Presentation on theme: "Marketing Final Review"— Presentation transcript:
1Marketing Final Review Courtesy of Mrs. Whittekiend
2Define Marketing:The process of planning, pricing, promoting, selling, and distributing products to satisfy customer’s needs and wants.
3What is a Market?People who share similar needs and wants and are capable of buying products.
4What is a Market Share?A company’s percentage of total sales volume generated by all competition in a given market.
5Define Market Segmentation: The process of analyzing and classifying customers in a given market to create smaller, more precise target markets.
6Demographics include: age, gender, income, marital status, ethnic background Geographics include: based on where people live, weather, recreation in the areaPsychographics include: activities, attitudes, personalities, valuesBehavioral include: shopping patterns and purchase decision making process, benefits of the product.
7The Marketing Mix includes the four basic marketing strategies called the Four P’s. What are the Four P’s?ProductPlacePricePromotion
8Define Promotional Mix: The combination of strategies used to effectively promote and sell a product.
9What is the difference between a Good and a Service? Goods: tangible items of monetary value that satisfy needs and wantsServices: intangible items of monetary value that satisfy needs and wants
10Competition is described as: The struggle between companies to attract new customers, keep existing customers, and take customers away from other companies.
11The Channel of Distribution is the path a product takes from its producer or manufacturer to the final user.
14Functions 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 businessMarketing Information Management:Gathering information about customers, storing it, and analyzing it
15Functions of Marketing con’t. Pricing:Deciding how much to charge for products in order to make a profitProduct/Service Management:Obtaining, developing, maintaining, and improving a product mix in response to market opportunitiesPromotion:To inform, remind, or persuade a potential customers about a businesses’ goods or servicesSelling:Providing customers with the goods or services they want to buy
16UtilityThe attributes of a good or service that make it capable of satisfying consumers’ wants and needs.
17Utility Form Place Time Possession Information Taking things of little value and putting them together in a way that makes them valuablePlaceHaving a product where consumers can buy itTimeHaving a product available at a certain time of year or a convenient time of dayPossessionThe exchange of $$$ for a productInformationCommunication with the customer (sales people, packaging, advertising, labels, manuals, etc.)
18Seven Steps of the Sales Process ApproachDetermining NeedsPresenting the ProductOvercoming ObjectionsClosing the SaleSuggestion SellingRelationship Building/Follow-up
19Closing the Sale Methods for Closing the Sale Which—”Which one do you prefer?”Standing room only—use when the product is in short supplyDirect—use when the buying signal is very strongService—explain services to overcome obstacles
20Pre-ApproachThis is preparation for the first face-to-face encounter you will have with potential customers
21Suggestion SellingSelling additional goods or services to the customer that will make the original purchase more enjoyable
22Overcoming Objections Remember objections are concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchaseNeedProductPriceSourceTime
23Law of DemandAs the price of a good increases, the quantity demanded decreases (falls)The demand curve rises from the right to the left.
24Law of SupplyAs the price of a good increases, the quantity supplied usually increases.The supply curve rises from the left to the right.
26Factors of ProductionAll of the resources used in producing goods and servicesLandLaborCapitalEntrepreneurship
27Command EconomyAn economy in which the government controls the factors of production and makes all decisions about their use.
28Mixed EconomyAn economy in which economic decisions are made by the government, individuals, and businesses.
29Market EconomyAn economy with no government involvement in economic decisions. Decisions are made by individuals and businesses.
30Traditional EconomyAn economy where economic decisions are based on cultural or religious practices and ideals.
31SWOT Analysis Strengths Weaknesses Opportunities Threats This is everything that can foster a business’s success and also what could make it fail!
32Goods and services purchased from other countries and brought “in” to our country are: IMPORTS
33Goods and services produced in our country and sold to other countries are : EXPORTS
34Trade DeficitWhen a country has more imports than exports
35Trade SurplusWhen a country has more exports than imports
36ROI Return on Investment Also known as PROFIT A calculation that is used to determine the relative profitability of a productROI = Profit / Investment
37Price Is the value placed on a product (in money or its equivalent). Example: in Newsies when the two newspapers set the price the same.
38Break-Even PointThe point at which sales revenue equals the costs and expenses of making and distributing a product
39Prestige PricingSets higher-than-average prices to suggest status and high quality to the consumerMany customers assume that higher prices mean better quality
40Everyday Low PricingLow prices set on a consistent basis with no intention of raising them or offering discounts in the future.
41Price LiningSpecial 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.
42Bundle PricingWhen a company offers several complementary products in a package for a single price.
43Price FixingOccurs 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.
45Marketing ResearchInvolves the process and methods used to gather information, analyze, it and report findings related to marketing goods and servicesPrimary DataObtained for the first time and used specifically for the particular problem being studiedSecondary DataAlready been collected for some other reason
46Ethics 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.
47Forms of Business Ownership Sole ProprietorshipPartnershipCorporationLLC (Limited Liability Company)
48ImageThe way the public views or perceives a company.
49Product Life Cycle Maturity Stage Growth Stage –New !!! Decline Stage $$ spent on fighting off competitorsGrowth Stage –New !!!Decline StageProduct mix strategies – “Compare & Save”Offer more than competitionIntroduction StageLeast profitable
50Introduction StageCompany works to increase sales by building product awarenessLeast profitable stage
51Growth Stage The product is enjoying success Increasing sales and profitsAdvertising may now focus on customer satisfaction rather than product benefitsMay introduce new models
52Maturity Stage Sales level off or slow down Most of the target market now owns the productCompany must decide whether it can continue to improve the product to gain additional sales
53Decline Stage Sales fall Profits decrease Company must decide if it can continue to support the productDrop itUse other product mix strategiesDiscounting itModernizing itAltering it
54Types of Advertising Media PrintBroadcastSpecialty
55Print Media Newspapers Magazines Direct Mailings Directories Outdoor (billboards)Transit
59Trade PromotionsDesigned to get support for a product from manufacturers, wholesalers, and retailersPromotional AllowancesCooperative AdsSlotting AllowancesSales Force PromotionTrade Shows and Conventions
60Consumer Promotion Types Encourage consumers to buy a product or servicePoint of Purchase Displays (POP)CouponsLoyalty ProgramsPremiums (free items)Incentives (contests, drawings, sweepstakes, etc.)
61Basic Management Functions PlanningStaffing the TeamDeveloping a PlanOrganizingDelegatingDirecting WorkEstablish RelationshipsControllingDetermine the project’s effectiveness
62Credit Terms 2/10 Net 30 2% discount if paid in full within 10 days Full payment is expected in 30 days