Presentation on theme: "Marketing Is All Around Us What You’ll Learn . . ."— Presentation transcript:
1 Marketing Is All Around Us What You’ll Learn . . . The Functions of MarketingUnderstand the Marketing ConceptMarketing UtilitiesDefine a Target MarketUnderstand how Markets are Segmented
2 Standard 1 Day 1 Students will learn: The meaning of marketing The functions of marketingMarketing's importance in a global economyThe Marketing Concept
3 What Is Marketing?Defined: The process of developing, promoting, and distributing products to satisfy customers’ needs and wants.Development Promotion Distribution = Happy Customer
4 Products – goods and services that have monetary value Goods – things you can touch or holdServices – you can’t physically touch – tasks performed for a customer
5 Functions of Marketing Activities that work together to get goods and services from producers to consumersDistributionFinancingMarketing Information ManagementPricingProduct Service ManagementPromotionSellingEach is essential
6 DistributionDeciding where and to whom products need to be sold to reach the final users.
7 FinancingGetting the money necessary to operate a business
8 Marketing Information Management Getting information to make sound business decisions. Usually obtained through marketing research
9 For example, after a stay at a luxury hotel, you fill out a form rating the service and accommodations.
11 Product Service Management Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities.
12 PromotionCommunicating with potential customers to inform, persuade, or remind them about a business’s products
13 SellingPlanned, personalized communication that influences purchasing decisions
14 The Global Economy Marketers are found at every level of business. Nearly all business decisions have a Marketing element.Marketing changes the:Number, (increased variety)Quality, (better quality because of competition)and Price (lower price because of competition)of products that you can buy.
15 The Marketing ConceptBusinesses must satisfy customers’ needs and wants in order to make a profit.
16 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.
17 Imagine if, in today’s world, you could only buy black Imagine if, in today’s world, you could only buy black. Many customers would not be very happy!
19 The Marketing ConceptIf automobile manufactures do not give their consumers a choice (what they want), they will not stay in business.That concept is true for all businesses.Companies sell what Customers want.
20 Standard 1 Day 2 Students will understand: The Economic Benefits of Marketing.The meaning of economic utility.The five economic utilities and how to distinguish the four that are related to marketing.
21 Economic Benefits of Marketing Marketing bridges the gap between you and the maker or seller of an itemMARKETING
22 Economic Benefits of Marketing New and Improved Products --businesses look for opportunities to please the customer
23 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.
25 Added Value = Utility There are five types of Utility: Form Place Time PossessionInformationAttributes of a product or service that make it capable of satisfying consumers’ wants and needs.
26 Form Utility Sand into glass Wood into paper Silk into fabric Changing raw materials into goods– making and producing things.Sand into glassWood into paperSilk into fabric
27 Place Utility Having a product where customers can buy it. It Includes:Location – may be through a catalog or at a retailer (actual store) – or, Internet.Transporting the product to the location.
28 Time UtilityHaving a product available at a certain time of year or a convenient time of day.Planning and orderingTime of day and weekTime of year: holidays and seasons
29 Possession UtilityThe exchange of a product for some monetary value.
30 Payment may be made by: Cash Personal checks Credit cards Installments (layaway)
31 Information Utility Involves communication with the consumer. Ads PackagingSignsDisplaysOwner’s Manuals
32 Which types of utility are related to marketing? Form utility is a function of production, NOT marketing
33 These utilities ARE directly related to marketing: PlaceTimePossessionInformation
34 Standard 1 Day 3 Students will be able to: Define a market Describe target marketingDifferentiate between customers and consumersUse the four P’s of the marketing mix
35 MarketMarket – all potential customers who have the ability and willingness to buy
36 Target MarketingFocusing all Marketing efforts on a very specific group of people who you want to reach.
37 Customers – people who buy the product Consumers – people who actually use the productIs mom the customer or the consumer?What about the kids?
38 Marketing Mix Basic marketing strategies – the four P’s Product Place PricePromotion
39 Product Strategies What product to make How to package it What brand name to useWhat image to project
40 Place StrategiesHow and where a product will be distributed.
41 Price StrategiesReflect what customers are willing and able to pay.
42 Promotion StrategiesHow potential customers will be told about the new productWhat the message will beWhen and where it will be deliveredWhat inducements are there to purchase it
43 The Marketing Mix The elements are interconnected Product Place Price Promotion
44 The Marketing Mix – The 4 P’s Contains countless alternatives.Management must select a combination of marketing mix decisions that will satisfy target markets and achieve organizational goals.Product & Place & Price & Promotion = Goals=
45 Standard 1 Day 4 Students will: Understand the concept of market segmentation.Define the term market segmentation.Understand the four methods used to segment a market.Understand current demographic, psychographic, and geographic trends
46 Analyzing MarketsMarket segmentation is a way of analyzing a market by specific characteristics as in order to define the target market.
47 Types of Segmentation: DemographicsPsychographicsGeographicsBehavioral
48 DemographicsDemographics – statistics that describe a population in terms of personal characteristics. Demographics include:AgeBaby Boom GenerationGeneration XGeneration YGenderMarital StatusEthnic Background
49 U.S. Trend – The percentage of the Caucasian population is declining, while other ethnic populations increase.
50 PsychographicsInvolves grouping people with similar lifestyles, as well as shared attitudes, values, and opinions.ActivitiesAttitudesPersonality & Values
51 Music teachers, dancers, and other music lovers would be one category of people who share psychographic characteristics.
52 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
53 Geographics Geographics – Segmentation based on where people live Political BoundaryClimateNatural Boundary
54 Behavioral Segmentation Looking at the benefits desired by consumers, shopping patterns, and usage rate. Market benefits, not just the physical characteristics of a product
55 Behavioral Segmentation Many businesses find that the 80/20 rule applies.80 % of a company’s sales are generated by 20 % of its loyal customers.
56 Mass Marketing Vs Segmentation Mass marketing not as popular as it once was.Niche marketing (the current trend) – markets are narrowed down and defined with extreme precision.