Marketing Basics Chapter 10-1
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.
Obvious Marketing Activities That You Take Part In:
See or hear advertisements See the brand names of products Read product description on website Interact with salespeople
Not So Obvious Marketing Activities:
Storing products in warehouses Distributing products Establishing and accepting credit Arranging for online payment Gathering of data on consumer needs
Marketing Businesses Advertising agencies Marketing research firms
Transportation companies Shipping and delivery companies Financial services companies
Marketing Functions Marketing Functions
Marketing Information Management Financing Pricing Promotion Product/Service Management Distribution Selling
Designing, developing, maintaining, improving, and acquiring products and services that meet consumer needs.
Distribution Determining the best ways for customers to locate, obtain, and use the products and services of an organization Careful shipping, handling, and storing of products are needed for effective distribution
Selling Communicating directly with potential customers to determine and satisfy their needs. Selling can be face to face or by using a telephone or other technology
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.
Financing Budgeting for marketing activities, obtaining the necessary funds needed for operations, and providing financial assistance to customers so they can purchase the product.
Pricing The 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.
Promotion The 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: Television Newspaper Magazine Radio Direct Mail internet
Marketing Strategy Marketing 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.
Marketing Strategy: A 2-Step Process
Identify Target Market Create a Marketing Mix A blend of four marketing elements: Product Price Promotion Place **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 needs Focusing on a target market makes it easier to develop products and services that those customers want
Businesses do not assume they know what customers want. Use research to study customers and their needs Results in marketing mix designed to satisfy customer needs
Two Types of Customers Final Customer Business Customer
Persons who buy products and services for their own use Persons, 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.
Consumer Decision Making Process
Recognize a need Gather information Select and evaluate alternatives Make a purchase decision Determine the effectiveness of the decision
Rational buying motive Emotional buying motive
Buying Motives Rational buying motive Emotional buying motive Guided by facts and logic Ex: Choosing a college or buying the most cost effective car Reasons to purchase based on feelings, beliefs, and attitudes. Ex: buying a Valentine’s Day card or a security system for you home
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