Presentation on theme: "Marketing has two main functions: 1)help a business determine its target market 2)give consumers what they want Marketing Function – Questions? Who will."— Presentation transcript:
Marketing has two main functions: 1)help a business determine its target market 2)give consumers what they want Marketing Function – Questions? Who will buy this product? When do they want to buy? Where do they buy? Why do they buy? Functions of Marketing
Target Market: a group of consumers the business wants to reach. Market Research: the gathering and analyzing of data to provide a business with information on consumer needs and wants. Marketing Mix: product, promotion, place and price.
The Marketing Mix Product: not just the product/service, also includes product/service’s name, product’s packaging and labeling and it’s guarantees. Brand Name: word(s), number(s), letter(s) of any combination that are used to identify a product/service. Trademarks: Visual elements (logo, symbol, other designs) that are registered so no one else can use them)
The Marketing Mix Packaging: container/wrapper (c/w) for a product, the design of the c/w and information printed on the c/w. - packaging must protect the product but also attract the attention of the consumer Labeling: part of packaging that provides the information about the product (i.e. ingredients). Labels in Canada must be printed in both French and English
The Marketing Mix Pricing: some businesses price their products/services low to sell more. Others price them high to make more profit but with fewer sales. - businesses need to constantly monitor their competitors prices compared to theirs
The Marketing Mix Place: where a company sells its products Channel of Distribution: path a product takes from the manufacturer to the final consumer. Wholesaler: buy goods and sell them to other businesses. Usually buy in bulk and sell them in smaller quantities to retailers. Retailer pays less buying from a wholesaler vs. directly from manufacturer.
The Marketing Mix Retailer: sell goods directly to consumer. They can be big like Home Depot or as small as a hotdog cart. manufacturers fight for “good” shelf space (particularly ones that are at eye level)
Four Most Common Channels of Distribution 1) Manufacturer Consumer craftspeople, small farmers, internet companies 2) Manufacturer Independent Distributor Consumer door-to-door companies like Avon 3) Manufacturer Retailer Consumer cars, furniture, clothing sales 4) Manufacturer Wholesaler Retailer Consumer Groceries, pharmaceuticals, cosmetics
The Marketing Mix Promotion: informs consumers about a product/service and encourages them to buy it. Involves personal selling, sales promotion, publicity, public relations and advertising Personal Selling: one-to-one communication of information that tries to persuade a customer to buy a good/service (i.e. sales people in a shoe store)
The marketing mix AIDA: Formula used to train sales people Attract attention (by generating curiosity about the product) Hold interest (so they can explain the benefits of the product) Arouse desire (creates desire in you to buy the product) Take action( Close the sale when they have your interest)
The Marketing Mix Sales Promotion: all the activities designed to stimulate you to buy (i.e. free samples, discount coupons, rebates, in-store displays and demonstrations and contests). - i.e. find a product priced cheaper at a competitor and they will match it
The Marketing Mix Public Relations: all the activities by which a business tries to maintain its good reputation and promote good will with the public (i.e. involvement with charities) Publicity: act of bringing company activities to the attention of the public. It is neither controlled or bought by the company, it can be good or bad (i.e. polluting a town’s drinking water).
The Marketing Mix Advertising: any paid use by an advertiser to inform a target market about a product/service/idea/organization. The message can be oral/visual/combination of both Advertising has three main objectives i) Inform ii) Persuade iii) Remind
Advertising Types of Media Newspapers, magazines, radio, television, internet, direct mail, outdoor advertising