Presentation on theme: "Marketing Final Review"— Presentation transcript:
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 areaPsychographics include: activities, attitudes, personalities, valuesBehavioral 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?ProductPlacePricePromotion
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 wantsServices: 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.
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 businessMarketing 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 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
16 UtilityThe 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 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.)
18 Seven Steps of the Sales Process ApproachDetermining NeedsPresenting the ProductOvercoming ObjectionsClosing the SaleSuggestion SellingRelationship 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 supplyDirect—use when the buying signal is very strongService—explain services to overcome obstacles
20 Pre-ApproachThis is preparation for the first face-to-face encounter you will have with potential customers
21 Suggestion SellingSelling 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 purchaseNeedProductPriceSourceTime
23 Law of DemandAs the price of a good increases, the quantity demanded decreases (falls)The demand curve rises from the right to the left.
24 Law of SupplyAs the price of a good increases, the quantity supplied usually increases.The supply curve rises from the left to the right.
26 Factors of ProductionAll of the resources used in producing goods and servicesLandLaborCapitalEntrepreneurship
27 Command EconomyAn economy in which the government controls the factors of production and makes all decisions about their use.
28 Mixed EconomyAn economy in which economic decisions are made by the government, individuals, and businesses.
29 Market EconomyAn economy with no government involvement in economic decisions. Decisions are made by individuals and businesses.
30 Traditional EconomyAn 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: IMPORTS
33 Goods and services produced in our country and sold to other countries are : EXPORTS
34 Trade DeficitWhen a country has more imports than exports
35 Trade SurplusWhen 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 productROI = 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 PointThe point at which sales revenue equals the costs and expenses of making and distributing a product
39 Prestige PricingSets higher-than-average prices to suggest status and high quality to the consumerMany customers assume that higher prices mean better quality
40 Everyday Low PricingLow prices set on a consistent basis with no intention of raising them or offering discounts in the future.
41 Price 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.
42 Bundle PricingWhen a company offers several complementary products in a package for a single price.
43 Price 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.
45 Marketing 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
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 ProprietorshipPartnershipCorporationLLC (Limited Liability Company)
48 ImageThe way the public views or perceives a company.
49 Product 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
50 Introduction StageCompany works to increase sales by building product awarenessLeast profitable stage
51 Growth Stage The product is enjoying success Increasing sales and profitsAdvertising may now focus on customer satisfaction rather than product benefitsMay introduce new models
52 Maturity 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
53 Decline Stage Sales fall Profits decrease Company must decide if it can continue to support the productDrop itUse other product mix strategiesDiscounting itModernizing itAltering it
54 Types of Advertising Media PrintBroadcastSpecialty
55 Print Media Newspapers Magazines Direct Mailings Directories Outdoor (billboards)Transit
59 Trade PromotionsDesigned to get support for a product from manufacturers, wholesalers, and retailersPromotional AllowancesCooperative AdsSlotting AllowancesSales Force PromotionTrade Shows and Conventions
60 Consumer Promotion Types Encourage consumers to buy a product or servicePoint of Purchase Displays (POP)CouponsLoyalty ProgramsPremiums (free items)Incentives (contests, drawings, sweepstakes, etc.)
61 Basic Management Functions PlanningStaffing the TeamDeveloping a PlanOrganizingDelegatingDirecting WorkEstablish RelationshipsControllingDetermine 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