychographic segmentation is dividing the market by certain preferences or lifestyle choices Behavioral segmentation divides a market by the relationships between customers and the good or service

12 Marketing Strategies Customer profile is a detailed description of the typical consumer in a market segment Mass marketing is marketing to a larger group of people who might buy a product

13 Marketing Strategies Marketing mix is the strategy for using the elements of product, price, place, and promotion

14 Marketing Strategies Product can be changed by adding new features Price can be changed to match new features Place can be changed based on where a product is offered Promotion can be changed to appeal to the target market

15 Section 10.1 Review 1. How is marketing related to the other functions of business? Marketing is one of the four functions of business and is focused on the customer. It consists of dynamic activities that identify, anticipate, and satisfy customer demand while making a profit.

16 Section 10.1 Review 2. What are the three elements of the marketing concept? The three elements of the marketing concept are customer satisfaction, total company approach, and profit. Customer satisfaction is the degree to which customers are pleased with a company s goods or services. Total company approach is all functions of a company working together to achieve goals. Profit is money that a business has left over after all the expenses and costs of running the business are paid.

17 Section 10.1 Review 3. What are the seven functions of marketing? The seven functions of marketing are channel management, marketing-information management (MIM), market planning, pricing, product/service management, promotion, and selling. 4. Explain the concept of market identification. Market identification is the first step in developing a marketing strategy. It involves identifying the target market. These are the people whose wants and needs are fulfilled by the products or services offered by a business. They are the people most likely to buy the products or services.

18 Section 10.1 Review 5. List the four variables used to identify market segments. Four variables used to identify market segments are geographic, demographic, psychographic, and segmentation.

19 Section 10.2 Customers

20 Objectives Describe the types of customers that a business serves. Differentiate between consumer and business buying decisions.

21 Key Terms relationship selling database marketing customer relationship management (CRM) system social influence psychological influence situational influence personal influence impulse buying decision routine buying decision limited buying decision extensive buying decision internal influence external influence situational influence

22 Essential Question How do customer buying decisions affect business strategies?

23 Customer Types Three basic types of customers: Business-to-consumer (B2C) market Business-to-business (B2B) market Government and institutions

24 Customer Types Relationship selling focuses on building long-term relationships with customers Database marketing is a system of gathering, storing, and using customer data for marketing directly to customers based on their histories Customer relationship management (CRM) system is a system to track contact and other information for current and potential customers

25 Customer Buying Decisions Influence: is the power to sway or produce an effect Business-to-consumer (B2C) influences Social influences come from the society in which a person lives Psychological influences come from within a person or why a person has specific needs and wants Situational influences come from the environment Personal influences make each individual unique

26 Customer Buying Decisions

27 Customer Buying Decisions Levels of decision making for consumer purchases

28 Customer Buying Decisions Business-to-business (B2B) influences: Internal influences come from within the business itself External influences come from outside the business Situational influences come from the environment in which the business exists

29 Customer Buying Decisions Levels of decision making for business purchases

30 Customer Buying Decisions Government market includes national, state, and local governments Buy a wide range of goods and services Institutions are public or private nonprofit organizations Buy goods and services to support their activities

31 Section 10.2 Review 1. Identify three types of customers that a business serves. The three basic types of customers are consumers, businesses, and government and institutions. 2. What are four influences that typically affect consumer buying behavior? Consumer buying behavior is typically based on social, psychological, situational, and personal influences.

32 Section 10.2 Review 3. What are the stages of the decision-making process? The stages in the decision-making process are define the problem or need, research, choose the best option, implement the decision, and evaluate the purchase. 4. List the three influences that affect the buying decisions of organizations. The buying decisions of organizations are affected by internal, external, and situational influences.

33 Section 10.2 Review 5. What are the levels of buying decisions for business purchases? The levels of buying decisions for business purchases are new purchase, repeat purchase, and modified purchase.