By the time you finish this unit you should be able to: Identify the activities that make up marketing Describe the modifications made to goods and services to adapt to the cultures of other countries Identify the challenges of marketing globally Understand the importance of consumer expectations globally Understand strategies of entering foreign markets
Marketing Is the sum total of all the activities involved in getting goods and services from the original producer to the ultimate consumer. It includes activities such as: market research, product development, pricing, advertising and promotion, sales and logistics.
Marketing’s main purpose: Is to sell the output of production, and all marketing activities mentioned focus entirely on this goal.
Marketing Research Research helps find or collect data to help solve marketing problems. Questions and concerns such as: 1.Where do I source my materials? 2.What will people buy? What do they like? 3.What do they need? 4.Should I advertise? If yes, then HOW and WHERE? 5.Where will I sell my products? 6.Who else is making similar products/services?
Secondary Data Some of the data that you do collect can be from outside sources by others such as Statistics Canada. Statistics Canada provides profiles for hundreds of communities across Canada including information about age, marital status, languages spoken, religious practices, labour data, educational statistics and other demographic data.
Secondary data can also be collected from: The phone book (yellow pages) The internet (websites) Magazines Companies that specialize in collecting data Most data however is usually collected by the company itself, known as Primary Data. You can pay a Market Research firm to help you collect primary data
Product Development Your research data helps a business determine the design of the product, the materials to be used and the packaging and labelling of the finished pieces. The market usually gives you hints on what it wants, however, the final product consists of your ideas and your uniqueness of what you think the market needs and or wants. E.g. Coca Cola is a unique product based on product development that was designed for curing peoples’ ailments. Turned into the most popular drink in the world.
Product development is a costly process, so understanding the market is necessary to be successful, especially in foreign markets.
Pricing A business needs to make a profit on every unit it sells. That is the bottom line of every business. Much of the cost of any product/services is the human cost of producing it. When pricing a product you need to consider the price that will comfortably outweigh all of your expenses in producing it.
Advertising and Promotion Convincing your customers that your product is worth the price. Convincing your customers that your product is a benefit to fulfill a need and or want. An ad outlines the features and benefits of the product such as: 1.Unique design 2.CSR 3.Where it’s made 4.The quality compared to the competition
Forms of Advertising TV Radio Magazines Newspaper Billboards Internet
Sales The success of your marketing can be seen in your Sales figures at the end of each year. Sales figures can help a business determine the best way to sell to its customers e.g. 1.Open your own stores 2.Sell to retailers 3.Sell online 4.Sell at trade shows
Logistics Is the management of the flow of goods and services both into and out of an organizations. It consists of : Transportation Inventory management Warehousing and storage Packaging