INTRODUCTION TO MARKETING

BMI3C Unit 1 Slide 2 Introduction to Marketing BRAINSTORM What do you think of when you hear the word MARKETING?

BMI3C Unit 1 Slide 3 What is Marketing? Marketing is the sum of all the activities involved in planning, pricing, promoting, distributing, and selling of goods and services to satisfy consumers’ needs and wants.

BMI3C Unit 1 Slide 4 What is Marketing? Marketing seeks to discover the needs and wants of prospective customers; and satisfy them.

BMI3C Unit 1 Slide 5 What is Marketing? The key to achieving these two objectives is the idea of exchange: the trade of things of value between buyer and seller so that each is better off after the trade.

BMI3C Unit 1 Slide 6 AN EXAMPLE ME: Hungry McD: Needs to sell food ME: Buy food McD: Makes money

Requirements for Marketing to Occur

BMI3C Unit 1 Slide 8 Requirements for Marketing Two or more parties with unsatisfied needs I need of food, McD was in need of selling food in order to make money

BMI3C Unit 1 Slide 9 Requirements for Marketing Desire and ability to satisfy those needs I want to curb my hunger and have money, McD has food and a way for me to purchase it from them

BMI3C Unit 1 Slide 10 Requirements for Marketing A way for the parties to communicate I watch TV, McD advertises its products on TV I receive mail, McD sends out coupons

BMI3C Unit 1 Slide 11 Requirements for Marketing Something to exchange I have money, McD has food

BMI3C Unit 1 Slide 12 Environ- mental Factors: Uncontrollable Marketing Mix: Controllable Factors consumer product promotion placeprice regulatory social competitive economic technological

THE EVOLUTION OF MARKETING How did we get here?

BMI3C Unit 1 Slide 14 Evolution of Marketing How did we get here? The Production Era The Sales Era The Marketing Concept Era The Marketing Orientation Era

BMI3C Unit 1 Slide 15 HOMEWORK 1.Handout: “Big Boxes Squeeze Out Little Guys” Read and answer questions, due tomorrow. 2.Illustrate the concept of “requirements for marketing to occur” with your own example.

BMI3C Unit 1 Slide 16 DILBERT What’s wrong with the Pointy- Haired Boss’s suggestion?

Needs & Wants

BMI3C Unit 1 Slide 18 NEEDS vs. WANTS A need occurs when a person feels deprived of basic necessities (food, drink, shelter) A want is a need that is shaped by a person’s knowledge, culture, and personality

BMI3C Unit 1 Slide 19 NEEDS vs. WANTS If you are hungry, you have a basic desire or need to eat. Based on your past experience with hunger, you may want a chocolate bar or apple. NEED food WANT apple

BMI3C Unit 1 Slide 20 NEED or WANT? water warmth sandwich CK One air Tommy Hilfiger

BMI3C Unit 1 Slide 21 What is a Market? A market is a group of people with a desire to purchase a product and the ability or means to do so.

BMI3C Unit 1 Slide 22 What is a Target Market? A target market is a group of potential customers to whom an organization directs its marketing program EXAMPLES: teens, parents, seniors, extremely wealthy, etc.

Who Markets?

BMI3C Unit 1 Slide 24 Who Markets? All organizations, and many individuals, including: Manufacturers market their products to potential customers

BMI3C Unit 1 Slide 25 Who Markets? Service Businesses market their expertise to potential customers

BMI3C Unit 1 Slide 26 Who Markets? Not-for-profit Organizations market their cause to potential donors

BMI3C Unit 1 Slide 27 Who Markets? Politicians market their ideas to potential voters

BMI3C Unit 1 Slide 28 Who Markets? Job applicants market their skills to potential employers

BMI3C Unit 1 Slide 29 HOMEWORK Think of some others! WHO MARKETS? List five more groups/individuals who market, whom they market to, and what they market

The 4 Ps and 2 Cs or “The Marketing Mix and the 2 Cs”

BMI3C Unit 1 Slide 31 The 4 Ps and 2 Cs product price place promotion consumer competition

BMI3C Unit 1 Slide 32 The 4 Ps and 2 Cs product price place promotion consumer competition The product is a good, service, or idea to satisfy the consumer’s needs. Examples?

BMI3C Unit 1 Slide 33 The 4 Ps and 2 Cs product price place promotion consumer competition The price is what is exchanged for the product, usually money.

BMI3C Unit 1 Slide 34 The 4 Ps and 2 Cs product price place promotion consumer competition The place is a means of getting the product into the consumer’s hands. Examples?

BMI3C Unit 1 Slide 35 The 4 Ps and 2 Cs product price place promotion consumer competition Promotion is the means of communica-tion used by the seller to inform the buyer. Examples?

BMI3C Unit 1 Slide 36 The 4 Ps and 2 Cs product price place promotion consumer competition The consumer is the individual or group of individuals who may purchase your product.

BMI3C Unit 1 Slide 37 The 4 Ps and 2 Cs product price place promotion consumer competition The competition is other firms that could provide a product similar to yours. Who competes with Nike? Pepsi? McDonalds? Ford?

The Marketing Mix Worksheet

VIDEO: Famous Amos Watch the video, write down examples of the 4 Ps WARNING! This video contains extreme eighties hairstyles! Viewer discretion is advised.

Goods & Services The Stuff that gets sold

BMI3C Unit 1 Slide 41 Goods & Services Read pages 4 to 7 in the textbook and create a chart defining the key terms. TermDefinitionExamples

BMI3C Unit 1 Slide 42 Goods & Services Key terms: industrial goods raw materials processed goods finished goods consumer goods industrial service consumer service When finished, take and complete worksheet, to take up tomorrow.

Marketing Mix gets the taste test Newspaper article

Marketing Strategies

BMI3C Unit 1 Slide 45 Marketing Strategies A strategy is a method to carry out an action plan to reach a goal. A marketing strategy explains how a company will carry out the marketing plan, the marketing goals, and the marketing mix formula to achieve those goals.

BMI3C Unit 1 Slide 46 Marketing Strategies The Marketing Plan contains: a section outlining marketing goals of the business target market(s) a list of as many competitors as possible

BMI3C Unit 1 Slide 47 Marketing Strategies The Marketing Plan contains: a research section, with a plan for gathering and analysing info how the product will be positioned, with rationale pricing strategy

BMI3C Unit 1 Slide 48 Marketing Strategies The Marketing Plan contains: distribution channels & logistics promotional and advertising proposal

BMI3C Unit 1 Slide 49 Marketing Strategies Brand strategies The primary goal is to communicate the value of a product or service to the consumer. value = - perceived benefit perceived cost

BMI3C Unit 1 Slide 50 Marketing Strategies Brand strategies see example on page 26 attempts to position the product or service by creating a positive value equation in the consumer’s mind.

BMI3C Unit 1 Slide 51 Marketing Strategies Distribution strategies Focus on the best way to deliver a product/service to the target market. MANUFACTURERRETAILERCONSUMER

BMI3C Unit 1 Slide 52 Marketing Strategies Distribution strategies PUSH: “If the product is out there where people will see it, they will buy it.” focus on selling the good to the retailer, importer or wholesaler

BMI3C Unit 1 Slide 53 Marketing Strategies Distribution strategies incentives, promotions, product display case offered in exchange for product placement The manufacturer needs to push the product through the chain

BMI3C Unit 1 Slide 54 Marketing Strategies Distribution strategies PULL: “increase distribution by increasing consumer demand” focus is on selling the good to the consumer

BMI3C Unit 1 Slide 55 Marketing Strategies Distribution strategies convince consumers that they need the product, and that specific brand requires a strong advertising and promotions campaign

BMI3C Unit 1 Slide 56 Marketing Strategies Distribution strategies The pull strategy is difficult to use alone, the push strategy can be. Most strategies use a combination of the two.

How Consumers Benefit

BMI3C Unit 1 Slide 58 How Consumers Benefit Marketing creates utility, the benefits or value the customer receives from using the product.

BMI3C Unit 1 Slide 59 How Consumers Benefit Form utility the good or service is created for the consumer Place utility the good or service is available where the consumer needs it

BMI3C Unit 1 Slide 60 How Consumers Benefit Time utility the product is available when the user needs it Possession utility the product is easily obtainable by the consumer

BMI3C Unit 1 Slide 61 QUESTIONS What consumer wants or benefits are met by the following products or services? (a) Carnation Instant Breakfast, (b) Adidas running shoes, (c) Hertz Rent-A-Car, and (d) television shopping programs.

BMI3C Unit 1 Slide 62 QUESTIONS Each product has substitutes. Respective examples are (a) ham and eggs, (b) no-name running shoes, (c) taking a bus, and (d) department store. What benefits might these substitutes have that some consumers might value more highly?