2 What is Marketing?Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
3 Obvious Marketing Activities That You Take Part In: See or hear advertisementsSee the brand names of productsRead product description on websiteInteract with salespeople
4 Not So Obvious Marketing Activities: Storing products in warehousesDistributing productsEstablishing and accepting creditArranging for online paymentGathering of data on consumer needs
5 Marketing Businesses Advertising agencies Marketing research firms Transportation companiesShipping and delivery companiesFinancial services companies
6 Marketing Functions Marketing Functions Marketing Information ManagementFinancingPricingPromotionProduct/Service ManagementDistributionSelling
7 Product/Service Management Designing, developing, maintaining, improving, and acquiring products and services that meet consumer needs.
8 DistributionDetermining the best ways for customers to locate, obtain, and use the products and services of an organizationCareful shipping, handling, and storing of products are needed for effective distribution
9 SellingCommunicating directly with potential customers to determine and satisfy their needs.Selling can be face to face or by using a telephone or other technology
10 Marketing- Information Management Obtaining, managing, and using market information to improve business decision-making and the performance of marketing activities.Includes marketing research and the development of databases with information about products, customers, and competitors.
11 FinancingBudgeting for marketing activities, obtaining the necessary funds needed for operations, and providing financial assistance to customers so they can purchase the product.
12 PricingThe setting and communicating of the value of products and services.Prices must be set low enough that customers are willing to pay but high enough that the business makes a profit.
13 PromotionThe communicating of information about products and services to potential customers.Advertising and other promotional methods are used to encourage consumers to buy.Advertising may occur in a variety of ways:TelevisionNewspaperMagazineRadioDirect Mailinternet
14 Marketing StrategyMarketing strategy is a company’s plan that identifies how it will use marketing to satisfy customer needs better than competitors do, resulting in sales and profit.
15 Marketing Strategy: A 2-Step Process Identify Target MarketCreate a Marketing MixA blend of four marketing elements:ProductPricePromotionPlace**A successful marketing mix satisfies the wants and needs of the target market and provides a profit for the company****A specific group of consumers that have similar wants and needsFocusing on a target market makes it easier to develop products and services that those customers want
17 Marketing Orientation Businesses do not assume they know what customers want.Use research to study customers and their needsResults in marketing mix designed to satisfy customer needs
18 Two Types of Customers Final Customer Business Customer Persons who buy products and services for their own usePersons, companies, and organizations that buy products for the operation of a business, for incorporation into other products and services, or for resale to their customers.
19 Consumer Decision Making Process Recognize a needGather informationSelect and evaluate alternativesMake a purchase decisionDetermine the effectiveness of the decision
20 Rational buying motive Emotional buying motive Buying MotivesRational buying motiveEmotional buying motiveGuided by facts and logicEx: Choosing a college or buying the most cost effective carReasons to purchase based on feelings, beliefs, and attitudes.Ex: buying a Valentine’s Day card or a security system for you home