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Marketing Final Review

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1 Marketing Final Review
Courtesy of Mrs. Whittekiend

2 Define Marketing: The process of planning, pricing, promoting, selling, and distributing products to satisfy customer’s needs and wants.

3 What is a Market? People who share similar needs and wants and are capable of buying products.

4 What is a Market Share? A company’s percentage of total sales volume generated by all competition in a given market.

5 Define Market Segmentation:
The process of analyzing and classifying customers in a given market to create smaller, more precise target markets.

6 Demographics include: age, gender, income, marital status, ethnic background
Geographics include: based on where people live, weather, recreation in the area Psychographics include: activities, attitudes, personalities, values Behavioral include: shopping patterns and purchase decision making process, benefits of the product.

7 The Marketing Mix includes the four basic marketing strategies called the Four P’s. What are the Four P’s? Product Place Price Promotion

8 Define Promotional Mix:
The combination of strategies used to effectively promote and sell a product.

9 What is the difference between a Good and a Service?
Goods: tangible items of monetary value that satisfy needs and wants Services: intangible items of monetary value that satisfy needs and wants

10 Competition is described as:
The struggle between companies to attract new customers, keep existing customers, and take customers away from other companies.

11 The Channel of Distribution is the path a product takes from its producer or manufacturer to the final user.

12 Distribution Channels—Consumer Products

13 Distribution Channels—Industrial Products

14 Functions of Marketing
Distribution: Deciding how to get products into customers’ hands (truck, train, ship, air) Financing: Getting the money that is necessary for setting up and operating a business Marketing Information Management: Gathering information about customers, storing it, and analyzing it

15 Functions of Marketing con’t.
Pricing: Deciding how much to charge for products in order to make a profit Product/Service Management: Obtaining, developing, maintaining, and improving a product mix in response to market opportunities Promotion: To inform, remind, or persuade a potential customers about a businesses’ goods or services Selling: Providing customers with the goods or services they want to buy

16 Utility The attributes of a good or service that make it capable of satisfying consumers’ wants and needs.

17 Utility Form Place Time Possession Information
Taking things of little value and putting them together in a way that makes them valuable Place Having a product where consumers can buy it Time Having a product available at a certain time of year or a convenient time of day Possession The exchange of $$$ for a product Information Communication with the customer (sales people, packaging, advertising, labels, manuals, etc.)

18 Seven Steps of the Sales Process
Approach Determining Needs Presenting the Product Overcoming Objections Closing the Sale Suggestion Selling Relationship Building/Follow-up

19 Closing the Sale Methods for Closing the Sale
Which—”Which one do you prefer?” Standing room only—use when the product is in short supply Direct—use when the buying signal is very strong Service—explain services to overcome obstacles

20 Pre-Approach This is preparation for the first face-to-face encounter you will have with potential customers

21 Suggestion Selling Selling additional goods or services to the customer that will make the original purchase more enjoyable

22 Overcoming Objections
Remember objections are concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase Need Product Price Source Time

23 Law of Demand As the price of a good increases, the quantity demanded decreases (falls) The demand curve rises from the right to the left.

24 Law of Supply As the price of a good increases, the quantity supplied usually increases. The supply curve rises from the left to the right.

25 Equilibrium

26 Factors of Production All of the resources used in producing goods and services Land Labor Capital Entrepreneurship

27 Command Economy An economy in which the government controls the factors of production and makes all decisions about their use.

28 Mixed Economy An economy in which economic decisions are made by the government, individuals, and businesses.

29 Market Economy An economy with no government involvement in economic decisions. Decisions are made by individuals and businesses.

30 Traditional Economy An economy where economic decisions are based on cultural or religious practices and ideals.

31 SWOT Analysis Strengths Weaknesses Opportunities Threats
This is everything that can foster a business’s success and also what could make it fail!

32 Goods and services purchased from other countries and brought “in” to our country are:

33 Goods and services produced in our country and sold to other countries are :

34 Trade Deficit When a country has more imports than exports

35 Trade Surplus When a country has more exports than imports

36 ROI Return on Investment Also known as PROFIT
A calculation that is used to determine the relative profitability of a product ROI = Profit / Investment

37 Price Is the value placed on a product (in money or its equivalent).
Example: in Newsies when the two newspapers set the price the same.

38 Break-Even Point The point at which sales revenue equals the costs and expenses of making and distributing a product

39 Prestige Pricing Sets higher-than-average prices to suggest status and high quality to the consumer Many customers assume that higher prices mean better quality

40 Everyday Low Pricing Low prices set on a consistent basis with no intention of raising them or offering discounts in the future.

41 Price Lining Special pricing technique that sets a limited number of prices for specific groups or lines of merchandise. For Example: All dress shirts in a store are $25, $35, and $50 -- representing Low, Medium, and High quality items.

42 Bundle Pricing When a company offers several complementary products in a package for a single price.

43 Price Fixing Occurs when competitors agree on certain price ranges within which they set their prices. IT IS ILLEGAL! Example: in Newsies when the two newspapers set the price the same.

44 Markup Cost + Markup = Retail Price Retail Price – Markup = Cost
Retail Price – Cost = Markup

45 Marketing Research Involves the process and methods used to gather information, analyze, it and report findings related to marketing goods and services Primary Data Obtained for the first time and used specifically for the particular problem being studied Secondary Data Already been collected for some other reason

46 Ethics Guidelines for good behavior
Based on knowing the difference between right and wrong—and is doing what is right!! Ethical behavior takes into account the well-being of everyone.

47 Forms of Business Ownership
Sole Proprietorship Partnership Corporation LLC (Limited Liability Company)

48 Image The way the public views or perceives a company.

49 Product Life Cycle Maturity Stage Growth Stage –New !!! Decline Stage
$$ spent on fighting off competitors Growth Stage –New !!! Decline Stage Product mix strategies – “Compare & Save” Offer more than competition Introduction Stage Least profitable

50 Introduction Stage Company works to increase sales by building product awareness Least profitable stage

51 Growth Stage The product is enjoying success
Increasing sales and profits Advertising may now focus on customer satisfaction rather than product benefits May introduce new models

52 Maturity Stage Sales level off or slow down
Most of the target market now owns the product Company must decide whether it can continue to improve the product to gain additional sales

53 Decline Stage Sales fall Profits decrease
Company must decide if it can continue to support the product Drop it Use other product mix strategies Discounting it Modernizing it Altering it

54 Types of Advertising Media
Print Broadcast Specialty

55 Print Media Newspapers Magazines Direct Mailings Directories
Outdoor (billboards) Transit

56 Broadcast Media TV Radio Online

57 Specialty Media Magnets Pens Lanyards Skywriting Blimps Etc.


59 Trade Promotions Designed to get support for a product from manufacturers, wholesalers, and retailers Promotional Allowances Cooperative Ads Slotting Allowances Sales Force Promotion Trade Shows and Conventions

60 Consumer Promotion Types
Encourage consumers to buy a product or service Point of Purchase Displays (POP) Coupons Loyalty Programs Premiums (free items) Incentives (contests, drawings, sweepstakes, etc.)

61 Basic Management Functions
Planning Staffing the Team Developing a Plan Organizing Delegating Directing Work Establish Relationships Controlling Determine the project’s effectiveness

62 Credit Terms 2/10 Net 30 2% discount if paid in full within 10 days
Full payment is expected in 30 days

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